Dongfeng Honda sales decrease, or abandoned by Acura
Recently, Honda reached an agreement with GAC that it plans to launch Acura into production in 2016. It also means the termination of years Acura plan of Dongfeng. Analysts pointed outproducts of Dongfeng are not various enough, and it has not launched any new models recent years. Market of Dongfengis shrinkage, andstrew of Acura now failed as well.
Dongfeng has planned for a long time to introduceAcura to against the localization of luxury cars, such as Benz, BMW, Volvo, and Jaguar. It was quietly to introduce Acura. Dongfeng Honda leaked that it was waiting for Acura when it introduced an upper medium car Spiriorof Honda as early as 2008.
Dongfengdoesn’thave any advantages to facecompetition with limited products. Figure shows that Volkswagen Tiguanoccupies the companion of SUV segment, rather than CR-V which takes 60%of Dongfeng Honda sales at 2012; CR-V decreases again to third at January to April this year, and has 70 thousand distances from Harvard ranked no. 1.
Personage inside the industry says, sales of Acura is not good enough, but introducing Acura will improve management and manufacture level of host. Failed of Acura is a big loss for Dongfeng. Meanwhile, GAC locate at Guangzhou where south-west marketprefer Japan car and Pearl River Delta has developed infrastructure. Therefore, Acura choose GAC finally is objective. However, Dongfeng Honda should rethink about its system competition. According to inside leaker, because of losingcompetitive, poor marketing and not enough guide and support fordealer, many dealers of Dongfeng Honda are facing loss.
CR-V was a legend that needs to pay extra money to have one, but now it maintains sales by price war. ADongfeng Honda dealer of eastern China told media that it needs extra¥10 thousand for a CR-V, but now it advises¥15 thousand promotion. According to statistics that Dongfeng Honda has around 370 4S shops. It sold 139,388 cars totally at the first half this year, and takes 1.9% market share of passenger car segment only.
Dealer of Dongfeng Honda faces increasing pressure. Exclude CR-V, Spirior and Elysion are selected cars, selling is losing if sales cannot move forward to certain quantity. If CR-V joins price wars, there is no profit space left for dealer. Yongda Shanghai 4S shop of Dongfeng Honda quitted at the end of last year. Some dealers quit 4S shop in Jiangsu and Zhejiang provinces since this year as well. Dongfeng Honda should pay more attention on profit of dealers and learn a lesson from it,said a source.
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