Auto Industry Pricing Tactics

The development of China Auto Market has become the most potential market in recent years. Ever since year 2000, the production and sales volume of automobiles has hit 2 million, which from then on increased year by year with annual growth of 1 million automobiles. By year 2006, it already achieved 7.216 million automobiles. The auto market enters into a swift growth period.However, China Automobile Marketing still in his youth and has a long way to go. Those days, that whatever a car produced that never worry about how to sell has gone. More and more diversified new models have been manufactured, while the price drops down frequently at the same time has concluded the mainstream of Auto market nowadays. We see when some international incompatible auto models were introduced into China, who are unwilling to lay down their proud posture and high price, which suffer complete defeat; While other models, even if technically uncompleted, but adopt reasonable price, which in favor of more consumers.The auto industry pricing is a key step in the auto marketing, and the important weapons to win market share. Facing the fierce competition, the pricing approach which in terms of cost or industry tradition has been out-of-dated. This article is aiming at achieving certain marketing goals with the combination of tactical and strategic pricing methods by introducing pricing theory, analyzing pricing tactics on the profitability, conducting China auto market and auto pricing model case studies, theoretically and practically on the automotive industry pricing methods and processes.