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The "Lonely Warriors" in the Beijing Modern Fuel Vehicle Market?

Publish Date: 2023.06.20

  As cars become more and more like consumer electronics, car companies that do not engage in new energy will be mocked and become Nokia in the automotive industry.

  

  Whether cars will become mobile is still uncertain, but abandoning the gasoline vehicle market now is not a wise choice.

  

  According to data from China Automobile Association, the sales of new energy vehicles in May increased by 60.2% year-on-year, more than twice the overall increase in car sales. In addition, the sales of new energy vehicles account for 30.1% of the total sales of new vehicles, accounting for one-third of the market.

  

  New energy vehicles have become a must-have for various car companies, but Beijing Hyundai continues to delve deeper into the fuel vehicle market against the current trend.

  

  On June 18th, Beijing Hyundai's latest compact SUV, the MUFASA Musa, was officially launched. Compared to the pre-sale price of over 130000 yuan, the official listing price has been significantly lowered from 121800 to 139800 yuan.

  

  Our goal is to make it the best young family SUV within 150000 yuan, "said Wu Zhoutao, the permanent deputy general manager of Beijing Hyundai, before the official launch of the Beijing Hyundai MUFASA Musa on June 18th.

  

  Although the price of MUFASA Musa is directly connected to the camp of domestic brands, it is difficult for the media to understand why Beijing Hyundai is still attacking gasoline powered vehicles? Can the current extremely introverted and shrinking market share of fuel vehicles still bring sales to Beijing Hyundai?

  

  Why stick to the fuel market?

  

  The external questioning of Beijing's modern product planning is not unreasonable.

  

  Last year, Beijing Hyundai sold 250000 vehicles, which is a far cry from its peak of 1.2 million vehicles. In addition, Beijing Hyundai's annual sales have been declining for four consecutive years. When will it stop falling and rebound? It is the most frequently asked question for the management of Beijing Hyundai.

  

  In particular, in 2022, Hyundai Motor Company's global car sales will be the third only after Volkswagen and Toyota. Moreover, Kia and Hyundai both sold over 200000 electric vehicles worldwide last year.

  

  However, in the Chinese market, Beijing Hyundai has been staying at a low point for quite some time now. Why not seize the opportunity of the new energy market to regain sales and market share?

  

  Gong Yueqiong, Deputy General Manager of BAIC Group and Chairman of Beijing Hyundai

  

  In response, Gong Yueqiong, the deputy general manager of BAIC Group and the chairman of Beijing Hyundai, said, "With the change of China's automobile consumption trend and industrial trend, it is true that all cooperative brands are facing great challenges in this period of time." However, he said, "Under the change of the overall pattern, we do not want to blindly follow the trend, and we have our own strategy and steps in the Chinese market."

  

  Wu Zhoutao responded to this question with more specific data, saying, "There are still 67% of gasoline cars and two-thirds of consumers who are still choosing gasoline cars, which is the current situation in China

  

  It is undeniable that the siege of new energy vehicles is constantly eroding the market share of fuel vehicles, and with the continuous high growth of data, there has been a phenomenon of "looking at outdated fuel vehicles and embracing new energy" both inside and outside the industry.


  Regarding the current market trend, Wu Zhoutao believes that "there are still many consumers who have actual demand for gasoline vehicles, which is not as disruptive as some companies describe." In addition, he believes that some of the current public opinion is more about marketing, "which is just deceiving.

  

  The "Lonely Warriors" in the Beijing Modern Fuel Vehicle Market?

  

  Wu Yijun, General Manager of Beijing Hyundai

  

  Regarding the question of Beijing Hyundai's delayed efforts in the field of electrification, Wu Yijun, the general manager of Beijing Hyundai, revealed, "We have strategic directions for electric and hybrid vehicles internally, but the biggest key point now is cost competitiveness. How can we grasp this

  

  He gave an example to illustrate this. Currently, only BYD and Tesla are profitable in the field of new energy vehicles. Whether it's a joint venture or a new force in the field of pure electric vehicles, Chinese car companies, joint ventures, and new forces in the field of car manufacturing are all doing losses, and the losses are huge

  

  On one hand, there is a huge consumer group of fuel vehicles, and on the other hand, there is a bottomless black hole of losses. Obviously, Beijing Hyundai has made a more practical and rational choice.

  

  MUFASA's Technology War, Quality War, and Value War

  

  Although the fuel vehicle market is still the mainstream consumer market, one issue that cannot be ignored is that the fuel vehicle market has become extremely inward bound.

  

  In March of this year, the local government of Hubei and Dongfeng Group jointly launched government enterprise subsidies, which advanced the "price war" in the car market this year. Behind the price war, it is not only the anxiety of car companies about sales growth, but also a new round of challenges to cost control for car companies.

  

  The "Lonely Warriors" in the Beijing Modern Fuel Vehicle Market?

  

  Wu Zhoutao, Permanent Deputy General Manager of Beijing Hyundai

  

  Previously, due to the fierce price war in the car market, it was rumored that a certain car company had forcibly seized the payment of suppliers. In addition, there are also car companies that maintain their price advantage by secretly reducing configurations.

  

  The market has reached the time for bayonets and hand to hand combat.

  

  At the press conference, Qi Xiaohui, Deputy General Manager of Beijing Hyundai's Marketing Business Headquarters, stated that "we will continue to move forward with a focus on technology, quality, and value to meet market challenges, and respond to user needs with warm products and services

  

  It is understood that as a new generation product of the ix35, MUFASA Muza was born on the third generation global technology platform of Hyundai Motor Company i-GMP. Intelligence is the biggest highlight of the car. We have achieved intelligence in version 4.0, and intelligent driving has reached around L2.5, which is the highest level in this level

  

  The "Lonely Warriors" in the Beijing Modern Fuel Vehicle Market?

  

  MUFASA Musa is developed based on the latest intelligent interconnection technology of Beijing Hyundai, equipped with an intelligent networking system 4.0, and equipped with the Hyundai Smartsense intelligent mind in one safety system. It can achieve up to 24 ADAS intelligent driving assistance functions, achieving the best among models in the same class.

  

  In terms of quality, Qi Xiaohui stated that Beijing Hyundai currently has 11.7 million retained customers. Since its establishment in 2002, Beijing Hyundai has established a very good reputation foundation among a large customer base with its products and time.

  

  Ten years ago, our customers accounted for 70% of their first purchases, but now they account for over 50% of their purchases and exchanges

  

  These data play a crucial role in Beijing Hyundai's quality war and are also the core of Beijing Hyundai's value war.

  

  How to become a roll king?

  

  The product is ready, and the next step is to test the marketing strength of Beijing Hyundai.

  

  In the environment of this year's ultimate volume, everyone has exhausted all marketing methods, "Qi Xiaohui said of the current market environment.

  

  The "Lonely Warriors" in the Beijing Modern Fuel Vehicle Market?

  

  Qi Xiaohui, Deputy General Manager of Beijing Hyundai Marketing Business Headquarters

  

  With the changing marketing environment, in addition to comparing products, technology, and pricing, the wisdom of car marketers is also being tested.

  

  From the second half of last year to the first half of this year, we have been doing one thing: how to activate our 12 million customers? "Qi Xiaohui revealed," Activation is not about rushing for quick success, such as increasing or replacing purchases, or transferring referrals. On the one hand, we need to maintain our customers well, and on the other hand, we need to awaken our customers

  

  In the author's opinion, in terms of marketing, Beijing Hyundai is actually more focused on itself in this battle for dominance.

  

  For example, there are a few details that can be seen from Beijing Hyundai's marketing efforts.

  

  In the current era where short videos have become mainstream, Beijing Hyundai not only produces short video live streaming, but also adopts a daily live streaming format for everyone in its distribution stores. Each of our stores is a live streaming room that maximizes the marketing of short live videos that young people enjoy

  

  In the specific follow-up, Qi Xiaohui stated that the entire marketing team is very involved. Sales personnel need to be familiar with the situation of each order and follow up in real time, "we have tracked the details from lead to order to delivery.

  

  Obviously, the effect of this type of roll is very obvious.

  

  Data shows that Beijing Hyundai's sales increased by 86% year-on-year in May. Such an increase is of great significance for Beijing Hyundai. With the launch of MUFASA Musa and the assistance of new products, Beijing Hyundai will once again demonstrate its market leadership in the field of fuel vehicles.

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