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Saturday, May 2, 2009

Shanghai Auto Show: China's car prices how to crack the "increasing output without increasing income" gridlock

By Professional editor working for frbiz.

Shanghai Xinhua April 21, is the thirteenth session, held in the Shanghai auto demonstrate was examined a forceful strengthen to the confidence of the Chinese automobile market, the principle car exhibition overseer enterprises have organised a good worker car sales this year, more than 10 million views. Optimistic come seal the sales figures in the face of a harsh alive the load is that worker auto production plants how to achieve the "output" targets to strengthen enterprise efficiency synchronous?

Domestic car prices "make the sale less" sign in the first quarter of this year actually began to appear. Association of steam released statistics show that January-March this year, domestic automobile production and sales year-on-year growth of 1.91%, respectively, and 3.88%, but the size of more than two months before the car high total profits are down 50 percent year-on-year. Automobile sales in March, despite continued to get better, but day care is expected to have similar first quarter of this year the focus of 31 listed companies in the automotive industry's net profit fell 14 percent will be synchronized.

Why China's automobile commerce would lead to "increased income" situation? In detail, the statistics in the Steam Society has granted a initial response to the question: by the revitalization design for the buy of little displacement vehicles by half and the "car to the countryside" principle to stimulate the first quarter traveller vehicle sales by 70.7 per hundred of the 1.6 up and the following emission vehicles, particularly cross-type traveller minibus that is created. Analysts sharp out that the mean trading cost of these vehicles in 5 million, while earnings margins were underneath 10% of car-effective assistance rate can not be contrasted with the sales. Seen in this lightweight, the revitalization of the Government's designing and expending assesses to stimulate the rate only for the vehicle to conceive a rudimentary natural environment warmer. China's vehicle charges to accomplish sales capacity and effectiveness of the synchronization recovery, or may depend on their own efforts.

Car prices to income, either from a bicycle to raise the average revenue and cost savings from two aspects. Increase the average yield on a bicycle, the domestic car prices have begun in a conscious efforts to improve product mix. From the auto show, we can see that this year's rate of domestic car makers in particular, on their own brands in the field of high-end efforts to open up very great. As consistent with "civilian car" image that's Chery Automobile, in this show will bring, including Riich, Wei-lin in the high-end brands such as 32, including the show cars, car covers from the senior business micro-car to car quality Six series.

Yin, chairman of Chery Automobile jump in with the new conference after the exchange with the media feel that the current China-made automobiles in the products, technology and foreign companies is getting higher and higher degree of homogeneity, but also the larger the gap between brands. The same quality, why cars "carrot prices to sell the meat"? After all, is a question of value-added brands. Yin and Yue said that the foreign media recently, he asked to buy Volvo chasing, but Chery to consider why they can not build a stronger brand than Volvo?

Specific to the goods, Chery Auto Show in the aim of the introduction of a "smart vehicle digital products" RiichM1, Yin said that with the leap, which is not an upgraded type of QQ. He said that household buyers have a bias on the vehicle that is low-end cars. But, in detail, alike to BMW's Mini Cooper and other vehicle kinds, is furthermore part of the luxury. Chery's aim is to RiichM1 with high-end vehicles in the market place.

On cost savings, the layoffs and wages slashes vehicle charges is apparently not a to blame way, not the genuine outcomes, grade of household vehicles have a better entire solution. SAIC head individual Hu mao yuan in the display on the eve of the Summit Forum on the sign of the "industry should connect hands to surge over the urgent position through" view. For demonstration, he said, for example the Automotive Logistics, a lone vehicle is now utilised in batch mode grade can effortlessly lead to out-of-stocks or the backlog of difficulties, a large influence on cost of sales. In detail, the automotive commerce can discover from the latest tendency world "mashups," the perform of the diverse enterprises, emblem blend, as the identical train to circulation assemblies, in order that to enhance logistics effectiveness and decrease charges are many of good.

R & D in reducing the cost of the domestic car prices are also great room for cooperation. For example, new energy battery technology, various manufacturers have engaged in, in fact, can also be considered together to carry out research in order to reduce the investment and share the results. Hu mao yuan said that to achieve the above-mentioned situation, the need to rate each vehicle to break the traditional concepts and full cooperation is not easy. - 18418

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