BYD price shock shakes other car companies temporarily wait and see

BYD recently announced its first official price cut over five years for its five main models, with a maximum reduction of 15,000 yuan. This is the first time that BYD Motor has announced a price cut in three years, which has had a certain impact and shock on the domestic auto market.

On February 21, the relevant person responsible for sales of BYD Company told reporters that since the implementation of the company for three days, BYD received a call and personally went to the store to consult customers. The popularity of the 4S shop in Wangwang has played a considerable role in improving sales.

According to the source, the price reduction is a large-scale official price cut and will continue. The company has established a price reduction template and will not raise prices again. Since entering 2011, according to the latest statistics from the China Association of Automobile Manufacturers, the cancellation of policies such as purchase tax concessions has begun to affect the sales of low-emission vehicles. In January, the sales volume of passenger vehicles with 1.6 liters or less of displacement was 1,071,100 units, a year-on-year increase of 14.67% and a growth of 16.50% from the previous quarter, which was 1.5 and 0.34 percentage points lower than the sales growth of passenger vehicles. Compared with the previous month, Geely and Changan Ford declined slightly.

"At present, except for models like LaVida and Golf, they are still in short supply. Most other models have already reached the state of 'supply exceeding demand'." According to an independent brand sales manager in East China, the Shanghai Securities News revealed. "But the company has not received notification of price cuts so far."

According to a survey conducted by the reporter, taking Dongfeng Citroen Hangzhou as an example, in December last year, the sales of a certain model reached 200 vehicles, but recently only 20 vehicles, and the consequences of sales advance overdrafts are gradually emerging. Companies that use the 1.6L small-displacement model as the main model are gradually entering the "winter period." By March and April of this year, it is possible to enter even more difficult situations. However, at present, various car companies are in a wait-and-see period and have not yet determined to use price cuts to boost the market.

This reporter learned that car companies will carry out a variety of ways to help themselves. According to an automotive market observer, car companies can go deep into third- and fourth-tier cities and other potential markets. In addition, they can adopt new models to seize the market and promote sales.

“We will use a combination of online and offline methods, such as network promotion activities, new car naming activities, etc.” According to an insider who BYD is responsible for sales, he explained to reporters, “All marketing strategies are to achieve In 2011, the company's sales growth goal of 15%, this increase will be consistent with the average growth rate of domestic cars.