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On exit, Acura plays a sad song

Publish Date: 2022.03.10

  When it was about to withdraw from the Chinese market, Acura ushered in a highlight moment in its brand career.


  The Acura 4S store, which was always lacking interest, suddenly became crowded, with a single store receiving 3 orders in a single day. Such a "grand occasion", even the sales staff did not expect it. Consumers who heard the news were attracted by the large discounts of 50,000-60,000 yuan in 4S stores, and they frantically hunted for the bottom.


  All of this is due to rumors of "Acura's delisting". Recently, according to Sina Finance, Acura, a luxury brand owned by Honda, is about to withdraw from the Chinese market and is currently waiting for the final notice from the manufacturer.


  In response to the above news, Li Ran, head of production at the assembly workshop of GAC Honda's Zengcheng plant, told Future Auto Daily that it is true that GAC Acura has stopped production. At present, the GAC Acura production line is still in operation, and Acura models will be produced in small batches every month. "The production line is still running mainly to consume the remaining Acura parts. When the parts are used up, the GAC Acura production line will officially stop running."


  The factory side has prepared for the end of Acura production, and on the sales side, GAC Acura's sales showroom has also found a new way out. Future Auto Daily visited the GAC Acura showroom in Beijing and found that GAC Acura is currently in the stage of clearing its inventory. After the inventory is cleared, the GAC Acura showroom will be transformed into a sales showroom for Honda's new pure electric vehicle brand e:N.


  Judging from market feedback, everyone is not surprised by such news. Some netizens commented on social networks, "Judging from the current sales, it is difficult to get better if you don't go", and some netizens ridiculed "Have you not heard of it coming, you are leaving?"


  In fact, GAC Acura has not been doing well in the Chinese market in recent years. According to data from the China Passenger Transport Association, GAC Acura will sell 6,600 new cars in the Chinese market in 2021, a year-on-year decrease of 45.05%, of which CDX and RDX sales are both 3,300.


  The Future Auto Daily asked the person in charge of GAC Acura to confirm the news of the "stop of production", and the person in charge said: "The official has not issued any statement, combined with the development trend of the Chinese market and changes in consumer demand, GAC Honda is discussing the integration of brand resources. ". Judging from all the signs, GAC Acura may have entered the countdown to stop production in the Chinese market.


  1


  The man who sings Acura wool


  Future Auto Daily visited the Acura 4S store and found that GAC Acura had already started cleaning up its inventory of cars during the Spring Festival, but few consumers paid attention to it at that time, so GAC Acura did not usher in a sales peak during the Spring Festival. Recently, several media reported that "Acura is about to withdraw from the Chinese market", which brought GAC Acura into the spotlight.


  The GAC Acura Golden Port 4S Store in the transformation stage Source: Future Auto Daily


  At present, GAC Acura Golden Port 4S store is in the stage of renovation and renovation. After the renovation, it will mainly sell models of Honda pure electric brand e:N. The sales business of Guangzhou Automobile Acura has been transferred to the Dongfeng Honda showroom next door, but this does not affect the enthusiasm of consumers to come to buy the bargain.


  According to Li Jian, sales director of GAC Acura Golden Port 4S store, since March 5, the number of consumers who have come to the store to inquire about Acura has suddenly increased. The Acura CDX, which was once ignored for a week, received 3 deals on Sunday alone. Order.


  Li Jian referred to these consumers as "people who pick up wool". "They all came here after hearing the news that Acura was about to stop production. Everyone wanted to take advantage of the inventory clearance to buy the bottom." This is because, during the special period of clearing inventory, GAC Acura's terminal discounts are larger than ever.


  Li Jian said that GAC Acura currently sells two SUV models, the Acura CDX and the Acura RDX. In the past, the highest discount rate for the two models was between 20,000 and 30,000 yuan. Now, the discount rate for these two vehicles has increased. To 50,000-60,000 yuan.


  Taking the Acura CDX as an example, its official guide price is 229,800-349,800 yuan. After a discount of 50,000 yuan in the terminal market, the entry price of this luxury compact SUV has dropped to 180,000 yuan, which is even higher than that of the Honda CR-V. The price is even lower (the official guide price of Honda CR-V is 179,800-249,800 yuan, depending on the configuration, the discount rate is 5,000-8,000 yuan).


  Such an attractive concession makes consumers excited. After all, the price of a joint venture SUV to buy a luxury brand SUV is undoubtedly a bargain. "There is nothing wrong with this car except that the logo looks like Chang'an."


  In the GAC Acura Beijing Nikko 4S store, Zhao Xi told Future Auto Daily while signing a car purchase contract with the store. Zhao Xi's car purchase budget is 150,000 yuan. At this price, it is more than enough to buy a compact SUV of his own brand. When he heard that Acura was cleaning up its inventory of cars, he found that "the discounted price of the lowest-spec model is less than 180,000 yuan, and the landing price is 200,000 yuan including a series of handling fees."


  In addition, GAC Acura also provides consumers with a three-year installment interest-free service, which can relieve Zhao Xi's car buying pressure. So, despite exceeding the budget, Zhao Xi did not hesitate to take action. "Hurry up and order while there are enough cars in stock, and the discount margin may be tightened after more people are buying the bottom." Another reason for everyone to buy the bottom with confidence is that the after-sales maintenance service after Acura's delisting has been arranged properly.


  "In the future, after the GAC Acura store is transformed into a Honda electric vehicle e:N store, it will still be responsible for the maintenance and repair services of Acura models, and will ensure the continued supply of Acura parts for more than 15 years." Li Jian said.


  2


  It’s made in China, but it doesn’t seem like it’s made in China


  In the past 16 years, from entering the Chinese market as an imported car in 2006 to the brink of delisting in 2022, this luxury brand tailored for the American market has never been able to win the favor of Chinese consumers.


  From 2006 to 2016, Acura only sold imported models in the Chinese market, and the sales performance was always poor. According to the public data released by Acura in Future Auto Daily, from 2011 to 2015, the annual sales volume of Acura in the Chinese market was always below 5,000, and the sales in 2012 were as low as 2,300.


  In this regard, Seiji Kuraishi, executive director of Honda Technology Co., Ltd., believes that the Acura brand is seriously unaccustomed to the Chinese auto market. "Acura is designed and developed in the United States, so it pays more attention to the preferences of American customers, who are somewhat different from the preferences of Chinese customers." At the same time, Seiji Cangishi also admitted that Acura's price and sales channels do not have any advantage.


  At present, GAC Acura only has two models on sale: the Acura CDX and the Acura RDX Source: Future Auto Daily


  But Acura was not reconciled to this defeat, and in 2016, it bound with the Gua

      ngzhou Automobile Group to localize the production of Acura.


  Although Acura moved its product line to China, it still goes its own way in product development. "Acura directly moved the North American manufacturing model, and did not make significant changes in products and sales strategies." Li Ran, head of production in the assembly workshop of Guangzhou Automobile Honda Zengcheng Plant, told Future Auto Daily.


  Back in 2016, Chinese consumers at that time advocated business-style luxury. Fashion, business, and large space were the main demands of consumers for luxury brands. BBA, which has already fully realized localization, is well versed in this, and frequently lengthens and adds configurations to cater to Chinese consumers' car buying psychology.


  On the other hand, Acura still insists on sports luxury in the US market. "The main cost of Acura models is mechanical, and configuration is not the focus of GAC Acura's manufacturing." Li Ran said.


  The products are not recognized by Chinese consumers, and the brand influence of GAC Acura is also very limited. Seiji Cangishi pointed out that Acura's lack of brand influence in China and unclear positioning are the main crux of the problem. "Acura hasn't been a very recognizable brand for a long time," said Ed Jim, an analyst at U.S. auto industry research.


  It has never conveyed a message that is different from other brands, and luxury car brands must have unique connotations and concepts. In order to increase brand recognition, GAC Acura has made a lot of efforts in marketing. It invited Andy Lau as the spokesperson for Acura TL, sponsored the Avengers, Wolf Totem, and even followed the example of DS to hire actor Feng Shaofeng to carry out the "brand partner" activity. In the end they all had little success.


  "Although Feng Shaofeng has become a partner of the Acura brand, he himself does not know much about the Acura brand." An insider of the supplier who once provided promotional services for Acura China told Future Auto Daily. "BBA, Cadillac, Lexus and other luxury brands have entered the 'Who are you' marketing 2.0 stage in the Chinese market, while Acura has always stayed in the 'Who I am' marketing 1.0 stage." Based on the above reasons, even after localization, Acura The sales volume has also not improved, and the annual sales volume has been hovering around 10,000 units for a long time.


  Being an abandoned child is inevitable. According to official data from GAC Honda, as of December 2021, the total production capacity of GAC Honda's three factories in China is close to 770,000 units, and the annual sales volume of GAC Honda in 2021 has reached 780,000 units. "The production capacity is at full capacity, so there is no need for GAC Honda to waste production lines for GAC Acura," Li Ran said.


  3


  The luxury car market ushered in new changes


  Acura's withdrawal may be the prelude to the "shuffling and reshaping" of the luxury car market.


  According to data from the Passenger Federation, in 2021, the sales of luxury brand cars in the Chinese market will reach 2.5621 million units, a year-on-year increase of 4.9%. Although the overall luxury car market is improving, the internal structure has shown signs of loosening.


  Tesla, Weilai, and even the second generation of innovative brands hatched from their own brands are using more innovative technology and user-operated thinking to open a gap in the traditional luxury brand camp. Looking back to 2021, the new car-making forces headed by Tesla have made great strides, and Tesla has sold more than 320,000 new cars in the Chinese market.


  The sales volume of NIO and Ideal also exceeded 90,000 units. Even the Gaohe HiPhi X, which mainly focuses on the price range of more than 500,000 yuan, will hand over 4,237 transcripts in 2021. The price range of the above-mentioned new forces just coincides with the mainstream product pricing range of luxury brands of 300,000-500,000 yuan, and the living space of luxury brands has been squeezed.


  Ideal L9 interior source: Ideal official


  "Tesla Model 3 prices continue to drop, lowering the threshold for entry-level luxury cars, which is also the trend in the future." Richard Shore, president of Jaguar Land Rover and Chery Jaguar Land Rover Joint Marketing and Service Organization (IMSS), believes that , Tesla and new car-making forces have formed a "catfish effect" in the luxury car market.


  "Tesla's 'catfish effect' will continue to appear, which will have an impact on the current pattern of the luxury car market, and is likely to affect consumer perceptions, and then influence the future direction of the industry." Economist Song Qinghui told Future Auto Daily Analysis said.


  Luxury brands have also begun to actively transform to smart electrification, struggling to fight back. Mercedes-Benz, BMW and Audi have launched the EQ series, i series and e-tron series respectively, and second-tier luxury brands such as Cadillac, Lexus, Volvo, etc. have also released electrification transformation plans. "The next few years will be a competition for the transformation speed of luxury brands. If the transformation speed is too slow or new energy products are not recognized by the market for a long time, then more traditional luxury brands will be pulled down by 'Tesla'. " Song Qinghui thinks.

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