AutoBeta(AutoBeta.net)05/22 Report--

According to a media survey, some Shanghai Dongfeng Peugeot 4S stores recently launched a "buy one get one free" national five car promotion campaign. If you buy a Peugeot 5008 or Peugeot 4008, you can get a Peugeot 2008 or Peugeot 301, but there is no difference between the after-sales service of the given vehicle and the after-sales service of the normal purchase vehicle. Some people in the industry believe that the implementation of State 6 is just around the corner, and such a substantial discount will help 4S stores get rid of the inventory of cars in State 5 as soon as possible, which also reflects the huge survival pressure faced by Dongfeng Peugeot dealers.

If you follow the above promotion efforts, how much discount can you get when you buy a Dongfeng Peugeot 5008? Take the price of a Dongfeng Peugeot 5008 as an example, the official price is 18.77-279700 yuan, while the price of the complimentary Peugeot 308 or Peugeot 2008 is 89700 yuan. If you buy a Peugeot 5008 top model, give away the entry-level Peugeot 2008 or Peugeot 308, which is equivalent to giving away a discount of nearly 90, 000 yuan. The poster leaves room for the event to stop "until it is finished", but the pressure can be seen.

According to media reports, Dongfeng Peugeot's "buy one get one free" of tens of thousands of yuan is not an activity launched by manufacturers, but a promotion launched by dealers themselves. No matter where the promotional wool comes from, 4S stores really offer buy one get one free, which is sure to attract the attention of consumers. According to reports, in addition to the above buy one get one free activities, Dongfeng Peugeot dealers have also launched various large-scale promotional activities. For the time being, I don't know whether such high discount promotional activities by dealers will bring sales growth to Dongfeng Peugeot. However, as a joint venture brand, Dongfeng Peugeot's earlier performance is to fall into the double trough of brand and sales.

In the early years, Dongfeng Peugeot entered the development fast lane briefly with 308408 and other models. When Peugeot's global sales grew by just 5.31 per cent in 2014, China handed over a report card of 380000 vehicles, an increase of more than 40 per cent at one point. In 2015, sales exceeded 400000. However, the good times did not last long, with the intensification of competition in the domestic automobile market and the slow updating of its own products, Dongfeng Peugeot's sales began to show signs of decline. Dongfeng Peugeot sold 249000 units in 2017 and less than 150000 in 2018, a result that is not even as good as the single model sales of some joint venture brands. Poor performance in the Chinese market, PSA Group Management Committee Chairman Carlos Tang Weishi believes that this is due to the lack of brand value of PSA Group and the inefficient operation of its business in China. As long as these two problems are solved, PSA Group's plight in China may be reversed. The problem is not just with Dongfeng Peugeot brand. According to DPCA sales volume KuaiBao, DPCA double brand sold 9543 new cars in April, down 65.3% from January to April, a total of 44201 new cars, down 60% from a year earlier. It is an indisputable fact that Dragon sales continue to decline, falling to 253400 vehicles in 2018, but did not expect the decline to widen to 60 per cent in 2019. When China's auto market sales continue to decline, the market competition intensifies the industry reshuffle, perhaps only when the spring tide recedes, will we know who is swimming naked.

The current situation of DPCA is affected by the external factors of the market environment, and the internal factors of human factors are also one of the main reasons. DPCA, the parent company of Dongfeng Peugeot, has made frequent senior personnel changes over the past two years, and it is not clear whether people influence the results or whether the results affect people. According to statistics, since April 2017, DPCA has implemented six institutional reforms and more than 10 personnel appointments and dismissals.

In March 2019, Dongfeng Peugeot launched a new generation of 508L models. As the flagship product of Dongfeng Peugeot, the new generation of 508L models shoulder the important task of reshaping the brand image, increasing sales and opening up high-end market space. Dongfeng Peugeot has set an annual sales target of 20,000 vehicles for the new generation 508L. The data show that the new generation 508L sold only 606 vehicles in its first month on the market, falling to 506 in April, and the lack of sales climbing makes the target further and further away.

Despite its poor performance, Peugeot executives do not want it to become a cheap car brand in China, saying bluntly that "a price war is ineffective and Peugeot will never fight a price war." Mr Ambato, Peugeot's global chief executive, said during the 2019 Shanghai auto show: "We must stabilize and maintain prices, and I firmly believe that only by holding on to prices can we really preserve our value." . Dealers' buy one get one free behavior does not seem to adhere to this bottom line of values, because the exciting slogan has another side, and the deterioration of business conditions has put pressure on the inventory situation of Dongfeng Peugeot dealers. According to data released by the China Automobile Dealers Association, Dongfeng Peugeot dealer inventory has been at a high level since 2018. In March 2019, Dongfeng Peugeot dealer inventory coefficient was 3.1, ranking first among all brands. During the Shanghai auto show, Ambato revealed that Dongfeng Peugeot inventory coefficient has dropped to 1.8, but still above the warning line.

Many domestic cities have announced the implementation of the six national emission standards ahead of schedule. Shanghai issued an official announcement in May 2019 that the national level 6 emission standards will be implemented in light vehicles registered in the city from July 1. In this context, various brand dealers promote the national five models and launch actions such as big discounts, employee car purchase discounts and so on. Dongfeng Peugeot dealers'"buy one get one free" promotion is likely to be a "double-edged sword". It is not known whether it can help dealers digest some of the inventory effects of the five countries, but it is inevitable to have a negative impact on Dongfeng Peugeot's overall brand image. The price has dropped a lot, but so has the sales.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat