Rebirth 99 to become a car giant

Chapter 507 The explosion of 1.5T, China’s automobile market has entered a new stage

After the financial crisis broke out last year, the automobile industry was naturally affected directly.

Especially the export market has a relatively obvious impact.

For companies such as Chery Automobile and Great Wall Motors, which account for a relatively large proportion of exports, this impact is very uncomfortable.

Fortunately, China quickly launched a new automobile revitalization policy.

Among them, the purchase tax for engines with a displacement of less than 1.6L is reduced by 5%, which is a very effective plan.

After the official announcement in January, the effect in the first two months was not that good.

Because at the beginning, everyone was still a little worried about the economic environment.

However, since late March, many of China's economic indicators have begun to bottom out, and everyone's confidence has begun to recover.

By the time April passes, the situation will be completely different.

The proportion of models below 1.6L has increased significantly compared with last year.

This is definitely a good thing for many independent brand car companies.

"Mr. Cao, this month our 1.5T engine shipments increased by 22% year-on-year, reaching a historic 120,000 units."

"Shipments of 1.0T engines also increased by 16%, reaching 60,000 units."

"On the contrary, the 2.0T products have basically remained stable without any obvious increase."

"I have a hunch that domestic cars will be polarized in terms of engine displacement in the future."

"On the one hand, models with a displacement of less than 1.6T are affected by policies, and their proportion will further expand."

"On the other hand, large-displacement engines above 3.0T should still be able to grow steadily. After all, rich people still have demand for this market."

"On the contrary, for intermediate products such as 2.0T or 2.5T, the situation may be more embarrassing."

"We may need to further consider lowering the price of 3.0T so that more companies can afford our 3.0T products."

"At the same time, as for large-displacement engines, as long as customers can afford the money, I think they can be sold."

"Even the corresponding 8AT and 10AT are the same."

"As long as you can afford the price, I'll sell it to you."

"Even if independent brand manufacturers such as BYD, Chery, and Great Wall want to purchase W12 or even W16 engines, there will be no problem."

"I don't think there is any need to worry about the impact their models using these engines will have on Xingchen Motors."

"After all, the price of our engines is there. Even if they want to produce related models, the final price cannot be low, otherwise it will become like a loss."

I have to say that it is very constructive for Cheng Tao to propose such a plan at this time.

In the early days, we were worried that independent brands were also using the same engines used in Xingchen Automobile, which would have a certain impact on the brand power of Xingchen Automobile.

Therefore, even if Chery, Geely and other car companies want to buy products in this area, Nanshan Engine will not sell to them due to insufficient production capacity.

Although this approach will not have much impact on the development of independent brands, the other party must have some ideas and opinions in their hearts.

The current environment has begun to change, and Xingchen Automobile's brand power has slowly increased, so there is no need to worry.

The most important thing is that Cheng Tao feels that he can completely control the selling price to prevent some independent brands from arbitrarily launching low-priced models equipped with the same engine of Xingchen Motors.

For example, if I sell a W12 engine to you for RMB 30,000 to RMB 40,000, coupled with an 8AT for RMB 50,000 to RMB 60,000, or even a 10AT for RMB 100,000, the model you produce will not be just Sell ​​it for four to five hundred thousand, otherwise you will lose money.

As for self-owned brand models equipped with W12 engines and 8AT, if the price reaches 700,000 to 800,000 yuan, or even higher, then there is no need to worry about affecting the brand power of Xingchen Motors.

Even if car companies such as Chery and Geely can release models at this price, it will be a good thing for Nanshan Engine.

The profits from large-displacement engines are very generous.

The money earned from selling one W12 engine can be worth more than 10 1.5T engines.

Thinking of this, Cao Yang agreed directly without hesitation.

"No problem, all Nanshan Engine products can be sold to the outside world normally."

"Not only that, all products of Nanshan Transmission can also be sold to the outside world normally."

"It's just that when it comes to large-displacement engines, the sales price must be carefully determined to avoid any impact on Xingchen Motors and Jaguar Land Rover, and to avoid the situation of selling overseas at a cheaper price than domestic ones."

Cao Yang gave a brief warning and ended the conversation.

However, the sales of 1.5T and 1.0T have exploded. Nanshan Engine is happy, but some manufacturers are depressed.

"Minister, last month our sales fell by 5% year-on-year, especially the CRV and Civic, both of which have seen a bit of sluggish growth."

"I think we should make a proposal to Honda and let them launch a turbocharged engine below 1.6T as soon as possible. Otherwise, we will not be able to enjoy the discount of half purchase tax."

"Compared with independent brands, Volkswagen and GM, we are at a disadvantage."

Within the Zefeng Honda sales department, a discussion is taking place.

As a department head of the sales department and the most basic managerial staff, Ma Hongjiang can still feel the changes in the market very directly.

He is relatively familiar with the sales situation of every 4S store.

I often visit 4S stores every day.

"This year's purchase tax discount for engines below 1.6L will have a huge impact on the auto market."

"Our models are generally 2.0L or above, even the lowest displacement of the Civic is 1.8L."

"In this case, the purchase tax preferential policy is not only not a good thing for us, but also a shock."

"For example, Civic's competitors, Lavida and Bora, have already launched 1.4T turbocharged engine configurations."

"Chery, Geely, BYD and other independent brand car companies use 1.5T turbocharged engines in large quantities, and they can all enjoy preferential purchase tax policies."

"Amidst this ebb and flow, we are indeed under greater pressure."

"I will formally raise this topic at the next ministerial meeting to see if Honda can speed up the introduction of turbocharged engines."

"The trend towards smaller engine displacements is already obvious. To maintain sufficient power, turbocharged engines should become the main trend in the future."

As the deputy director of sales department of Xifeng Honda, Han Hao still has this knowledge.

Energy conservation and emission reduction are the general direction.

In addition to promoting the development of new energy vehicles, miniaturization of engine displacement is bound to be a trend.

Whether it is a policy of halving the purchase tax or making a large difference in consumption tax according to different displacements, they are all intended to encourage car companies to launch more fuel-efficient models.

This can also indirectly achieve the overall energy conservation and emission reduction tasks, thereby reducing China's dependence on imported oil.

"Honda had already launched a turbocharged version of the CITY model in 1982. It stands to reason that their technological accumulation in turbocharging is not low."

“But in recent years, they have basically focused on naturally aspirated engines, whether they are 1.5L or 1.8L, or 2.0L and 2.4L, or even 3.5L naturally aspirated engines. Very good.”

"But compared with turbocharged engines of the same level, there is definitely no advantage."

"Judging from the current demand in the Chinese market, Honda's pace is still a little slow."

"If the purchase tax discount continues to increase in the future, the impact on our company's sales will become even greater."

"In this regard, if Honda Motor is not ready for changes, our sales pressure will be extremely huge in the next few years."

Although in Japanese companies, a person's performance is often not directly related to salary.

But if the performance of the entire company is not good, then the overall bonuses and other things will definitely be affected.

In the end, everyone will be affected.

Ma Hongjiang also has a clear understanding of this.

The most important thing is that Ma Hongjiang is still a very ambitious person. He hopes that he can achieve good performance. In this way, whether he continues to stay at Xifeng Honda or changes jobs to other companies, he will have more advantages.

The importance of platforms is unquestionable.

Your last company was great, and you will have many more choices when you change jobs.

People will also look up to you.

On the other hand, if your last company is about to go bankrupt, it will definitely be affected when you change jobs.

"Market sales data already clearly shows this trend."

"I believe Honda also hopes to increase sales in China."

"Especially now that the overseas market situation is very sluggish, and everyone has little confidence."

"China's automobile market has returned to normal and has even begun to return to a stage of rapid growth."

“Today, it is basically a certainty that it will become the world’s largest automobile market.”

Han Hao's understanding also gave him the confidence to convince Honda.

Do you want to go to the Chinese market?

In particular, the United States, Honda's largest market, is now severely affected by the financial crisis, and sales this year are expected to hit a record low.

This is definitely a big blow to Honda.

Other overseas markets have also been affected to a greater or lesser extent.

In this case, the importance of China's automobile market becomes even more obvious.

The same situation is actually true when it comes to Toyota cars.

At this moment, Spring City Toyota is also analyzing last month's car sales data.

"Mr. Chen, do you think China's purchase tax halving policy is a temporary promotion policy, or will it appear again in the future?"

As the deputy general manager of Spring City Toyota, Miyazaki Himasa is an old partner with Chen Wenzhan, the deputy general manager of Spring City Automobile Group.

At that time, they were the director and deputy director of Spring City Toyota Sales Department.

So when something happened, the communication between the two was relatively smooth.

This time, Spring City Toyota's sales experienced an unprecedented year-on-year decline, which made Miyazaki Himasa a little anxious.

Although normally speaking, a sales drop of a few points doesn't mean much.

However, seeing that the domestic sales of Chery, Geely and other self-owned brand car companies are increasing, the decline of Spring City Toyota is very eye-catching.

According to this trend, Spring City Toyota may not even be able to maintain its position in the top five of China's auto sales list this year, and even its position in the top ten is in danger.

This situation is definitely not what Miyazaki Himasa wants to see.

"Although judging from the current situation, the purchase tax preferential policy is only effective this year."

"But the possibility that it will be extended to next year is actually very high."

"And even if this policy is stopped after it expires, it may be used again at any time in the future."

"After all, encouraging the development of small-displacement models is already a major policy of China, and this direction will never change."

"Toyota has a very deep technological accumulation in naturally aspirated engines, and it has done very well in terms of fuel efficiency and cost control."

"The stability of our engines is also praised by everyone."

"But in the Chinese market, the advantages of naturally aspirated engines are rapidly declining."

"If we cannot launch small-displacement turbocharged products as soon as possible, it will be very detrimental to our sales growth in the future."

"As far as I know, major car companies are considering launching turbocharged engines across the board and no longer engaging in naturally aspirated engines."

"Once this trend is formed, it will definitely give consumers a great guidance."

"At that time, if we have no advantage in terms of consumption tax, purchase tax, or fuel consumption, it will be very troublesome."

"Even taking this opportunity, China's own brand car companies will further expand their market share."

As a resident of Spring City Automobile Group, Chen Wenzhan is very familiar with China's policies.

Obviously, he is also more optimistic about turbocharged engine products.

"Actually, from a technical point of view, turbocharged engines are not more advanced than naturally aspirated engines."

"This kind of engine is not new now. Many car companies launched turbocharged engines decades ago."

"To use a not-so-appropriate metaphor, a turbocharged engine is like giving the engine hormones, amplifying the potential of an engine to the limit."

"In this case, there is no benefit in terms of engine maintenance costs, requirements for some parts, or engine stability."

"If we can promote it correctly, there should still be some people who like naturally aspirated engines."

What Miyazaki Himasa said is not completely unreasonable.

From the perspective of maintenance costs, turbocharged engines definitely have no advantages.

Even from the perspective of engine production costs, turbocharged engines have no advantages.

Let’s not talk about other things. The very critical turbocharger alone is a component worth 2,000 yuan.

This is completely a newly added part.

Not to mention that after turbocharging, a series of other parts must also be strengthened accordingly. In order to meet the requirements of emission regulations, the amount of precious metals in the three-way catalyst must be increased.

In total, the cost of an engine with the same power after turbocharging may be several thousand dollars higher.

For a car worth hundreds of thousands, perhaps this cost is nothing.

But for models priced under 100,000 yuan, this cost increase is difficult to accept.

However, some things will not move forward unless you feel bad about them.

The rolling wheel of history is moving forward, and if you try to use your hands as a cart, you will obviously get no good results.

Chen Wenzhan has a clear understanding of this matter.

So after listening to Miyazaki Himasa's words, he immediately said: "The truth is indeed what you said."

"However, with the development of turbocharged engines now, the technology can be considered relatively mature."

"In this case, its advantages of small displacement and high power are fully realized."

"Whether it's in China or Europe, there is this trend."

"In other words, markets such as the United States and Japan still have relatively weak guidance in this regard."

"If Toyota wants to become a top-ranking manufacturer in the Chinese market in the future, it will definitely not be possible to rely entirely on turbocharged engines."

"I think this situation must be accurately communicated to Toyota headquarters."

Chen Wenzhan expressed his views firmly.

If you go against the trend, you will definitely get a bloody head.

He does not want Toyota to buck the trend in its domestic development.

Compared with the entanglement between Honda and Toyota, Volkswagen's mood this time is more complicated.

"Strauss, Volkswagen's sales have achieved a certain growth in the past few months, especially for turbocharged products, the sales growth has been relatively obvious."

"But the sales of the Audi brand have declined year-on-year. What do you think of this situation?"

Vondel stared at Strauss with an evil look.

Although Audi's sales volume is not as good as that of the Volkswagen brand, it contributes quite a lot of profits.

Therefore, Vondel has always attached great importance to Audi's development in China.

However, by 2009, Audi's development had reached a bottleneck.

Whether it is Xingchen Motors, Mercedes-Benz, BMW, or Jaguar Land Rover, the sales of Audi cars have increased year-on-year in the past few months, but Audi cars have declined year-on-year.

According to this pace, Audi will not be in the top three positions, let alone the leader in luxury cars, without it.

From ABB to XABB at the beginning, it may be XBBA or even XBB in the future.

This is definitely something Vondel cannot accept.

"The sales volume of Volkswagen brands can continue to increase, mainly due to the fact that turbocharged engines with a displacement of less than 1.6L have begun to exert force."

"Especially the models equipped with 1.4T, sales have increased well."

"But our Audi is relatively weak in this aspect. Whether it is a 1.8T engine, a 2.0T engine, or a 3.0T engine, there is no way to enjoy the purchase tax discount."

Strauss soon found himself an excuse that seemed reasonable.

However, Vondel was clearly not satisfied with this excuse.

In his opinion, the engines of several other luxury brands do not have engines below 1.6L, and they also do not enjoy the purchase tax discount. Why can their sales increase?

Besides, will people who can afford luxury cars miss the purchase tax discount?

"Strauss, the board of directors is not particularly satisfied with the performance of the Chinese market."

"If China's auto market is growing rapidly today, but Audi's sales in China are declining, then you must bear due responsibility."

"Don't talk about promotion at that time, whether you can continue to stay in the Volkswagen Group will also be a big question."

Vondel prodded Strauss very rudely.

Although Volkswagen still maintained its number one position in China last year, its advantage was no longer obvious.

Today it is very likely that both Spring City Volkswagen and Magic City Volkswagen will fall out of the top three positions in the sales rankings.

This has never happened before.

Once this happens, someone must take responsibility.

Fondel felt that the position below his buttocks was not necessarily stable.

His position is no longer guaranteed. In this case, he must pass on the pressure.

Whether it is Strauss or the person in charge of Spring City Volkswagen and Magic City Volkswagen, they will all be put under pressure by Vondel.

"Vondel, I think the price of Audi cars in China is still too high."

"Although there are many rich people in China, most of them are not particularly rich."

"If our Audi can lower the price appropriately so that more people can afford it, it should be good for Audi's development in China."

"Especially since the sales pressure this year is so great, it might still be a good idea to boost sales through appropriate price cuts."

At this time, Strauss must have chosen to protect sales volume rather than profits.

China's bicycle profits are already the highest for Volkswagen among all markets in the world.

Even if it is lowered a little, there will be no problem.

But sales are different.

In the face of the global economic downturn, everyone is counting on the Chinese automobile market to help breathe a sigh of relief.

As a result, your sales dropped!

If everyone declines, there's nothing to say.

But that's not the case yet.

In this case, the headquarters will naturally have opinions.

Vondel also has a clear understanding of this.

So after hearing Strauss's suggestion, I agreed without much hesitation.

However, with the hot sales of turbocharged models, various OEMs slowly discovered a problem.

That is the problem of turbocharger productivity and cost, which has become more and more prominent.

Previously, in addition to Nanshan Auto Parts, a few manufacturers such as Ishikawajima, Eaton and BorgWarner were mainly producing turbochargers.

The production capacity of these manufacturers in China is not very sufficient.

Especially since the second half of last year, everyone has stopped plans to expand production capacity.

Even now, the headquarters is not willing to expand production capacity easily.

In this way, the shortage of turbocharger production capacity becomes even more obvious.