Korean sales decline is their own?

This year, Hyundai Motors had a hard time. This year's monthly sales dropped by almost 60% year-on-year. And there is a tendency to continue to deteriorate. In fact, as of 2016, sales of Korean cars in the Chinese market have been steadily increasing. Hyundai Motor also entered the Chinese market with the largest sales volume in the shortest period of time. However, all this happened in 2017.

Why does a modern car or a Korean car represented by modernity fail? Is it because there is no core competence? It's certainly not all. The lower competitiveness of products is only one aspect of the failure of Korean cars.

At present, the price of Yuet, the modern main model, has a 20% discount. Even so, sales have not increased much. In particular, sales growth in other brands, and only the negative growth in the sales of Hyundai, no one is more anxious than the modern.

However, contrary to the sales volume, Hyundai Motor's satisfaction with brand satisfaction and quality survey in the Chinese market is very high. In the 2017 China Sales Satisfaction Index Study of the 2017 China Sales Satisfaction Index Study conducted by the JD Power China market, Hyundai Motor scored 665 points out of 1000 minutes, ranking first.

In particular, the second Changan Ford and Beijing Hyundai were 17% (648 points) Dongfeng Yueda KIA 637 points, also above the average. So why is consumer satisfaction so high, but sales are falling so much?

First of all, JD power surveyed the data for 2016. The majority of the surveyed consumers were still household models of about 100,000 yuan. So there is no luxury brand on the list. The occupancy rate of family cars dominated by Beijing Hyundai is very high in the Chinese market, such as Hyundai Rena and Kia K2. Korean cars are basically overwhelmingly small cars in the Chinese market.

Second, the Sader issue is another reason for the decline in sales of Korean cars in the Chinese market, but this is not the root cause. It can only be boosted. After the Saddam incident, it was actually the economic and trade exchanges between China and South Korea. Specifically, the tourism industry in South Korea is more affected.

Third, the new car that is listed this year has gradually played a price war. The price of the mainstream joint venture compact car has been very low, and even the starting price of many medium-sized cars has dropped to the range of RMB 170,000. Therefore, after the selling price of other joint venture brands dropped, the impact of the Korean brand's lack of influence became even more serious.

Fourth, the South Korean car market is dominated by cheap, small cars. In the past few years, when Hyundai Motor was rapidly developing in China, it caught up with the big upsurge of the first car in the family. With the purchase now, the proportion of purchases has gradually increased. Consumers often no longer choose small cars, but choose larger and more luxurious models. Korean brands are disadvantaged in this regard.

Fifth, brand loyalty of Korean models is not as good as other luxury brands. With the passage of time, the rise of domestic self-owned brands has caused a great impact on Korean brands. The skills of the self-owned brand models in small cars and compact areas are already quite high, and this is exactly the same with Korean models launched PK. In the small car, compact car competition cost-effective campaign, the independent brand is more likely to win.

Sixth, it did not catch up with the SUV boom. In recent years, the Chinese market SUV is the most popular model. However, Hyundai did not respond positively. Many old models do not stop production and new models cannot keep up. Especially for medium-sized SUVs, Shengda is no longer competitive with old models, and the Kia KX7 was developed on the previous generation platform.

Therefore, Korean cars are now declining in the Chinese market and are caused by various reasons. But after all, as a joint venture brand that has entered the Chinese market for 10 years, the product quality and market reputation are still good. As for the Korean brand, whether or not it will be able to turn around in the future will depend on the Korean brand's own business.