Since Shanghai GM announced price cuts on May 27, the three major automobile groups have followed suit. So, is the price reduction this time a "premeditated" or temporary strategy? Should the price war in China's auto market die? However, some industry insiders have made an astonishing analysis: The actual “Waterloo†price in the domestic auto market this year should be between mid-late October and November, or even earlier. Only then can it be regarded as true in the Chinese auto market. Price war. How many stocks in the domestic auto market are dredged and how much is reported? According to the latest data released by the China Association of Automobile Manufacturers, China produced a total of more than 210,000 cars and sold more than 170,000 vehicles in May this year, a decrease of 13.56% and 19.27% ​​compared with the previous month, and the newly added inventory reached 32,600 vehicles. In the first quarter of this year, there were more than 80,000 vehicles in stock and 43,000 in April. In the first five months of this year, China’s sedan inventory totaled more than 140,000. In many local distributors, in order to obtain sales targets, the manufacturers returned funds and accumulated some vehicles on their hands. As a result, 140,000 vehicles were still a very conservative figure. This is undoubtedly an important condition that restricts the price factor in the domestic auto market. On the one hand, production enterprises increase investment to expand their own production capacity. On the one hand, the increase in the consumer market is far less than the increase in automobile production. When supply exceeds demand, price cuts seem inevitable. In the "Black June", the three major domestic automobile groups have made price adjustments. In fact, this time the price adjustment for many auto manufacturers in terms of "grab the market share" is true, "concessionary consumers" is only superficial. Although a news spokesman of a group recently said: "We can no longer drop, we have already faced a loss." However, everyone in the car industry understands that there is nothing wrong with it. In the past 10 years, the profit of bicycles in the Chinese auto industry has remained at around 30%, while the profits of autos in the world are usually only 5-6%. With the entry of foreign automakers, with the entry of China into the WTO, the relationship between supply and demand is increasing. Mature and normative, the sharp adjustment of price profits should be a very normal thing. Whoever said that the general manager of a certain brand car said in an interview with reporters that, in fact, any product of course, the car is no exception, how the price depends entirely on two factors: cost and market demand. In June this year, the national auto market conducted a relatively large-scale, large-scale price adjustment and was called “Black June†by the industry. In fact, there is no car price cut from January to July. Which car dealer will once again set a profit margin of 5-6% at the time of pricing? In the face of the current market situation, consumers know that they can buy coins and they will also “cross the river by feeling the stonesâ€. What about inventory problems? The person in charge said that if there is inventory, it will not be produced. How do so many workers live on the production floor? From January to May, there were more than 140,000 domestic car inventories, but which manufacturer did not stop production, and some of them even expanded their production scale. According to a senior analyst, the national tariff was lowered by 25% in 2005, and the price of imported cars will be adjusted immediately. Imported cars that are partially in stock by the end of the year will adopt a “diving†price adjustment method. Therefore, the domestic auto market may have a relatively concentrated and relatively large price adjustment in the second half of the year. He said that manufacturers that are aware of these factors are also trying to figure out their opponents, analyze the market and wait for the opportunity to come up with a relatively reasonable and affordable market price plan. Reporter Li Lei Beijing Reports Sichuan Online - Huaxi Metropolis Daily
This year's domestic car market price "Waterloo" in October
Since Shanghai GM announced price cuts on May 27, the three major automobile groups have followed suit. So, is the price reduction this time a "premeditated" or temporary strategy? Should the price war in China's auto market die? However, some industry insiders have made an astonishing analysis: The actual “Waterloo†price in the domestic auto market this year should be between mid-late October and November, or even earlier. Only then can it be regarded as true in the Chinese auto market. Price war. How many stocks in the domestic auto market are dredged and how much is reported? According to the latest data released by the China Association of Automobile Manufacturers, China produced a total of more than 210,000 cars and sold more than 170,000 vehicles in May this year, a decrease of 13.56% and 19.27% ​​compared with the previous month, and the newly added inventory reached 32,600 vehicles. In the first quarter of this year, there were more than 80,000 vehicles in stock and 43,000 in April. In the first five months of this year, China’s sedan inventory totaled more than 140,000. In many local distributors, in order to obtain sales targets, the manufacturers returned funds and accumulated some vehicles on their hands. As a result, 140,000 vehicles were still a very conservative figure. This is undoubtedly an important condition that restricts the price factor in the domestic auto market. On the one hand, production enterprises increase investment to expand their own production capacity. On the one hand, the increase in the consumer market is far less than the increase in automobile production. When supply exceeds demand, price cuts seem inevitable. In the "Black June", the three major domestic automobile groups have made price adjustments. In fact, this time the price adjustment for many auto manufacturers in terms of "grab the market share" is true, "concessionary consumers" is only superficial. Although a news spokesman of a group recently said: "We can no longer drop, we have already faced a loss." However, everyone in the car industry understands that there is nothing wrong with it. In the past 10 years, the profit of bicycles in the Chinese auto industry has remained at around 30%, while the profits of autos in the world are usually only 5-6%. With the entry of foreign automakers, with the entry of China into the WTO, the relationship between supply and demand is increasing. Mature and normative, the sharp adjustment of price profits should be a very normal thing. Whoever said that the general manager of a certain brand car said in an interview with reporters that, in fact, any product of course, the car is no exception, how the price depends entirely on two factors: cost and market demand. In June this year, the national auto market conducted a relatively large-scale, large-scale price adjustment and was called “Black June†by the industry. In fact, there is no car price cut from January to July. Which car dealer will once again set a profit margin of 5-6% at the time of pricing? In the face of the current market situation, consumers know that they can buy coins and they will also “cross the river by feeling the stonesâ€. What about inventory problems? The person in charge said that if there is inventory, it will not be produced. How do so many workers live on the production floor? From January to May, there were more than 140,000 domestic car inventories, but which manufacturer did not stop production, and some of them even expanded their production scale. According to a senior analyst, the national tariff was lowered by 25% in 2005, and the price of imported cars will be adjusted immediately. Imported cars that are partially in stock by the end of the year will adopt a “diving†price adjustment method. Therefore, the domestic auto market may have a relatively concentrated and relatively large price adjustment in the second half of the year. He said that manufacturers that are aware of these factors are also trying to figure out their opponents, analyze the market and wait for the opportunity to come up with a relatively reasonable and affordable market price plan. Reporter Li Lei Beijing Reports Sichuan Online - Huaxi Metropolis Daily