On the evening of October 6th, Yu Chengdong, managing director of Huawei, CEO of terminal business group and chairman of smart car solutions, talked about the sales of the new M7 in the circle of friends. He said that on October 6, the number of new M7 vehicles was 7,000, and on October 5, it was 3,500, exceeding 10,000 in two days. Since its listing on September 12th, the cumulative order of the new M7 has exceeded 50,000 vehicles. "We are going all out to speed up the mass delivery of high quality." You can feel the joy of Yu Chengdong through the screen.

If, as Yu Chengdong said, the new M7 has ordered more than 50,000 vehicles in less than one month, then this wave of operation really deserves to be taken seriously. However, there is a premise that most orders can be converted into real sales.

0one

Consumers are still hesitant to place an order

At about 10: 30 in the morning of October 10, the reporter went to the Blue Harbor Huawei Experience Store in Chaoyang District, Beijing. Because it is a working day and the time when the shopping mall just opened, the reporter did not see any consumers looking at the car. Store staff introduced that on September 12th, when the new M7 was just launched, there was no car show in the store. A few days later, the exhibition cars were sent to the stores one after another. The passenger flow in Blue Harbor is relatively large, especially there are many customers who come to the store to see cars on weekends, so the order quantity is ok, but the specific data can’t be disclosed. After October 7th, the new rights and interests given by the government decreased by 3,000 yuan compared with before, of which 15,000 yuan’s three-choice-one discount and 12,000 yuan’s interior and exterior decoration options remained unchanged. If you order now, it will take about 4 to 6 weeks to pick up the car.

Near 12 noon, the store in Heshenghui Huawei, Chaoyang District, Beijing was crowded. In 10 minutes, two groups of customers asked about the new M7. Two middle-aged men consulted the product parameters in detail and felt the interior workmanship in the car. They told reporters that because they trusted Huawei brand, they came to learn about the new M7. They are most concerned about the quality and manufacturing technology of vehicle parts. The reason why they didn’t pay the deposit today is that they are not satisfied with the vehicle space. They are going to wait until M9 is listed.

A few minutes later, a young couple stopped in front of the screen in front of the Huawei store, and immediately a staff member came forward to receive them. The couple said that because there are old people and children at home, they are more interested in space and want to choose a six-seat or seven-seat model. They have also seen Ideal L9 and Tengshi D9 recently, and have not yet decided which brand to buy. "We used to drive a fuel car, because the intelligence level of new energy vehicles is generally much higher than that of fuel vehicles, so we will not focus on comparing the differences in intelligence levels of different new energy brands. Because there is a certain mileage anxiety about pure electric vehicles, we want to see extended-range models. " The man said.

The relevant person in charge of Huawei’s Beijing auto business revealed that on October 6, Beijing’s smart car selection business was set to exceed 201 vehicles.

02

Multiple factors lead to the new M7 becoming a "topic" model.

Mei Songlin, senior analyst of automobile industryIn an interview with the reporter of "China Automotive News", it is believed that the new M7 has benefited from three aspects: First, the successful listing of Huawei Mate 60 Pro mobile phone has branded Huawei as "far ahead" and promoted a new round of Huawei fever; Second, the price is sincere, whether compared with the old model or the main competing products, the new M7 price has a certain price advantage; Third, product upgrades, especially smart cockpit and intelligent driving technology upgrades. Therefore, the listing of the new M7 has achieved "thunder and heavy rain".

Hao Qingfeng, Deputy Secretary-General of china law society Consumer Protection Law Research AssociationThe advantages of the new M7 can be summarized in four aspects. Technically, the new M7 is equipped with Huawei intelligent cockpit HarmonyOS car and ADS high-order automatic driving system, which provides users with intelligent in-car experience, such as voice assistant, navigation, entertainment and other functions, and meets the needs of modern consumers for intelligent cars; As a domestic technology giant, Huawei has strong R&D capability and technical strength, and is one of the representatives of China brand in the international market. In terms of space, the interior space of the new M7 is relatively spacious and comfortable to ride. In terms of power, the new M7 is equipped with an extended-range power system consisting of a 1.5T turbocharger, a four-cylinder range extender and a Huawei drive motor. The maximum power of the range extender is 92kW, and the maximum power of the drive motor is 200kW, which has strong power.

Zhang Xiang, visiting professor of Huanghe Institute of Science and TechnologyIt is pointed out that the new M7 body is reduced by 15mm, which reduces the wind resistance and fuel consumption, and the driving range is longer. In addition, the body power is improved compared with the old version. In addition, its body high-strength steel and aluminum alloy account for 80.6%, and CBS composite material is also introduced to effectively improve the body stiffness and collision safety. The new M7 upgrades the HUAWEI DATS 2.0 dynamic adaptive torque system. By intelligently adjusting the torque, it can effectively reduce the sense of bump and impact, making the vehicle more stable and more comfortable to ride. Moreover, at this stage, the extended-range models are highly accepted by consumers, and the sales volume increases rapidly. At the same time, there are not many competing products. The new M7 chooses this technical route, which also improves the sales growth rate.

0three

Will big sales translate into sales?

On September 12th, the new M7 went on the market. The new car has launched five models, with the price range of 249,800 ~ 329,800 yuan. Among them, the price of the entry-level model dropped by nearly 40,000 yuan, and the price of the six-seat top model was lowered by up to 50,000 yuan compared with the old model. Moreover, when the new car went on the market, the official gave the rights and interests of the first sale period of 33,000 yuan before October 7.

It is reported that in the 25 days from September 12th to October 6th, the daily average number of new cars in the international trade circle is close to 2,000. Some bloggers published an order "Internal Battle Report" for AITO vehicles. As of October 7th (10: 00), the new M7 had a total of 55,506 vehicles.

The so-called big decision is to make sure that the car will be purchased after the arrival of the vehicle by paying the deposit in advance. According to the rules of the brand, it is necessary to pay a deposit of 5,000 yuan online for the new model M7. After the 24-hour "hesitation period" or the "lock order" is selected in advance (the earlier the order is locked, the earlier the production is scheduled), the deposit will not be refunded.

According to public information, in July 2022, three days after the launch of the old model M7, the brand of the company put out posters with orders of more than 60,000 vehicles in three days, but one year after the launch, there was a big gap between its actual sales volume and the number of orders at that time. So, will the new M7′ s grand meeting eventually translate into sales?

Mei Songlin said that as long as it is a real big deal, the default rate is usually very low, unless competing products are willing to pay for the liquidated damages.

Zhang Xiang also believes that the adoption of the big-setting model to collect orders can reduce the proportion of consumers’ remorse to a certain extent, so the proportion of big-setting converted into sales will be higher.

Hao Qingfeng told reporters that when consumers pay a large deposit, they will carefully consider it and be more cautious. The order is only a preliminary decision. It is not excluded that some people will hesitate or go back on their word when they really make a decision. Generally speaking, it is very high to have about 30% of the clients consulted. However, even if a big deal is made, it may not be all done. "The hot booking is just the beginning, and it doesn’t explain all the problems. The real transaction volume only explains the problem. For manufacturers, whether the car can be delivered on time, whether the pre-sales and after-sales services are in place, whether the product quality is passed, and whether the experience of the first batch of users can be guaranteed are all unavoidable challenges. " He said.

Zhong Shi, an auto industry analystFrankly speaking, only the final transaction is the last word, even the "big decision" is not very meaningful.

0four

If the big seller is expected to return to the "poker table"

It is worth noting that the sales of Huawei’s old M7 dropped sharply. From the monthly sales of more than 1,200 vehicles at the beginning of the year to more than 400 vehicles in June. The monthly sales volume of the old M7 has not exceeded 1,000 vehicles for four consecutive months, and the monthly sales volume of the brand has been shrinking to less than 10,000 vehicles.

In this regard, many insiders also expressed their views to reporters. Zhong Shi believes that the problem in the world may stem from consumers’ unclear cognition. The car is produced by Cyrus, and Huawei provides the intelligent selection system, and promotes and sells it in Huawei’s channels, which may cause cognitive disorder to customers. He bluntly said that it is unlikely that the sales of the new M7 will suddenly skyrocket, and the brand image and product sales are done step by step. As an automobile brand, we should do a good job in products in order to win the trust of consumers.

Hao Qingfeng said that both M5 and M7 had weak sales before, and the root cause was that the product strength was insufficient, the internal space was small, the crash test performance was average, and the whole product lacked bright spots.

Hao Qingfeng believes that if the new M7 really sells well, it will have the following effects on the development of the brand: First, enhance the brand influence. The hot booking of the new M7 will generate a good reputation among consumers, enhance consumers’ trust and recognition of the brand, and thus enhance brand influence; Second, increase brand competitiveness. The unique design and excellent performance of the new M7 make it highly competitive in the new energy vehicle market. This kind of competitiveness will promote the position of the brand in the new energy vehicle market and make the brand more competitive; Third, promote brand innovation. In order to meet the changing needs of consumers, the brand must continue to innovate products. This innovation will promote the sustainable development of the brand in the market; Finally, attract more investment. If a brand orders a lot of products, it will attract more investment. This is very important for the long-term development of the brand.

Zhang Xiaorong, Dean of Institute of Deep Science and TechnologyIt is also indicated that if the new M7 can become an explosion, it will bring more profits and market share to the brand in the world and contribute to the long-term development of the brand. In addition, the success of the new M7 will enhance the popularity and reputation of the brand, and provide support for brand image building and market recognition. Successful products will also drive the sales of other products and form a good product line derivative effect.

Mei Songlin pointed out that the problem of poor sales of the old models lies in consumers’ expectations of the new models, because the potential customers knew that the new M7 was going to be listed, and they had already waited for the money to be purchased, so the old products were naturally left aside. If the current big data is reliable, this level of products (large SUVs) can have thousands of big orders every day, which means that Huawei is on the "card table" again and has become another "potential stock" in the new energy vehicle market.

　　[XCAR Deep Observation Original]

　　In 2018, the automobile market was full of words such as "market winter" and "cliff-like decline", which was quite different from the mood of watching the automobile market rise in previous years. According to the data released by China Association of Automobile Manufacturers (hereinafter referred to as China Automobile Association), in 2018, there were 28.081 million vehicles sold in the automobile market and 23.2571 million vehicles sold in passenger cars, both of which were down compared with last year, but they still ranked first in the global automobile market for the tenth consecutive year. Despite the decline in market sales, China remains the largest automobile market in the world.Under the market background of the decline in sales in the automobile market in 2018, what challenges and opportunities will be brought to the automobile enterprises, and this issue will be interpreted in depth. (Source: China Automobile Industry Association/Aika Digital Intelligence Laboratory)

　　▼ In 2018, the sales volume of passenger car market fell for the first time in 29 years.

　　Since 1990, the sales volume of China automobile market has been singing all the way, but the continuous growth was broken in 2018. Sales data show that the market maintained a double-digit growth at the beginning of 2018, but the growth rate declined rapidly from April, and finally the sales volume began to decline year-on-year in July, and the decline rate gradually increased. The decline rate of sales in the fourth quarter remained above double digits. From the overall market point of view, cars, SUVs, MPVs and crossover commercial vehicles all showed different degrees of decline.

　　When forecasting the sales volume at the end of 2017, the China Automobile Association predicted that the automobile market would eventually grow by 2%-3% in 2018. However, under the influence of the complex macroeconomic background, the actual situation of the automobile market was quite different from the forecast. In the end, the sales of passenger cars in 2018 were 23.2571 million, down 4.08% year-on-year.

　　In 2018, under the complex macroeconomic background, the sales volume of the automobile market declined, which was not unrelated to the policy and the psychology of consumers buying cars. After April, China’s economy entered the stage of deleveraging, which will affect the source of funds for consumers to buy cars with loans to a certain extent, which is also an important reason for the weakening of the automobile industry in the second half of the year. After April 4, 2018, the Sino-US trade dispute became more intense. Although this only increased to the tariff on imported American-made vehicles, it had little impact on the automobile industry. However, with the intensification of the dispute, people’s confidence in the future economy was insufficient, and their expectations for future income also declined. Several factors combined, many people chose to postpone the car purchase plan.

　　▼ With the increase of the number of brands, the survival of marginal brand products becomes more and more difficult.

　　In recent years, the sales volume of the automobile market in China has continued to grow, and many brand-new automobile brands have emerged one after another. In 2018, in the face of the decline in the overall sales volume of the automobile market, the "Matthew effect" of the strong Hengqiang has become more and more obvious, and the market has concentrated on more advantageous brands and products. With the increase in the number of domestic automobile brands, it has become increasingly difficult for "marginalized" automobile brands to survive due to product strength and other reasons.

　　Changan Suzuki is one of the representatives of the brand that has been gradually marginalized. After Changan Suzuki reached the historical peak of 220,000 vehicles in 2011, its sales volume continued to decline, which eventually led Suzuki to choose to withdraw from China. On September 4, 2018, Changan Automobile issued a statement in official website. Chongqing Changan Automobile Co., Ltd. and Suzuki Co., Ltd. reached an agreement on the acquisition of equity of Chongqing Changan Suzuki Automobile Co., Ltd., and Changan Automobile acquired 50% equity of Changan Suzuki held by Suzuki. After the completion of the acquisition, Changan Automobile holds 100% equity of Changan Suzuki, and Suzuki Automobile has officially withdrawn from the China market.

　　Suzuki’s withdrawal from the China market is worth pondering. Changan Suzuki was founded in May 1993. As the first Japanese company to enter China to produce cars, Suzuki was the fourth Japanese car company in sales in China before 2014. With the upgrading of consumption and the increasingly fierce competition in the China market, Changan Suzuki brand has been gradually marginalized due to the slow introduction of new models and other factors. Since the sales volume of Changan Suzuki reached the historical peak of 220,000 vehicles in 2011, the sales volume of Changan Suzuki has been in a state of decline. Changan Suzuki, who has been deeply involved in the China market for more than 20 years, finally chose to withdraw from the China market.

　　▼ Cars are consumer goods that are difficult to drive by the star effect.

　　Before the official launch of 2018 fifa world cup, WEY signed a contract with cristiano ronaldo (C Ronaldo for short) and invited C Ronaldo to be the first spokesperson of WEY brand. During the World Cup, C Ronaldo, the world footballer, spoke for WEY, which caused a sensation and attracted a lot of attention. For WEY brand, signing C Ronaldo endorsement is an important step forward in marketing communication.

　　However, with the gradual dilution of the World Cup fever and the passage of time, C Ronaldo’s endorsement of WEY has gradually been forgotten by everyone. Previously, many first-line stars spoke for car companies, Jackie Chan spoke for Mitsubishi, and Jay Chou spoke for Na Zhijie. The coffee spots of the stars were not weak, and they all ended in "bleak". The main reason is that cars, as an industrial-intensive, technology-intensive and labor-intensive asset-oriented commodity, are difficult to achieve sales growth by relying solely on marketing.

　　Haval H6 is the "evergreen tree" in the sales list of SUV models, which concentrates the sales risk on one model and forms two competition circles with other strong independent brands. At present, WEY’s biggest competitor in the competition is Lectra. Although the "Focus Strategy" was first introduced by Great Wall Motor, Geely Automobile is the car company that brought it into full play. At present, Geely (including Lexus and New Energy) sells more than 20 mainstream models. Geely exerts a balanced force in the car and SUV market, especially for the compact market. In the first 11 months of this year, the proportion of compact retail sales was 55.25%, which was significantly ahead of the market share of medium-sized and small-sized market segments.