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The decline in the auto market continues, with more than 80% of automakers being caught in the cold. Strong people such as Volkswagen and General Motors have to digest their stocks and resist the cold through “internal pricesâ€.
In the ordinary joint venture brand (excluding luxury cars), only Toyota and Honda were not knocked down by the cold current. In April, when the industry fell 17.8% overall, Toyota and Honda rose 19.9% ​​and 24% respectively. In the first four months of this year, three of Toyota and Honda’s four joint ventures in China have achieved sales growth of more than 10%.
Why are Toyota and Honda so resistant? Why did the public, who also caught up with the product year, fail to continue to grow? The same is the Mazda of the Japanese car, why can't you copy the toughness of Toyota and Honda to cope with the cold winter? As the car market deepens, more and more car companies are beginning to study these issues.
A person from Dongfeng Honda replied: "There is a crisis almost every four years. Our entire system is always very tight, so when this winter is coming, the city feels less nervous."
This may be one of the reasons. In the past 10 years when other car companies have fully enjoyed the high growth dividend of China's auto market, Toyota and Honda have experienced at least three times of the overall crisis of Japanese cars, and one large-scale single crisis, and frequent rehearsals have made them more mature. System capabilities, as well as strategic strength.
Toyota and Honda also have other companies, especially those that Chinese companies can't match: decades of global experience. The advantage of a global company is that countries that have experienced different cultural backgrounds and different levels of development have more insight into the trend of the single market, and their business policies are more stable and rational. The author believes that the so-called strategic strength is actually derived from the firm's far-reaching judgment on market trends.
Compared with Toyota and Volkswagen, Toyota’s sales in Japan, the United States, China and Europe are relatively close. The largest overseas market in the United States, which accounts for 20% of the global total, is China and Europe. The proportion is about 15%. And Volkswagen's 50% global sales come from China, which means that once China's sales volume falls, Volkswagen's overall business will be greatly affected. A similar situation does not happen to Toyota.
Dongfeng Honda is also a very interesting company. From the beginning of the trip, the author often hears media controversy about the company, and believes that its overly conservative product launch and capacity expansion strategy has caused it to miss the golden period of China's auto market growth.
In fact, Dongfeng Honda is most proud of its "production and sales linkage production system." Before April of this year, Dongfeng Honda built only two complete vehicle factories in China with a total production capacity of 512,000. However, in 2018, Dongfeng Honda approved more than 720,000 units, and the capacity utilization rate exceeded 130%. The quality of operation can be imagined.
In addition, as the production capacity is increased by flexibility, when the market is in a downturn, the factory's low production capacity will not cause the equipment to be idle, layoffs and other "hard injuries", avoiding the imbalance of manufacturing and sales systems. This is also a system for preventing crises.
In the torrent of China's auto market from 1 million to 20 million, only a few auto companies such as Toyota and Honda have not followed the trend. They insist on their own strategies, treat investment with extreme caution, and set reasonable expectations for management. They did miss out on the best expansion period of the explosive growth of the auto market; but when the market fell, their resilience and stability were at a glance.
Of course, in addition to strategy, at the level of "skills", Toyota and Honda have at least four aspects worthy of research: technical trends, product features, terminal price strategies, and dealer management.
Toyota and Honda are the first to introduce hybrid technology in China. The Honda CR-V and Toyota Rayling hybrid models have a fuel consumption of only 4 liters per 100 kilometers in urban conditions. This is very similar to the introduction of TSI+DSG (turbocharged engine and dual-clutch gearbox) by Volkswagen in China 10 years ago, turning the technological advantage into a market advantage in 5-10 years.
Toyota and Honda also have one thing in common, that is, the product has a "not extreme" personality and movement route. As China's aging trend accelerates, it is not a good thing to fully rejuvenate the vehicle product strategy. A combination of ageing trends and youth trends can lead to a wider user base. The reason for the decline in sales for the 12-month period for Mazda, a single-sports route, is the same.
What is more worthy of attention is the dealer management policy and the resulting impact on the terminal price.
"We are all in a sense of crisis now, and we are afraid of becoming Beijing Hyundai. It is not an era of individual products. The resilience of the brand is more important." In the gap between the writings, a joint venture insider sent the author to the author. This passage.
The joint venture also maintains a sales volume of one million units, but the price of its products is a large discount. The result of a sharp price hike is that sales continue to fall.
In contrast, the models sold last year, regardless of Lexus ES, Dongfeng Honda Civic, their commonality is price stability. In the compact car market, Civic is the only model with a terminal discount of only 5,000 yuan, but a monthly sales of 20,000. Other terminal offers such as Nissan Sylphy and Buick Hideo exceeded 30,000 yuan (the British lang actually offered more than 40,000 yuan).
Stable price means that the interests of consumers will not be seriously harmed in a short period of time, and it is also a guarantee of the preservation rate. The reason behind the collapse of the price system is that the management policy of the OEM is “wolf†or “Buddhaâ€.
As early as 2015, Dongfeng Honda and GAC Toyota canceled the dealer's annual indicator and issued indicators according to the dealer's rolling sales ability and inventory. The dealers have no inventory pressure and the price is stable, which enhances the customer's purchasing confidence. This is a positive loop.
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