New Energy Auto Show Is Behind: Car Companies Squeezing The Budget "Winter"

An information delayed by the Shanghai new energy auto show is affecting the nerves of the auto industry. Recently, a screenshot of a short message circulated on the Internet shows that the new energy auto technology exhibition in Shanghai, which was scheduled for October 30th to November 1st in Shanghai new international, has resulted in some car enterprises' plans change due to bad industry, and will be postponed until from August 7 to 9, 2020.

The first person to disclose this screenshot came with an explanation: "there were originally more than 60 exhibitors, and more than 30 of them were closed down, and more than 10 of them were not expensive because they were a little expensive."

This comment has attracted wide attention. Since last year, the automobile market has entered the downlink range, and the operation of enterprises in the industry has been more or less affected. Some of the small businesses are in a liquidity crisis. The market is particularly sensitive to rumors of "bankruptcy" and "bankruptcy".

Against this background, the "new energy auto show" postponed is more like a footnote for the industry's perilous situation. Twenty-first Century economic report reporter learned that the delay of the auto show was true. The organizers of the exhibition told reporters that the organizers decided to postpone the exhibition on the basis of the conflict between the exhibition time and other meetings and the tight budget of the car companies. The decision was also the result of consultation with the major exhibitors.

Regarding the situation of exhibitors, the above personages said that the exhibition actually covered the whole new industrial chain of new energy vehicles, exhibiting more than 60 enterprises, and the "more than 30 has closed down" is even more "out of nothing". He also stressed that the major exhibitors have already paid a certain amount of deposit, and that they will be exhibitors next year. In addition, in order to enhance the effect of the exhibition, the scale of the exhibition next year will double. The main areas involved are automotive interior and intelligent cockpit.

Behind the exhibition postponed, the automobile industry chain represented by car enterprises reduced the activity budget to a certain extent. This is only the tip of the iceberg. In twenty-first Century, the economic news reporter learned that due to the sluggish industry, the number and scale of the exhibition in the automotive industry this year have been affected, and many car companies have slowed down in marketing.

Auto show is hit

The Shanghai new energy automotive technology exhibition is sponsored by China Europe new energy intelligent automobile industry federation. It is understood that the third session of the exhibition was scheduled for the end of October this year.

The organizers of the exhibition told the twenty-first Century economic news reporter that the delay was held by the organizers and the main members. On the one hand, due to the decline of new energy vehicle subsidies, the cash flow of the related vehicle companies was inevitably affected; on the other hand, the end of October was also a period of intensive exhibition held by the major exhibitions, which made it difficult for enterprises to allocate more energy.

"For example, there is a home charging pile business, because there is also a local exhibition to attend in Beijing, so come and ask if we can not come first this year, and then participate in next year." The above-mentioned people said that similar feedback would be more and the organizers would naturally consider making adjustments.

"This is the first time we have postponed it. It has never been before." The person sighed. But he also pointed out that this year's industry development situation is not good, many exhibitions are affected: "there is an exhibition of new energy auto show, last year the exhibition area is 60 thousand square meters, only 30 thousand this year."

The exhibition relies on the industry. The rapid growth of the automobile industry in the past ten years has also led to the vigorous development of the auto industry exhibition. Following the scale and influence of the Shanghai, Beijing and Guangzhou auto show, many cities have started the regional auto show. With the start of the new energy vehicle market and the development of the new energy vehicle, the featured auto show is also coming into being. In 2018, the area of domestic auto show increased nearly twice that of 2014, according to Chi Yan consulting.

Some of these auto shows are mainly based on display models and are open to the public. Part of the exhibition is mainly based on display technology and equipment, so as to promote the docking of the industrial chain, and only for the insiders. For the current car companies, the attraction of exhibition in the industry is obviously lower.

According to the characteristics of the layout, the exhibition is actually the exhibition of the new energy automotive industry, which is mainly referred to as the new energy auto show. It mainly displays the technology and assembly of car body technology, automobile stamping and so on, and car enterprises are relatively important exhibitors. While exhibiting their own reserves, they are also potential customers of the main exhibitors.

"The market situation has not improved significantly. It is normal to reduce unnecessary expenses." "In fact, a lot of car companies' marketing activities have also shrunk this year," a person from the market department of a traditional car company said to reporters in twenty-first Century.

Money should be spent on the blade.

Marketing is a major item of vehicle business expenditure. Whether it is new energy vehicles or traditional cars, they have to tighten their belts in the current market environment.

Many people engaged in car enterprise marketing related work said that compared with previous years, the cost of car marketing in this year "is definitely reduced", although the specific size is unknown, but from the number and category of the project, this has almost become a new normal.

The main strategy for car companies is to improve the efficiency of product projects and reduce the implementation of "extra" projects such as brands. "Money should be used on the knife edge." "The most important thing now is to increase sales," the market participants told reporters.

According to the latest data of the Federation, the sales volume of "golden nine silver ten" in the traditional peak season is still not improving. In September, the total sales volume of narrow passenger cars in China decreased by 6%, compared with the same period last year, 6%, and the new energy vehicles were even more severe. In September, 65 thousand vehicles were sold, down 33.4% compared with the same period last year, and the ring was also down 8% compared with August.

A salesman from a Shanghai automobile company said that the customers he served did not notice significant changes in important projects such as new cars, but the activities like corporate culture transmission and factory visits were basically stagnant.

"Now it's mainly about products." Another auto company supplier's business staff also said that the daily work is mainly focused on the new products listed, including the launch of the press conference, the implementation of the trial drive, and follow-up media advertising.

In the case of limited budgets, the cost control of car companies is more stringent than before. For example, "the customer has allocated a budget, we should also strive for more resources, such as a 50 thousand yuan project, which was originally launched once, and now we should try to lay a foundation for the next launch." The personnel said. (Editor: Zhou Kaiping)