Domestic cars in the minds of most people are cheap, large space, rich configuration of the model, on the cost performance is far better than the joint venture car. Many people do not understand this, the main goal of car companies is to pursue interests, domestic car prices are cheap and rich, is not to make money?
Why can domestic cars be cheaper and more cost-effective? Here are a few reasons why this is critical.
First, car companies invest a lot of money in research and development.
The world automobile industry has developed for more than 100 years, and the domestic automobile industry has only developed for a few decades. In order to improve the gap with world-renowned car companies, domestic car companies have been increasing research and development costs. In 2021, BYD invested 8.4 billion yuan in research and development, and GUANGZHOU AUTOMOBILE Group invested 5 billion yuan in research and development.
Domestic car companies have invested heavily in research and development, and they must have gained something. Therefore, the current domestic car configuration is more and more abundant, and the grade in the car is much higher than that of the joint venture car.
Second, the production cost is lower.
In addition to the high cost of production, the high price of imported cars is also related to tariffs. Although the joint venture car has saved tariffs, many of the parts on the car come from abroad, and the production cost may be higher. The parts of domestic cars come from the local area, and the production line is all in the local area, reducing unnecessary expenses.
The production cost of domestic cars is lower, so it is possible to add multi-functional configurations such as large-size central control screens, panoramic sunroofs, and leather seats to the car. Domestic cars of the same level and joint venture cars, the production cost of domestic cars is lower, so the configuration is rich.
Third, increase brand awareness.
Mercedes-Benz BMW Volkswagen, these well-known car companies all over the world, has a high market visibility. Domestic brands start late, domestic brands want to make a name for themselves and improve market awareness, they must reduce the price and impress consumers with higher cost performance.
Fourth, compete with joint venture vehicles.
Volkswagen Toyota entered the country particularly early, leaving a reliable impression in the minds of the Chinese people. In the past, the quality of domestic cars was relatively poor, many parts and components could only learn from foreign countries, and the impression of domestic consumers on domestic cars was not good.
Domestic brands want to compete with joint venture cars, and can only increase the configuration, pull down the price, and beat the joint venture car through cost performance. The speed of replacement of domestic cars is also faster than that of joint venture cars, most of the joint venture brands are replaced every two years, and domestic cars can almost be replaced every year.
All in all, domestic cars are rich in configuration and cheap, mainly to compete with joint venture cars. Joint venture cars in the domestic auto market for so many years, has gained a lot of good reputation, if the domestic brand does not reduce the price, improve the configuration, it is difficult to get the day out.
Editor's Comments:
The previous domestic cars did have many drawbacks, and many Chinese people complained that there were too many small problems in domestic cars, and they ran to the repair shop at both ends in three days. At that time, the level of domestic car manufacturing technology was not up to standard, the painting technology was poor, and many parts and components were imported. At that time, domestic cars were really difficult to drive, and the quality was relatively poor, which would leave a bad impression in the minds of consumers.
Now that domestic brands have slowly risen, domestic brands such as Great Wall Motors, Changan Automobile, and BYD Automobile have mastered independent research and development capabilities, and the power parameters and durability of the engine can fully withstand the test of the market.
Therefore, more and more domestic brands are now beginning to increase product prices, increase research and development efforts, improve core competitiveness, and slowly gather the high-end market.
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