Epidemic Impact Car Market Second Wave: BMW Terminal Price Brewing Rise

In February, when the retail sales of passenger cars dropped by about 80%, there was news that the terminal prices of some brands would rise.

Recently, a number of BMW dealers said that, due to the influence of the adjustment of the host plant production rhythm, some models will reduce terminal preferences, and some 4S salesmen said that the price of cars has started to rise as manufacturers stop production and reduce production.

The outbreak of pneumonia caused by the new coronavirus has not been fully controlled, and the terminal demand has not been completely released. The auto market is still in a difficult recovery stage. Governments at all levels and some host factories even need to introduce stimulus policies or provide subsidies to boost car consumption. Why does BMW have such a price rise at this time?

It originated from a letter written by BMW to the dealer. Brilliance BMW pointed out in its letter that the Shenyang plant had been unable to produce the quota quotas for March and April in the hope of canceling the system from the system.

That is to say, the production rhythm of BMW in the short run has been unable to meet the market demand. Dealers are beginning to deliberate on the price increase when the demand exceeds supply.

In March 9th, in twenty-first Century, the economic report reporters consulted some of the first line sales of BMW in Shanghai area. Some sales said that although the actual terminal prices involved in the hot models were not adjusted, the company did have a price increase plan. "This morning's meeting is discussing this matter."

BMW dealer's "high-profile" publicity is about to raise the terminal price of some products, to some extent, the usual practice in the sales field, but from the inventory status of the products concerned, they do have a bargaining chip in the short term. It is reported that many shops like BMW 3 series such cars have no car.

Now that it has entered the second week of March, the automobile market has been recovering, though it has been hit hard. The epidemic has made private cars more important, and with the promotion of online live broadcast and preferential purchase of car dealers, many consumers have signed purchase orders recently.

The impact of the epidemic on the car market seems to be dissipating, but the mismatch between the production end and the demand side is gradually emerging. In the current stage, the inventory of the dealers is significantly reduced, but the supply of the host plant is not keeping up in the short term. At this special intersection, the market may really usher in a wave of short and small price increases.

"Now we have 3 departments. We only need to pick up cars in September".

BMW part of the terminal price increase is not groundless.

A BMW dealer said on the social platform: affected by insufficient supply of raw materials and slow production, the price of the following 3 series, 5 series and X3 will be callback. "Today, all vehicle prices are subject to new quotations."

According to the sales information posted on the online platform of a dealer in Beijing, taking brilliance BMW X3 as an example, the discount rate given in January was 11-13 000, compared to 9-10 in February and 1-9 in March.

Online sales information is not the same as the actual price, but to a large extent, it reflects the discount intention of dealers. From January to March, the discount gradually tightened, reflecting the dealer's waiting for the price of this model.

Brilliance BMW X3 is a SUV made by BMW. It is the "affected vehicle type" mentioned by BMW in BMW's letter to dealers. In addition to X3, it also includes 1 series three car version, 3 series long axis version and 5 series long axis edition, basically covering most of BMW's domestic models.

Is BMW terminal price really rising? From the above dealer's statement, it seems that it has only given a "buffer zone" of price increase. According to the twenty-first Century economic news reporter, at least not yet on a large scale. A BMW sales in downtown Shanghai told reporters that at present, the price of cars is still running after years.

But there is indeed the possibility of price increases. He told reporters at the same time that this morning was already meeting to discuss the price increase. It is expected that the price will be raised this week, and the price of imported cars will also rise in a few days. "The epidemic situation is also spreading abroad, which is not well controlled. The price increase is only a matter of time."

"From the Spring Festival to the present, the output of the manufacturers is limited and the number of vehicles is reduced. If the price is still sold at the original price, the order will still come in normally, and the delivery cycle will be longer. For example, now a 3 line car is ordered, the production has been discharged until May, and the car can be picked up in September." The above sales said, "so we can only sell the car to the most wanted customers by increasing the price." If it's just because of the price (not buying a car), there's no way out now. "

Since the start of the Spring Festival, we have been selling cars to rig the price to adjust orders. The change of BMW dealers took less than a month.

The sale said that the epidemic had just begun to have a relatively large impact, but now it has been completely improved. On the one hand, some of the demand has been released after the flow of personnel. On the other hand, it has been making concessions in the shop so as to return the funds as soon as possible, so it sold very quickly.

However, it is worth mentioning that whether the price increase can be implemented is still controversial. An insider familiar with auto sales believes that it is unlikely that prices will rise in the current market environment. "When BMW rises in price, other brands will press it." He pointed out that "now no one will take a step back. When you retire, the market share will be lost and lost."

The above BMW sale said that the specific plan has not yet been determined, but he believes that even though the adjustment will not be very high, it will go up step by step, and it may be adjusted to 3000-4000 yuan at a time.

Tight balance of inventory

Behind the popularity of BMW's popular models, the second wave of the epidemic has been gradually emerging.

Earlier, the epidemic affected the sale of the terminal directly, and the distributors started the "blood return" urgently through online live broadcasting and increasing the discount. However, with the recovery of the retail terminal, the problem of abnormal supply of the main engine factory began to be exposed.

The shortage of upstream supplies, the lack of logistics and transportation and the limited access of employees to the industry are the main problems facing the manufacturing industry. The whole manufacturing industry chain is very long. Although many car companies have resumed work in mid 2, it is difficult to resume normal operation in the short term.

In March 9th, BMW responded to the twenty-first Century economic report. The BMW plant in Shenyang has resumed production in February 17th. However, the production in 1-2 months was affected by the epidemic. The backlog order of the two months was postponed to March, and the production plan for March and subsequent months was arranged according to market demand.

According to BMW's letter to dealers, the quota order plan of 3 and April cancelled the production plan to varying degrees. The orders in March were all cancelled except the "150" state, and the order in April was cancelled according to a certain proportion. This means that dealers who have difficulty in making improvement may not be able to get the goods this month or next month.

Although the overall situation is still not optimistic, recent consumer buying activities have accelerated recovery trend. The data of the Federation show that the total retail sales of the national passenger cars in the fourth week of February averaged 16 thousand vehicles, compared with 5411 vehicles, 4100 vehicles and 811 vehicles in the previous three weeks.

The market is waking up, and BMW's 3 series of models have taken the lead in showing their appeal. In twenty-first Century, the economic news reporter learned from the front-line salesmen that in addition to BMW related vehicles, there were also many other models in the local market that were in short supply.

For example, the recent Audi A3 rose 1-2 points in price, TOYOTA carroller, Honda civic and so on is also the current car tension, Han Landa from the end of January the increase of 13 thousand to increase the price of 20 thousand...

The awakening of the retail side and the delay of the production end have led to the tight inventory. Cui Dongshu, Secretary General of the Federation, said that due to the strong channel to inventory in the past year, the production and sales in February this year were relatively low, and the dealer inventory in March also belonged to a "tight balance" state. "Although the market shortage is not obvious. But if the market is to pick up quickly, there will still be pressure on stocks in the short term.

Data show that almost all the main vehicle enterprises stock days are dropping further this year, of which BMW has only 0.7 stock days in 2019-2020 years in January, that is, existing inventory can support future sales for only 0.7 days. However, the sales volume is based on the annual average monthly sales volume. The current retail efficiency is obviously not comparable to the previous level.

If the production end can not be quickly recovered, perhaps more popular models will be added to the team that is trying to raise prices.

However, it needs to be pointed out that there will be more obvious differentiation between brands and brands, models and models under limited demand. While a small number of cars are on the rise, more cars are still giving consumers a big discount of olive branches. From this level, it is difficult to judge whether dealers can really make profits in seemingly lively prices.