· Is there a play for the "cheap car" strategy?

In the recent Chinese auto market, news about the launch of cheap cars by major brands has come one after another. On March 25th, FAW Hongqi H7 1.8T model was launched. The prices of the two models were 249,800 yuan and 279,800 yuan respectively. It is the cheapest red flag sedan at present, and it is called "cheap version". Coincidentally, a three-door hatchback small car named “up!” was officially launched in the Chinese market. The pre-sale price of the two models was 117,900 yuan to 129,900 yuan; the same title of “cheap car” The Volkswagen, which is exclusively for the Chinese market with a price of less than 75,000 yuan, has been approved by the German side and will be listed next year.
In the past year of 2014, Tesla, once regarded as the "new American idol", was caught in the loop of sales and losses in China. Although Tesla's enthusiasm in China is gradually receding, it still has confidence in the future. Tesla CEO Elon Musk recently said that Tesla will launch the Model 3, a cheap model, for $35,000, or about RMB 220,000, to be delivered in 2017.
In fact, these are not the first car companies to try to launch cheap cars in China. In the car market where the growth rate is slowing down, the market share of cheap cars to grab food has always been the market strategy used by major brands. Nowadays, more and more car companies are launching new and cheap brands, which is the strategic choice they have to make after they feel the pressure of the market. Prior to this, a number of multinational car brands have already put this idea into practice. The Japanese GAC Toyota (microblogging) launched Yaris, Dongfeng Nissan launched Ma Chi, Suzuki also introduced Alto to China, and its price is even lower than 75,000 yuan, but without exception, these small cars later became marginal products. . And will these "cheap cars" be reopened?
Since the official launch of the Red Flag H7 in 2013, it has been placed by FAW on the high hopes of the Fuhong Red Flag brand. However, the "cheap version" red flag H7 1.8T listed, it did not make people shine, the price drop space is limited, the configuration is also difficult to say, the audience positioning is still vague. In the context of the continuous exploration of the price of joint-venture vehicles and the rising price-performance ratio of other domestic brands, it is not optimistic that the parties to break through the sales dilemma will have to worry about the market prospects. Others believe that it will become a new "chicken rib". The market is the best touchstone for the new red flag H7.
Look at Volkswagen's "up!" model, equipped with a 1.0L three-cylinder engine. Positioned as the "cheap car" of the public, but starting from more than 110,000 yuan, it is hard to call "cheap." However, according to the public's strategy, the imported “up!” models that entered the market in advance will only explore the road for cheap cars and see if the market accepts such “mass”. In fact, after the final domestically produced cheap car, the price may drop to 75,000 yuan. However, even if it is less than 75,000 yuan, the price is still a concern compared to a large number of Chinese brands and low-end joint ventures such as Chevrolet Sail.
Finally, watching Tesla, Tesla plans to launch the Model 3, a cheap model, to connect with Chinese consumers in terms of price. However, at present, Tesla's dilemma in the Chinese market is more than just price. The reason why Tesla is weak in the Chinese market is actually something to look for. As Chinese consumers have become more aware of Tesla's psychology and freshness, the immaturity of brands and products has gradually emerged. Most Chinese consumers feel that pure electric power is quite inconvenient. How to charge vehicles has always been their lingering doubts, so the "cheap car" strategy can not "prescribe the right medicine." In addition, if Tesla pursues “cheap”, it is possible for Chinese consumers to lose their sense of “luxury” after losing their sense of freshness to Tesla, which will eventually lead to counterproductive results.
Can the "cheap car" strategy of the above brands really work? I am afraid I have to put on a big question mark.

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