Extraordinary Genius

Li Mingde stared at Feng Yu and if the city imposed such a ban, the sales of motorcycles would surely be seriously affected.

The used motorcycles in the city will fill the rural market, which is that both markets are shrinking simultaneously.

Fortunately, two years ago, Iceland Machinery was not expanding the production of two-wheeled motorcycles, but rather of three-wheeled motorcycles. One is that the three rounds are more profitable, and the other, Feng Yu said, reduces the risk.

They didn't know what the risk was before, but they do now.

And because of the growing number of motorcycle manufacturers, from a dozen in the beginning to hundreds today, motorcycles are becoming less profitable.

A lot of motorcycle factories make only about two percent of their net profits, which means they only make 100 bucks for a wholesale 5,000 bucks motorcycle.

Most of the profits were made by retailers. Even so, they don't quit, they always make money.

The profitability of Ice City Machinery's motorcycle projects has also fallen dramatically. Fortunately, they have the highest brand awareness and the highest brand added value. Although it is far from doubling its profits at its peak, it still has around 15 percent of its profits, the highest in the country.

The same is true for three-wheeled motorcycles. So while their market share has fallen sharply, they are still the most profitable and still shape the pricing range of motorcycles.

Of course, they also provide better service, especially after-sales service, and there are the most people who repair their Songjiang motorcycles.

“President Feng, did you already know there would be such a ban, so let us not expand the production line of two-wheeler motorcycles and let us increase the production of three-wheeler motorcycles? ”

“This is an inevitable trend, and if you think about it, you can think about it. Sales of two-wheeled motorcycles will certainly be affected, and our exports to other countries in South-East Asia, in particular, should continue to grow, so overall sales will not change much in a year or two. ”

“But we also need to be vigilant that the market is constantly changing and that our two-wheel motorcycle production cannot continue to expand. Moreover, we need to adjust our models at any time according to market demand, so road racing, Land Cruisers, etc. will get higher and higher, and the demand for traditional streetcars, cruisers, and travel vehicles will decrease. ”

“Best of all, we can produce a low cost motorcycle that takes these properties into account and will definitely sell again. But I also know that this is difficult. ”

But Li Mingde said, "President Feng, that's what we think. We intend to make our new streetcar more off-road, faster, more comfortable, and more loadable. ”

“Did you guys make it?” Feng Yu was somewhat surprised that this kind of cross-border car is not so easy to do.

“Success has been a success, but the cost is too high. If you want to make a profit, it costs more than 10,000. Compared to the current mainstream 4,5000 motorcycles, the price is too high. So we're still working on it, trying to cut costs by one big cut within a year, make it under seven grand, and it should be competitive enough. ”

Unfortunately, now the transportation, police ~ department are buying fewer and fewer motorcycles, instead of purchasing cars, otherwise the sales will be better.

But most of the cars purchased by the political axe were also their Songjiang cars, so he wasn't depressed either.

Feng Yu was very satisfied, the company was entrusted to such a person to manage, so it saved a lot of effort.

“Lee, did you ever think that if the price of gasoline went up, would it also affect the sale of motorcycles? ”

“Rising oil prices? Why are we going up again? ”

Rising oil prices will not only affect motorcycles, even cars will be severely affected. Like their elves, many working people can afford it, but many people who buy it say they can't afford it at all.

“Not only will it go up this year, but the higher the price of oil will go. At the same time, however, electricity prices will continue to decline.” Feng Yu chuckled.

Rising oil prices, falling electricity prices?

Li Mingde's eyes were bright: “President Feng, do you mean that the sales of electric cars are going up dramatically? ”

“Electric cars are not as fast as motorcycles, but they are also safer. Electric cars are also cheaper for the sale price. Electric vehicles are also more economical in terms of future daily spending. Coupled with the absence of exhaust emissions, it is bound to be encouraged and supported by the State. ”

“Electric cars will gradually replace motorcycles and become vehicles for many people. Do you think sales will increase? ”

Motorcycles are slowly replaced by electric vehicles, not only because of price factors, but also because of national policies, etc. This process may last for more than a decade, or even decades, but this is the trend.

Just like cars, sales of electric cars, gas cars, etc. will increase in the future. Countries will also push for cleaner energy vehicles for environmental reasons. The car then slowly replaces the electric car and becomes the main proxy vehicle.

“Mr. Feng, do we want to quickly expand the production of electric cars? ”

“This is your own research decision. Now it's expanding rapidly, and the sales are not that high. But when sales skyrocket, let's expand and we're behind. My suggestion is to start slowly increasing production while constantly upgrading our technology. ”

“Once the policy has begun to tilt, it is time for us to rapidly expand our capacity. This time, it's not too far. ”

Even now, Ice City Machinery is the boss of the domestic electric car market and the boss of the world. Ice City Machinery alone produces and sells more than all companies in many countries.

And of course, because Huaxia is the world's largest market for electric cars. In developed countries in Europe and the United States, small populations and large localities drive small cars.

Electric vehicles are now encouraged in the country, but they are merely encouragement. When the motorcycle ban comes down, there will inevitably be some policy leanings, and the sale of electric cars will certainly rise again.

Unfortunately, the profitability of electric cars is not high, and the Ice City machinery is fine, and other companies in the country have similar profitability margins to motorcycles.

“Old Li, it is important to remember that when the project is the hottest, you should also carefully consider how to develop it. Don't go all the way to the dark, think about the transition. ”

Back in the day, Ice City machines ranged from farm machines to motorcycles to cars, and then electric cars, all of which were related, but also different.

The advantage is that whichever way you make money, Iceland Machinery can make money and adjust and optimize the industrial structure at any time to guarantee the company's profits.

“Don't worry, Mr. Feng, we all remember that there will never be a problem. By the way, the motorcycle you said last time, the company had made it, and I brought one this time. ”

Feng Yu Daxi: “Made it? Great, I'll try it later! ”

……