If the telecommunications manufacturers and operators were the hottest in the last year, it is feared that the hottest car manufacturers and distributors this year would not be opposed. However, what I have read in recent months has given me a little bit of worry. The auto industry is now very hot, but how long can it still be fired?
Questions come from the following reasons:
First: The new car cuts prices. The new car that has just been on the market for a few months has drastically reduced its price. The large drop in the price and the fierce competition can hardly remind people of the air-conditioning price war that year. Of course, price reductions are due to price cuts, and the reasons are always convincing, "for increased capacity, lower costs, rebates to consumers," and "consolidate the status of the hottest models in our market." Not only that, the pre- and post-confidential secrecy work is even more admirable: before the price cut, it expresses no price reduction, after the price cut, it expresses that it will never lower the price for a long time, the price reduction is the behavior of the dealer and the manufacturer, and people thank the manufacturer from the heart. Reconciliation. However, on the one hand, it is claimed that the hot sales of the models, on the other hand, have drastically reduced prices, but they have a slight conflict with the most basic theory in economics: “Enterprises must always seek to maximize profitsâ€. Originally, it was not so convincing to buy such a reason to rush to buy and sell but also to lower the price.
Second: excess capacity. A recent Morgan Stanley and Goldman Sachs study on the Chinese automobile industry confirmed my idea. The report said that it is expected that by 2005 China's auto production capacity will exceed the actual market demand of 1 million vehicles. Last year, China’s car sales were just 1 million. But what's even more interesting is that almost all domestic auto makers disregard this. But what worries me a bit is what to do with the extra 1 million cars. Not to mention anything else, the steel consumption of the 1 million vehicles alone is probably not a small number, let alone the majority of the domestic automobile steel used today is the national foreign exchange exchanged with real gold and silver. The market, of course, needs full competition, but I am afraid that what is needed is not the competition resulting from repeated construction and overheated local investment.
Some time ago I saw a report about how the localization of multinational giants in the auto industry will bring great help to the Chinese auto industry. I dare not agree with this view. I have always believed that the world’s top companies sell brands, second-rate companies sell technology, and third-tier companies sell products. Despite some extremes, but whenever multinational corporations propose how much USD to buy in China, I still have the suspicion that “they purchase products from China and then sell back to our technology and brandâ€. From the early years of Toyota’s suing Geely’s infringement to the GM and Chery’s QQ disputes of the other days, more and more examples show that local manufacturers and foreign multinational giants are constantly pregnant with the general outbreak of conflict between the two sides. Your own strength.
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