Automotive Black Technology Chapter 852: : Suzuki is in a deadlock!
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Although the product information has been released to warm up the market. But in fact, Zhengxin’s N5, A+ and QQ models are still under development, and they are not launched.
However, in order to seize market opportunities, Suzuki Group has completed the development of economical versions of Swift and sedan models Ezior, and will launch them on the market in the near future.
The reason why it is so fast is because on any car model, subtraction is always easier than addition.
In short, it’s... Isn’t it easy to cut corners?
So in just the second week after the F-1 was launched, two economical versions of the Suzuki Swift have been deployed on the market.
The previous Alto economy version has greatly increased Suzuki's market share. Faced with Suzuki's first model that can be called "cheaper than cheap", the Indian market has shown great interest.
On the first day of its launch, it has achieved impressive sales of more than 5,700 units across India.
So although the two cheap versions of Suzuki Swift are designed to attack the three models that are about to be launched by Zhengshin, Suzuki Yinzhu Branch itself also has great market confidence in these two models.
To this end, Suzuki has invested considerable promotional resources in these two models.
But...
After going offline, the situation did not seem to be as good as expected;
Bahan Lal Automobile Dealers, New Delhi.
This car dealership is the largest comprehensive car dealer in New Delhi and Suzuki's largest cooperative firm in New Delhi and surrounding areas.
In order to match the Suzuki Group's strategy of "expanding market share with economical models and enhancing consumer stickiness to the Suzuki brand". In the previous week, Bahanlal Motor Dealer had already advertised two economic models of Suzuki Swift.
Today is the second day after these two models were launched.
But in fact, consumers coming and going in car dealerships seem to be less interested in these two models than in the previous Di Alto economy version.
At this time, in the specially designated Suzuki Swift Economy Edition store area, several customers were talking softly.
Two of them looked like young couples preparing to get married;
"Well, why has Suzuki launched so many cheap models? It's cheap, but the configuration of this car is too low!"
"Who says otherwise, Rakar, I don't want to sit in a car without air conditioning! That would be too uncomfortable!"
Seeing this, the shopping guide stepped forward with a smile and said: "Dear customers, if you are not interested in this economical model, then please take a look at the comfort version of Swift 1.2L."
"How much does that car cost?"
"Oh, the price of the 1.2L comfort version is 320,000 rupees." The salesman answered with a smile.
"Huh? Why is it so expensive?!" The young couple was a little surprised.
This exclamation made the salesperson quite helpless. He rolled his eyes, "That's the comfort version, with air conditioning, sound system, more comfortable seats, and wider tires."
The young couple couldn't understand and pointed to the economic version of Swift in front of them: "But its price is only 135,000 rupees! This is more than double the difference!"
The salesperson was speechless.
This... is so embarrassing!
In fact, compared with the economy version, the regular version of Swift has more configurations than just these. Front and rear anti-collision steel beams, four airbags, higher quality wheels, higher specification tires, and various electronic equipment.
In fact, cars are like this. Parts that can be produced by themselves, even parts like the engine assembly, main body and sheet metal, are often not very expensive.
However, these electronic equipment and other comfort configurations need to be purchased from spare parts suppliers.
The Yinzhu market is such a market, so Suzuki Group is relatively conservative in pricing. To be fair, the price of 320,000 rupees for the regular version of Swift is not unreasonable, and it can be said that the price/performance ratio is very high.
But...there is an economical version for comparison. It doesn’t seem so affordable...
After all, in the eyes of consumers who don’t understand cars, the price has more than doubled just because a few things that don’t seem to matter to them are missing. This is really unacceptable...
However, as a salesperson, it is difficult to explain this to customers.
Seeing the salesman speechless, the young couple complained a few words and then turned and left.
This is not the first time a salesperson has experienced this situation.
In fact, they are also facing the same problem with the recent sales of the regular version of Alto - after the economic version was introduced, this model, which was originally considered by customers to be the most cost-effective model in the car market, is also regarded by customers as Questioning the previous price was too high.
So the sales volume of the Alto economical version has increased, but in fact the sales volume of the regular version has gradually shrunk.
And the low configuration of the economic version does not mean that everyone will put their hands in their crotch...pocket and take out the money to pay for it.
It is undeniable that the launch of economical models with completely simple configurations has satisfied a large number of consumers who could not afford to buy a car due to economic conditions. However, the price, which is too low and is too different from the regular model, has also caused a big impact on the regular version.
——Even if these two versions look similar in appearance, even if they are fundamentally the same car model!
Such a situation is not unique to New Delhi.
Gargaon, Maharastra, Gulbarga, Surya North, Jabirpur, Rajkot, Asathsol...
Almost all car dealers selling all Suzuki products are performing this.
The situation was quickly reported to Suzuki Inzhu Branch. After the marketing department compiled the sales statistics of all the company's models, they were immediately frightened and broke into a cold sweat!
The sales volume of Alto's two regular models, namely the comfort version and the basic version, dropped by 15%!
The sales of the two regular versions of Swift are also slowly declining!
And...from the perspective of operating profit, the sales of the Alto economical version and the Swift economical version have not made up for the decline in sales of the regular version.
In other words, after launching a cheap version, the company's profits are slowly evaporating!
Looking at such a report, Tanaka felt very anxious.
In fact, the marketing department had already speculated on this situation before the launch of the Alto economical version.
No one thought it would come so quickly!
"President..." The manager of the marketing department reminded Tianzhong when he saw that he was in a daze.
"I know." Tanaka waved his hand.
"At this stage, the first priority is to curb the development of Zhengxin in the Indian market. Zhengxin is a car company with terrifying R&D capabilities and considerable capital. If it develops in the market, its impact on us will be It will be fatal. So please pay close attention to the problems discovered so far, but... we must resolutely implement the decision of the headquarters."
"..."
"Good CEO."
After the people from the marketing department left, Tanaka sunk himself into the sofa.
He vaguely felt that something... seemed a little off.