On the one hand, it is squeezed by independent brands, and its advantages are getting weaker. On the other hand, there are always brand shortcomings and product competitiveness declines. This year, sales of Korean brand cars in the Chinese market have declined rapidly. "Korean speed" suffered "quick braking" In 2017, the Korean brand's Chinese market situation has turned sharply. The latest data shows that Dongfeng Yueda Kia sold only 17,000 vehicles in June, a sharp drop of 62% year-on-year. In the first five months of this year, Dongfeng Yueda Kia sold a total of 110,700 units, down 54% year-on-year. In terms of cars, among the models that have sold more than 10,000 vehicles a month, only K3 has maintained an average monthly sales of 10,000 vehicles. In the first five months, it has sold a total of 50,500 vehicles. The cumulative sales of K4 and K5 in the first five months are only There are 0.53 million and 11,300 vehicles. In addition, Freddy's sales in the first five months of this year were only 0.31 million. In terms of SUV, sales of KX3, KX5, KX7 and Zhirun in the first five months of this year were respectively 0.48 million, 0.54 million, 0.32 million and 10,500. The days of another Korean brand, Beijing Hyundai, are also not good. According to statistics, in the first five months of this year, Beijing Hyundai’s sales volume was less than 270,000 units, down 37.4% year-on-year. At the beginning of this year, Beijing Hyundai set a sales target of 1.25 million units. Now that the time has passed, the completion rate is only 21.3% of the plan. According to Wu Zhoutao, deputy general manager of Beijing Hyundai and the copy of the headquarters of the sales department, in March, the number of 4S shop customers in Beijing Hyundai decreased from 30 batches to 5 batches a day. For a while, there wasn't a single guest for several days in a row, and online sales also fell by 50% to 60%. Without customers, the car can't be sold, which makes Beijing Hyundai's dealers face the pressure of financial acceptance and there is panic. From the beginning of the establishment of the factory, Beijing Hyundai has created a "modern speed" that is eye-catching in the industry, and has long been in the top four of the monthly sales list of auto companies. In 2016, Beijing Hyundai's annual sales exceeded 1.14 million units, breaking through one million for three consecutive years. However, since 2017, Beijing Hyundai’s sales have fallen, and it has been squeezed out of the top ten. Faced with this situation, Beijing Hyundai began to decompress dealers. "We approve dealers to not mention the car, digest the inventory car, and revitalize the funds." Wu Zhoutao said that Beijing Hyundai also loans to dealers through the internal financial company, and helps dealers obtain bank preferential policies and extend repayments. time. In addition, Beijing Hyundai also supports dealers to participate in some auto shows and marketing activities to boost sales. Wu Zhoutao said that although the dealer's passenger traffic has not recovered, these adjustments have allowed Beijing Hyundai to escape the channel crisis. "With such difficulties, the operating system and dealers are still stable, and no dealer has retired. †"New crisis" is an old problem In fact, Beijing Hyundai also experienced a crisis in 2007, but this time it faced a greater crisis than the last time. Affected by the global financial crisis, Beijing Hyundai ushered in the first crisis since its establishment in 2007, and sales fell sharply. Subsequently, Beijing Hyundai conducted a reflection and believed that the main cause of the crisis came from within the enterprise, and the external environment was only a secondary cause. When Hyundai Motor and Yueda Kia entered the country, most of the German, Japanese and American brands implemented a high premium strategy, and the Korean car quickly occupied the market with its stylish appearance and relatively moderate price. After the low market in 2004 and 2005, the market and model strategies of German, Japanese and American brands have undergone major changes, prices have become increasingly rational, and models have begun to synchronize with the world. As a result, the advantages of Korean cars are getting weaker and weaker. In addition, there are always brand shortcomings and the competitiveness of products is declining. The overall decline of the Korean car market is naturally inevitable. Li Honglu, then the deputy general manager of Beijing Hyundai, said that the 2007 crisis was not a bad thing for Beijing Hyundai. It made Beijing Hyundai more aware of its own problems and opened the way for future development. According to industry analysts, the decline in sales in the Chinese market is reflected in the failure of Korean cars to grasp the rhythm of the Chinese auto market and the decline in product strength. In the field of cars, many models of self-owned brands such as Emgrand, BYD, Roewe, etc., are actually comparable to Korean cars, but they are more advantageous in terms of price and configuration. In the SUV field, the rise of the self-owned brand small SUV directly grabbed the market share of the joint venture small SUV, and the price of the Korean small SUV coincided with the price of the self-owned brand compact SUV. Wu Zhoutao believes that with the upgrading of domestic consumption structure, Beijing Hyundai's original product layout does not match the current market development, and the brand shortcoming still exists. Beijing Hyundai also ushered in its second crisis. Wu Zhoutao said frankly that the reason why he encountered such a big difficulty was mainly the internal problems of the enterprise. In the past, the development of Beijing Hyundai was smooth and smooth, and there was a lack of crisis awareness inside. It was not prepared for danger in times of peace and was adjusted in time according to market changes. “A few years ago, our focus was on selling cars, neglecting the improvement of brand power, the layout of product lines and the rapid response to changes in the Chinese consumer market.†Strategic transformation seeks breakthrough It is reported that Beijing Hyundai Chongqing plant will be put into operation in August this year, and with the official completion of the Luzhou plant last year, Beijing Hyundai's total production capacity will reach 1.65 million. In order to digest this capacity, Beijing Hyundai's dealers have expanded to 1,000. However, the method of squeezing the network and price reduction promotion cannot solve the problem fundamentally. Beijing Hyundai expects to seek a breakthrough through strategic transformation. Since the beginning of this year, Beijing Hyundai has repeatedly stressed the need to implement a customer-centric localization strategy. According to Wu Zhoutao, Beijing Hyundai will have a big boost in terms of intelligence and networking. At present, Beijing Hyundai has cooperated with technology companies such as HKUST, Baidu and Alibaba on voice recognition and control and the Internet. “In these respects, Beijing Hyundai will be one step faster than other joint ventures.†At present, Beijing Hyundai's R&D center in Yantai has hired the chief designer of Volkswagen China to focus on developing automotive products for China. In July this year, Beijing Hyundai will release a pure electric vehicle based on the original model. Next year, Beijing Hyundai will develop a new electric vehicle equipped with Chinese local batteries. Previously, despite the rapid development of the electric vehicle market, Beijing Hyundai has never had a substantial product. Not long ago, international professional consumer research organization JD power announced the "2017 China Automotive Sales Satisfaction Research Survey" report, Beijing Hyundai scored 665 points to the top of the mainstream car segment. This may show to some extent that Beijing Hyundai has weathered a new round of market crisis and began to pick up steadily. As for Dongfeng Yueda Kia, there are currently nine models in the country, covering the car, SUV and new energy fields. After carefully reviewing the new car product plan of Dongfeng Yueda Kia in the second half of the year, we can find that six new cars will be put on the market during the year, including two new energy vehicles and the first crossover model. The intensive launch of new products may help Dongfeng Yueda Kia increase sales in the market. The industry believes that the automotive industry is the traditional manufacturing industry that is most in contact with new technologies, and has now ushered in a critical period of transformation and upgrading. The crisis that emerged this time will not be the last time for the Korean brand. I hope that Beijing Hyundai and Dongfeng Yueda Kia can face up to the problem, turn the crisis into an opportunity, and embark on the path of positive solutions.
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·The sales volume of Korean cars in China is rapidly declining and is squeezed by independent brands.