Auto Enterprise: An Impetuous Spread

I never expected that my recent article analyzing the pricing of Chinese cars would spark thousands of online criticisms and negative comments. What’s puzzling is that a large portion of these responses weren’t even directed at the content of the article itself. I didn’t want to engage, but recently, there have been reports that some companies are paying individuals to attack their competitors online, even spreading false rumors that seriously impact sales. Although the authenticity of these claims is still unclear, we can’t ignore the strange phenomena we’ve witnessed on the internet. For example, when a company launches a new car, within just a few hours, hundreds of negative reviews or attacks about that model appear online. But the target audience for this car isn’t private car owners—so why do so many of these critiques come from people who sound like they’re acting as if they were potential buyers? This raises serious questions about what’s really going on behind the scenes. Chen Zhixin, the general manager of Shanghai Volkswagen, shared similar concerns with reporters. He was recently confused by the rumor that “POLO will stop production.” In the context of a slowing Chinese auto market and declining sales for many companies, it’s clear that there's an undercurrent of impatience and instability in the industry. Rumors, slanders, and attacks reflect one form of impetuousness, while another kind—short-term strategies, price cuts, and hasty decisions—is also gaining momentum. It’s reported that at least three major marketing leaders have already changed roles this month. While market changes are natural, I don’t believe such rapid moves are necessary. The slowdown in the auto market is largely due to macroeconomic factors, including tighter credit policies and shifting government regulations. Additionally, many companies overestimated their growth in the past two years, leading to excessive production and increased sales pressure. When the market fluctuates, car prices become the most sensitive aspect, and aggressive price reductions have altered consumer expectations, resulting in stagnant sales. Some argue that high prices are the root cause, but I can't simplify things that easily. However, I’m convinced that certain companies are caught in a cycle of confusion. Many models are now selling below cost, meaning some firms are losing money. Moreover, the current situation shows interesting trends: older companies are being hit harder than newer ones, and European brands are more affected than American, Japanese, or Korean models. Looking at recent sales figures, the "oldest" companies—Shanghai Volkswagen, FAW-Volkswagen, and Shenlong—are facing greater challenges than their competitors. It’s worth noting that during this turmoil, core elements of competitiveness—such as technology, quality, and service—have not played a significant role. These companies are not technologically inferior; models like POLO, Golf, and Saina meet international standards. Their reliability has been tested over time, and their service networks are well-established. I wonder if these companies have recognized the current challenges and are rethinking their pricing, brand image, and product positioning. But from another angle, there are clearly irrational forces at play in the market. When someone asked me to predict the sales rankings of companies in the coming months, I replied that as long as these irrational factors persist, even if sales improve, it won’t tell the whole story. At the Beijing Auto Show, a company executive mentioned the gap between Chinese cars and global standards. I told him that this gap might exist forever, but what matters more is understanding the current situation and finding the right direction. Today, amid the rush and noise, I still believe in doing my job well and staying grounded. We should avoid falling into the same traps others have. (Reporter Wu Yingqiu)

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