Price increases in 2017 will become the norm, and price wars will be limited to a small range. Except for small brands and miscellaneous electric vehicles that will use low prices to attract dealers to join, most brands will stay away from price wars. With the increase in the price of accessories, electric vehicles will also rise. The main reasons are as follows:
First, the environmental storm in 2017 will be more intense. The biggest consequence of the rectification of environmental protection is that a large number of companies that do not meet the standards of baking paint, plastic parts, tires, batteries and other accessories close. Everyone needs to know that 80% of the low-cost cars in the electric vehicle industry are currently provided by these supporting companies. Therefore, when these supporting companies close down, there will be fewer and fewer low-priced electric vehicles.

Second, low-price sales make dealers unprofitable. The sole goal of all dealers is profit. As vehicle costs, marketing expenses, etc. rise, low-price sales mean more profits are sacrificed. When the cost cannot be reduced significantly, price increase is the best way for dealers to guarantee profits.

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In 2016, hundreds of electric vehicle manufacturers closed down, more than 500 county-level dealers closed down, and countless township dealers closed down. In 2017, as costs rise and sales continue to decline, the peak season is not busy. Whether it is a manufacturer or a distributor, there will be more people who are unable to maintain the business and face bankruptcy.
The root cause of the failure of the manufacturer was the low cost performance of the products and low brand awareness. A few days ago, this platform listed six reasons for dealers’ bankruptcy. Not making money is the biggest reason for dealers’ bankruptcy. The wave of bankruptcies set off by the industry is a good thing for some distributors and manufacturers. After all, there are fewer and fewer competitors, and you can get a share of the vacant market sales. For manufacturers that do not manage well, you need to reflect on how to avoid the disaster of bankruptcy.

Brand war
Some manufacturers rely on brands to conquer the market, some rely on quality to create sales, and others rely on low prices to get customers, but no manufacturer owner does not want to make a brand. In 2017, companies headed by Emma and Yadi started to fight at the brand level and set an example for small and medium-sized enterprises.

According to the manufacturer leaders of multiple second-tier brands, in 2017, brand awareness will be enhanced through cost-effective publicity forms such as ground publicity, implant advertising, and online promotion. Building a brand is definitely not the bombing of high-altitude TV advertisements. At present, new media, product placements, and event events are often more feasible with low cost and high return. In any case, the 2017 first-line brand advertising campaign and the second and third-line brand ground battles have kicked off.