Parts price cuts and reasonable price war hit the auto market


Recently, Shanghai GM announced that it will launch a new series of “menu-type maintenance” series packages nationwide from November 15th. After selecting Package A, it will perform 5,000-kilometer maintenance at any Buick Special Service Center, in addition to replacing the original machine filter. And motor oil, you can also enjoy seven items, up to more than 20 items of free testing. Just a month ago, Shanghai Volkswagen announced that it has lowered the prices of PASSAT and POLO parts in an all-round manner, involving a total of more than 100 kinds of commonly used spare parts, of which the largest part has dropped by 80% with an average drop of 25%. The two major joint venture giants have successively adjusted maintenance inspections and spare parts prices, and fierce competition among auto manufacturers has begun to spread from vehicle sales to after-sales service. Giants attack the aftermarket In fact, the sales price of whole vehicles has been declining since the beginning of this year, and all manufacturers have exhausted various price reduction measures. However, the market has not seen much improvement, and the phenomenon of pending purchases remains the same. By reducing the price of spare parts, the cost of car owners has become another promotional weapon for some manufacturers. Nanjing Fiat launched the first shot of spare parts price reduction: it announced at the beginning of the year to reduce the price of accessories, also announced the price of 50 kinds of consumables; then in May, Southeast Auto once again price adjustments of accessories such as lioncel, Fulica and other models , involving 500 parts and components, of which more than 200 kinds of commonly used parts and components decreased by an average of 50%. In mid-August, Hainan Mazda reduced the price of more than 200 parts and components of its models of Premar and Fumei. The average reduction rate was about 18%, and the maximum reduction was more than 50%. The most influential is that Shanghai Volkswagen, which has occupied the first position in the domestic auto market and has the largest domestic car ownership, has announced that it will reduce the price of some spare parts. From October 1st onwards, the price of spare parts for Polo and Passat will be fully lowered. At its designated maintenance point, parts of the original parts of Baltic and Passat, as well as parts and accessories that often involve insurance costs, have been adjusted downwards by an average of 25%, of which the maximum price for spare parts has dropped by 80%. Since the beginning of this year, the prices of spare parts and components have risen one after another, reflecting the decline in vehicle prices. Consumers are the biggest beneficiaries. They can enjoy lower prices when buying a new car, and owners can save a lot of maintenance costs when they use the car. According to statistics, so far there have been more than 10 models including POLO, Passat, Fumeilai, Southeast lioncel, Palio, Sienna, Chery Fengyun, etc. have reduced the price of spare parts. Shanghai GM announced the introduction of maintenance and inspection discounts this year, bringing the continuing price war in the after-sales service sector to a climax. Industry insiders pointed out that all manufacturers have successively reduced spare parts and after-sales maintenance prices, which will have a far-reaching impact on resolving the problem of high auto parts prices and high maintenance costs in China. In fact, distributors and suppliers of spare parts compete for more than just manufacturers, dealers are equally fierce competition for the automotive aftermarket. Since the beginning of this year, many 4S stores have gradually begun to shift profit points from vehicle sales to the aftermarket. In Guangzhou, many dealers have announced the provision of free testing, and reduce maintenance costs and material costs. Some dealers, such as the AEC Group, competed for the after-sales market by vigorously building auto supplies supermarkets. A dealer revealed that as long as the new car is sold without losing money, he believes that the owner of the car has always used the car, and the car will inevitably require maintenance. This is the main source of their profits. Some powerful dealers told reporters that since the beginning of this year, the profits of their after-sales markets have become increasingly larger in the profits of the entire 4S store. Before most dealers only accounted for 20% or even less after-sales profits, but now they account for 30%. Even 40% of the dealers with strong maintenance skills accounted for 50% of the profit in the aftermarket. On the one hand, the continuous downturn in the auto market has led many dealers to realize that sales of vehicles have been fluctuating too much, and that the after-sales service market has maintained a steady growth, which is a stable source of profits. On the other hand, due to the rapid growth of car ownership in the past two years, this year, maintenance and repair volume began to grow steadily, and after-sales revenue maintained growth over the same period. This growth has attracted the attention of many dealers when the profits from vehicle sales decline. This "tempting" cake in the after-sales market has also attracted attention from multinational component companies. Bosch Trade, the world's second-largest parts supplier, plans to build 20 maintenance chain stores in Guangzhou this year. According to Chen Jinming, deputy secretary-general of the Guangzhou Automobile and Motorcycle Maintenance Industry Association, a number of companies from the United States, Singapore, Japan, and Taiwan are preparing to build a large-scale maintenance factory in Guangzhou. These repair factories provide "five-star" services and adopt full-computer management. The efficient and efficient services provided by them are basically no competitors in the country, but the prices are similar to those of a class of maintenance companies in Guangzhou. Reasonable and reasonable price of spare parts, whether it is automobile manufacturers or dealers, to a greater extent, will be to reduce spare parts and after-sales maintenance prices as a means to increase sales of new vehicles. For car owners, the high price of auto parts has always been a heart disease for consumers. The cost of replacing spare parts occupies a large proportion in the maintenance costs, so more and more consumers are calling for manufacturers to zero. Accessories prices are adjusted. In order to reduce production costs, joint-venture automobile manufacturers continue to promote the localization rate of spare parts, and large-scale production can also reduce costs. At the same time, due to tariff reduction, many imported spare parts costs are also reduced, these factors make parts prices down Space. On the other hand, when joint venture companies such as VW and GM come to invest in China, they also bring in foreign supporting companies, such as Delphi, Bosch, Michelin and other world-famous auto parts manufacturers; many auto joint ventures and national autonomous enterprises have also started Independently develop and produce automotive parts and components. With the expansion of production scale and the gradual maturity of technology, the cost has begun to decline gradually, and parts and components will be reduced in price to save the automobile market. Maintenance station profit shrinks in the domestic automobile enterprise spare parts price conceals the manufacturer huge profit. According to a data show, in foreign countries, 39% of the gross profit of the entire vehicle manufacturer in 2000 was due to the replacement of spare parts, and only 18% of gross profit came from new car sales. In China, the profit rate of parts and components for OEMs is up to 40%. In the past, the strongest reflection from the owners was that the general maintenance price was too high. 4S stores claim to be genuine factory parts, guaranteeing quality and guaranteeing service, and the high cost is naturally high. However, in fact, the 4S shop's working hours are quite expensive, and they are criticized by many car owners, because working hours often account for the bulk of maintenance costs. All manufacturers significantly reduced the price of spare parts, which means that their profits have shrunk and profits have been given directly to the owners. Take the Shanghai Volkswagen store as an example: The original maintenance and repair of Passat's profits can be as high as 40% of the profit. After the OEM adjusted the price of the parts and limited the profit rate, the profit of the pits from the Passat was only 70%. Passat maintenance once, the price from the original 520 yuan, down to the current 400 yuan. Some 4S stores in Guangzhou have begun to take the initiative to reduce the maintenance and repair of man-hours, and even had the practice of free maintenance of the vehicle for life. Many heads of multi-brand auto repair stations believe that the price war will surely fight. The downward adjustment of parts prices is only the beginning. Today's car sales battle may be a retrospective of maintenance and accessories prices. The return value of prices is an inevitable law of the market economy.

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