Market Competition in a Price War on the Independent Joint Fight Fire

Small cars are also known as the A0-class cars, mini cars and compact as to undertake mid-size car in the middle of the market model has been popular favor. It not only has a flexible micro-compact cars with high fuel economy, but also both on a car’s safety, power and comfortable configuration, combined with the State to promote energy conservation.

From the first joint venture to own brand the brand began to read materials monopoly, A0-class market has been in a growth stage. 2010, the level of the market there have been some changes: the traditional strong competitors losing market advantage, its own brand triumph, in the second half impressive variety of new listing.

Joint venture brand sales increase

This level of broad the Fit, POLO, Yaris, Chevrolet Aveo, Ford Fiesta, Mazda 2, Sri Keda Jing Rui, Suzuki Swift Series models such as joint venture had no substantial growth in sales, joint venture brand-level market though A0 possession of technical advantages, but performance is not satisfactory. Industry analysis, new market and price factors are one of the reasons.

Of course, there are comparatively good performance of the model. New market a new Chevrolet Sail in June 9100 on the good achieved sales of modern Accent, Chevrolet musical styles were also made 8000 and 6800 sales of good results, in the highly competitive market A0-class save joint-venture brands face, but the face of strong independent brands offensive, joint ventures, product and price strategy on timely adjustments in order to cope with the arrival of a new round of competition.

Sales price advantage to help promote their own brands

In the first half of the sales championship A0-class market, accounting for sales of prime location and excellent results in almost the same time fall on its own brand models. Sales of own brand Xiali old champion was won, 14,800 were sold during the first half, long Anyue Xiang, Geely CK, FAW-Wei Chi, the Great Wall were dazzling sales 8300, 6500, 2800, 2500. Behind the Great Wall, JAC has been windy with Wyatt and so these mini-cars or other levels of the independent brands and joint venture brands gradually found a sense of competition.

Li Hongyi, said auto analyst, from the current joint venture brands own brands and competitive strategy point of view, its own brand experience through continuous accumulation of technological upgrading is gradually advancing to a higher level, while the joint venture brand to see changes in the market is a popular car increasingly strong demand, so much downward expansion of the joint venture brand potential, the combination of points just to focus on the middle class A0 models. Technological advantages of joint brand was its own brand within a short time to suppress the price advantage, but the upgrade as the market matures, competition will still fall on the final technical, independent brands is urgent to resolve technical barriers.

The market may be stirring new competitive landscape

Change the face of the first half of the market, some companies will pin their hopes to the new car, new car market stimulus for the obvious.

It is reported that this year’s Beijing auto show in the modern Reina will be available this month as a successor to accent the latest models, Rainer stylish appearance and a wealth of configuration has become the focus of attention by most consumers, the continuation of Elan Special Yue action [Review of Pictures Forum] design style revolutionized the accent of the bloated feeling. While another heavyweight New POLO cars of Shanghai Volkswagen is also expected to market in the second half, the new POLO advanced by the mass production of small cars PQ25 platform, compared to the cash produced PQ24 platform, POLO, Xinyi Dai POLO in body size has received a further expansion of the front and rear increase of 10mm, to further improve handling and ride comfort.

Own brand, outside the famous MG2 may meet with consumers in the second half, it is learned that new car appearance and Chang’an Suzuki Swift, Sri Keda Jing Rui quite similar, with the appearance of European design trends will continue the family characteristics, in other levels Market wonders outstanding service in the MG level in the market or A0 will be staged again with MG2 legend.

Although the A0-class market has been in a peripheral edge of the region, but its impressive sales volume allows firms can not be underestimated. The second half of the new products, while small, but the current market structure inherent in or generated no small impact. On the one hand, the traditional joint venture brand products are strong to snatch the market through price promotions, on the other own brand products are also being accelerated layout, share of market share through price advantage, a relatively stable pattern of a new market Jing is possible to quickly change.

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