Nowadays, the competition in the domestic automobile market is fierce, and some domestic models have gradually broken into the field of traditional joint venture cars, and the label has appeared significantly compared with the past. This trend has sparked a wide discussion: why are domestic cars significantly increased in a short period of time?What is the market logic behind it?
*At the root of car pricing, we need to understand the core elements that make up the final selling price: this includes R&D spending, manufacturing costs, logistics spending, taxes and brand premiums. These costs accrue and combine with the expected profit margin of the automaker and the market** to determine the initial list price of the car. Market practice tells us that it is not uncommon for new cars to be urgently adjusted** after they are launched.
In the early years, the brand image and technical content of domestic fuel vehicles were relatively low, and they relied on the introduction of external technology in the early stage, and the market strategy focused on cheap sales, attracting purchases at low prices to form rapid sales growth. However, this strategy has led to a compression of profit margins for automakers, which in turn has led to a lack of incentive to invest in R&D. With the rise of new energy technology, the threshold for automobile manufacturing has been lowered, and the technical differences between local brands and joint venture brands have gradually blurred.
Domestic new energy vehicles have sprung up in the market, improving product strength and gradually winning the favor of consumers. With the increase in sales, enterprises have increased R&D investment, forming a virtuous cycle of development, and linking some manufacturers to produce high-quality products comparable to hybrid models.
At a time when competition in the market is becoming more fierce and marketing costs are rising, it is no longer enough to maintain profit margins by simply reducing prices. The improvement of brand power has become particularly crucial. Brand upgrading usually takes two paths: one is to create a high-end sub-brand to consolidate the high-end market position;The second is to invest heavily in marketing and improve market awareness. These marketing costs will ultimately be reflected in the selling price of the product.
Although the new models continue to rise, the old domestic cars are still affordable for the market. The Haval H6 is a classic example of the diversification of the product line in the market. When consumers are faced with car purchase decisions, they need to be carefully selected according to their actual personal needs, whether it is a domestic or joint venture model, choosing the right product is the key. This question reveals consumers' confusion about brand positioning and value perception. If so, how would you choose?Domestic car or joint venture brand?Let's share your thoughts in the comments section.