The conflicts between many traditional auto dealers and manufacturers have intensified, and the transformation of the traditional auto market is imperative

Recently, the rights protection event of Zotye distributor Shandong production base was fermented on the Internet...

In the traditional automobile marketing model, the relationship between vehicle manufacturers and 4S stores is inseparable! With the prosperous development of the new energy vehicle market, the living space of traditional car companies is being squeezed a little bit, sales have fallen sharply, and the contradiction between vehicle manufacturers and dealers has gradually intensified.

Intensified conflicts between many traditional car dealers and manufacturers

In early August, 17 Zotye dealers went to the Shandong Linyi production base to defend their rights, claiming that due to the frequent quality problems of Zotye Auto’s S series products, the dealer’s normal operation was hindered. For more than two years, none of the dealers had made money. Most of them lost millions to tens of millions, and this situation has been going on for many years.

Zotye Auto responded quickly to this, saying that in the process of selling Zotye S series products, due to market conditions and other factors, dealers' sales performance did not meet expectations, so the so-called "rights protection" activities were launched, not a product quality issue. At present, the two sides hold different opinions, and the problem is still being communicated and resolved.

The conflicts between many traditional auto dealers and manufacturers have intensified, and the transformation of the traditional auto market is imperative

In addition, another car company, Volvo, also encountered similar problems, and conflicts between Volvo manufacturers and dealers were also intensifying. According to Volvo dealers, since the end of 2014, the three 4S stores have accumulated losses of more than 30 million yuan and have to be forced to withdraw from the Internet. Volvo has also been unwilling to honor the cumulative rebate of more than 4 million yuan over three years, which eventually led to conflicts.

However, Volvo Cars immediately declared that it denied being "forced out of the network" and delayed rebates. According to Volvo, choosing to withdraw from the Internet is voluntary. In the process, Volvo issued a warning letter asking three dealers to rectify and improve their sales performance, which led to intensification of contradictions.

In fact, whether it is Zotye or Volvo, the conflicts between dealers and manufacturers have intensified, and the most fundamental reason points to one, sluggish sales!

At the time when the auto industry is booming, as interdependent partners in the auto industry chain, why are the conflicts between auto manufacturers and dealers intensifying?

The conflicts between many traditional auto dealers and manufacturers have intensified, and the transformation of the traditional auto market is imperative

The impact of new energy environmental factors, the performance of the traditional auto market has declined

In fact, the intensification of conflicts between auto dealers and manufacturers is affected by product quality on the one hand; on the other hand, the environmental impact of the new energy vehicle market trend has led to the failure of traditional fuel vehicle companies to achieve sales performance as expected.

According to OFweek Industrial Research Institute data, in the first half of 2017, Zotye Automobile sold a total of 106,000 new cars, down 28.9% year-on-year, and only completed 26.57% of the annual sales target of 400,000 vehicles. Among them, the sales of SUV models were 77,800, a year-on-year decrease of 36.6%, and the sales of sedans were 15,500, a year-on-year decrease of 18.2%. The only positive growth was pure electric new energy vehicles, which sold 13,000 vehicles in the first half of the year, an increase of 65.4% compared to the same period last year.

As a self-owned brand car company that has been established for 15 years and is not a young one, Zotye Automobile's rapid development model in the early growth stage is "buy" and "fast". Regarding the word "fast", the most typical thing is that after entering the stage of independent innovation, Zotye Automobile quickly deployed the new energy vehicle market, and even set the six "firsts" of China's new energy vehicles! For example, the first vehicle company to obtain an invention patent in the field of pure electric passenger vehicles, the first vehicle company to obtain a national production license for pure electric passenger vehicles, and the first vehicle company to achieve mass trial operation of pure electric vehicles ...

However, the early rapid deployment in the new energy vehicle market did not allow Zotye to achieve good development in the current new energy vehicle market.

After the announcement of the double points situation in 2017, except for BYD, BAIC New Energy and other companies that focus on new energy vehicles, the new energy points of 44 auto companies, including Zotye Automobile, Borgward, and Dongfeng, were all zero. With the implementation of policies such as the double-point policy and subsidy decline, the development of new energy vehicles has become an irreversible trend. With the influx of major capital and the R&D investment of new and old car-making forces, more and more new energy vehicle products have become reality from ideas and penetrate into the daily lives of ordinary people, and people are becoming more and more able to accept new energy vehicles.

Under the influence of national policies, various car companies have to switch to new energy. Although Zotye invested 6 billion yuan to establish a new energy base in Hubei in 2017, the advantages are not obvious. At present, Zotye's new energy vehicle product line is still relatively single, and new energy vehicle products are not competitive in the current trend of intelligent network connection. The early rapid deployment relies on the traditional fuel vehicle production line that is still lacking in innovation. The actual car sales in 2017 were lower than expected, and the performance of the year was reduced. The adjustment of the new energy vehicle policy had a certain impact on the performance of Zotye.

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In fact, the conflicts between Zotye Automobiles and dealers have intensified, and behind the "down" in sales, it has a lot to do with the awakening of consumer awareness and the rapid rise of other Chinese brands. In the era of emphasizing positive research and development and made in China, the development route that Zotye copied is no longer appropriate.

Under the trend of new energy vehicles, the fluke psychology of survival in the cracks of traditional car companies is no longer desirable. Whether it is product quality or product structure, in a word, only by transformation and upgrading and conforming to the development of the times, the brand image will not be damaged. Back to a healthy development track.

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