BeijingMotor Co. Ltd. slashes sticker prices on all Sonata and Elantra cars sold in China by 10% to combat dwindling sales.
“From January through April, our sales were off significantly,” a company spokesman tells Ward’s. “We slipped from a No.5 position to No.7 in terms of market share.”
The move to cut prices was a tough decision but a necessary one to halt the sales decline, he says.
Other measures also may be taken, but currently BHMC has no plans to reduce production, he adds.
The auto maker’s plant in Beijing’s Shunyi District, near the Beijing International Airport, produces 68 cars per hour on two shifts – said to be the highest production rate of any auto maker in China – for an annual capacity of 300,000 units.
The facility produces the Sonata, Elantra, Tucson and Accent models. The Sonata and Elantra are designated as the official taxi vehicles for the city of Beijing.
BHMC’s sales in April tumbled 30.5% to17,625 units from year-ago’s 25,731, while its market share fell to 3.8%.
“Through the price incentive and other aggressive marketing measures, we plan to push sales back above a 4% market share,” the spokesman says, noting Chinese competitors also have drastically cut their prices.
There is no change in plans for a second plant, currently under construction and slated to come on line next April.
The new $1 billion facility, which will produce 300,000 units annually, will be located close to BHMC’s existing plant.