Han car sales in China has not been sold in China, and has not improved many years, which seriously affects the global expansion strategy of modern cars, and “front shrinkage” has become the first step in the modern Kia Group.
At the end of last month, there were media reports in China. Modern automobile plans sold the land of Beijing’s first factory to Beijing Shunyi District Government. It is said that the local government will use the modern automotive factory for the new energy automotive enterprise “ideal” automotive factory. The Ideal Car Plan Invested 6 billion yuan before the end of 2022, the ideal car planned Beijing Modern first factory into electric vehicle production base, in 2023, in 2024, industrial output reached 30 billion yuan. It is reported that Beijing modern first factories have been stopped, and the production equipment is also fundamentally aging. In addition to some simple equipment, the rest of the way they do not plan will be removed during the year.
This is a very difficult and persevering practice. After all, Beijing Modern First Factory has made significant contributions to modern cars in China. It is a frontier position of modern cars into the Chinese market. Now Give the local government, including complex entangled emotions.
In those years of entering the Chinese market, Beijing has a high-rise, stable performance and high cost performance, and the sales volume of China’s passenger cars is ranked as “modern speed” in the top ten of China’s passenger car sales. In 2016, it was more than 10,000, and 1140,000 vehicles were achieved. This is also the top peak of modern cars in the Sale of China.
However, the good view is not long. After 2017, Beijing Hyundai car sales will be reduced year by year, and the cliff fell, plus the upper and lower squeezes of virtue, Japanese and domestic cars, although Beijing’s modern sales prices continue to decline, it is the brand power, market Forces and product power, etc., and far behind the competitors, the scenery of the past is not returned, but the suffocation is overweight every day. From 2017 to 2020, Beijing Hyundai sales were 8.16 million, 7.46 million, 70.3 million, 502,000, a year-on-year drop of 27.8%, 8.6%, 5.7% and 28.7%. Even in 2017 in 2017, Beijing has not reached half of the original planning capacity.
At present, Beijing Hyundai, including Chongqing, Zhangzhou, has a total of 1.65 million yuan in planned planning, and 2020 years of modern year sales is only 502,000, which means that its capacity utilization is less than one-third. . According to the data, it is the factory built in China in China. The first factory began in operation in 2002, with an annual production capacity of 300,000, produced Sonata, Elantra, Tu Sheng, Yadi, famous, Rena, etc.
In the first half of 2019, Modern Motors said that due to its sharp decline in sales in the Chinese market, the capacity is serious, and the company suspends its production plan in China’s oldest factory. After selling Beijing Hyundai First Factory, the annual production capacity of modern cars in China will decrease by 20%, from 1.65 million to 1.35 million.
Coincidentally, the previous modern Kia Group another joint venture – Dongfeng Yueda Kia, June 2019 will be the first factory of Ya Yicheng (140,000 annual production capacity) for long-term rental to another shareholder (Yueda Group) used as a joint venture Production of Chinese Express Electric Automotive Factory, the reason is also insufficient sales, overcapacity.
One is the first factory for Dongfeng Yueda Kia, one is the first factory for Beijing, the modern Kia Group can be seen in the dilemma of China.
Along with sales of sales, the modern Kia Group has stopped labor in China, and it is difficult to continue. In recent years, the domestic auto market competition pattern mutation, except that the law car in China is less than 1%, the Korean car (Beijing Hyundai, Dongfeng Yueda) is also fell from 8.1% in 2016 to 3.5%.
The transfer of the first factory in Beijing, which indicates that modern cars take a large-scale structural adjustment in China, and also announced that the implementation of its “front contraction” business strategy, that is, the “Importance of the City” The business model of the usage of the profit margin.
Although selling Beijing Modern First Factory, it is a need for modern cars, but it is also possible to obtain large funds from the sale to help them deal with excess capacity and optimize asset structure, such as reducing loss. In fact, even if the first factory is transferred, Beijing Modern capacity is still unable to get full use – from 1.35 million production capacity, minus to 1.55 million, and last year’s total sales is only 502,000 units, and the vacancy rate is still as high. 63%.
In Lin Yan, if the modern sales of Beijing still has no significant improvement in the next few years, the airborne rate is high, and the modern car is not excluded to re-integrate internal production lines and production capacity, and other factories will be sold again. Or, modern cars also have a major possibility, further seeking to increase the share of joint venture stocks, just like the BMW Group asked for the requirements of the Brilliance Group.
In 2020, Beijing Hyundai and Dongfeng Yueda Kia have only 502,000 in China, and 249,000. Last year, the two joint ventures of the modern Kia Group were nearly 2 trillion won (equivalent to RMB 11.485 billion).
This makes modern cars recognize that it is not strategic to the scale of production, and no change in the management method in China, and modern products will go without roads, and they cannot go far. Modern cars have started to change the import model mainly in small cars and sedan sedans in previous years, using electric vehicles Ionq5 and high-end models to conduct brand reconstruction. At the same time, Beijing Hyundai Motors are also gradually contracting a proportion of taxi sales, avoiding excessive taxi sales of taxis, affecting modern automotive brands. In the early days of China, the modern Elantra, Sonata taxis, played the role of modern cars in China’s image spokesperson, but now became “negative assets” of the value of modern car brand, and the painful modern cars will be determined, will no longer In order to “short-term income”, the brand image is damaged.
I have always been good at the Korean car of “Price War”. In recent years, I will strengthen the price control of the dealer in recent years, in order to change the low-level approach to the dealer it is, casually discounted the sales. The most typical thing is that modern cars recently announced that Jieji in the Chinese market decided on the online, and offline sales channels adhere to “unified price”, which is completely unimaginable. Moreover, the import of the imported car of Luhua, modern cars also stick to the bottom line thinking in terms of price, and even some models have high pricing in China.
Lin Yan thought that modern cars in order to enhance brand value and product image, they did not hesitate to sacrifice their interests, focusing on the long-term income, and conducting operational structure adjustments, worthy of affirmation. Although the adjustment time is slightly late, it is believed that if you persist, it is believed that the effect will appear.
Next, you will see how ideal cars develop and grow their own scale and strength.