New Polo high price listing can continue sales myth

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New Polo high price listing can continue sales myth
In recent years, the market share of small cars has been declining year by year, and the meager profits have caused many car companies to opt out, focusing on more profitable vehicles such as SUVs. However, the role of small cars in the initial user development is obvious to all, which also makes many car companies increase the degree of emphasis on this segment of the market. On May 25, Shanghai Volkswagen NewPolo and CrossPolo went public in Chengdu. In terms of price, NewPolo is priced between RMB 85,900 and RMB 121,900.
Dealer admitted that Polo prices are high
“Polo was born in 1975 and is a young brand with a deeper heritage than Santana. Twelve years ago, Volkswagen introduced Polo to the Chinese market. Up to now, Polo’s cumulative sales in China have exceeded 1.1 million units. The market share has exceeded 20%, said Jia Mingzhao, deputy general manager of sales and marketing of Shanghai Volkswagen Automotive Co., Ltd. and general manager of Shanghai SAIC Volkswagen Sales Co., Ltd.
This time, the two new models are equipped with Volkswagen's latest generation EA211 aluminum environmental high-performance engine, maintaining the Volkswagen family's traditional advantages of low speed and high torque. NewPolo offers eight colors including style red and polar white. In the name of "new youth," the orientation is more detailed and clear.
In 2013, Volkswagen Polo's domestic sales reached 132,000, which accounted for 10.2% of all sales of Shanghai Volkswagen. Polo also plays a very important role in popularizing users.
There are mass dealers who said that German cars are both technical and quality, and there will not be many quality problems. In the case of Polo, the price is still relatively expensive. "The price of the Polo manufacturer is starting from 70,000 yuan, and now the price is more than 80,000 yuan. Under normal circumstances, 4S stores will give users a discount of 12,000 yuan to 15,000 yuan, which is less than 70,000 yuan. However, if the manufacturer's price drops directly to 70,000 yuan, it would be better than the 4S shop to perform such preferential activities."
In this regard, an analyst who declined to be named admitted that, in general, in order to increase market share, the most important way is to lower prices than similar products, Polo's pricing is indeed not low. With the introduction of Toyota's two A0-class models, Vios and Hyun, it has further lowered the entry price of A0-class vehicles.
New Polo is facing test
Data show that in the first 4 months, Volkswagen Polo sales of 46,700 units, a year-on-year decline of 7.33%, Volkswagen CrossPolo sales of 6,500 units, a year-on-year decrease of 15.6%. The sales volume of Volkswagen PoloGTI was 0.07 million, a year-on-year decrease of 46.84%. It can be said that sales are declining month by month. Volkswagen Polo sales have plummeted from 15035 vehicles in February to 1,520 vehicles in April.
The above analysts said that the decline in sales volume has a lot to do with the entire market, and the A0 class car market is fiercely competitive, and the increase is certainly smaller than other market segments. The brand symbol of Polo itself is still recognized by consumers. The sharp decline in sales in April may be due to the fact that manufacturers have deliberately reduced the amount of wholesale for the new POLO listing.
“Polo is an entry-level vehicle for Volkswagen, and it is responsible for the development of users. The public's expectations are also relatively high. Without Polo Volkswagen, the A0-class small car market is lost. Our shop is still Tiguan, Long Yat, Long Line, Santana. , Passat sells well, of course, Polo can not be compared with these models.” The above sources said that the overall sales of Polo in the public system, although in general, but the market share of the entire small car market in the country is still possible.
It can be said that NewPolo is also facing the test in the context of the entire automotive consumer market. Although Polo's role in Volkswagen’s entire strategic system is to increase brand awareness and cultivate initial users, sales are equally important. It remains to be seen whether NewPolo will meet the public’s expectations.

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