Not long ago, Toyota China 因雷克萨斯 involving price fixing fined 87.613 million yuan. The news came out, many users expressed “great satisfaction”, and some ridicule, “the Lexus before the applied price are confiscated.” As we all know, it has been in the past two years, Lexus increase. In particular, during the 2019 Mid-Autumn Festival, also making for an officer up controversy.
At that time most of the Lexus models are prices, such as ES up 1.1-1.5 Wan, NX prices 0.6-1 Wan, UX rose 1.5 Wan and so on. Although the official said that because the upgrade of the active safety systems and vehicle (car networking support and carplay), so have prices, but many potential customers said they did not buy it. Then add up the official end fare, some models more than 2 million so controversial.
it might be the end of Toyota’s China fined a catalyst, look at the whole environment, in addition to Lexus, the luxury brand basically no other long-term fare sale, which naturally attracted a lot of people unhappy. So, China fined large sums of money after Toyota, Lexus terminal as well as increase behavior? We went to the store to visit it.
end markets affected by the little
First of all, we went to a shop in Suzhou, Kunshan. The reason why Suzhou First, because the relevant departments in Jiangsu Province to acquire a “cut” – Toyota penalty decision by China’s Jiangsu Province Market Supervisory Authority, which specifically include several shops, Suzhou, Wuxi, Changzhou region covered price control the situation, and Kunshan, the store is also named in public. Perhaps, these stores will be much better, which is my judge before tackling the shop.
However, it still surprised me somewhat. Kunshan shop still increase behavior, such as the relative selling ES200, forced to choose more than 15,000 yuan decor, and many parts are actually closer to 10,000 or more than 10,000, just two more than the optional digital. For example, a similar change can ES200 LS diamond grid mesh, set of more than 8000, can upgrade the large size of the original hub, but set down on more than 20,000.
shop selling other Lexus models, such as UX, NX also will be added “decoration fee”, otherwise you can not set the car. Of course, if the store there are cars, they can mention, but its implementation by car dealers increase over the decor, not the official guide price of naked car, it is in fact equivalent to the mandatory increase. For example ES200 excellent version of the figure below, the official guide price is 290 000 whole, but the 4S shop added 7 configuration, the price rose to 335,800, calling them “excellent upgrade.”
When I talked to Toyota 因雷克萨斯 increase fined events, Kunshan store sales just laugh it off, she said that the penalties for terminal and no impact, anyway, do not bear this penalty 4S shop, is borne by the manufacturer. The attitude of manufacturers is only a “recognized fine,” did not allow the request terminal 4S shop fare, after all, is the behavior of the market, manufacturers are also busy.
At the same time, she was also in Shanghai, “introduced business”, revealed that if you want cheaper to buy in Shanghai more cost-effective, because Lexus in Shanghai 4S shop more, more competitive, may not increase. In order to verify her story, then I went to Shanghai’s two stores.
does not increase, it could put the car
which, while Shanghai also has a shop decoration fee increase nominal behavior, but in comparison, does “preferential” Some . The same ES200 excellent version, simply enforce 10000 decoration fee on it. But in fact, Suzhou and Kunshan shop is not much difference, because the Lexus luxury brand, low price is not an option, casual one or two things add up to more than 10,000.
When asked about Toyota China sales were fined views, even a female sales indicate heard of this news, as if it for areas outside the Jiangsu areas with very little fallout spread. Until she asked about the next male colleagues, before we know anything about it, but male sales also try to avoid talking about these things, even more ridiculous is that he called bureaucratic said: “The only penalty Toyota, Lexus does not affect, two are independent companies. “.
estimates do not understand that argument can only fool the white car, as far as I know, there are a lot of unclear relationship to the shop customer Lexus and Toyota. Considerable number of people, heard a friend to buy this brand feel good, just start with, they do not get to the bottom of this brand with other brands have any contact.
Finally, I went to Shanghai, another Lexus store. Second store in front of two different, it should not increase, the official guide price is how much how much to sell. While it may sound, but put the car very long time, and now the top-selling ES UX are no current car. ES which set cars have to wait more than five months to mention, Shanghai and Kunshan shop and a shop have said just order a car such as 1-2 months. Sales representation is also very helpless, the situation is such that they shop, channels may differ.
Finally, I also consulted several other Shanghai store, the basic fee to be decorated. So, anyway, China fined Toyota, Lexus, it basically had no impact, as the Kunshan store sales said, this is a kind of market behavior, the manufacturers and the relevant departments are difficult to intervene.
Why is difficult to change the status quo increase?
Since the Lexus for a more exaggerated design language, both visually and Driving texture are significantly younger, it is no longer a middle-aged uncle exclusive luxury cars, but quickly erode the young upstart in the market.
in December 2019, Lexus sales in China to 20,282, the sales figures increased by 76.5 percentage than the 2018 same period; 2019 cumulative sales reached 200,521, an increase of 25 percentage, which is the Lexus China annual sales topped 200,000. This year’s demand surge, so Lexus long-term in a state of shortage.
So why Lexus is not to expand capacity? Because Toyota is a great emphasis on profits of enterprises, they do not market share as the core assessment indicators, but the profit cycle. If Lexus expand production capacity, which means to invest hundreds of millions of funds to expansion projectAnd increase other means of production, profit cycle may last less.
In addition, Toyota also becoming aware of the Chinese stock market from an incremental market, only two years because of changes in supply and demand and expand production capacity, not necessarily a good deal. From 2018 China automobile market into the winter, to expand the production capacity of the risk will be higher. If sales reach as scheduled, excess production capacity is more difficult to dispose of. So, Lexus only temporarily to maintain the balance between supply and demand through price increases.
In addition, Lexus last year’s Mid-Autumn Festival official up, may be associated with both.
on the one hand with Lexus dealers Game. Because the extra fare 4S, 4S entirely into their own pockets. But the official Lexus pricing point of view, even if not increase 4S to sell, can make money. Therefore, some models of Lexus official rise, in fact, want to eat more of their 4S shop of “meat”, but also to market competition more equitable.
After the price increase, the terminal rate of increase may be reduced, or even without. So, the reason Lexus on the grounds due to the increase of up configuration officer, only a very superficial last year.
On the other hand, the first half of 2018, the RMB exchange rate against the yen has been significant change, the continued depreciation of the yuan. From January 2018 to about 16 yuan RMB against the yen, while the official rose to about 15 yuan, devalued by about 5 percentage. This means that Lexus car dealers profits in China, will eventually be replaced by the words yen, almost five percentage less. Therefore, only through price increases to fill the loss.
but this is not a major factor, after all, many policies have an impact. If you take into account the reduction in imports of Chinese car tax rates that Lexus was earned. So, the core reason or Lexus sales in China, well above the official expectations and capacity levels.
AL channel Summary
In summary, Lexus itself claim prices, but it needs to do It is how to deal with a decent fare, such as the introduction of more to attract customersValue-added services, not just a “decoration fee” instead.
