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Government procurement policy adjustments for official vehicles have pushed traditional mainstream B-class vehicles into an embarrassing situation

2020-08-20


  The adjustment of procurement standards for official vehicles has created a gap in the price range of 180,000 to 280,000, and this price range is exactly the price range of traditional mainstream B-class cars represented by Passat, Accord and Camry. The cars used by senior cadres with more than 280,000 yuan will be mainly occupied by luxury brands, while the ordinary official vehicles below 180,000 yuan can be satisfied by high-end products of independent brands. The issue of public car reform, which has been unresolved for ten years, will be given priority. There will be relevant proposals at the "two sessions" every year. This year's public car reform proposal will once again focus people's attention on public car reform. In this year's government work report, Premier Wen Jiabao emphasized that in 2011 (official) vehicle purchases and operating expenses will be zero-increased in principle, effectively reducing administrative costs. Prior to March 4, the Ministry of Finance also issued a policy to include official vehicles in the budget and final accounts management for the first time. At the same time, the procurement standard for general official vehicles will also be lowered from 2.0 displacement and less than 250,000 to 1.0. 8 displacement, less than 180,000 yuan. A series of changes in the official vehicle market in the future will definitely have a certain degree of impact on the product structure and marketing strategies of automobile companies. Although the government proposes a zero-growth target for official cars in the future, auto companies will not relax their marketing efforts in the official car market. According to relevant data, before 2008, the domestic official car market was growing rapidly at an average annual rate of 20%. In 2018, the amount of national official vehicle procurement reached about 80 billion yuan. If there is no growth in the purchase of official vehicles in the future, it is estimated that the purchase amount of official vehicles will remain at around 100 billion yuan. Based on this calculation, the current government procurement of official vehicles will still account for about 6% of the total passenger vehicle market, and all major automakers attach great importance to this huge cake. Although official vehicles are only a part of the marketing of major customers of automobile companies, group customers such as large state-owned enterprises such as telecommunications, finance, and petrochemicals have similarities with official vehicles in terms of procurement needs. On the contrary, due to the intensified competition in the official car market, auto companies will further increase their marketing efforts in the official car market. Judging from Audi's successful experience, official vehicles have significantly enhanced the influence of automobile brands. Compared with the private car market, although the total amount of the government procurement market is small, its role in guiding automobile consumption is immeasurable. This is also an important reason why many companies target government procurement. The largest traditional B-segment car market, represented by the Passat Accord, is squeezed by both ends, and is in an awkward situation. The new official vehicle procurement standard has a large price span, from top to bottom, respectively 380,000 yuan, 280,000 yuan, and 180,000 yuan This will have a certain impact on my country's traditional official car market, especially the B-class car market. From the analysis of the degree of impact, the C-class cars at the upper end of the new standard will not be greatly affected. The current existing products can meet the requirements of the new regulations. Audi A6 and BMW 5 series are still the mainstream models. However, due to the reduction in the price of the special vehicle for the deputy minister, more opportunities will be brought to Crown and Volvo S80. The purchase standard of ordinary official vehicles is limited to less than 180,000, which will be shared by mainstream B-class models such as Passat, Accord, and Camry, as well as current independent high-end brands. At present, the price range of B-class cars ranges from less than 100,000 to more than 500,000. It is at the top "B+" level, representing models such as Audi A4 and BMW 3 Series, etc., and the price can drop as low as 250,000, which can meet the needs of high-end official vehicles (above the deputy ministerial level); at the bottom "B- " level, representing models such as Pentium, Roewe, Chery Ruilin, etc., with a minimum price of less than 100,000 yuan and a maximum price of 200,000 yuan, which can meet the needs of general official vehicles; while the mid-end traditional "B" level represents models such as Passat, Accord and Camry, etc., the lowest price is 160,000 and the highest is more than 300,000. According to the 50% self-purchasing ratio stipulated in the above policy, high-end self-owned brands are bound to squeeze out part of the market share of traditional B-segment cars such as Passat, Accord, and Camry, which are also in this price range. The reduction of procurement standards for official vehicles and the requirement that no less than 50% of self-owned brands are conducive to the extension of self-owned brand products to high-end. Judging from the new standards for official vehicles disclosed by the media, the procurement standards for official vehicles have been further lowered. The procurement standard for general official vehicles has been lowered from 2.0 displacement and below 250,000 to 1.0. 8 displacement, less than 180,000 yuan. The new standard allows more self-owned brand products to enter the scope of official vehicle procurement, and the government procurement has a rigid regulation that the proportion of self-owned brands should not be less than 50%, which is of great significance to self-owned brands. If the policy of 50% purchase ratio of self-owned brands can be effectively implemented, it means that self-owned brands will get a share of the market cake of about 50 billion yuan this year. If the average purchase price of a single car is 200,000 yuan, that is close to 300,000 cars. If calculated according to the narrow sense of passenger car sales in 2010, this will account for nearly 10% of the total sales of self-owned brand cars. Obtaining official car purchase orders, in addition to direct sales contribution, more importantly, government procurement has an obvious guiding and demonstration effect on the institutional and private car buying markets, and may even change the status quo of Chery, Geely and other independent brands that are unable to break through to high-end. It is conducive to the extension of traditional self-owned brand products to high-end. When the National People's Congress last year proposed that the proportion of self-owned brands in government procurement should not be less than 50% was passed, self-owned brands that smelled the policy's spring breeze began to step up their efforts to "arrange troops" for the government procurement market. Chery launched high-end models Riich G5 and G6; SAIC Roewe launched a series of activities such as special offers for major customers; Changan Automobile set up a separate official vehicle procurement branch to increase the development of government procurement. It is particularly worth mentioning that after Geely acquired Volvo, it stated that the Chinese government procurement market will become a key market that Volvo pays close attention to. At the end of last year, Volvo released the 2011 S80L in Beijing. This car fully complies with the purchase standard of high-end official vehicles in terms of displacement and price. , Volvo will undoubtedly occupy an important position in the high-end official car market.