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From "rare things" to "must haves": multiple positives with fire in rural car consumption

February 11, 2019 02:33
source: Economic reference

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On the early morning of the New Year, Mr. Liu, who lives in Dagang Town, Wuqing District, Tianjin, opened his ownKodakThe car came to the elders to celebrate the New Year. What bothers him is that due to the number of people in the New Year, the parking spaces in the community are getting more and more tense, and the roads in the village are getting blocked.

This is Mr. Liu’s third car. It was originally a small van, carrying many people and pulling goods. It was a lot of models purchased by the villagers at that time. The second one was a Geely sedan. Before the Spring Festival this year, Mr. Liu had just changed a Skoda sedan. .

“There are more and more cars in the village now, and parking is already a problem.” Mr. Liu said that the parking spaces in the residential building are usually full, and the streets are full of cars every day.

Moreover, not only the number of cars is increasing, but the number of cars is also increasing. In the past, the cars in the village were mainly vans and mini-cars; nowadays, cars, SUVs and other models occupy the majority, and more and more joint venture brands. Mercedes-Benz, BMW, Audi, even Porsche, Land Rover,TeslaMaserati is not a rarity in the village.

Zhang Dong opened a steam trade shop in the village, and his business includes car sales.Insurance, maintenance, auto finance, etc. Unlike the 4S shop model, the scale here is not so large, and the operating products are scattered across multiple brands, and the products are provided whenever there is demand.

"This year's sales are not very good, which is related to the overall environment of the entire market. Moreover, due to the relatively large demand for new car purchases in rural areas, Tianjin's purchase restriction policy has also curbed some demand." Zhang Dong said.

In addition, the business mode of the auto trade shop has also encountered bottlenecks in the countryside. As the level of rural car purchases continues to increase, farmers buy cars no longer pay too much attention to prices, but pay more attention to product quality, service and security. Farmers are increasingly buying 4S shop models, which is considered to be more secure. In response to this situation, Zhang Dong is also preparing to adjust the business model in 2019, and strive to make new breakthroughs.

In 2009, with the promotion of policies such as cars going to the countryside, the number of car ownership in rural areas began to increase sharply, forming a peak for farmers to buy cars. Since then, Zhang Dong has gradually involved in the field of automobile repair and maintenance, and now the whole vehicle sales. “In the past, most of the vehicles in the countryside were tractors and tricycles, which are hard to see now,” Zhang said.

It is worth mentioning that in recent years, “buy a car for the New Year” has become a new consumption trend in rural areas. As the income and consumption power of villagers continue to increase, the number of rural car ownership is increasing year by year. Cars have gradually become a "must have" in rural marriage.

In 2018, the Chinese auto market experienced its first negative growth in 28 years. However, the demand potential of the Chinese auto market is still very large, especially in the rural market to be developed. Since the beginning of this year, the National Development and Reform Commission and other departments have repeatedly stated that they will promote consumption in the automobile market in 2019 and increase policy support, especially to stimulate the consumption potential of the rural market.

In this regard, Zhang Dong said that compared with 2009, the rural market demand has changed, and the situation may vary from place to place, and hope that the relevant policies can be more targeted.

(Article source: Economic Reference)

                (Editor: DF387)

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