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Auchan car sales plummeted 60% in June due to quality complaints and excessive marketing

2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)07/29 Report--

Although there are 19 models on sale in Changan Auchan, which has been established for ten years, the unclear market positioning has brought a large area of quality complaints, which has led to a low market share and declining sales.

According to the data, Changan Auchan's annual sales fell 19 per cent year-on-year to 339100 in 2017 and another 44 per cent to 192700 in 2018. According to the latest figures, Changan Auchan sold a total of 5139 vehicles in June 2019, down 57.67% from a year earlier.

Take the 2020 Auchan Kosai after the launch of the "Chang'an Auchan" rocket as an example, it has been on the market for nearly a year, and it is even more difficult to move in the automobile market. Only 3400 vehicles were sold in the first half of this year, and only a few dozen were sold in June.

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In this regard, Lin Shi, a senior auto analyst, said that marketing should be the icing on the cake, not the icing on the cake. As the first car that Auchan Automobile operated independently from Changan Automobile, Auchan COS1 °took 50 million yuan to please consumers on the market, and invested a lot of money to launch rockets as a marketing gimmick when Auchan Corsace 2020 was listed. There is a huge contrast in the positioning and R & D level of its products.

In fact, it is an indisputable fact that the consumer groups in the car market are getting younger, and some people gradually transition from price-sensitive to quality-sensitive, and have a high degree of acceptance of new models. In this context, Changan Automobile wants to build the Auchan brand into an independent middle-and high-end brand competing with Great Wall's WEY and Geely's Lecker. However, Auchan cars with an average terminal discount of 5000 yuan and a naked car price of only 50, 000 yuan to 70, 000 yuan are gradually marginalized by the market.

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Data show that as the main selling model of the Auchan brand, Auchan Ono S sold 1629 new cars in June, down 546.30% from the same period last year; Changan Auchan X70A sold 912 cars; and Auchan CX70 sold 690 new cars. In addition, the sales of Auchan A800 and Auchan 5 are also inexplicable.

On the one hand, sales are poor, on the other hand, Auchan has also received a lot of complaints, including Auchan A600, A800, X70A, Olivier and other models with outstanding frequency of complaints. The problems involved include engine noise, engine oil leakage, steering gear noise, heavy steering wheel, transmission parts failure, front and rear axle suspension and so on.

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In this regard, some investors questioned on the investment platform: domestic cars have launched high-end brands have broken through the price bottleneck, whether Auchan should also reduce the funding for over-marketing and the production capacity of low-end products, and pay more attention to the research and development of high-end brands.

The excessive marketing of Changan Auchan which is seriously inconsistent with itself has led to the strong discomfort of consumers. With the disappointment of the Chinese automobile market, the development of Changan Auchan has been very difficult. Such a meritorious way of marketing has become an unbearable pressure for Auchan brands.

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