You can’t get it even if you pay 9,000 more! How long will Dongfeng Honda’s new Civic remain popular?
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Dongfeng Honda, which has had mediocre sales in recent years, has returned to the public eye with the price increase drama after the launch of the new Civic. A Beijing Business Daily reporter visited and found that after the launch of Dongfeng Honda's new Civic in April this year, the phenomenon of price increase appeared and intensified. Data shows that Dongfeng Honda's sales continued to rise in October this year, and the annual sales target was also raised to 560,000 vehicles. However, behind the overall sales increase, models such as CR-V are supporting the beautiful sales report card by significantly reducing prices. Industry insiders believe that the domestic sedan market sales continue to slow down, and the price increase phenomenon of Civic will not last long, but behind it reflects Dongfeng Honda's insufficient production capacity, which adds unknowns to the annual sales target of 560,000 vehicles. The new Civic's price increase sales "depends on the new Civic to fight a turnaround for Dongfeng Honda." When the new Civic was launched, Chen Binbo, executive vice president of Dongfeng Honda, had high hopes for the model. Six months after its launch, Dongfeng Honda's new Civic has indeed become a popular model in the market, but the price increase sales method is also eroding consumers' enthusiasm for buying. Mr. Meng, a citizen who has been paying attention to the new Civic since before it was launched, has not yet made a purchase. "From the time of pre-sale, dealers said that the production capacity was insufficient and that the new Civic of Dongfeng Honda needed to be charged extra to pick up the car. This is still the case. There are many models to choose from on the market now, and this phenomenon has not appeared for many years." He said. It is understood that the need to pay extra to pick up the new Civic has become a common phenomenon among dealers. At a Dongfeng Honda 4S store, the salesperson did not hide the price increase of the model. He said that the price increase for picking up the car that month was 9,000 yuan, and the price increase for picking up the car next month was 7,000 yuan. If you choose not to increase the price, you may have to wait for more than 3 months. At the same time, the salesperson revealed that since the launch of the Dongfeng Honda Civic, the price increase has been rising all the way, from the initial 3,000 yuan to the current 9,000 yuan. "Since the manufacturer gives priority to supplying markets such as Beijing, the price increase is relatively not much." He said. In the eyes of industry insiders, the price increase of Dongfeng Honda's new Civic is more like a "hunger marketing" that has attracted high attention and further increased sales. However, with the continued hot sales of SUVs and the slowdown in the demand for sedans, the price increase of the new Civic may not continue for a long time. CR-V is difficult to maintain sales It is worth mentioning that in the case of the new Civic's price increase, Dongfeng Honda dealers have significantly reduced prices on the popular SUV models to increase sales. Data shows that in October this year, Dongfeng Honda CR-V sales were 17,000 units, a year-on-year increase of 4.8%; XR-V sales were 14,000 units, a year-on-year increase of 26.6%. However, a Dongfeng Honda dealer manager admitted that the increase in Dongfeng Honda SUV sales is due to the continuous increase in discounts. It is understood that the current discounts for Dongfeng Honda CR-V are between 25,000 and 30,000 yuan; the discounts for XR-V are between 8,000 and 10,000 yuan. Cui Dongshu, secretary general of the National Passenger Car Market Information Joint Conference, said that the compact SUV market where Dongfeng Honda CR-V is located usually has a promotion margin of 8%, while the discount margin of this model is as high as nearly 15%, which enables it to gain a greater price advantage in the SUV market. However, the above-mentioned Dongfeng Honda dealer manager revealed that the large discount has made Dongfeng Honda CR-V unprofitable. In fact, while Dongfeng Honda SUV models are being promoted at a reduced price, in terms of sedans, in addition to the new Civic with a price increase and the newly launched Jingrui, Dongfeng Honda Gerui, which once supported sales, is also in a situation where there is a price but no market. Previously, it was reported that due to the serious decline in Gerui's sales, Dongfeng Honda had encountered dealers who were reluctant to pick up cars and sold them at a loss. At present, there are no exhibition cars for this model at dealers, and reservations are required. The salesperson said that dealers have basically given up on promoting and recommending this model. Insufficient production capacity has become a hidden danger . It is worth noting that in the first 10 months of this year, Dongfeng Honda's cumulative sales were 459,000 vehicles, a year-on-year increase of 47.5%. Chen Binbo once said: "We will increase the annual sales target to 560,000 vehicles." In fact, this is not the first time that Dongfeng Honda has raised its sales target this year. At the beginning of this year, Dongfeng Honda announced an annual sales target of 450,000 vehicles, and raised the target to 500,000 vehicles in the middle of the year. Industry insiders said that Dongfeng Honda's current sales target completion rate is 82%. Production capacity has become a major problem facing Dongfeng Honda. Dongfeng Honda currently has two factories in Wuhan, with a total production capacity of 480,000 vehicles and an average monthly production capacity of 40,000 vehicles. According to Dongfeng Honda's average monthly sales of more than 50,000 vehicles, it can complete this year's sales target. The production capacity is obviously insufficient. Chen Binbo once said: "The current production lines are all double shifts, and the capacity utilization rate is 120%, but the capacity utilization rate has reached the limit of the factory, and further improvement may cause problems." It is understood that due to the previous sluggish sales of Dongfeng Honda, the plan to build a third factory was shelved. With the increase in sales, it is reported that the factory will start construction this year and be put into production in 2019. By then, the production capacity will increase by 20%. Industry insiders believe that the commissioning of the new factory in the future will not only help Dongfeng Honda achieve higher sales targets, but also alleviate the phenomenon of its models "grabbing" production capacity. However, in terms of model layout, the new Civic is not enough to be Dongfeng Honda's only life-saving straw. How to get rid of the current situation of its SUV models being slightly tired is one of the urgent problems to be solved. As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity. |
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