Changan Suzuki seems to see a glimmer of light.

On September 16th, the new Alto, who had come back from the dressing-room, set off again in Chengdu, a place that once made Alto a splendid place. The prices of the three 1.0 models from 44,900 to 58,900 yuan made dealers feel excited.

“We are considering pricing based on factors such as quality and brand. This is a competitive price. Chang Qing’s director of marketing, Tang Qing, said in an interview.

New Alto listed

Suzuki Alto has a history of nearly 20 years in China, and was once one of the best-selling models in China. Changan Suzuki started by relying on Alto and if there was no Alto, there would be no Changan Suzuki today. Because of its success in the mini-vehicle market, people are even more familiar with Alto than Changan Suzuki. This car is almost synonymous with Changan Suzuki.

Although Changan Suzuki has had a lot of pressure on antelopes, swiftlets, and Tianyu, consumers' love for Alto hasn't empathized with these car bodies.

From January to July 2009, Changan Suzuki only completed sales of 88,000 vehicles, which was 1.18% lower than the same period of last year. In the context of a 30.9% year-on-year rise in the passenger vehicle market in China, Chang'an Suzuki's situation is a bit embarrassing.

In the face of declining sales, Changan Suzuki is in urgent need of reform and re-establish its position in the Chinese mini-vehicle market. A new generation of Alto turned face, in addition to leveraging the good reputation of the old Alto, low-carbon technology has become a powerful weapon for Changan Suzuki to turn around.

As the smallest global strategic model on the Suzuki platform, it is the flagship of the low-carbon model. Alto has a drag coefficient of only 0.30, CO2 emission is less than 109 g/km, and the minimum fuel consumption is only 3.6L.

New Alto is listed in the key period when the country encourages consumers to purchase 1.6-liter displacement and below. Tang Qing said that Changan Suzuki’s positioning in China is a small-displacement vehicle, which coincides with the direction of these policies issued by the state. This is a coincidence that, thanks to the national policy, the new Alto will be even more competitive in the mini-vehicle market.

Profit or insecurity

However, although Alto entered China in 1993 and achieved great success, Changan Suzuki only imported four models in the past 16 years. In the five-year game between Suzuki and Changan, Changan Suzuki has always been in a “vacuum of product.” After five years of losing gold in the rapid development of the Chinese auto market, whether the new Alto can lead Changan Suzuki to regain its former glory and bear heavy weight. The new Alto carries too much expectation.

Due to the fierce competition in the Chinese mini-vehicle market, the maturity of consumers and the expansion of choices have caused new Alto to face enormous challenges. According to report, in the first half of 2009, Chery QQ3 had sold 65,211 vehicles, BYD F0 had sold 35,103 vehicles, Geely Panda had 10,757 vehicles, and Lobo had sold 15025 vehicles in the first half of the mainstream minicars, while Ruiqi M1 also accumulated sales in a short period of time. Over 5,000 cars, and the price of these models is mainly in the range of 30,000 to 50,000 yuan. And as a joint venture brand, Chevrolet Le Chi is priced at only 40,000 yuan, so its sales also reached 32065 vehicles.

Under the background that the self-owned brands in the mini-vehicle market have only covered the sky, the new Alto has returned. Chang'an Suzuki once again activated the name of the new Alto, indicating that Changan Suzuki hopes to use the Chinese “Alto Complex” to support the sales of the new Alto.

With the good reputation of the old Alto, the new Alto has received unprecedented attention from other models before it officially entered the market. After the new Alto listed on the market price of 44900-58,900 yuan, it also led to the same level of competitive brand promotion, disguised price cuts. Although the price of the new Alto is indeed higher than the price of many people's hearts, orders have already reached 5,000 in the 20 days before the listing.
However, according to insiders, at present, the new Alto production line has a planned production capacity of 30,000 vehicles, and the production capacity is obviously insufficient. And new Alto is currently selling at a loss, no profit. Some analysts believe that Changan Suzuki will choose low-margin or no-profit strategies to ensure quality and post-listing reputation.

In this regard, Tang Qing told reporters: "The country's response is very good, there may be insufficient production capacity. It is possible to make some adjustments in production capacity. As for whether the new Alto to take profit-free strategy to support its sales, Tang Qing said The new Alto was not sold at a loss.


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