Chapter 1483 [What belongs to you cannot escape]

The second batch of 100,000 cars reserved by Xingyu Technology were sold out in just 5 seconds, which shocked people from all walks of life, especially those in the industry.

In just 5 seconds, more than 40 billion yuan in turnover was collected, which made the peers and friends so jealous that they cried and their eyes were almost red with envy.

You should know that the reservations for the second batch of 100,000 cars do not support refunds, unless the car itself has quality problems when it leaves the factory, otherwise it is a done deal once the order is placed and paid. In this case, it is even more exaggerated than the first time it was sold out in seconds, and it has increased to 100,000 cars.

As a peer, no one is not jealous after seeing it.

However, this is still secondary. As peers, especially competitors, they are watching horror stories, especially several foreign brands BBA series cars. The pricing of these two cars of Xingyu Technology is the hinterland of the kingdom of several foreign brands such as Mercedes-Benz, BMW, and Audi.

They saw the hot scenes of N3 and U3, and they were already trembling secretly.

Every time Xingyu Technology sells one of these two cars, it means that the sales of these brands of cars will be reduced, because the current automobile consumer market is so large. Last year, the total automobile sales in the Greater China market were about 28 million, which is the world's largest automobile production and sales market.

There are still two months left this year. It is estimated that the annual automobile sales in 2019 will be about 25.7 million, which is about 7 percentage points lower than the previous year.

In this market environment, it is actually a competition for existing stocks, and the size of the mid-to-high-end market is there. As long as Xingyu Technology's cars sell more and more, it means that the sales of BBA series cars will be squeezed out.

According to the automobile sales data in 2018, the total sales of BBA series cars in the Greater China market were 1.95 million, of which BMW sold 640,000, Mercedes-Benz sold 650,000, and Audi sold 660,000.

The sales scale of BBA series cars in the Greater China market accounts for one-third of the global sales of these three auto brands, that is, one out of every three cars is sold in the Greater China market.

Xingyu Technology has already sold 180,000 vehicles, accounting for more than a quarter of the sales of any BBA brand in the Greater China market. The total is close to 10% of the total of the three BBA brands, and this is obviously far from the limit of N3 and U3.

Judging from the current market popularity, the annual sales of these two cars are expected to hit the million-level sales. As for how high the upper limit is, it is really hard to say. No one dares to easily predict the upper limit, but the combined sales of millions are definitely inevitable. Even if 1.5 million vehicles are sold, many people now think that this will not be a surprise.

BMW and Mercedes-Benz cars have an average monthly sales of only 40,000 to 50,000 vehicles, and they are already very popular.

As a result, these two cars of Xingyu Technology can be sold out in seconds at any time, 100,000 or 80,000, and they are still pre-ordered. This is really too exaggerated and has exceeded the cognition and imagination of many senior people in the industry.

Even if these two models can sell 1 million units a year, it means that the sales of the three brands of BBA in the Greater China market will be cut in half, which is quite fatal to them.

There is no need to completely squeeze the BBA series out of the Greater China market. As long as their sales are cut in half, they will be either half dead or half disabled.

For example, the BMW brand, according to its 2018 financial report data, the profit margin of the car company is about 10%, and the revenue of the Greater China market accounts for a quarter of the company's revenue, which is about 24.3 billion euros in euros.

If the revenue of the car company in the Greater China market is cut in half, while the sales in other markets remain unchanged, it means that the company's revenue will be reduced by more than 12 billion euros, and the company will make a profit of 9.8 billion euros last year.

Once the revenue in the Greater China market is cut in half, the company will have no profit. Not only can it not maintain a profit margin of 10%, but it will also become a profit margin of about -6%.

It is equivalent to making no money for a year and losing 20 to 30 billion euros. This is equivalent to being half disabled if not dead.

Unless there is a growth of about 20% in other market areas, it is possible to offset the loss of the Greater China market, but this situation basically only exists in theory. Can other market areas bring him a 20% growth?

The Greater China market is currently the world's largest automobile production and sales market. If you want to grow, you can only rely on this market. If you can't even hold this market, then you are doomed.

In fact, there is nothing much to say. In a word, the lifeblood of the BBA series of cars lies in the Greater China market. If they can't gain a foothold in this market, they will be doomed.

Moreover, Fang Hong's strategy is to attack in two ways, squeeze out the Greater China market, and lock in the market areas along the Belt and Road strategy in the global market. Taking these non-magnesium Western markets is also a huge impact on BBA series cars and other European car companies.

This means that they are also blocked from finding other ways out. Not only is there no increase in the global market share, it may even be declining. This is tantamount to adding insult to injury for them.

Fang Hong's strategy is not complicated. It is a "mixed doubles" or "hunting". It aims to capture the emerging markets of non-magnesium Western countries and squeeze them out of the Greater China market, thereby confining them to the European and American domestic markets.

In a few years, the world situation will usher in a rapid reversal. From the mask incident, to the fight between Goose Woo and the Yisha Century Reconciliation, a series of major events that are enough to be recorded in world history, the situation changes so fast that it changes every year or even every half a year.

The East came out to carry the flag, and a group of non-magnesium Western heroes, mainly along the Belt and Road, responded one after another, and went to the East to pay homage to the big brother. Of course, they want to import the products provided by the big brother of the East, and it is impossible for them to have those products of European and American that are not good quality and not cheap.

This is also the reason why Fang Hong is confident in opening up the non-magnesium Western market. There is not only the logic of market economics, but also the logic of political economics.

As for the European and American market, of course, we have to go, but we won't go now. Instead, we will take it in the end and adopt a strategy of encircling but not entering, so that they can roll up against each other and fight each other for stock. At least more than half of the brands will fall in the roll-up, either directly bankrupt or be acquired.

Because there are so many car brands in Europe now, relying solely on their own local market scale cannot support so many car companies to survive. Once they are trapped in the local market, rolling up and fighting each other is inevitable.

The smartest strategy is not to take the initiative to enter, but to wait for them to kneel down and beg you to enter.

Life will find a way out, and so will companies.

If you find a way out, you can survive. If you can't find a way out, you can only be eliminated. Once they are trapped in the European and American local market, those European and American car brands will definitely not want to be the ones to be rolled to death, so they will definitely look for a new way out.

And this way out is actually Xingyu Technology!

By then, there will definitely be a certain car brand that will settle its internal opposition and take the initiative to seek cooperation with Xingyu Technology, such as introducing Xingyu Technology's intelligent driving system or other new energy technologies, or even establishing a joint venture subsidiary, in order to improve its competitiveness and achieve the goal of crushing its opponents.

Survive, and let competitors die, or even acquire them.

For Xingyu Technology, isn't it just that they are begging to enter the European magnesium market. Now, trying hard to open up the European magnesium market is a typical thankless task, and will be subject to various restrictions, boycotts, and sanctions.

There is no need to do that at all. Just cut off their wings and break their arms, and then hunt them down. It will be yours sooner or later, and you can't run away.

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