China and South Korea around the 'Sade' anti-missile system deployment of the contradiction is still no signs of mitigation, into the Chinese market, Korean companies suffered heavy losses. However, South Korea's second-largest car brand - Kia's poor performance in China is caused by Sensor a decline in product competitiveness, 'Sade' or will be 'the last straw to crush the camel.'
Kia's decline in the Chinese market began last year, South Korea's deployment of 'Sade' after the release of information, Chinese consumers immediately began to 'do not buy' to protest, its sales decline gradually accelerated. This year, Kia sales in China is always in decline. According to the Federation of data show that Dongfeng Yueda Kia June sales of 1,9003, down 57.8%. The first half of this year, Dongfeng Yueda Kia total sales of 129670, a decrease of 54.6%, the market share of only 1.2%, the decline faster.
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In the United States and other developed markets in Europe and the United States have a place in the Kia car, why in China to become less than the product is mainly due to, and other foreign-funded enterprises, Kia in China to take a step into the product strategy, that is always the best Technology on their own hands, with the technology to cope with foreign markets to conquer the world. This strategy of ladder investment is a strategy adopted by multinational companies, but Kia's estimate of China's industrial base strength is clearly inadequate, and the development of the market is not enough to commit a strategic mistake. In the beginning of the joint venture to choose Yancheng, the core reason is that Yancheng no independent research and development capabilities, and Yueda cooperation can guarantee Kia's technological advantages, do not worry about the Chinese learn technology after Fuel Rail Pressure Sensor the rejection of Kia (when Kia is in this way to get rid of 'Master'). In terms of technology investment, Kia not only did not put China into the most advanced technology, and the use of new technology is always slower than the modern half-beat. Because, Kia believes that China's industrial base is less than South Korea, so half past a minute can not go beyond them, and technology control in their own hands. When found the rapid rise of their own brand when Kia saw their own brand in the shape of the soft underbelly, using the 'new bottle of wine' strategy in China's replacement models mainly rely on innovative designs to attract consumers, but not like Europe and the United States, as in the technical update at the same time change the design. In China's industrial base with the support of its own brand of rapid rise.
Dongfeng Yueda Kia increased by only 5.5%. Dongfeng Yueda Kia 'roller coaster' the same changes in sales Note: only to enhance the 'value' does not update the technology, the result will lead to a short product life cycle, can not stand the test of the market. Why is Kia in China slow response because the R \u0026 D center is not in China, and R \u0026 D center is not placed in China because Kia wants to 'eat' the Chinese market, rather than with the Chinese auto industry growth. Arrogant 'Yelang' consciousness, resulting in Kia disdain to understand the Chinese market, the changes in the Chinese market is across the sea, but can not get suitable for the Chinese market products. Only the foreign party and the Chinese side to start a sincere depth of cooperation Temperature Sensor in the Chinese market, 'grounding gas' in order to produce a public opinion of the products, the joint venture to stay ahead. The reason why the public in China was successful, because the 'North-South public' joint venture in the establishment of the beginning, will be localized R \u0026 D as the core competitiveness of enterprises. And Shanghai GM's success, thanks to the Shanghai General Pan Asia R \u0026 D center support. Local R \u0026 D is an indispensable factor for joint ventures to build localized products. Kia's strategy in China is clearly a perfect facade of Chinese cars opening up.
Slow technology to Kia and foreign competitors, the gap is growing, and underestimated the ability of China's basic industries, then let it was the previous 'defeated' - Geely, the Great Wall and other independent brands quickly catch up, and to achieve Fast beyond. The first half of this year, Geely, Great Wall passenger car sales were 550,191 and 403495, respectively, Dongfeng Yueda Kia 4.24 times and 3.11 times.
House leakage even every rain. Products continue to decline in the Kia, in the 'Sade incident' under the influence of more and more difficult. The South Korean government in the Sino-US game uphold this strategy, that is, rely on China's economy, defense by the United States. And this balance is that South Korea can not be any party to attack the other side of the pawn, 'Sade' problem is precisely the seriousness of this. Since South Korea disregarded the opposition to the deployment of 'Sade' since China, China has made severe measures to support the 'Sade' enterprises, the Korean entertainment industry and the tourism industry, from government to civil society, from economy to culture, Continued, gradually deepening the punishment, South Korea suffered heavy losses, complain incessantly. As South Korea's second largest car brand - Kia business in China naturally can not stay outside. In this case, the 'Sade incident', which has endangered the national interests of China, has made the relationship between South Korea ABS Sensor and China from the strategic partnership, and the actual situation is reduced. In this context, Chinese consumers resist the purchase of Kia Motors, is also very normal. At this time, if Kia face the Chinese market, starting from the technology and services, the attitude of sincere, practical and gradually solve the existing problems, things are not absolutely no chance of turning, after all, China is the world's largest car market. Otherwise, the 'Sade Incident' will become the last 'straw' to crush Kia. And Dongfeng Yueda Kia, will also become the Chinese auto market 'knockout' in the first out of the joint venture.