#206 - Sales Announcement

However, after the initial month of glory, when Liji Auto's Qin PRO was launched, the Honda Civic instantly found itself in an awkward position.

Because of the videos that Honda Civic owners had been frantically posting online, a certain negative impression had been created, leading many people to feel repelled by the Honda Civic.

Previously, there weren't any vehicles in the same class that could compete with it, but after Liji Auto's Qin PRO came out,

many consumers who were already somewhat averse to the Honda Civic were immediately captivated by this new car filled with Great Xia design elements.

The technical support from Audi Automobile filled countless consumers with confidence in this car.

And the Qin PRO lived up to expectations, rapidly gaining recognition and satisfaction from countless consumers with its solid and well-regarded reputation.

Even the most discerning consumers couldn't find much to criticize about this car, so, naturally, the Honda Civic was crushed by the Qin PRO.

Therefore, when Liji Auto announced the Qin PRO's sales figures for the month, it instantly ignited the entire automotive industry.

Liji Auto instantly became the envy of other car companies, with many executives feeling sour, not understanding why every car developed by Audi Automobile was so popular.

When Honda Kobayashi, who had been very pleased with himself, learned about this, he smashed everything he could in his office in anger.

"Baga! I'm so angry!"

"Damn Qin PRO, damn Liji Auto, damn Audi Automobile!"

"This month's Honda Civic sales are less than ten thousand units! Tell me why!"

Originally, if the Qin PRO hadn't appeared, then Honda Kobayashi's plan would have been very successful. By relying on the sales of the Honda Civic, he would have completely opened up the market for Honda Automobile.

Then, he would have updated other models, using simplified configurations and price reductions to occupy the entire low-end market of Great Xia. His plan was already close to succeeding, but now it had been completely ruined by Liji Auto.

How could Honda Kobayashi not be angry!

What's even more hateful is that more than 100,000 Honda Civics were sold last month, but this month, less than 10,000 were sold. This huge drop in sales completely infuriated Honda Kobayashi.

The assistant beside him said, "Honda-kun, because Liji Auto's new car is cheaper than our Honda Civic, many people have chosen their car."

The price of the Qin PRO is almost 20,000 cheaper than the Honda Civic, which is something that Honda is helpless about.

Because their current price is already very low, and in order to maintain huge profits, they have already replaced all the configurations that could be saved.

"Damn it, this damn Liji Auto, selling a car so cheaply, their profit margin is definitely no more than 15%."

Honda Kobayashi asked the assistant beside him with a very gloomy face, "What is the profit margin of our Honda Civic now?"

Now that the sales of the Honda Civic are plummeting, this is a very unfavorable sign for him, who has always wanted to prove himself to the headquarters.

You must know that he overruled all objections and made the decision to promote sales in the Great Xia region by simplifying the configuration and lowering the price of the Honda Civic. At that time, this caused dissatisfaction and opposition from many people.

However, in the end, everyone was concerned about his identity and status, so many people were dissatisfied, but they didn't dare to speak out.

The sales of the Honda Civic last month did reach an unprecedented peak, but this month everything returned to the starting point, and even worse than before.

Now, he must recover the losses of the Honda Civic as soon as possible, otherwise he, Honda Kobayashi, will become the target of public criticism.

At that time, he might even be recalled by his grandfather at the headquarters on the Japanese island, and then he would not have any status in the family.

The assistant respectfully replied, "Honda-kun, our Honda Civic's profit margin has always been maintained at around 30%."

Honda Kobayashi nodded after hearing the assistant's words, and said, "We can't reduce the configuration any further, otherwise it will have a great impact on the image of our Honda. If we want to compete with Liji Auto's Qin PRO, we can only lower the profit margin to increase sales."

Consumers are not fools. Although Honda Kobayashi knows that the image of Japanese cars in the minds of consumers in Great Xia is that they are thin and not resistant to collisions, it does not mean that this car is just a paper shell.

Previously, in order to maintain sufficient profits, he had already simplified all the places that could be simplified. If he reduced it any further, then this car would really be no different from a paper paste.

So, he can only start with the profit margin, sacrificing a certain profit to compete with Liji Auto's Qin PRO.

After Honda Kobayashi thought it over, he said to the assistant beside him, "Go and notify all dealers, the Honda Civic series will be reduced by 10,000 yuan, and give more decorations as gifts. Be sure to win back the sales for me!"

"Hai! Your subordinate will do it now. Honda-kun, rest assured, we will definitely win back the sales of the Honda Civic!"

The fight between the Honda Civic and the Qin PRO has attracted the attention of many car companies in the automotive industry.

Originally, foreign car companies and domestic car companies were at two different levels in terms of vehicle prices.

Everyone occupies different price ranges, ensuring harmonious development, and one is the brand positioning issue.

In recent years, these foreign car companies have always believed that their cars are one level higher than domestic cars, so they disdain to compete with domestic cars with price wars to seize the market.

However, because of Honda Kobayashi's policies, the low-end car market in China has now become a complete mess.

Now that the Honda Civic has once again reduced the price of all models by 10,000, the attitude is very clear, which is to go all out and fight Liji Auto to the end at all costs.

However, Li Li of Liji Auto is now very happy about this situation, because Honda's move has invisibly lowered the status of its own brand.

And Liji Auto can quietly raise its brand positioning a little by relying on the Qin PRO model.

"Humph, as President Lu said, Honda will not give up. Old Li has never been afraid of anyone in a price war!"

As early as half a month ago, Lu Haifeng told Li Li that Honda's new head would definitely not give up when he saw the Honda Civic plummeting and the Qin PRO seizing the A-class car market.

So at that time, Lu Haifeng suggested that Li Li prepare in advance, and if necessary, sacrifice some profits, and must defend the sales that were not easily regained.

Because Lu Haifeng was guessing at the time, according to Honda's price reduction method, then the other party must have reduced a lot of costs from the vehicle configuration.

At that time, they will definitely suffer an unprecedented blow because of this reduction in configuration.

As long as they delay until that time, then in the future, Liji Auto can occupy a large share of the domestic A-class car market. He will not be afraid of price wars now.