Changan Passenger Car Plans Channel Management Adjustment

After new products be identified by market, Changan plans to strength its channel management with sales rising.

In Dec this year, Bing GONG, vice president of Changan and general manager of Changan sedan sales business unit, told media during interview that Changan passenger car plans to integrate channel management. Bing GONG says “we have 550 thousand sales goal for next year. Passenger car growth shall be the main contributor.”With the quite challenge goal, Changan strategy is: besides two to three new products to increase sales, Channel integration shall be the new engine for sales increase.

As reporter knows from Changan that the company plans to integrate its network building, which include continuous its sub-network building, and simplify its region structure. The company wants to react fast enough with the fast moving market. At present, Changan passenger car has more than 400 4S shops in China, which widely distributing 8 sales regions of Changan. The company start implementit’s A, B modes from 2010. Both networks have its star products. A network sellsYue Xiang, CX20 and Escape. But B networks focuses on Benben series and Changan CX30. The difference between them is price of network products will be slight higher if sold in another network.

As it known, auto sales with differentnetwork is starting from multi-brand auto company brand strategy. It is normally in some international company. It benefits company to layout its products. Toyota is the typical sues fully case. In Chinese companies, such as Geely, BYD and Cheery have adopted the mode before or now, and achieve certain sales increase.

Changan sales are quite attractive under sub-network mode. Changan sales in Nov increase 10.7% to 48.1 thousand; the figure exceeds BYD and Cheery. Bing GONG said that Changan passenger car and MPV sales shall close to 400 thousand. “It is related to Changan network building.”

However, Changan sub-network has its shortage with the sales growth. Some dealers say that sales and service management dividing cost much more in human resource and financial cost. Besides, it is not easy for dealers communicate with manufacturers. Meanwhile, manufactures is unable to flexible enough with market change.

Realizing the above questions, Changan passenger car starts its sales and service integration mode. It solves the above problem in certain degree. However, compared with 4- 5 sales regions divided by other auto companies, Changan passenger car 8 salesregions still very complicated.