Beijing Hyundai or opening the fourth factory in 2015

Beijing Hyundai is undoubtedly a very representative enterprise in the Chinese automobile market. It has not only emerged from the ultra-high sales of the Elantra and Elantra in the domestic automobile market, but also contributed a lot of profits to the Beijing Automotive Group.

Li Feng, secretary of the Beijing Modern Party Committee and deputy general manager of the party, is also legendary. This professional professional manager who is known for his professionalism and ability has transferred from the general manager of the Chery Automobile Sales Company to Beijing Hyundai as deputy general manager of less than two. In that year, it dominated the sales of Beijing Hyundai. It also helped Beijing Hyundai to move from the "Elantra + Elantra" combination to the current four arrows. In addition to Elantra and Elantra, ix35 and Rena have already delivered monthly sales. Over 10,000 achievements.

For Li Feng, how to increase the brand influence of Beijing Modern and strive to increase sales of high-end models is its biggest challenge. Li Feng said in an exclusive interview with the reporter of the “Daily Economic News” that Beijing Hyundai has completed the accumulation of quantity, and will focus its efforts on the promotion of the brand next year. At the same time, in order to achieve the goal of becoming the largest domestic passenger car company, Beijing Hyundai It is expected that the fourth plant will be built in 2015, and the final production capacity will be 1.2 million during the “12th Five-Year Plan” period.

Has begun to pay attention to brand issues

NBD: In the modern Beijing product line, there are "Elantra + Elantra" combination, "i30 + Rena" combination, "Tusheng + ix35" combination, "Sonata and Minghao" combination, why would such a product strategy be adopted?

Li Feng: The Chinese market is rich in consumption levels, and the gap between urban and rural areas is also relatively large. Especially in the last two years after entering the period of popularity of automobiles, the automotive market has experienced rapid growth. As long as we can differentiate different groups differently, plus the harmonization and unity of the value chains of manufacturers, consumers, suppliers, and dealers, we should adopt such a product strategy with good prospects. However, this matter does not have to be done in the extreme. If there is no limit, then problems will arise.

NBD: Beijing Hyundai will launch a new model Sonata YF at the Guangzhou Auto Show. Can you introduce this model?

Li Feng: YF is Sonata's eighth-generation product. It is completely reborn compared to the old model. At present, it is only studying its consumer group classification, and it has not reached the value level. Currently, consumers have different needs for official business and households. Therefore, the eighth generation of Sonata corresponds to the current Chinese auto market just in time. This will also change the situation in the past has been a car to deal with two market segments.

NBD: Compared to the American and Japanese brands, the brand influence of Korean brands is weaker. Has Beijing Moderns been working to solve this problem?

Li Feng: The brand is very delicate. The brand does not mean that it can be solved by doing some propaganda. The key lies in the details. Quality, technology and design are the perceived material aspects of the brand, and there are also some spiritual aspects. The promotion needs a long process, especially from low to high. Beijing's modern approach is to first establish a foothold in the low-end and mid-end, and then penetrate the high-end. This is a cumulative process. Beijing Hyundai has been in China for eight years, and now consumers are an overall understanding and evaluation of us. Beijing Hyundai needs follow-up to the continuous launch of high-end products, as well as the investment in communication to stimulate consumer awareness of companies and products. In short, the brand does not come overnight, but it is possible that there is a chance at the breakout point of a certain product.

NBD: Compared to Grade A cars, sales of Beijing's modern high-end models have been tepid. Is there a marketing strategy specifically targeting high-end models?

Li Feng: Beijing Hyundai has achieved market competitiveness through rapid growth, but we are different from the Japanese and German high-end strategies. We are avoiding the edge and based on the family car. This is a very correct strategy. In particular, the launch of the Beijing taxi market has expanded consumer awareness of Beijing's modern product quality. From this perspective, the first phase has gone very well. The problem with high-end cars is the second-stage problem, or the solution to the regret that was not achieved in the first stage. We have begun to pay attention to this issue. Last year, high-end models and SUVs accounted for 16% of the total sales of modern products in Beijing. This year it is 26%, and next year's plan is 33%. This shows that we have changed from the main family car market in the past to the SUV and High-end models force the company. Up to 40% of high-end models and SUVs are our goals in the short term.

It is expected to build the fourth factory in 2015

NBD: How do you see companies like Mercedes-Benz and Geely try online marketing? Will Beijing Hyundai participate in this new marketing model?

Li Feng: Internet marketing is a more avant-garde approach and can be tried with energy. However, it is still early for consumers to adapt to online shopping. Because this requires a high degree of consumer awareness of the brand, it takes a long process. NBD: The preferential policies for the purchase tax on small-displacement models will be abolished next year. What impact will this have on Beijing-based Hyundai, a small-displacement model?

Li Feng: This policy is set for the financial crisis, but it should not have too much impact on the auto market next year. It is possible that there will be a surprise purchase in December of this year, and it may decline in January next year, but it should resume normal growth after February and March.

NBD: Beijing Hyundai Third Plant has already started construction. Does it have the same long-term goals for future capacity and sales as other companies?

Li Feng: After the three plants are put into production, Beijing Hyundai’s total production capacity will reach 1 million. We are likely to start four factories in the “12th Five-Year” period in 2014 or around 2015. We will achieve 1.2 million capacity in 2015. It is an ideal situation.

NBD: What is the biggest bottleneck in Beijing's modern development?

Li Feng: At present, Beijing Hyundai solves the problem of quantity, but the most important thing after next year is to resolve the promotion of the brand. If we pass this hurdle next year, it shows that Beijing Hyundai has achieved the level of followers or beginners in China. This hurdle, we still can only stay at the entry level.