Sharply lower prices lead industry controversial pickup truck to clean up the market


From the autumn wind, the weather was cool; the car price fell and the oil price rose. In the face of the upcoming “Golden 9 Silver 10”, when the renewed rise in oil prices has become the focus of the talks, the news of the recent price cuts has increased again. In particular, the news of a price reduction for pickup trucks has aroused both the automotive industry and the outside world. The extra attention - nothing more than the ups and downs of the price can affect the nerves of the consumer, even if the price reduction has gradually become a normal industry auto market. In late August, Great Wall Motor, the leader of the pickup industry, generally reduced the price of its debut product, the Deere Series pickup, by 6,000 yuan, a drop of 10%, and all of the 04 latest models. After depreciation, the price of the luxury Deere double row pickup was only 56,800 yuan, while the standard ex-factory price was only 52,800 yuan. The news that the sharp price cuts caused controversy in the industry suddenly exploded like a blockbuster in the pickup industry. 6000 yuan, 10%, especially in the highly competitive pickup industry, this is not a decimal. With the round of price wars in recent years, the space for price adjustment in the pickup truck industry has long been squeezed into a very narrow space. Undoubtedly, the Great Wall’s move is to create a momentum for the upcoming “Golden 9 Silver 10” sales season. It is to attract more consumers’ attention and its sales intentions are clear. But such a high rate of decline still confuses many people inside and outside the industry. Because it seems to people that the Great Wall pickup has been ranked first in the industry for many years, it does not seem necessary to spend so much money to promote. As is known to all, for many years, Great Wall Motors has been the leader in the domestic pickup industry. Dill Picka is the first "starter product" of Great Wall Motor. Great Wall Deere has a market history of nearly 200 years and a single variety of 200,000 for six consecutive years. Seated in the domestic leader in the pickup market, it is durable and durable, and has a striking similarity with Jetta in the car. It has been called “Jetta” in the field of pickup by the industry. The car has passed the test of the market, and the technology is very mature. It is updated every year, and the equipment and technology content are getting higher and higher. Among the three major products of the Great Wall Picadil, Sai Ling and Saikuo, the export volume is the largest. As a result, the news of the Great Wall price reduction was announced, and praise and criticism followed. The praise comes from consumers. Mr. Li, who is a building material business, is very representative. “I would like to buy a Dillpic card. I have said that this vehicle is durable, and it is very fuel-efficient. It consumes less than 5 liters of fuel per 100 kilometers. It's quite cheap, but now it's falling so much, and you don't want to wait until you buy it again!!" The criticism came from competitors in the industry. A salesman from a southern pickup company told the reporter: “The Great Wall must be crazy! What kind of price is there to make profit? Isn't it going to push people to death? If we follow up, we have to lose money. If you do not follow it, then sales will definitely decline. In the past two days, the leaders of the company have been anxious to get together and do not know what to do.” The Great Wall intended to clean up the pickup market. Some people said that the Great Wall is set for the pickup market in the second half of this year. A keynote is the “price cut”, which will be the subject of the pickup market in the next three to four months. However, people with discerning eyes know that this is a pickup industry. It is not like the sedan market. “If you drop me, why don’t you make less money? Who are you afraid of?”, for many domestic pickup manufacturers, “down or not?” This will be a choice of "survival or destruction." The reason is very simple. Due to the general absence of foreign capital background, domestic pickup manufacturers have not enjoyed “profiteering” benefits since the beginning, and in the past two years, they have already entered the “early profit era”. Another 10% drop, I am afraid that many manufacturers will have to change their course, and there is no way out if they do not fall. "This is a clear matter. People's cars are cost-effective, and they are big brands. How can you sell without falling? Since the search for death, we have to say, who has this strength?” Indeed, there are not many pickup truck manufacturers that have the strength to follow up on the Great Wall. Although there are already more than 30 domestic pickup manufacturers, there are not many real production scales. The total market share of the top five sales even exceeds 85%, and the sales of the Great Wall pickup have been far away for many years. Leading the industry, Dill Picka has always maintained the top spot in the domestic pickup market. So why did the Great Wall cut prices so much? People in the industry generally believe that promotion is only one aspect. The Great Wall’s “intention of drunkards” should be to clean up the market, raise the industry's threshold by driving down average profits, and clear the obstacles for continuing to expand its production scale and seize more market share. To put it plainly, the Great Wall is trying to pressure competitors and even eliminate some competitors. The company’s decision-makers stated that “the cohabitation of the pickup truck industry has caused many consumers to suffer a lot. This situation must end as soon as possible. As the leader in the industry, Great Wall Motors has the obligation to continuously create more cost-effective products for consumers. We have an obligation to purify the market environment through our own efforts.We would rather make less money, but also let those pickup truck manufacturers with weak strength, poor technology, and low product levels be out of the market as quickly as possible.Furthermore, as the production scale of Great Wall Motors continues to expand, At present, such price levels can completely maintain a good virtuous circle in the company's production and operation.” In addition, in the view of the Great Wall, the existence of too many products of high quality and low price impacts people's correct understanding of pickup trucks. Only the pick-up truck market can grow faster. For example, for a period of time, due to the spoilage of some small manufacturers with weak technical capabilities and poor product quality, the fuel consumption per 100 kilometers of the same grade product would have been 4-5 liters higher than that of the Great Wall pickup truck, making the society form a kind of " Gasoline pickups consume large amounts of fuel and are not economical. This has affected the sales of regular pickup trucks such as the Great Wall. Through this substantial price reduction, the Great Wall hopes to clear the portal for the pickup truck market, so that people can more realistically understand the popular transportation mode of pickup trucks in Europe and the United States, and allow Picardes to enter into millions of households in China. The light truck and minivan markets have been hit. When the rising price of oil has attracted widespread attention, we noticed that the recent fuel test by an authoritative department showed that the average fuel consumption of the Dilupka reached a total of 4.989 liters per 100 kilometers. What is the concept? A technical indicator that is also far ahead of its peers has obvious advantages in its fuel consumption in the domestic similar products, even if it is comparable to foreign counterparts. With the largest market share, more fuel economy, and lower prices, the industry generally believes that through this price reduction, Great Wall pickup has once again created a domestic price for the price of a pickup truck, which has become the first choice for consumers. Needless to say, for domestic counterparts, this is a difficult peak to overcome in the short term. As the leader of the pickup industry, the purpose of the Great Wall is to push competitors to a dead end. In particular, small factories with weak technical capabilities and poor product quality should be eliminated as soon as possible, so as to purify the mixed truck market in China. What is even more significant is that in the days of price cuts, many consumers who originally intended to purchase light trucks or vans have emerged in Great Wall Motor’s stores. Obviously, the impact of the price cuts of Great Wall pickups was not only in the pickup industry, but also caused a strong shock and turmoil in the market for light trucks and minivans where the product price and consumer groups were not much different from their original ones. In terms of performance, compared with light trucks, pickup trucks have slightly less cargo carrying capacity, but they have the advantages of a more fashionable appearance, better driving and riding comfort, faster speed and acceleration, an economical fuel economy, and easier docking. Consumers, who are usually not very large in terms of volume, are obviously more ideal. Compared with vans (including light passengers and micro noodles), pickups have the advantage of more convenient loading and more passenger-driven driving performance. In view of this, it is not surprising that the Great Wall’s price reduction will have an impact on the light truck and bread market. In Europe and the United States, especially in the United States, pickup trucks have already become the second largest model after cars, and many families use pickup trucks as their second vehicle. It is precisely because of this that despite the current market size of only a few hundred thousand vehicles, the industry is very optimistic about the future prospects of the Chinese pickup truck market. Because whether it is commercial or residential, pickups have further room for expansion. Obviously this is another reason why the Great Wall cuts prices. That is to expand the consumer groups of pickup trucks and create more users.