May 15, 2024

China's car prices are high

China's car prices are high Not long ago, he watched a movie entitled “The Piano of the Steel.” The film records the story of a steel violin made by Chen Guilin, the male protagonist, who laid off money for his daughter and bought pianos. The government has no dignity and abandon the sadness of the Chinese working class.

The location where the film was filmed is an industrial city in my hometown of Liaoning. In the 90s of last century, the Chinese government created 22 million laid-off workers, and Liaoning, the "hard-hit area," is therefore well-known throughout the world.

Today, Liaoning produces the most expensive domestic BMW brand sedan in China, with a maximum price of RMB 800,000 per vehicle. But as the piano was a luxury for working-class families in the 1990s, cars are also an unattainable dream for most working-class families.

The cars produced by China's auto industry workers at affordable “Made in China” costs are the most expensive similar vehicles in the world, and the car dreams that American auto workers began to realize 100 years ago have not been able to become The reality of Chinese auto workers is also a kind of sadness.

China is considered to be the country with the heaviest tax burden in the world. According to scholars of the Chinese Academy of Social Sciences, China’s macro tax burden has exceeded the level of developed countries and continues to rise. In 2009, China’s macro tax burden was 32.2%, rising in 2010. To 34.5%.

Experts in the automotive industry said that taxes and fees for the automobile industry accounted for about one-eighth of China’s fiscal revenue. Excessive taxes and taxes were driving up the price of Chinese cars. According to industry experts, Chinese consumers pay about 40% of the vehicle's tax for each domestic car purchased (up to 144% of imported vehicle's comprehensive tax burden), which is 7-10 times that of American consumers. Is the highest in the world. However, so far, the Chinese government has still not shown signs of reducing the related tax burden.

The per capita salary of Chinese auto workers is at a medium level in China's manufacturing industry, which is less than 1/20 of that of American auto workers. However, the auto price is 20-30% more expensive than that of the United States. It is also the eighth generation Sonata sedan of the modern brand. The official price in China is 16.69-24.99 million RMB per vehicle. In the United States, where the legal system is more robust, the standards and regulations are more demanding, and the automobile quality requirements are higher, the price is only around 12.58-17.95 million yuan.

In addition to taxes and fees, auto companies use the hot Chinese car market. Consumers lack common sense in the car, advocating environmental protection, and paying attention to comfortable configurations such as sunroofs, leather seats, and stereos. Manufacturing concepts, lower costs, and setting high prices are also Chinese car prices. An important factor in large water content.

Not long ago, Dongfeng Nissan's newly-launched Shinsei GTS was exposed as a hot topic in the auto industry after being exposed to a broken shaft accident during the shooting of commercials. The reason is that in the course of a test, the new Trent GTS model equipped with a CVT transmission did not show the level of “small cannons” that claim to have 190 horsepower. It only changed the engine and basically did not change other important parts. Many consumers believe that this car lacks technical content and misnomer.

Dongfeng Nissan is one of the most recognized auto companies in China that are recognized by the industry as the most profitable automaker in the industry. Many of its models are lucrative and one of the most profitable auto companies in China. It is precisely because of the good performance of Dongfeng Nissan that Nissan Motor Co., Ltd., whose net profit has not been high among Japan's top three auto companies, has set a new record of sales of 8773.1 billion yen and net profit of 319.2 billion yen in fiscal year 2010. In fiscal year 2010, Nissan's global sales volume was 4.185 million units, a year-on-year increase of 19.1%. Among them, the Chinese market had sold more than 1 million vehicles, making Nissan the world's largest market.

Not only Nissan Motors, the German Volkswagen AG that owns two joint venture companies in China, its one-third profit comes from the Chinese market and exceeds the German domestic market by 50%. A new automotive research report from the University of Duisburg-Essen in Germany shows that the Volkswagen Group (excluding high-end car brands) achieved an average profit of 683 euros per vehicle and a profit margin of 4.9%, ranking last among German car manufacturers, but its presence in China The average profit of each car sold is about 1,000 euros, and the profit rate is 7.2%.

One of the successes of Volkswagen’s presence in the Chinese market is through the media to “myths” and to allow Chinese consumers to think that the masses produce advanced technology cars. Consumers should pay higher prices for their advanced technologies, but their technological advancement How much practicality does the configuration and whether it meets the needs of Chinese consumers avoids discussion, not to mention whether the price paid by Chinese consumers has exceeded the value of their technology, and is not willing to lose the opportunity to earn profits and reduce the surplus Technology and configuration to provide the right price for the car.

In 2010, the world’s most profitable car company was not a multinational giant such as Volkswagen, GM, and Toyota, but SAIC, FAW, and Dongfeng, the “big three” automobile groups that were mainly for these multinational car companies, had profits exceeding RMB 40 billion. The renminbi, an increase of 80% year-on-year.

This year, the slowdown in the growth rate of the auto market seems to be good news for consumers. In the past, popular models such as the Accord, Camry, and Tianzhu all had tens of thousands of yuan in price in August, but the moisture of Chinese auto prices still remained. Without being completely squeezed out, the auto industry still belongs to the huge profits industry. Luxury brands such as BMW, Mercedes-Benz and Audi have basically not been affected. It is still difficult to obtain a car, and even a fare increase is required to buy a current car.

As the auto industry still belongs to a semi-monopolistic industry in China, and free competition is not allowed under government control, Chinese auto consumers cannot enjoy the benefits of market economy like consumers in developed countries in Europe and America. However, if the auto market continues to decline, the government will not issue any more. Protection policies, the return of car prices to more reasonable ones can also be expected.

After watching the movie "The Steel Piano," Henry. Ford, the legend of the automobile industry that has made a tremendous contribution to the progress of mankind, flashes in my mind from time to time. His Model T and "Ford System" not only ended the history of the carriage as the main mode of human transportation for 5,000 years, but also made Ford Car workers can work with dignity.

However, more than 100 years have passed. Entrepreneurs of Chinese and foreign auto companies that earn ultra-high monopolistic profits in the Chinese market are more willing to talk about corporate social responsibility in the media and cast huge advertising costs. They are not willing to be as familiar with them. Senior Henry. Ford, as much as possible to increase the wages and benefits of the workers of this company, but deprived the dignity of the frontline workers, forcing these workers to earn some poor overtime pay by relying on the excessive overtime in a serious overtime to maintain their lives.

If their daughters also want a piano, want to read a good school, receive a good education to change their fate, even if more than ten years have passed, they may still be as sad as Chen Guilin in the movie...

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