China News Network learned that according to the economic half-hour, today we pay attention to the automotive market. In September, the domestic auto market saw a new wave of price cuts. Those who have advertised their advertisements in a downturn are also covered by discounts and concessions. Under the guise of consumer purchases, the auto makers once again brought their price targets to a high and low. Now let's take a look at the performance of various vendors in the auto market. News: Fifty car prices are diving. One of the largest motor vehicle trading markets in Beijing is the Asian Games Village Auto Market. It can be said that the car price rise and fall here is a vane of the auto market. Here, the reporter learned that the new round of domestic car prices has been reduced At the beginning, the drop ranged from 2,000 yuan to 20,000 yuan. The reporter made a circle in the Asian Games Village market. The price of the car can be described by two words: diving. Various agents in the market have played the signs of price cuts, this offer is 3,000 yuan, and that is 6,000 yuan, and even one shot is the price of 1 to 20,000 yuan models. Car dealers told reporters, "Primmar basically said that each of the basic down 10,000, the United States and the United States and the United States and the United States, there are more 1.6L displacement, 1.6L original price of 133,600 yuan, now 113600 yuan." The reporter found that this The price cuts involved almost all well-known domestic brands, and not only the old cars are falling, like the newly listed Fit, Corolla, Elantra and other new models have also joined the ranks of price cuts. Consumers said: "The Excelle Bora now has a range of 1 to 155,000." The reporter found that even some models that had just cut prices did not jump into the current price cuts. Dongfeng Citroen Elysee. Car dealers said: "In terms of special circumstances, the Elysee said that the car had already been given a discount of $12,000 on June 18th. This time it was adjusted to $6,700." Salesperson told reporters that this Elysee The car dropped by 10,000 yuan in March, dropped by 12,000 yuan in June, and now it dropped by nearly 7,000 yuan. In less than six months, the car has dropped by nearly 30,000 yuan, and it was priced at 130,000 from the beginning of the year. 98,000 to the current 110,000 yuan, but also presented third party liability insurance and participate in the raffle. Afterwards, the reporter also found in the investigation that many cars still have price to talk about after a substantial price reduction. The car dealer said: “If you want to buy it, you have two or three thousand discounts, and you can drop another two or three thousand.†According to this staff member, such a situation is an open secret in the auto market and often can be reduced in price. Get discounts again, in order to retain the customer business can be described as using 18 tricks. Su Hui, who is responsible for the automobile market in the Asian Games Village, has been watching the changes in the car price. He summed up the three major features of this price reduction. Su Hui, general manager of the Beijing Asian Games Village Automobile Exchange Market, told reporters, “There are many brands with lower prices, more models with lower prices, and larger price reductions.†Our reporter also made a preliminary statistics today and found that the models that drastically reduced prices. No less than 50 models, almost all domestic well-known car brands, such as the Cherokee 4700 suddenly dropped more than 70,000, Dongfeng Citroen Senna down 20,000 Beijing Hyundai Sonata down 2 million Beijing Hyundai Elantra down 14,000 4 Hainan Mazda Fumei to drop 1-2 million Shanghai Volkswagen POLO drop 7000 FAW Toyota's Corolla and Vios drop 5000 Guangzhou Honda Fit drops 6,000 yuan (target) and so on. The collective price cuts of so many cars really make consumers look at them. But at the same time, we also have such doubts. After just experiencing the wave of price cuts in March and June, how many models are so quick and at the same time? Our reporter also interviewed some industry experts and experts in the past two days. They believe that there are three main reasons for this price cut. Survey: The three major reasons for the price reduction of automobiles 1. During Golden Week in the Asian Games Village Auto Market, the reporter found that many promotional price cuts or preferential measures are linked to the Mid-Autumn National Day. Many car dealers said that they believe that the “golden nine silver ten†sales season in the traditional retail industry will also promote the auto market. Car dealers told reporters, "From our dealers, we definitely want to seize this opportunity, approaching 10.1, we generally have to start one month in advance, or even one and a half months in advance, to do promotional work in this area." The car dealer explained. Nowadays, there are many people who travel by car during the National Day holiday. Many people who don’t have a car will choose to buy a car in September 10.1. This phenomenon did occur in the past two years. The dealer's statement has also been confirmed by some factories. Dongfeng Citroen Chief Representative Lu Weidang of Beijing Business Representative said: "In the past months of September and October, the sales volume will increase by more than 30% in the one month before and after that." A bumper harvest, swept away from the weak sales of the past few months, manufacturers have expressed their willingness to benefit the people. However, businesses are no exception. Manufacturers have no intention of pulling their hearts in the Golden Week. They think it is very difficult to return to the kind of hot sales scene. Lu Weidang said: "There will be incremental, but it may not be as obvious as it used to be." The past buzzwords of the manufacturers refer to sales in 2003, in the office of Jia Xinguang, an analyst at the Beijing Automotive Development Institute. We see a comparison chart of car sales curves for 2003 and 2004. From this chart, we can see that the green line representing sales in 2003 has been developing steadily, with about 370,000 vehicles. While the red curve for 2004 above, the March sales exceeded 520,000, after 45674. The month has been going downhill. Jia Xinguang, chief analyst of the Beijing Institute of Automotive Industry Development, told reporters that "in April, we began to control credit. In May, sales fell. Then it remained for a period in June, but it did not remain." Jia Xinguang's control refers to It is the bank that controls personal car purchase credits. He believes that the price reduction is not so much as the factory's profit, but rather that it is affected by macro-control. Since April this year, banks have tightened their personal car loan business. 2. Jia Xinguang, chief analyst of the Beijing Automotive Industry Development Institute, said: “Because commercial banks are doing car consumer credit, they have done a bad debt ratio as high as 50%. They can’t do anything down, so they tightened up. The bank tightened the purchase credit and many people who wanted to buy a car dismissed the idea. There is no alternative for this car manufacturer. Dongfeng Citroen, chief representative of Beijing Commercial Representative Lu Weidang, said: "Banks have very tight consumer credit and demand is very high. About 30% of our sales in previous years were through banks and consumer credit mortgages, so this change has led to purchasing power. The decline in credit purchases has dropped from 30% to nearly 10%, and a large-scale price cut took place in the sub-car market in June. In terms of the type and scope of price cuts, this price cut is almost the same as in September. However, it has not achieved much. From the chart, it can be seen that this year's 567 months are down. Since there is no effect, why would there be a third round of price cuts? Jia Xingguang said: "After the tightening of consumer credit funds, consumers have been restrained from buying cars. The original dealers entered the car and sold poorly. They are unable to enter the car again, so the car in the hands of the manufacturers began to backlog." Dealers must first buyout from the factory and then sell the car to consumers. This means that if a large number of cars are accumulated in the hands of dealers, the dealers can neither complete the sales tasks of the manufacturers nor enter new cars, but also face the bank’s Loan pressure, it is not difficult to understand why the seller would rather not make money, but also quickly clear the inventory. The salesperson told the reporter, “The two or three thousand yuan discount is a benefit for the second-tier agent. The year-end anti-point is now let out. It’s a promotion. Now take a certain amount. Actually, you don’t make money, put the inventory, By eleven.†3. Increased inventory pressures from models According to statistics from the Automobile Industry Association, the number of cars produced in the country from January to July this year was 1,448,900, and sales were only 1,335,500. At first glance, just over 7 months, it added 133,400 new vehicles. Jia Xinguang said: "I don't think it will be less than 400,000 vehicles, including factory stocks and dealer stocks." Facing ever-increasing number of car stocks, Su Hui, general manager of the Asian Games Village car market, believes that these rounds of price cuts are entirely due to car production. The manufacturers overestimated the situation this year. Su Hui told reporters that "in 2003, the rapid development of the automotive industry has achieved great results, so in the case of such rapid development, the automotive industry automobile manufacturers, most think that there is rapid growth in 2004, so the production arrangements are very large, sales The plan has also been formulated to be very large and full.†Su Hui believes that the development of the automobile industry in the past two years has led many companies to join this highly profitable industry. The domestic automobile brands have also developed from the original 10 to a few. Now more than 40, the new car models are endless. In the last year alone, there were more than 40 new cars on the market. And so far this year, there are more than 20 new cars on the market. Dongfeng Citroen Beijing Representative Chief Representative Lu Weidang said: "In the past, as a youngster, there were relatively few competitors. At present, there are more and more competitors at the same level and the same price level. They are actually eating away. We have a market share." Su Hui said: "Strict brand diversion, customer diversion market diversion, such as the original domestic and several brands of more than a dozen brands, then in 2003 plus the first 8 months of this year, there have been more than 40 Brands, two or three hundred brands are put on the market.†In addition to the above three reasons, some experts believe that according to the WTO agreement, by July 2006, the tariffs on imported cars in China should be reduced by more than 70% in 2001. To 25%. Moreover, the import quota system will also be cancelled next year. These newses have further strengthened the psychology of consumers buying coins for purchase. At the same time, the news we got was that in the first two days, Guangzhou Honda's hatchback fits the new car off the assembly line. Two days later, a Chongqing Changan utility vehicle will also be on the market. Faced with more and more new models being put into the market, how much will the future car price drop? Before the Golden Week of the 11th, the price of the cars collectively dipped. The price of the cars dropped by several tens of thousands more at a time, and a few of them were a few thousand dollars less, which really made people see the heartbeat. So, for this move of car manufacturers, consumers can not buy it? Will they loose their tight money bags because of this price cut? We also produced a survey of this kind of questionnaire to see how consumers responded. Questionnaire survey: 92% of consumers think that the price of the car will fall. These survey respondents include company employees, state civil servants, self-employed individuals and so on. Of these, 74 were considering buying a car and 26 had no plan to buy a car. So, will the price reductions of cars in this round make them take this opportunity to buy cars as soon as possible? The survey results showed that among the 74 people who consider buying a car, 76% answered and waited. The lady’s plan to buy a car started in February this year when the car’s first price cut began, but she has not bought it until now. The woman told reporters, "I feel that listening to this price is going down." One of the important reasons why these holders choose to wait is that they think the price of the car will drop. This view accounts for 92% of the respondents. The respondents said: "After buying, no one wants to devalue themselves." Another question in the questionnaire is what consumers value most when buying a car. This is a multiple-choice question. 80% of them prefer quality and performance. Only 26% of the prices are valued, the same as the number of brands. Another 6% preferred appearance. However, the substantial price cuts of the car did indeed make some people who have already bought a car plan. 22% of them chose to buy a car as soon as possible. The interviewee said: "I told you that it was real because I was old enough to get it. If I didn't open it, I wouldn't be able to open it." In addition, the questionnaire survey showed that people who did not buy a car plan In the middle, their main consideration is not the current price of the car, but its own economic strength. In our survey, many consumers believe that the car is now a highly profitable industry, so the price reduction space is still large. Our reporters also tried to investigate how high the profits of automobile production are. However, all manufacturers rejected our interview on the grounds of trade secrets. However, here I have a statistics from the China Association of Automobile Manufacturers. In 2003, the average profit rate of auto companies was 8.15%, and the profitability of FAW, Dongfeng and SAIC was 9.4%. Just a few years ago, this figure was as high as 20%. So, has the foreign car market experienced the same price war? Let’s take a look at the report sent back by Taiwan correspondent Wang Xiaoxuan. News: Overseas situation The UK car sales market has been showing a steady rise for several years. There are competitions among car dealers, but they also strictly follow relevant laws and regulations. I have not seen the occurrence of new car prices rising and falling. According to a survey conducted by the reporters, foreign auto industry rarely vie for price cuts. This is mainly because they have passed the stage of price reduction competition and further formed a situation in which a small number of car oligopolys are monopolized. Ford family like the United States has successively merged and controlled famous brands such as Mazda, Volvo, Land Rover and Jaguar. In this way, only a few major automotive companies are also more likely to anticipate and control the total market volume, thus avoiding excessive car inventory and price reduction promotions. There are 33 car manufacturers in China. Another reason why foreign cars cut prices less is that their sales price is not much higher. In the United Kingdom, for example, once a regulatory agency finds that a monopoly price occurs in a large company, it will issue corresponding measures to bring down the price. This ensures the healthy development of the auto market and safeguards the rights and interests of consumers. However, there are still large profit margins for cars sold in China, especially for mid- to high-end cars. Take the BMW 325 as an example. The suggested retail price in the United States is 30,500 US dollars, which is calculated at the exchange rate of 8.3. Together with China's 34% tariff, the total price is only 340,000 yuan. The price of the imported assembly BMW 325 sold in China was 470,000 yuan, a difference of 130,000 yuan. Now, the international automobile giants U.S. General Motors, and German Volkswagen, etc. have all flooded into China. On the one hand, they have promoted the development of the domestic automobile market. On the other hand, they have contributed to the acceleration of the speed of the domestic automobile industry. Some experts analyzed that after a predictable 10 years, after brutal competition in the market, less than 10 of the country’s existing 30 car manufacturers may survive. The UK car sales market has been steadily rising for several years. There is a competition among car dealers, but they also strictly follow relevant laws and regulations. As the pound has been strong, imported car prices are competitive, and imported cars have a large share of the UK car sales market. Most of the British domestic car brands are sold to foreign countries. However, many famous car brands in the world, such as Ford, Peugeot, BMW, Nissan and Honda, have factories in the United Kingdom; there are more car brands sold in the UK. According to the proportion of the population, there are 60 million people in the UK. The average annual sales volume of new cars is 2 million, and the auto consumption market is very large. The relevant departments of the British government have always attached great importance to maintaining equal competition in the automotive industry and protecting the interests of consumers. For example, in the previous two years, the United Kingdom’s Equal Competition Commission had found that a complex monopolistic behavior existed in 17 automobile manufacturers that controlled 94% of the British car market. The committee immediately supported the British government’s support. The distribution system carried out major reforms and proposed various concrete measures. Not long afterwards, the United Kingdom enacted a new competition law, stipulated strict and detailed judgment limits and specific penalties for violations of fair competition and monopolistic conduct of the market, and ensured the automobile industry. Healthy development. Compared with continental European countries, the British market has high car prices. In order to safeguard the interests of consumers and stabilize the consumer market, the United Kingdom has once again promulgated a project to increase the price competition in the automotive industry, according to the price law, British car manufacturers and The company affiliated with the Traders Association quickly adjusted its selling price. In the international automobile market, the competition among auto companies mainly depends on the quality of automobiles, novel styles, corporate brands, and excellent after-sales services to win customers. It is only the auto industry that uses price cuts to compete for market share in China. The primary means of competition. In just ten days, more than 50 vehicles collectively cut prices. Someone described such scenes as if they had pushed a domino in the market. The resulting chain reaction will inevitably affect all aspects of the automotive market. In particular, for automakers and distributors, the new round of price wars will bring more than just mutual competition, which also means that The beginning of a new round of elimination. News: Consequences of price cuts In the northern auto trade market in Fengtai District, Beijing, the reporter learned that car prices have continued to fall, and the first to suffer was the auto dealers. The car dealer told the reporter, “Now the competition is quite fierce, and some dealers are already unprepared. Now there are a lot of dealers in the market that have already withdrawn.†This time, the price cut of the car is already the third time this year's sharp price reduction. Because the current car sales have not been prosperous, the funds invested by the merchants are difficult to recover in time, and it has a greater impact on some small and medium sized auto dealers. The dealer told the reporter that this time the price reduction is for dealers without subsidies from the manufacturers. Undoubtedly, it is worse. Car dealers said: "This kind of substantial price cuts, I mean distributors, I sell a car, my dealers themselves, to go out from the pocket to save money, I come to this consumer, then in this case Next, there is no doubt that the interests of dealers are a kind of damage.†As some dealers began to withdraw from the industry, some consumers expressed their concerns about the continuous decline in car prices. The customer said: “After this car is cut off prices, it will not follow these configurations and the internal things in it. We cannot see things that are not qualitatively lower.†So now some car prices have fallen on vehicles. Does the quality of the product have any effect? The dealer stated: “The manufacturer’s price reduction behavior should strictly speaking not affect its quality, but it may achieve its kind of price reduction through the introduction of simple distribution and through this form. It is not a decline in quality but a drop in some of its configuration features, which has caused its price to drop.†Chen Zutao, former auto general manager of China National Automotive Industry Corporation, told reporters that the current car price cuts have caused some dealers to withdraw from car sales. Industry, and some small and medium-sized automobile manufacturing enterprises with low technological content are also facing the pressure of competition. Chen Zutao, general manager of the former China National Automotive Industry Corporation, told reporters, “The big manufacturers have also encountered a cash flow problem and difficulties in lending, but they are powerful and it will pass through this difficult time, but those small factories can hardly say it. However, it is also natural to be eliminated or acquired by others.†We have also noticed that such a phenomenon, before 2003, domestic car prices are generally adjusted once every 8 months, from 2003, has been shortened to an average of 3 months Adjust once. The current price cut from the previous auto market in June coincides with this cycle. In fact, after frequent price cuts, whether it is for a car or a car, they begin to view this price fluctuation in a more objective light. Of course, what our consumers are most concerned about is whether this is the head of a continuous wave of price cuts. China Automotive Technology and Research Center recently released a report that the downward trend of the car price will continue for three to five years. It is estimated that in 2006 or 2007, the prices of most domestic models will be in line with international standards. However, in addition to prices, consumers also need the domestic auto market to improve repair and insurance services as soon as possible. After all, nobody will buy a car home just because the car price is cheap. Reporter: Luo Xiong Xiong Manlin Hu Changchun Du Lijuan Li Pingping CCTV Economic Channel “Economy Half Hour†Premiere time: 21:30 Replay time Next day: 12:35
"Half an hour in the economy": When will the car price cut come to an end?
China News Network learned that according to the economic half-hour, today we pay attention to the automotive market. In September, the domestic auto market saw a new wave of price cuts. Those who have advertised their advertisements in a downturn are also covered by discounts and concessions. Under the guise of consumer purchases, the auto makers once again brought their price targets to a high and low. Now let's take a look at the performance of various vendors in the auto market. News: Fifty car prices are diving. One of the largest motor vehicle trading markets in Beijing is the Asian Games Village Auto Market. It can be said that the car price rise and fall here is a vane of the auto market. Here, the reporter learned that the new round of domestic car prices has been reduced At the beginning, the drop ranged from 2,000 yuan to 20,000 yuan. The reporter made a circle in the Asian Games Village market. The price of the car can be described by two words: diving. Various agents in the market have played the signs of price cuts, this offer is 3,000 yuan, and that is 6,000 yuan, and even one shot is the price of 1 to 20,000 yuan models. Car dealers told reporters, "Primmar basically said that each of the basic down 10,000, the United States and the United States and the United States and the United States, there are more 1.6L displacement, 1.6L original price of 133,600 yuan, now 113600 yuan." The reporter found that this The price cuts involved almost all well-known domestic brands, and not only the old cars are falling, like the newly listed Fit, Corolla, Elantra and other new models have also joined the ranks of price cuts. Consumers said: "The Excelle Bora now has a range of 1 to 155,000." The reporter found that even some models that had just cut prices did not jump into the current price cuts. Dongfeng Citroen Elysee. Car dealers said: "In terms of special circumstances, the Elysee said that the car had already been given a discount of $12,000 on June 18th. This time it was adjusted to $6,700." Salesperson told reporters that this Elysee The car dropped by 10,000 yuan in March, dropped by 12,000 yuan in June, and now it dropped by nearly 7,000 yuan. In less than six months, the car has dropped by nearly 30,000 yuan, and it was priced at 130,000 from the beginning of the year. 98,000 to the current 110,000 yuan, but also presented third party liability insurance and participate in the raffle. Afterwards, the reporter also found in the investigation that many cars still have price to talk about after a substantial price reduction. The car dealer said: “If you want to buy it, you have two or three thousand discounts, and you can drop another two or three thousand.†According to this staff member, such a situation is an open secret in the auto market and often can be reduced in price. Get discounts again, in order to retain the customer business can be described as using 18 tricks. Su Hui, who is responsible for the automobile market in the Asian Games Village, has been watching the changes in the car price. He summed up the three major features of this price reduction. Su Hui, general manager of the Beijing Asian Games Village Automobile Exchange Market, told reporters, “There are many brands with lower prices, more models with lower prices, and larger price reductions.†Our reporter also made a preliminary statistics today and found that the models that drastically reduced prices. No less than 50 models, almost all domestic well-known car brands, such as the Cherokee 4700 suddenly dropped more than 70,000, Dongfeng Citroen Senna down 20,000 Beijing Hyundai Sonata down 2 million Beijing Hyundai Elantra down 14,000 4 Hainan Mazda Fumei to drop 1-2 million Shanghai Volkswagen POLO drop 7000 FAW Toyota's Corolla and Vios drop 5000 Guangzhou Honda Fit drops 6,000 yuan (target) and so on. The collective price cuts of so many cars really make consumers look at them. But at the same time, we also have such doubts. After just experiencing the wave of price cuts in March and June, how many models are so quick and at the same time? Our reporter also interviewed some industry experts and experts in the past two days. They believe that there are three main reasons for this price cut. Survey: The three major reasons for the price reduction of automobiles 1. During Golden Week in the Asian Games Village Auto Market, the reporter found that many promotional price cuts or preferential measures are linked to the Mid-Autumn National Day. Many car dealers said that they believe that the “golden nine silver ten†sales season in the traditional retail industry will also promote the auto market. Car dealers told reporters, "From our dealers, we definitely want to seize this opportunity, approaching 10.1, we generally have to start one month in advance, or even one and a half months in advance, to do promotional work in this area." The car dealer explained. Nowadays, there are many people who travel by car during the National Day holiday. Many people who don’t have a car will choose to buy a car in September 10.1. This phenomenon did occur in the past two years. The dealer's statement has also been confirmed by some factories. Dongfeng Citroen Chief Representative Lu Weidang of Beijing Business Representative said: "In the past months of September and October, the sales volume will increase by more than 30% in the one month before and after that." A bumper harvest, swept away from the weak sales of the past few months, manufacturers have expressed their willingness to benefit the people. However, businesses are no exception. Manufacturers have no intention of pulling their hearts in the Golden Week. They think it is very difficult to return to the kind of hot sales scene. Lu Weidang said: "There will be incremental, but it may not be as obvious as it used to be." The past buzzwords of the manufacturers refer to sales in 2003, in the office of Jia Xinguang, an analyst at the Beijing Automotive Development Institute. We see a comparison chart of car sales curves for 2003 and 2004. From this chart, we can see that the green line representing sales in 2003 has been developing steadily, with about 370,000 vehicles. While the red curve for 2004 above, the March sales exceeded 520,000, after 45674. The month has been going downhill. Jia Xinguang, chief analyst of the Beijing Institute of Automotive Industry Development, told reporters that "in April, we began to control credit. In May, sales fell. Then it remained for a period in June, but it did not remain." Jia Xinguang's control refers to It is the bank that controls personal car purchase credits. He believes that the price reduction is not so much as the factory's profit, but rather that it is affected by macro-control. Since April this year, banks have tightened their personal car loan business. 2. Jia Xinguang, chief analyst of the Beijing Automotive Industry Development Institute, said: “Because commercial banks are doing car consumer credit, they have done a bad debt ratio as high as 50%. They can’t do anything down, so they tightened up. The bank tightened the purchase credit and many people who wanted to buy a car dismissed the idea. There is no alternative for this car manufacturer. Dongfeng Citroen, chief representative of Beijing Commercial Representative Lu Weidang, said: "Banks have very tight consumer credit and demand is very high. About 30% of our sales in previous years were through banks and consumer credit mortgages, so this change has led to purchasing power. The decline in credit purchases has dropped from 30% to nearly 10%, and a large-scale price cut took place in the sub-car market in June. In terms of the type and scope of price cuts, this price cut is almost the same as in September. However, it has not achieved much. From the chart, it can be seen that this year's 567 months are down. Since there is no effect, why would there be a third round of price cuts? Jia Xingguang said: "After the tightening of consumer credit funds, consumers have been restrained from buying cars. The original dealers entered the car and sold poorly. They are unable to enter the car again, so the car in the hands of the manufacturers began to backlog." Dealers must first buyout from the factory and then sell the car to consumers. This means that if a large number of cars are accumulated in the hands of dealers, the dealers can neither complete the sales tasks of the manufacturers nor enter new cars, but also face the bank’s Loan pressure, it is not difficult to understand why the seller would rather not make money, but also quickly clear the inventory. The salesperson told the reporter, “The two or three thousand yuan discount is a benefit for the second-tier agent. The year-end anti-point is now let out. It’s a promotion. Now take a certain amount. Actually, you don’t make money, put the inventory, By eleven.†3. Increased inventory pressures from models According to statistics from the Automobile Industry Association, the number of cars produced in the country from January to July this year was 1,448,900, and sales were only 1,335,500. At first glance, just over 7 months, it added 133,400 new vehicles. Jia Xinguang said: "I don't think it will be less than 400,000 vehicles, including factory stocks and dealer stocks." Facing ever-increasing number of car stocks, Su Hui, general manager of the Asian Games Village car market, believes that these rounds of price cuts are entirely due to car production. The manufacturers overestimated the situation this year. Su Hui told reporters that "in 2003, the rapid development of the automotive industry has achieved great results, so in the case of such rapid development, the automotive industry automobile manufacturers, most think that there is rapid growth in 2004, so the production arrangements are very large, sales The plan has also been formulated to be very large and full.†Su Hui believes that the development of the automobile industry in the past two years has led many companies to join this highly profitable industry. The domestic automobile brands have also developed from the original 10 to a few. Now more than 40, the new car models are endless. In the last year alone, there were more than 40 new cars on the market. And so far this year, there are more than 20 new cars on the market. Dongfeng Citroen Beijing Representative Chief Representative Lu Weidang said: "In the past, as a youngster, there were relatively few competitors. At present, there are more and more competitors at the same level and the same price level. They are actually eating away. We have a market share." Su Hui said: "Strict brand diversion, customer diversion market diversion, such as the original domestic and several brands of more than a dozen brands, then in 2003 plus the first 8 months of this year, there have been more than 40 Brands, two or three hundred brands are put on the market.†In addition to the above three reasons, some experts believe that according to the WTO agreement, by July 2006, the tariffs on imported cars in China should be reduced by more than 70% in 2001. To 25%. Moreover, the import quota system will also be cancelled next year. These newses have further strengthened the psychology of consumers buying coins for purchase. At the same time, the news we got was that in the first two days, Guangzhou Honda's hatchback fits the new car off the assembly line. Two days later, a Chongqing Changan utility vehicle will also be on the market. Faced with more and more new models being put into the market, how much will the future car price drop? Before the Golden Week of the 11th, the price of the cars collectively dipped. The price of the cars dropped by several tens of thousands more at a time, and a few of them were a few thousand dollars less, which really made people see the heartbeat. So, for this move of car manufacturers, consumers can not buy it? Will they loose their tight money bags because of this price cut? We also produced a survey of this kind of questionnaire to see how consumers responded. Questionnaire survey: 92% of consumers think that the price of the car will fall. These survey respondents include company employees, state civil servants, self-employed individuals and so on. Of these, 74 were considering buying a car and 26 had no plan to buy a car. So, will the price reductions of cars in this round make them take this opportunity to buy cars as soon as possible? The survey results showed that among the 74 people who consider buying a car, 76% answered and waited. The lady’s plan to buy a car started in February this year when the car’s first price cut began, but she has not bought it until now. The woman told reporters, "I feel that listening to this price is going down." One of the important reasons why these holders choose to wait is that they think the price of the car will drop. This view accounts for 92% of the respondents. The respondents said: "After buying, no one wants to devalue themselves." Another question in the questionnaire is what consumers value most when buying a car. This is a multiple-choice question. 80% of them prefer quality and performance. Only 26% of the prices are valued, the same as the number of brands. Another 6% preferred appearance. However, the substantial price cuts of the car did indeed make some people who have already bought a car plan. 22% of them chose to buy a car as soon as possible. The interviewee said: "I told you that it was real because I was old enough to get it. If I didn't open it, I wouldn't be able to open it." In addition, the questionnaire survey showed that people who did not buy a car plan In the middle, their main consideration is not the current price of the car, but its own economic strength. In our survey, many consumers believe that the car is now a highly profitable industry, so the price reduction space is still large. Our reporters also tried to investigate how high the profits of automobile production are. However, all manufacturers rejected our interview on the grounds of trade secrets. However, here I have a statistics from the China Association of Automobile Manufacturers. In 2003, the average profit rate of auto companies was 8.15%, and the profitability of FAW, Dongfeng and SAIC was 9.4%. Just a few years ago, this figure was as high as 20%. So, has the foreign car market experienced the same price war? Let’s take a look at the report sent back by Taiwan correspondent Wang Xiaoxuan. News: Overseas situation The UK car sales market has been showing a steady rise for several years. There are competitions among car dealers, but they also strictly follow relevant laws and regulations. I have not seen the occurrence of new car prices rising and falling. According to a survey conducted by the reporters, foreign auto industry rarely vie for price cuts. This is mainly because they have passed the stage of price reduction competition and further formed a situation in which a small number of car oligopolys are monopolized. Ford family like the United States has successively merged and controlled famous brands such as Mazda, Volvo, Land Rover and Jaguar. In this way, only a few major automotive companies are also more likely to anticipate and control the total market volume, thus avoiding excessive car inventory and price reduction promotions. There are 33 car manufacturers in China. Another reason why foreign cars cut prices less is that their sales price is not much higher. In the United Kingdom, for example, once a regulatory agency finds that a monopoly price occurs in a large company, it will issue corresponding measures to bring down the price. This ensures the healthy development of the auto market and safeguards the rights and interests of consumers. However, there are still large profit margins for cars sold in China, especially for mid- to high-end cars. Take the BMW 325 as an example. The suggested retail price in the United States is 30,500 US dollars, which is calculated at the exchange rate of 8.3. Together with China's 34% tariff, the total price is only 340,000 yuan. The price of the imported assembly BMW 325 sold in China was 470,000 yuan, a difference of 130,000 yuan. Now, the international automobile giants U.S. General Motors, and German Volkswagen, etc. have all flooded into China. On the one hand, they have promoted the development of the domestic automobile market. On the other hand, they have contributed to the acceleration of the speed of the domestic automobile industry. Some experts analyzed that after a predictable 10 years, after brutal competition in the market, less than 10 of the country’s existing 30 car manufacturers may survive. The UK car sales market has been steadily rising for several years. There is a competition among car dealers, but they also strictly follow relevant laws and regulations. As the pound has been strong, imported car prices are competitive, and imported cars have a large share of the UK car sales market. Most of the British domestic car brands are sold to foreign countries. However, many famous car brands in the world, such as Ford, Peugeot, BMW, Nissan and Honda, have factories in the United Kingdom; there are more car brands sold in the UK. According to the proportion of the population, there are 60 million people in the UK. The average annual sales volume of new cars is 2 million, and the auto consumption market is very large. The relevant departments of the British government have always attached great importance to maintaining equal competition in the automotive industry and protecting the interests of consumers. For example, in the previous two years, the United Kingdom’s Equal Competition Commission had found that a complex monopolistic behavior existed in 17 automobile manufacturers that controlled 94% of the British car market. The committee immediately supported the British government’s support. The distribution system carried out major reforms and proposed various concrete measures. Not long afterwards, the United Kingdom enacted a new competition law, stipulated strict and detailed judgment limits and specific penalties for violations of fair competition and monopolistic conduct of the market, and ensured the automobile industry. Healthy development. Compared with continental European countries, the British market has high car prices. In order to safeguard the interests of consumers and stabilize the consumer market, the United Kingdom has once again promulgated a project to increase the price competition in the automotive industry, according to the price law, British car manufacturers and The company affiliated with the Traders Association quickly adjusted its selling price. In the international automobile market, the competition among auto companies mainly depends on the quality of automobiles, novel styles, corporate brands, and excellent after-sales services to win customers. It is only the auto industry that uses price cuts to compete for market share in China. The primary means of competition. In just ten days, more than 50 vehicles collectively cut prices. Someone described such scenes as if they had pushed a domino in the market. The resulting chain reaction will inevitably affect all aspects of the automotive market. In particular, for automakers and distributors, the new round of price wars will bring more than just mutual competition, which also means that The beginning of a new round of elimination. News: Consequences of price cuts In the northern auto trade market in Fengtai District, Beijing, the reporter learned that car prices have continued to fall, and the first to suffer was the auto dealers. The car dealer told the reporter, “Now the competition is quite fierce, and some dealers are already unprepared. Now there are a lot of dealers in the market that have already withdrawn.†This time, the price cut of the car is already the third time this year's sharp price reduction. Because the current car sales have not been prosperous, the funds invested by the merchants are difficult to recover in time, and it has a greater impact on some small and medium sized auto dealers. The dealer told the reporter that this time the price reduction is for dealers without subsidies from the manufacturers. Undoubtedly, it is worse. Car dealers said: "This kind of substantial price cuts, I mean distributors, I sell a car, my dealers themselves, to go out from the pocket to save money, I come to this consumer, then in this case Next, there is no doubt that the interests of dealers are a kind of damage.†As some dealers began to withdraw from the industry, some consumers expressed their concerns about the continuous decline in car prices. The customer said: “After this car is cut off prices, it will not follow these configurations and the internal things in it. We cannot see things that are not qualitatively lower.†So now some car prices have fallen on vehicles. Does the quality of the product have any effect? The dealer stated: “The manufacturer’s price reduction behavior should strictly speaking not affect its quality, but it may achieve its kind of price reduction through the introduction of simple distribution and through this form. It is not a decline in quality but a drop in some of its configuration features, which has caused its price to drop.†Chen Zutao, former auto general manager of China National Automotive Industry Corporation, told reporters that the current car price cuts have caused some dealers to withdraw from car sales. Industry, and some small and medium-sized automobile manufacturing enterprises with low technological content are also facing the pressure of competition. Chen Zutao, general manager of the former China National Automotive Industry Corporation, told reporters, “The big manufacturers have also encountered a cash flow problem and difficulties in lending, but they are powerful and it will pass through this difficult time, but those small factories can hardly say it. However, it is also natural to be eliminated or acquired by others.†We have also noticed that such a phenomenon, before 2003, domestic car prices are generally adjusted once every 8 months, from 2003, has been shortened to an average of 3 months Adjust once. The current price cut from the previous auto market in June coincides with this cycle. In fact, after frequent price cuts, whether it is for a car or a car, they begin to view this price fluctuation in a more objective light. Of course, what our consumers are most concerned about is whether this is the head of a continuous wave of price cuts. China Automotive Technology and Research Center recently released a report that the downward trend of the car price will continue for three to five years. It is estimated that in 2006 or 2007, the prices of most domestic models will be in line with international standards. However, in addition to prices, consumers also need the domestic auto market to improve repair and insurance services as soon as possible. After all, nobody will buy a car home just because the car price is cheap. Reporter: Luo Xiong Xiong Manlin Hu Changchun Du Lijuan Li Pingping CCTV Economic Channel “Economy Half Hour†Premiere time: 21:30 Replay time Next day: 12:35