The Research Of Pricing Method Based On Product Life Cycle

China’s automobile industry has gained rapid growth due to tremendous development of our nation’s economy. Our country has evolved into the second largest economy worldwide from a backward developing country. In addition, immense development of national economy has endowed Chinese people with much more disposable income and consumption power, which give benefits to an enlarged automobile market and more vehicle ownership. The structural change has also generated correspondent impacts on the automobile industry:from finished car import to domestic production and assembly, from import of parts and components to local design and manufacturing. Besides, growing figures of China’s car makers have also stepped into the industry. As higher localization rate of automobile production takes places, China’s native car part suppliers have also grown stronger. Thus, how to price these parts and how to confirm purchasing costs have become extremely urgent to car makers and suppliers.The intense battle of car market has driven the war fire into cost competition. This paper will be focused on pricing structures and building quotation decision models to maximize enterprises’profits by analyzing environmental change of modern vehicle manufacturing, various product life cycle stages and by exploring different quotation contents of different parts, processes and categories.The theory of pricing on product life cycle is relatively fresh in the industry. The price determination can only be fulfilled successfully by comprehensively understanding the concept of product life cycle.