From knock-off old-man's electric vehicles to industrial giant

Chapter 78 This market... shouldn't be like this!

The small distributors who came this time did not include all those who had communicated with the distributors in advance.

Due to time constraints and distance, only half of the attendees were present.

Some professional managers from medium-sized/large dealerships both inside and outside the province have also noticed Xingchen Auto and are interested in investing in or joining the franchise.

These people also arrived at the scene.

However, they were not as enthusiastic as other smaller distributors.

They are larger, have more funds, are more experienced, and are more hesitant.

Moreover, he has repeatedly expressed his desire to further secure more cooperation opportunities.

When Xu Yi arrived at the conference hall, it was already filled with hundreds of people, representing dozens of distributors of all sizes who had come to participate.

Behind the stage in the auditorium was a large PowerPoint presentation screen for Xingchen Motors.

"Distinguished guests and business partners, as a startup car company, we are very grateful to you all for attending Xingchen Automotive and participating in our company's first dealer conference..."

First, let me introduce myself. My name is Yu Nian, and I am the Marketing Director of Xingchen Automotive.

The next few years will see a surge in the new energy industry and will also be a pivotal time for significant disruption in the domestic car manufacturing sector.

Now that we're all here, I believe we all possess the same wisdom and vision, and are willing to bet on future economic development trends..."

Yu Nian stepped forward to the stage and spoke first.

After saying a few words of thanks and opening remarks, he stepped down and handed the microphone to Xu Yi.

Xu Yi took the microphone:

"Hello everyone, I am Xu Yi."

It's a pleasure to meet you all.

Our Director Yu just spoke very well, so I won't repeat the formalities.

I am a very simple person. All of you business partners have confidence in Xingchen Motors and are cooperating with us.

And we at Xingchen Motors are here to help you make big money!

……

Plain and unremarkable words.

and.

Xu Yi's age is not considered old compared to the distributor partners present.

The moment he opened his mouth, he had an inexplicable infectiousness!
Because most of the dealers present here have actually made money by following Xingchen Auto.

Despite its low average price, the Xingchen Old Man's Car boasts a solid monthly sales volume of 30,000 units.

Its overall revenue exceeds that of many loss-making startup car companies.

Not to mention, now that the first new car has been released, the positive sales and market expectations have already been made public.

Looking at its development history, Xingchen Motors is a company...

In the beginning, they were just a makeshift team that couldn't even get the necessary car manufacturing qualifications, and their methods were a bit unorthodox.

The speed at which it can expand its scale is truly exaggerated, it's simply unbelievable.

Coupled with the solid returns on investment from before, many small distributors are determined to join this time!

"You can take a look at the details regarding the development of the nationwide distribution network and the conditions for joining."

Xu Yi gestured for the staff on site to distribute a detailed franchise introduction and an explanation of the agency rights to the distributors present.

Simply put.

Xingchen Auto currently operates under a hybrid distribution model of "direct sales + authorization".

In terms of direct sales, the main responsibility is to open brand direct sales stores in first- and second-tier cities and core city markets, covering the entire chain of brand experience, test drive, sales, delivery and after-sales service.

In terms of authorization, the main responsibility is to open authorized brand stores in prefecture-level and county-level cities in third- to sixth-tier markets.

……

but.

Many dealers at the scene immediately changed their expressions when they looked at the franchise conditions.

The basic requirements and funding requirements are not very strict.

For example, to open a county-level authorized brand store, in addition to meeting the five conditions of "qualification, capital, venue, team, and brand recognition", the deposit required is not much, only 30 to 50 yuan.

Even if you can't afford the initial million-level store construction costs, Xingchen Auto can offer a "joint investment" model with the manufacturer. Of course, the subsequent manufacturer rebates and after-sales revenue will be less than that of a wholly-owned store.

For reputable distributors, this is nothing.

What made them widen their eyes in disbelief were the following terms:

[At authorized brand stores, all vehicle models sold must adhere to the manufacturer's nationwide unified pricing and discounts.]

[No price gouging, no service fees, and no forced financial loan services to car buyers are permitted.]

[100% of vehicles are ordered through Xingchen Auto's official website and app system, synchronizing order and user data]

[After-sales service must use genuine Xingchen Automotive parts (outsourced parts are prohibited)]

Sales and repair staff in the store must undergo quarterly customer satisfaction assessments and receive manufacturer training before and after joining the company.

[It is prohibited to "bundle" additional accessories for users, such as screen protectors or floor mats, and it is prohibited to reduce the included accessories without authorization.]

Cross-regional sales are strictly prohibited; violators will have 50% of their rebate deducted or their authorization revoked.

……

"Dude... has this car manufacturer gone mad?!"

As a seasoned professional manager, Wang Zheng stared blankly at the franchise brochure in front of him.

The expression on his face was beyond outrageous.

This is absolutely outrageous!!
The above clauses are not all.

In fact, there are five or six more clauses like this that involve significant interests.

Well known.

The methods that distributors use to make profits are actually quite limited.

With "pricing power," they can arbitrarily raise and negotiate prices, earning substantial profits on each vehicle.

Secondly, there's the partnership with financial institutions, where you earn rebates from banks.

In addition, there are bundled sales of car covers, floor mats, and additional registration and service fees.

just now.

They cut all the terms and conditions for Xingchen Automotive.

That's it.

Do you, as a manufacturer, even need to manage user data and regional cross-selling by distributors?

Using non-original parts is also a hidden but huge source of profit in after-sales service.

This is infuriating... How can I tolerate this?
As a startup car company that hasn't even established itself properly, it's simply wishful thinking to come up with such "unreasonable terms"!

No distributor of any size would agree to that!

Where does the profit margin come from?
Are you really so confident that your factory can satisfy franchised distributors just by offering sales rebates and regular after-sales service?
Beyond the traditional distribution model?

How many sales would that be?

Wang Zheng thought to himself, "This is what I'm complaining about."

Even top-tier luxury brands like BMW, Mercedes-Benz, Audi, and Porsche don't have such outrageous terms.

Of course, they also have their own strict requirements, demanding assets and resources that are incomparable to those required for opening an ordinary traditional 4S store.

But for them, they are already used to the traditional distribution model, and these profit models of "marking up" and "bundling" with consumers are ingrained in their bones.

The small distributors at the event had done some research beforehand.

can be seen.

Within just two or three minutes, a commotion began to rise below.

Most people would not accept such terms.

Xu Yi observed the commotion below.

He didn't say anything immediately.

In fact, he thought these terms were quite easy.

Because of the advent of the new energy era, the sales of domestic cars have exploded, and most of the new car companies have adopted the direct brand operation model.

Even the original leading car companies have switched to a hybrid direct sales model in order to transform and achieve greater sales.

Only in this way will we be qualified to have a place in the fiercely competitive car manufacturing market in the future, and break through to annual sales of hundreds of thousands or even millions of units.

Traditional 4S stores are facing a wave of closures due to their inefficiency and lack of transparency in after-sales, pre-sales, and configuration options.

On the contrary, those distributors who saw the situation was not good and immediately changed their business model were the ones who truly caught the wave.

……

Xu Yi stood there for about five minutes, waiting for the dealers below to scan the contents.

Amidst the noise, he slowly began to speak.

"Everyone, please hear me out first..."

You might think that the traditional distribution model is better and has a higher profit margin, but that's actually from the perspective of abandoning consumers.

But without a doubt, this is a form of exploitation and hegemony against consumers.

Having grown accustomed to so many imported and joint-venture brands, with their disorganized distribution networks and weak after-sales service, we are now facing a situation where...

I don't think the domestic car market should be like this.

This world shouldn't be like this..."

……

……

(PS: After reading everyone's chapter comments, my feelings are really complicated...)

Actually, there are some parts that I think are pretty good, but everyone else thinks they're terrible (I'm so frustrated)...

The content is constantly evolving, including the company's development, the R&D cycle, and market response. Without writing these things down, it would be difficult to present the story completely.

For example, the ending of the old man's car segment.

From holding a meeting to implementing the plan and the market reaction, everything has been condensed into a single chapter.

If we were to go into detail about the filler content, it could easily fill several chapters, but I want to present it to you in a concise and engaging way.

Whether there was deliberate padding or someone was simply passing off inferior goods as superior, discerning individuals can easily discern the truth.

If you read all four chapters together, I think the content is relatively complete and well-founded, because it is mainly about the car manufacturing industry, with the core being the development of technology, interspersed with business battles.

But it's impossible to develop something today and get results tomorrow.

Otherwise, if the story were to break through the void and achieve a technological leap shortly after starting, it wouldn't fit the tone of this industrial novel.

Moreover, it hasn't been released yet. In fact, the author wants to update two more chapters even more than you do. There is absolutely no way the author would intentionally block the plot or delay the release.

The free word count for this book is already close to 200,000 words, which is quite long.

Aside from platinum-level authors, most authors hope to publish their work as soon as possible to earn subscription fees.

Not only are you suffering, but I'm also tormented...

Fortunately, the new book season is about to end.

Today is the 6th, and in three more days, on the 10th, it will be officially available for purchase!

The era of two updates a day is coming to an end!!
above. )
(End of this chapter)