market dynamics
Honda's price cuts are part of the industry or something else?
Release date:2023.07.13

Honda PCX160 and CM300 limited-time promotion news came out for two days, and there are rumors of CL300 and LEAD125 promotion price news, many people think that domestic large row models are intensified, squeezed Honda can not carry, is this really the case?

From our point of view, whether it is the price reduction of Honda 400 series models, or the promotion of four models this time, Honda's official announcement is in the form of promotion, never officially announced the price reduction, which is for a reason.

There are three main reasons for Honda's price cut:

One is the dealer reason, since Honda began to set up Honda in 2020, in fact, each province has a new, five books two sets of store system, this store set up density and competitiveness, can be said to be any other joint venture brand or domestic brand unattainable.


The establishment of this sales system will eventually produce this result: When Honda new models are put into production, because it is two sets of supply systems, so the initial supply is extremely tight, all the middle row shops to seize is to earn, so the middle row shops desperately under the plan, and Honda production system is planned to order production, as a result, when the market changes, the middle row shops found themselves placing orders too optimistic, so they began to form a backlog, in order to deal with inventory, Honda store system had to open and hidden price promotions. So, in addition to a very good market, many provinces of Honda shop do not make money.

The second is economic reasons, today, the National Bureau of Statistics released the national consumer Price index CPI and industrial producer price index PPI data in June 2023. June PPI fell 5.4% year on year, from January to June this year, the overall point of view is down, industrial production raw materials such as coal, steel and other prices fell relatively high. This shows that the cost of raw materials for motorcycle production has declined, the overall decline of CPI and PPI, and shows that the current domestic and international demand is weak as a whole, if you do not cut prices, it means that the liquidity is reduced, then what money?

Third, motorcycle emissions standards may soon be mandatory, as early as January 1, 2022, motorcycle emissions standards have been introduced, according to previous experience, emissions standards introduced to mandatory implementation, generally no more than three years, that is to say, the country is likely to be mandatory by 2024. At present, as an imported car, all of Harley's incoming motorcycles are national V emission standards, which is also to prevent the risk caused by the sudden imposition of National V emission standards. Then all domestic motorcycle brands have a backlog also means that there is a risk, inventory means to go to risk, so Honda in the case of their own models have a backlog, it will use a limited time promotion to solve.

Based on the above three reasons, it has led to the frequent price reduction of Honda series models, but they are not officially announced price cuts, what's more hateful is that the single-willed Honda always wants to make a difference in electric vehicles, stubbornly confirm that they meet national standards and good quality electric vehicles will be able to sell, and the result is that no Honda electric vehicles are sold so far, and finally can only pressure their dealers. The use of matching sales in the way of inventory, the risk and pain into the dealer's head, which can not let Honda's middle line shop cry father and mother?

So, those "you don't buy, I don't buy, tomorrow can drop a few hundred" can be almost, perhaps now is the best time to sell, when waiting to come to the country five emissions, and so on to the new market, do you think Honda will lower prices?

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