FAW Toyota Motor Sales Co., Ltd. occupies two floors of the Kerry Centre in Beijing. The office area forms a peculiar circular layout around the elevators. Deputy General Manager Wang Fachang can clearly see his employees as long as he walks in a circle. what are you doing. In this annulus, the ever-increasing staff of China and Japan continue to communicate with each other day and night. However, Wang Fachang, who has witnessed this situation, always feels that there are still many things that need to be communicated, especially in the light and soft days of the auto market. There is no inventory "China Business": According to FAW Toyota's statistics, as of 8 months has sold 60,000 vehicles, 105,000 vehicles from the sales target, there are more than 40,000 vehicles, four months to complete the goal seems hopeless . How much can China accept for order sales? Wang Fachang: The market environment is indeed unfavorable, but it cannot be said that there is no hope. Our sales model is different from many manufacturers. One of Toyota's most important methods is order-based production and sales. At the beginning, I did not understand it. I said that I could give some special big customers preferential terms to let him pick up the car in advance. However, Toyota could not agree with it because Toyota said it must resolutely put an end to unfairness. Now, FAW Toyota is using order sales, using A and C card management, A card number is the number of users to the store registration, C card is to pay the deposit user statistics, C card is to enter the order process, manufacturers According to C card data production, and before the product shipped to the dealer to inform the dealer in advance three days. According to my understanding of Honda's model is similar to this, it is characterized by a small inventory of manufacturers. "China Business News": Is there any distortion after this type of order sales is transplanted to China, especially if the competition is so fierce now that there is no exchange with the Japanese side to make some changes? Wang Fachang: The Chinese have put forward their own opinions, such as sample cars, dealers have a small amount of reasonable inventory, this is not a manufacturer pressure, is voluntary, but also meet the special requirements of the current Chinese consumers with fierce market competition. But it is not in line with Toyota's concept of zero inventory, and now Toyota understands that I can now provide some prototypes and a very small amount of inventory on the Tricer. There are many things in the Chinese auto market. For example, FAW Toyota has 6 sub-brands, plus 7 crowns, there will be a mid-size car next year, and so many cars will be placed in stores, and the stores will not be small. But if you want to go to Europe, America and Japan to see, people's stores are very small, more cars can be placed outside. We once went to Hokkaido, Japan. After a clear rain, two rainbows appeared in the sky. This is how the air is transparent. Even more incredible is that there is not a lot of mud on long-distance buses. At that time, I suddenly realized why foreign stores can be built so small that they can leave cars outside, and we cannot. "China Business News": FAW Toyota now has six sub-brands, immediately have a crown, how do you evaluate these models, overbearing by the impact of similar imported cars, follow-up questions and how to solve? Wang Fachang: Costa has sold very well now, and it is even possible to increase prices. Overbearing is greatly affected by imported vehicles. In March this year, the license for overbearing imports was changed from 120,000 yuan to several thousand dollars. The spread of domestic and imported cars of the same type was suddenly widened. The result of the exchange with Japan was that Sichuan Toyota took the initiative to cut prices. After the price adjustment, the order has basically recovered to the beginning of the year; the L100 land cruiser is no longer imported after local production; the performance of the Corolla is not as good as when it was put into production. There were 13,000 orders in March, but the design scale of the Tianjin plant It is an annual output of 30,000 vehicles. Last year, Toyota’s production capacity of 50,000 units was still unable to keep up with demand. Dongguan’s subscribers had to wait for nearly a year before losing a large number of users. From this month onwards, Tianjin Toyota has transformed its production capacity, with annual production capacity of 120,000 units. Corolla, the advantages of order-based production should be able to play. Finally, talk about the crown. It is different from other products. Only by starting with the government and legal bus can you attract private users. The prompting of government procurement for the society is obvious. The Japanese side also strongly agrees. As this car meets the government procurement standards, we have begun to promote it at some local fairs. Profit space "China Business News": As a front-line trader, how did you explain the pressure on market dips when communicating with foreign shareholders in joint ventures? Wang Fachang: Macro-control does not prevent foreign capital from entering. On the contrary, this is a bigger plate. Last year, manufacturers have done a lot to increase production capacity. The problem is that the inventory is too high. On the one hand, macro-control has reduced the purchasing power of residents, and on the other hand, the financing capacity of dealers has also been reduced. Now, regardless of reasonable stocks and car prototypes, dealers do not have independent purchases. Can only reduce the price of Treasury, this pressure is increasing. In addition, both parties of our joint venture have a consensus that any new product launch will attract the highest attention and enthusiasm, but the time of listing will be high and then will decline. This intangible market pressure comes from many aspects. "China Business News": Sources generally report that Toyota's cars are expensive. Can you explain the cost structure of Toyota cars? Wang Fachang: FAW Toyota has a lot of products and we need to subdivide it. However, the cost of product logistics accounts for a large proportion of FAW Toyota's products. This is especially true in China. You can often see the transport vehicles of certain auto companies. Because of the one-way transportation, the advantages of third-party transportation companies are not reflected. The cost of wasting empty trips is too much, and it is only for manufacturers to post. Purchasing costs also have a cycle, usually the SUV vehicle's cycle of collaboration parts takes two months, and less models also have 20 days. If you ship in advance, the supporting business will have inventory pressure. This problem Toyota's order marketing can be partially solved. However, there are still many difficulties in achieving the entire system including supporting plants and raw materials. "China Business News": We are very concerned about the current price reduction space in the end how much? Although the labor cost of FAW Toyota is low, it must be considered whether the profit margin has bottomed out due to lack of economies of scale, raw material prices, and high total cost of accessories. Wang Fachang: I can only talk about my feelings. The most important thing is the accessories. There is room for imported accessories, and there should be room for domestic accessories. Labor costs are very important, because we can still do better than abroad in this regard; domestic use of cost calculation method is different from abroad, this profit may appear very high in the book, but it is different in foreign countries, such as an American giant it If the turnover is 10 billion U.S. dollars, the profit may only be calculated to be 1 billion U.S. dollars; the investment cost and the economic volume of the manufacturers are very different, but it is very complicated, but overall, in a realistic market environment, there are many ways to think of profit space. , Manufacturers must find a way to survive. Wang Fachang's "Account" FAW Toyota Motor Sales Co., Ltd. The main brand in the previous August sales of 26,279 units, Vios, 23,538 units, oversight, 2021, Costa, 2345, Land Cruisers, 1003,056, Terri, 2987, 60,226 units, FAW Toyota Sales Co., Ltd. 1 month 2 to 3 weeks Vios overbearing two weeks Coaster uncertain Terios land cruiser 1002 Zhou dealers have some stock, can immediately mention? author: Zhang Brasenia
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