Manufacturing Empire in the Valley

Chapter 2021 Domestic car prices are ridiculously high

The domestic market is so big, and motorcycles are expensive commodities. After customers buy a car from you, it is unlikely that they will replace it with a new one within a few years.

This is equivalent to seizing market share and reducing the sales and profits of competitors in the same industry.If things go on like this, Fang's Motorcycle will be able to defeat other competitors, monopolize the domestic motorcycle industry, and become a giant company in this industry.

Once a monopoly is formed, making money will become easier, much faster than a money printing machine.

Such strategic-level plans cannot be implemented if senior leadership does not allow promotions.

Niu Xiaoqiang is not a conservative boss. He is much more familiar with the tactics and routines in the competition than his domestic competitors. It can be said that the two sides are not at the same level at all.

Because of this, Niu Xiaoqiang boldly delegated power to Chen Jianguo and Jiang Ronghua. As long as they are not greedy for the assets of the ink company, everything else is fine.

Both Chen Jianguo and Jiang Ronghua are sensible people. They have known Niu Xiaoqiang for a long time, and they know what kind of character Niu Xiaoqiang is.

Anyway, my annual income is as high as 10 RMB, so there is no need to secretly poach the company's corners, so the two have always adhered to the bottom line and never made any small moves secretly.

At this moment, when Niu Xiaoqiang went straight to the point, Chen Jianguo and Jiang Ronghua immediately nodded, expressing that they wanted to hear Secretary Niu's opinion.

Niu Xiaoqiang smiled and said: "Early before the establishment of Jianhua Sales Company, I told you two that once Fang's Automobile Company is put into production in the future, the cars produced will be handed over to you for sales, so you don't need to worry about agency rights." If you have any questions, just be bold and make preparations.”

The two were completely relieved when they heard this, and repeatedly expressed that they would do their best to make preparations and ensure that they would not lose the chain.

Cars are currently among the most high-end commodities in China, bar none.Many ordinary people dare not even think about buying a car.After all, everyone is not rich, and one who can afford a motorcycle is already considered a wealthy class. It is still very unrealistic to buy a car privately.

According to Niu Xiaoqiang's estimate, the only people in China who can afford a car are the big bosses in the coastal areas. The number of these people is very limited, and there are only tens of thousands of them.

With a population of more than one billion, only tens of thousands of people can afford a car, which shows how low the proportion is.

Some people may find it strange: "Since there are only so few people in China who can afford cars, why does Fang's Automobile have to confirm an annual production capacity of more than [-] vehicles? How can such a large production capacity be sold by then?"

When it comes to this issue, we must start from two aspects.

The first is Niu Xiaoqiang's foresight.He has already started to build a foreign car sales system, and the four partners he brought back to China for inspection this time are the four cornerstones for him to build an out-of-the-counter car sales system.

Niu Xiaoqiang plans to digest the excess production capacity through foreign markets. Another advantage of exporting sweaters is that he can earn US dollars.

Although the U.S. dollars earned by Fang’s Automobile will definitely be withheld by the country’s foreign exchange and management departments, as long as you earn more U.S. dollars, you can directly negotiate terms with the foreign exchange management department and let them give Fang’s Automobile a certain amount of U.S. dollars. right.

What is certain is that the autonomy of the dollar given by the foreign exchange management department will not be too high, but this can be regarded as Liao Shengyuwu.

Niu Xiaoqiang is going to build a complete network system in the United States, and the required funds are as high as tens of billions of dollars.If you can ease the financial problem, let's ease it, it's better than not having a penny of support at all.

Next, let's talk about the domestic car consumer groups.Although the general public in China basically cannot afford cars, this does not mean that there are no car consumer groups in China.

It is actually very simple to say that domestic car consumer groups are mainly concentrated in various institutions and departments of the country.

Various administrative levels in the country can enjoy special treatment. For example, as long as they reach the bureau level, they can be equipped with a car.

This money is paid directly from the government's financial expenditure, and no private person is required to pay a penny. Therefore, anyone who can enjoy this treatment will basically not refuse it.

How many bureau-level personnel are there in the country?Not to mention that people in the system usually leapfrog their ranks and allocate them to higher levels. For example, they are clearly at the county level, but they still allocate cars to themselves.

Although this is a violation, it is everyone's default rule, and basically no one will ask.

If these leapfrog and high-end people are included, the sales of domestic cars are still relatively optimistic.Not to mention too much every year, there is still no problem in selling [-] to [-] vehicles.

The profit margins of the auto industry are astonishing. A car can earn tens of thousands of dollars in profit, and the profit of a high-end car can even exceed half of the car price.

Why are the profits of small cars so high?This starts with their pricing.

Since the two major domestic automobile factories basically do not produce cars, and the only Hongqi brand produced has many problems, the domestic car market is basically monopolized by imported cars.

The price of imported cars is definitely worthy of the word "import".

The most common imported van costs nearly 5 yuan, which is still the price of the simplified version. If you install an on-board air conditioner for this van, its retail price will immediately soar to more than 6 yuan.

Vans are so expensive, let alone cars.

Even the lowest-end two-box car has a retail price of more than 7 yuan. For example, the lowest-end models of Volkswagen have a domestic price of less than 7 yuan.

A slightly better model can easily exceed 10 yuan.For example, the domestic retail price of Fiat's Uno sedan exceeds 10 yuan.The retail price of Peugeot 505 is as high as 15 RMB.

This is only a low-end model, and the mid-level model is even more exaggerated.The retail price of mid-level models is basically 15 yuan, and the price of most mid-level cars exceeds 20 yuan.

Finally, let's talk about high-end models, the price is staggeringly high.

For example, the retail price of the Audi series models is not less than 33 RMB, and the retail price of the highest-priced Audi A6 is even as high as 46 RMB!
At present, the most popular cars in China are today's cars, such as the Honda Accord, whose retail price is as high as 40 RMB, and the Toyota Crown, for example, whose retail price is even the same as the Audi A6, reaching 46 RMB!
The top model is the Mercedes-Benz S600, priced at 160 million RMB!
(End of this chapter)