"In the Golden Week, all car manufacturers began to sacrifice their flag, a price war that has lasted for three months, once again culminating in the culmination of two years of catastrophic growth, into 2004. The Chinese auto market has begun to slow down the pace of development, despite the fact that manufacturers have cut prices and prices have been unable to get out of the trough, and the continued downturn in the entire auto market has forced everyone to ask: “What is the Chinese auto market? What are the reasons for Chinese consumers to tighten their wallets and sit back and watch the desperate fight between car manufacturers? The answers to this question are varied, but what is said most is that consumers are buying coins because the price of the car has not yet fallen into place. Frequent price cuts cause consumers to lose trust in car prices, and they always worry that they just bought a few. The day will be reduced prices. It should be said that, to some extent, the brutal competition in car prices is indeed the reason that causes consumers to hold a coin, but consumers can not be completely considered to wait for the advent of new price cuts after the currency is held for purchase. After all, many models are currently The price is close to international prices, and POLO produced by Shanghai Volkswagen has even fallen below international prices. From an economic point of view, there are two main possible sources of supply and demand in the market: First, market demand is saturated; second, effective supply is insufficient. Judging from the current situation in China, the demand for the automotive market is far from being saturated. The ownership rate of China's autos is far lower than that of developed countries. The research report of the Development Research Center of the State Council shows the relationship between the per capita annual income of urban residents in China and the economic growth targets set by the central government in the next 20 years, and the relationship between per capita annual income and household car ownership, and the proportion of household cars in total car demand. As a result of the changing trend, by 2020, the total number of household sedans in China will reach 72 million vehicles. At present, the number of household sedans in China is only 4.89 million, so China's auto consumption still has a huge market demand. China’s passenger car market has covered categories ranging from high-end cars, mid to high-end cars, mid-range cars, mid- and low-end cars, mini-cars, SUVs to M PV. Various manufacturers have also introduced new models to attract consumers. However, there are still a large number of consumers who believe that the current models on the market cannot meet their needs. They expect that manufacturers will be able to design and produce new models based on their needs. It can be seen that the continued downturn in China’s auto market is due to the fact that the existing market’s effective supply does not fully satisfy the actual needs of consumers. The actual demand of these Chinese consumers is mainly due to the fact that consumers are paying more attention to the vehicles themselves and with the increasing public awareness of traffic safety, especially the promulgation and implementation of new traffic regulations, consumers Active safety and passive safety have also raised new requirements; consumers have also increased the comfort of vehicles, the technical characteristics and awareness of vehicles, and rationalized consumption concepts have become dominant; at the same time, Vehicle use environment, the current crowded urban roads, tense parking spaces, compact models are being favored by consumers; with the government and consumers increasingly concerned about energy and environmental issues, low fuel consumption, environmentally friendly models have also become a market Hot pursuit. The diversified needs of consumers have prompted the automotive market to further subdivide. A multi-functional car that can satisfy consumers’ car-like driving experience and at the same time be able to achieve its “multifunctional†functional needs will become one of the entire markets. The new darling, the multi-functional car market has opened up a vast space for many manufacturers, and whoever can seize the opportunity to enter this market will inevitably occupy an absolute advantage in the fierce competition in the future.(Army)
Multi-functional cars are expected to become a good medicine to revive the downturn in the auto market
"In the Golden Week, all car manufacturers began to sacrifice their flag, a price war that has lasted for three months, once again culminating in the culmination of two years of catastrophic growth, into 2004. The Chinese auto market has begun to slow down the pace of development, despite the fact that manufacturers have cut prices and prices have been unable to get out of the trough, and the continued downturn in the entire auto market has forced everyone to ask: “What is the Chinese auto market? What are the reasons for Chinese consumers to tighten their wallets and sit back and watch the desperate fight between car manufacturers? The answers to this question are varied, but what is said most is that consumers are buying coins because the price of the car has not yet fallen into place. Frequent price cuts cause consumers to lose trust in car prices, and they always worry that they just bought a few. The day will be reduced prices. It should be said that, to some extent, the brutal competition in car prices is indeed the reason that causes consumers to hold a coin, but consumers can not be completely considered to wait for the advent of new price cuts after the currency is held for purchase. After all, many models are currently The price is close to international prices, and POLO produced by Shanghai Volkswagen has even fallen below international prices. From an economic point of view, there are two main possible sources of supply and demand in the market: First, market demand is saturated; second, effective supply is insufficient. Judging from the current situation in China, the demand for the automotive market is far from being saturated. The ownership rate of China's autos is far lower than that of developed countries. The research report of the Development Research Center of the State Council shows the relationship between the per capita annual income of urban residents in China and the economic growth targets set by the central government in the next 20 years, and the relationship between per capita annual income and household car ownership, and the proportion of household cars in total car demand. As a result of the changing trend, by 2020, the total number of household sedans in China will reach 72 million vehicles. At present, the number of household sedans in China is only 4.89 million, so China's auto consumption still has a huge market demand. China’s passenger car market has covered categories ranging from high-end cars, mid to high-end cars, mid-range cars, mid- and low-end cars, mini-cars, SUVs to M PV. Various manufacturers have also introduced new models to attract consumers. However, there are still a large number of consumers who believe that the current models on the market cannot meet their needs. They expect that manufacturers will be able to design and produce new models based on their needs. It can be seen that the continued downturn in China’s auto market is due to the fact that the existing market’s effective supply does not fully satisfy the actual needs of consumers. The actual demand of these Chinese consumers is mainly due to the fact that consumers are paying more attention to the vehicles themselves and with the increasing public awareness of traffic safety, especially the promulgation and implementation of new traffic regulations, consumers Active safety and passive safety have also raised new requirements; consumers have also increased the comfort of vehicles, the technical characteristics and awareness of vehicles, and rationalized consumption concepts have become dominant; at the same time, Vehicle use environment, the current crowded urban roads, tense parking spaces, compact models are being favored by consumers; with the government and consumers increasingly concerned about energy and environmental issues, low fuel consumption, environmentally friendly models have also become a market Hot pursuit. The diversified needs of consumers have prompted the automotive market to further subdivide. A multi-functional car that can satisfy consumers’ car-like driving experience and at the same time be able to achieve its “multifunctional†functional needs will become one of the entire markets. The new darling, the multi-functional car market has opened up a vast space for many manufacturers, and whoever can seize the opportunity to enter this market will inevitably occupy an absolute advantage in the fierce competition in the future.(Army)