But since Zhongyuan Automobile Company is determined to enter the use of private passenger cars, it is naturally not afraid of price wars.
They also advanced and lowered the selling price, and launched a so-called consumer-friendly version, which directly lowered the price to 750 Tangyuan.
This price reduction is even more severe than that of Qixiang Automobile Company!
This move made Qixiang Company very vigilant.
The other party actually dares to follow up and lower the price to this extent, which means that the other party's cost control has been greatly improved.
However, Qixiang Automobile Company, as the first company to lower the price of cars, has an extraordinary accumulation. The reason why it has not brought it out before is simply because it has no competitors.
Now that competitors have appeared, Qixiang Automobile Co., Ltd. is also preparing to respond with its true foundation.
In June of 1945, Qixiang Automobile Company announced that they had launched a brand new private car: Aoxiang brand car!
Nothing else about the car is important. What’s important is that the price has scared people all over the country!
Not one thousand, not eight hundred, not even five hundred, six hundred, only three hundred and eighty Tang Yuan!
You can take a private car home with you!
This selling price directly caused a sensation across the country!
What is the concept of the price of three hundred and eighty Tang Yuan?
For an ordinary middle-income family in the Tang Empire, the family income is about 250 Tang Yuan.
The selling price of 380 Tang Yuan means that even a middle-income family can afford it with just over a year's income.
Qixiang Automobile Company said in its publicity: "From now on, cars are no longer exclusive to the rich, but a necessity for ordinary families. The imperial car era will come to an end."
After the launch of this 380 Tang Yuan car, the people of the entire empire were shocked. They had never thought before that this car could be so cheap. Even many experts and scholars said,
This thing launched by Qixiang Automobile Company is simply a low-performance broken engine paired with a bunch of even junker parts. Many of the internal parts have been cut corners.
For example, the copper pipes used in radiators were replaced with iron pipes...
But, this is still a car!
And in terms of appearance, this car is actually not much different from other cars that cost more than 1,000 yuan, and even the superficial things like the interior are not bad.
However, the various internal spare parts can be saved as much as possible.
In addition, Qixiang Automobile Company has once again upgraded their automobile factory, greatly optimized the production process, and also optimized the procurement of various spare parts.
The most important thing is that even so, Qixiang Automobile Company still has profits.
The people were shocked, and Zhongyuan Automobile Company and several other automobile companies were completely speechless.
Especially Zhongyuan Automobile Company, they worked hard to get the price to more than 700 Tangyuan, but now Qixiang Automobile Company has lowered the price of the car to less than 400 Tangyuan in one go. How?
manage?
What else can I do? Keep plagiarizing!
They use cheap spare parts to save costs, so can we.
After intense work on reducing equipment, Zhongyuan Automobile Company launched a second model, priced at only NT$430.
The reason why they didn't lower the price to less than 400 Tangyuan in one fell swoop is because they really can't reduce the cost. There is basically no profit at this price now, and they will lose money if they lower the price again.
And they have also seen that although Qixiang Automobile Company has launched a version of 380 Tang Yuan, the actual production of this model of car is not high and cannot meet the market demand at all. Most of the cars they actually sell are still more expensive.
If you want a better version, you will basically need five to six hundred Tang Yuan.
Therefore, the low configuration of more than 400 Tang Yuan, the standard configuration and high configuration of more than 500 to 800 Tang Yuan can also compete with them.
Besides, when the price of cars dropped to this level, the car market exploded out of thin air. Even if Qixiang's production capacity was fully utilized, it would be impossible to meet the huge market demand.
They have room to live!
Zhongyuan Automobile Company and Qixiang Automobile Company engaged in a price war, which lowered the price of cars from a thousand yuan to around 400 yuan.
Hangzhou Power Machinery Company, another major car manufacturer, is also a little restless, although they have always boasted that they make high-end vehicles.
But now the price of other people's cars has basically been reduced to less than a thousand yuan, while the price of their cars has remained above 3,000 Tangyuan, and the price of Xihu brand cars has remained above 8,000 Tangyuan.
Although the profit of this bicycle is high, the number of orders is getting fewer and fewer.
After all, although many rich people like to save face, they don't like to be treated as a cheat.
The high-end models of Qixiang Automobile Co., Ltd. sell for less than a thousand yuan, but their performance and appearance are no different from your Xihu brand cars.
As for the Xihu brand car, the price is eight to nine thousand, or even tens of thousands, just based on the so-called luxury interior?
How much is that thing worth?
In order to reverse the situation, Hangzhou Power Machinery Company also responded. Well, it is impossible to reduce prices, especially for high-end luxury cars such as Xihu cars. Prices cannot be reduced even if they die.
Once the price is reduced, although it may stimulate sales in the short term, it will do more harm to the brand in the long term.
So they began to comprehensively upgrade the performance, interior vision, etc., and launched a new generation of Xihu brand cars with more powerful performance, more luxury, and you can tell at a glance that they are extremely expensive.
However, the price is still the same as the previous generation, with the basic model starting at NT$8,000!
This can be considered a price reduction to a certain extent.
In addition, they are preparing to carry out great reforms in the mid-range market, launching new models of mid-range brands and creating so-called entry-level luxury cars, with the price remaining at around 1,500 Tangyuan.
This strategy is still very simple, that is, continue to maintain the mid-to-high-end market. As for the low-end market, let Qixiang Automobile Company and Zhongyuan Automobile Company fight.
But this is just their own brand strategy. In fact, they secretly invested in the establishment of two new automobile companies, namely Guangfo Automobile Company and Dagukou Automobile Company.
Preparing to avoid the Jiangnan area where the fighting is fierce and detouring to the south and north to carry out war detours, so far.
The factory construction of major automobile manufacturers is actually in the headquarters area. Qixiang Automobile's headquarters is in Sanzhen, Wuhan, Hangzhou Power Machinery Company's headquarters is in Hangzhou, and Zhongyuan Automobile Company is in Zhengzhou.
Limited by the huge investment of modern automobile companies and supply chain problems, they had no plans to build branches in other places before.
But now, Hangzhou Power Machinery Company has taken the first step and contacted the Guangzhou and Tianjin governments in advance.
These two local governments are also very jealous of the current automobile industry, which can contribute a large number of jobs and tax revenue.
As a result of this hit-and-run, Hangzhou Power Machinery Company invested in establishing a new automobile company in these two places.
And they all operate under independent brands.
These two automobile subsidiaries are the layout of Hangzhou Power Machinery Company to enter the low-end automobile market.
The layout of Hangzhou Power Machinery Company in the low-end market is just a microcosm of this automotive wave. In fact, more companies are participating.