"The southwest region lacks both traffic and sales

06/13 2024 406

Introduction

Introduction

Traffic relies on forums, while sales depend on the market.

Author: Yang Jing

Editor-in-Charge: Cao Jiadong

Editor: He Zengrong

"If it weren't for the outspoken remarks of several auto industry giants at the (2024 China Auto) Chongqing Forum, few people would have known about the Chongqing Auto Show."

"It's a shame Xiaomi didn't come. I feel like the traffic at the Chongqing Auto Show can't even boost Huawei's (Wenjie) presence as the home team."

"The salespeople in Chongqing are indeed as fiery and uninhibited as the people of Chongqing, shouting slogans and pumping up enthusiasm on the stands, even displaying the bottom prices of cars directly on the big screen."

Indeed, compared to the Chengdu Auto Show and the Guangzhou Auto Show, the influence and status of the Chongqing Auto Show are still slightly inferior. This year, it overlapped with the Guangdong-Hong Kong-Macao Greater Bay Area Auto Show, which started on a weekend on June 1st and was supported by top names like Lei Jun and Yu Chengdong, making the Chongqing Auto Show, which opened on a weekday, pale in comparison.

As mentioned at the beginning of the article, fortunately, there were traditional automakers' leaders attending the Chongqing Forum, otherwise, the Chongqing Auto Show would have been an ordinary car sales exhibition. Of course, for many automakers, the Chongqing Auto Show, as a regional auto show that radiates the western region, can leverage car sales, which is the key to its existence.

Especially for those headquartered in Chongqing, such as Changan Auto, Seres Group, and Raylan Automobile, as well as SAIC, Great Wall, and others with factories in Chongqing, including second- and third-tier car brands that sell well in the southwest region, being able to digest a wave of orders at the Chongqing Auto Show is not only related to overall performance but also an important part of stabilizing local dealers' confidence and increasing brand exposure.

Top stars are ignored

If two words were used to describe the Chongqing Auto Show, they would be "rustic" and "pure." Whether it's the densely packed car brand logos on the background wall at the entrance, the ubiquitous "little bees," or the smiling salespeople, it can be seen that this is a very regional car sales exhibition.

In such a competitive era, no automaker is willing to give up even a tiny promotional opportunity. However, as the Chongqing Auto Show opened on a weekday, the day before the Dragon Boat Festival holiday, the quietness of the exhibition hall can completely withstand the heat of Chongqing. And these days happened to be one of the few cool days in Chongqing, making people feel even more desolate.

In sharp contrast, at the Guangdong-Hong Kong-Macao Greater Bay Area Auto Show seven days earlier, top names in the automotive industry such as Yu Chengdong, Lei Jun, Li Bin, Zhu Jiangming, Liu Tao, and Zhou Hongyi all attended the event in person. After the Chongqing Forum, however, few industry giants were seen, and even those who did attend the exhibition hall did not have "close" interactions, adding to the chill.

Undoubtedly, the Chongqing Auto Show also hopes to attract as many people as the Greater Bay Area Auto Show. It originally hoped that the Chongqing Forum would bring a lot of traffic to the auto show, but this hope was also dashed. Even though Chongqing is a city with a higher "Huawei content" than Shenzhen, brands like Wenjie and AVITA are Huawei's "big customers," and these two are also the host automakers, they failed to attract more visitors on weekdays.

"Why didn't Xiaomi come?" This was the question repeated the most inside the exhibition hall. In fact, Xiaomi didn't participate in the Greater Bay Area Auto Show either, but with Lei Jun's presence, everything was different. Indeed, as a top name in the automotive industry, wherever Xiaomi goes, it is destined to be a sea of people.

However, as another top brand, Wenjie, which only has three products, displayed more than ten exhibition cars. Although there were few visitors on the stand, its booth area reached 1,600 square meters, clearly showing its ambition. Not only Wenjie but also popular brands like Lixiang, NIO, and Lynk & Co. faced similar situations.

Some might ask about BYD and BMW. After all, BYD Qin L and Seal 06 are said to have nearly one million orders, and the BMW i3, priced at over 170,000 yuan, has become a topic of conversation among the general public. These two brands should be doing much better. The wish is beautiful, but the reality is harsh. Whether it was the prime time of 10:30 am or 4:00 pm, whether it was the Qin L, Seal 06 priced at 99,800 yuan, or the BMW i3 priced at over 170,000 yuan, there were still few inquiries.

Even such popular brands are in this situation, let alone second-tier and below brands.

Perhaps relying on the experience of hosting the Chongqing Auto Show for nearly 30 years, the organizers have also devised a clever plan. They placed mainstream first-tier brands, especially joint ventures, at the entrances and exits of each exhibition hall. For example, FAW-Volkswagen, FAW Toyota, Dongfeng Nissan, GAC Honda, Dongfeng Honda, etc., perhaps these brands are also strong in Chongqing.

Of course, if you have to "pick the tallest among dwarfs," then as the host, Changan Automobile's booth and the exhibition hall where it is located are relatively lively. First, it has a superior geographical location, located in the first exhibition hall at the north entrance; second, in addition to AVITA, Changan Automobile's independent and joint venture brands are located in the same exhibition hall; third, Chongqing locals also recognize Changan Automobile and its products.

With these factors combined, Changan Automobile, fighting on its home turf, will undoubtedly not disappoint. Especially in this era of "convoluted bosses," only Changan Automobile's senior management team took turns to live stream and explore the exhibition hall, saving face for the Chongqing Auto Show. But the sparse crowd in the camera lens left people feeling sad.

The lack of traffic at the Chongqing Auto Show lies in the fact that everyone assumes it is a sales exhibition, so there are no requirements for new car launches. Even in the official new car spoilers, most are already publicly unveiled models. If one had to say which new car was impressive, the answer might be Great Wall's big motorcycle: Soul...

Of course, this situation is limited to the working day on the opening day. Through various sources, during the three-day Dragon Boat Festival from June 8th to 10th, the Chongqing Auto Show finally ushered in a peak in traffic, only to subside on the working day of June 11th. Whether it's that Chongqing people don't like to mingle in crowds or a true reflection of the ups and downs of the auto market, we don't know.

Not many are mingling in crowds

Perhaps the surge in traffic during the three-day Dragon Boat Festival, coupled with the increase in order numbers, brought some comfort to automakers. Some media also interviewed some brands about their sales targets, such as Changan hoping to achieve a sales target of 1,000 vehicles, and Wenjie claiming to complete 1.5 months' worth of sales during the Chongqing Auto Show, both full of confidence.

Compared to previous years, this year's Chongqing Auto Show has a stronger sense of competition for sales. Whether it's new energy brands, new forces, independent brands, or joint venture brands, they lined up to cheer each other on, release intense policies, and publicly explain promotional policies before the exhibition, regardless of whether their neighbors were competitors or rivals.

And some brands directly displayed the prices of base-price cars and promotional cars scrolling on the big screen. Geely Emgrand starting at 54,900 yuan, Sylphy Classic starting at 69,800 yuan, Chevrolet with a 6.X discount, AION with a package price of 99,800 yuan... If you inquire proactively, there are also mid-range hybrid Camrys priced at 170,000 yuan, Audi Q5L priced at less than 300,000 yuan, and BMW 5 Series with a price reduction of 90,000 yuan...

Originally, exhibitors needed to digest some previous swing customers at the auto show. These customers may have a strong interest in buying a car but have not been able to make a decision due to various reasons. At the same time, they also need to harvest those customers who are watching and waiting in advance. These customers may not have a car purchase plan for the time being, but they keep a close eye on changes in the auto market and preferential policies and will make a move once there is a suitable opportunity.

For consumers in the southwest region, the Chongqing Auto Show is an important window for them to understand the latest automotive products, compare the performance and prices of different brands and models, and enhance their car-buying experience by visiting the auto show.

However, affected by the overall market, this year's auto market situation is particularly complex and full of uncertainties. Traditional fuel vehicles, which originally dominated the market, are facing unprecedented challenges, being squeezed by new energy vehicles. At the same time, the quality and technology of independent brand cars are also constantly improving, resulting in some joint venture brands' market share being eroded by independent brands, and market competition becoming increasingly fierce.

Against this backdrop, the auto price war has also intensified. To compete for market share, major automakers have launched various preferential policies, and price reductions and promotions have become the norm. Consumers are increasingly holding onto their money and watching from the sidelines, making whether sales targets can be achieved a major uncertainty faced by auto shows and automakers.

Amid the hustle and bustle of the Chongqing Auto Show, car sales consultants, like hunters, keenly capture the gaze of every potential customer. When a customer stops and stands in front of a certain exhibition car, a sales consultant will quickly approach, holding a detailed product manual and price list in hand.

However, the customer's reaction is not as enthusiastic as they expected. The customer may just casually scan the car body or simply ask a few basic questions before turning around and leaving. The sales consultant follows closely behind, trying to attract the customer with more detailed data and offers. Most of the time, the sales consultants can only shake their heads helplessly and continue looking for the next target.

This perception of difficulty in selling cars makes every sales consultant feel pressure. Even some sales personnel have shown fatigue, such as a salesperson from FAW Toyota who accidentally blurted out FAW-Volkswagen instead of their own brand. Perhaps due to the small number of customers, he stared blankly at the four words "FAW-Volkswagen" on the opposite stand...

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