Auto Enterprise: An Impetuous Spread

I didn’t expect that, in recent days, my article analyzing the pricing of Chinese cars has triggered thousands of online criticisms and negative comments. What’s puzzling is that a large portion of these critiques aren’t even directed at the content of the article itself. I didn’t want to say much about it at first. However, I recently came across reports suggesting that some companies are hiring people to attack their competitors online and spread false information, which has seriously affected the sales of others. Although the authenticity of these claims is still unclear, we have indeed witnessed strange phenomena on the internet. For example, when a company launches a new car, within just a few hours, hundreds of negative reviews or attacks on that model appear online. But the target audience for this car isn’t private car owners—why do so many comments seem to come from people pretending to be private users? This raises questions about what's really going on behind the scenes. “There are indeed many things in the current auto market that remain unclear and hidden,” said Chen Zhixin, general manager of Shanghai Volkswagen, when speaking with reporters. He recently faced confusion over rumors that “POLO will stop production.” From the spread of such rumors, it’s clear that there’s a growing sense of impatience and instability in the auto market. The spreading of false information, slanders, and attacks reflect one form of impetuousness. At the same time, another kind of impetuous behavior is also on the rise—short-term strategies, price slashing, and hasty decisions. It’s reported that at least three major companies in the marketing and sales sector have already made significant changes this month. While the current shifts in the automotive market can be explained by various factors, there’s no need for such drastic actions. The macroeconomic policies of the country, including changes in auto credit regulations, are fundamental reasons behind the cooling of the auto market. In addition, many automakers have set high production targets in the past two years, leading to increased sales pressure. When the market fluctuates, car prices are the most sensitive indicator. Price cuts by manufacturers have shifted consumer expectations, resulting in stagnant sales. Some people argue that this is why car prices are so high. I don’t dare to make such a simple conclusion. However, I’m firmly convinced that some companies have fallen into a strange cycle. As far as I know, many models are now being sold below their actual value, meaning some companies are earning and losing money simultaneously. Moreover, looking at the impact of the current auto market on different companies, there are some interesting trends. For instance, older companies are suffering more than newer ones. European brands are more affected than American, Japanese, or Korean brands. From recent sales data, it’s clear that the “oldest” companies—Shanghai Volkswagen, FAW-Volkswagen, and Shenlong—are facing greater challenges than their competitors. It’s worth noting that during this period of market turbulence, core elements like technology, quality, and service haven’t played a significant role. These companies, for example, are not inferior in terms of technology. Models like POLO, Golf, and Saina feature international-standard technologies. From a quality perspective, they’ve proven their reliability and stability over the years, and their service networks are well-established. I don’t know if these companies have noticed this situation and are starting to rethink their pricing strategies, brand image, and product positioning. But from another angle, it’s clear that irrational factors are significantly influencing the automotive market. Someone asked me to predict the sales rankings of companies in the coming months. In my opinion, as long as these irrational factors remain, even after they’re addressed, what can they truly explain? I remember that during the Beijing Auto Show, an executive told me about the gap between Chinese cars and international standards. I responded that the difference may exist forever. But it’s more important to study the current situation and find the right direction rather than focusing on the gap. Today, when impatience and chaos are spreading, I still believe that we must do our jobs well and avoid acting recklessly. Let’s not become part of the legend. (Reporter Wu Yingqiu)

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