After the domestic three major auto companies Shanghai Volkswagen, FAW-Volkswagen and Shanghai General Motors have all cut prices, the slump in the domestic auto market in May has triggered a collective diving of domestic auto companies, and it is certain that companies will follow suit to lower prices. However, the market's reaction to price cuts has been paralyzed. Some experts have analyzed: This round of price cuts will not have too much stimulus for the auto market, and price cuts will not save the current downturn. The price cut has just begun on June 21, Hafei Motor announced that several of its vehicles have cut their prices across the board, and the market-selling model Hafei Racing has reduced its price by 7,000 yuan. This decline has not caught the attention of too many people. This is just one of the many companies that follow the trend of price cuts. Hafei is not the first to follow suit, and certainly not the last to follow suit. On May 17th, Shanghai GM, which had the strongest momentum in the country, first started to exert force. In addition to the overall price reduction of the entire series of products except for Sail, the price of Shanghai GM opened the prelude to this round of price cuts. On the day before the opening of Beijing International Automobile, two Dongfeng Nissan vehicles, the Sunshine and Blue Jays, collectively cut their prices by as much as 15,000 to 20,000 yuan. The price cut became a topic of the auto show. The most questioned by reporters was Shanghai Volkswagen and FAW-Volkswagen, but the public still put the price reduction message at the end of the auto show. After Shanghai GM cut prices for a full month, on June 16th, South and North Volkswagen announced joint price cuts, and the auto market price cuts into a climax. Afterwards, Dongfeng Citroën’s Elysée followed suit for a second sharp price adjustment within two months. VW's price cuts caused by joint price reductions should be said to have only just begun. Volkswagen brand cars have a market share of more than 30% in China and cover the entire price range from more than 80,000 to 300,000. Although Changan Ford, Guangzhou Honda, and FAW Toyota all indicated that there is no price adjustment plan in the near future, more analysts believe that it is only a matter of time before these manufacturers cut prices. Some people even predict: “The three major manufacturers cut prices and all models will follow in the second half of the year. The persistent downturn in the auto market is a sign of the collective diving price of this round of auto market prices starting from May this year. In late April, when a dealer from the car dealership in the Asian Games Village spoke to a reporter, the sales of the car were obviously not as good as at the beginning of the month, but his analysis was based on past experience. Consumers would choose May Day’s holiday to buy a car. It will come soon," he said optimistically. As long as the May 1st period arrives, the auto market has appeared rare deserted. The holiday is not over, many dealers began to complain. “There were a lot of people buying cars and watching cars in the previous holiday season,†said one dealer. “This year’s May Day holiday has fewer people looking at cars.†The first thing that could not be sustained was the dealer. “We pressed more than 200 people. Trolley, you can not sell it without money to enter the new model.†An Shanxi dealer manager in an interview with reporters, said the car sales will not go out, the company does not have cash flow, "had no money to make sales." In fact, in Shanghai While GM announced price cuts, many distributors of FAW-Volkswagen and Shanghai Volkswagen were selling their cars under the Curry brand at reduced prices, and some models even had price cuts that exceeded the prices that Volkswagen had announced. During the auto show, even if FAW Toyota, whose sales have been favored by the market, its general manager Mr. Furuya Gugu, in an interview with reporters, admitted that sales had fallen by 20% in the past May. The previous month also optimistically predicted to reporters that this year's red flag sales target is 50,000 general manager of the FAW Car Sales Company, Wang Dianming, said in an interview with reporters that the sales target depends on the changes in the market, he said with emotion. The automobile market in May was "unparalleled with last year." In fact, this downturn is not only in May, but sales in June are also a mess. The reporter learned from the automobile market in the Asian Games Village that, before May, it could sell nearly 10 cars a day, and now it can only sell one or two cars a day. This downturn even led to the used-car trading market. The reporter learned from the market the day before yesterday that a well-known second-hand car trading market in Beijing, which had a trading volume of up to RMB 6 million a day, had not sold a car for two consecutive days. During the auto show, many executives stated that the auto market was not as bad as the media said. “Even if there is no growth of 50%, it can reach about 20% growth.†The CEO of Guangzhou Honda even expressed satisfaction: “This growth is Foreign countries have been able to make headlines.†But now it seems that they are somewhat optimistic and experts have analyzed that at least in the second half of this year, the growth of the auto market will not reach these CEOs’ forecasts. Is it possible to save the market by reducing the price of a large-scale price reduction in the auto market? Of course, automakers hope that price cuts will have the effect of increasing sales, but now it seems that the effect is very limited. After Volkswagen announced the price cut, the reporter saw in the market that the Volkswagen brand cars did not appear to be hot in the imagination. Many consumers and some dealers attributed the lack of selling to the low price of the Volkswagen brand. In fact, the reason why price cuts have not caused hot sales is by no means simpler than a big drop. In fact, before and after mass cuts, many major brands have already lowered their prices. In the future, there will be brands that follow suit to lower their prices. This means that consumers will return to the same starting line to choose to purchase, and the difference in prices will no longer exist. The most important reason for the downturn in the auto market is not caused by the purchase of coins by the common people. The increase in production capacity of cars is far exceeding the demand of consumers. According to the statistics of the China Automobile Industry Association Information Center, in May this year, the national car production and sales amounted to 21.03 million units and 177,700 units, and the sales-to-sales rate was 84.5%, which means that in the month of May alone, 32,600 cars were added nationwide. in stock. In addition, in terms of sales volume, the number of cars in May decreased by 20% from April. Despite an increase over the same period of last year, in view of the impact of SARS last May, in fact, China’s car growth was negative in May this year. Inventory is just one of the reasons that caused the auto market to be deserted. In fact, policy reasons including bank-controlled loans, rising oil prices, and the impact of too many new models and price cuts are the reasons that caused the auto market to be deserted. Some people have analyzed that under such circumstances, even large companies such as the general public and GM, it is difficult to stimulate market buying enthusiasm. Source: Beijing Times
The market has reacted to price cuts and has numb prices to keep the car market down
After the domestic three major auto companies Shanghai Volkswagen, FAW-Volkswagen and Shanghai General Motors have all cut prices, the slump in the domestic auto market in May has triggered a collective diving of domestic auto companies, and it is certain that companies will follow suit to lower prices. However, the market's reaction to price cuts has been paralyzed. Some experts have analyzed: This round of price cuts will not have too much stimulus for the auto market, and price cuts will not save the current downturn. The price cut has just begun on June 21, Hafei Motor announced that several of its vehicles have cut their prices across the board, and the market-selling model Hafei Racing has reduced its price by 7,000 yuan. This decline has not caught the attention of too many people. This is just one of the many companies that follow the trend of price cuts. Hafei is not the first to follow suit, and certainly not the last to follow suit. On May 17th, Shanghai GM, which had the strongest momentum in the country, first started to exert force. In addition to the overall price reduction of the entire series of products except for Sail, the price of Shanghai GM opened the prelude to this round of price cuts. On the day before the opening of Beijing International Automobile, two Dongfeng Nissan vehicles, the Sunshine and Blue Jays, collectively cut their prices by as much as 15,000 to 20,000 yuan. The price cut became a topic of the auto show. The most questioned by reporters was Shanghai Volkswagen and FAW-Volkswagen, but the public still put the price reduction message at the end of the auto show. After Shanghai GM cut prices for a full month, on June 16th, South and North Volkswagen announced joint price cuts, and the auto market price cuts into a climax. Afterwards, Dongfeng Citroën’s Elysée followed suit for a second sharp price adjustment within two months. VW's price cuts caused by joint price reductions should be said to have only just begun. Volkswagen brand cars have a market share of more than 30% in China and cover the entire price range from more than 80,000 to 300,000. Although Changan Ford, Guangzhou Honda, and FAW Toyota all indicated that there is no price adjustment plan in the near future, more analysts believe that it is only a matter of time before these manufacturers cut prices. Some people even predict: “The three major manufacturers cut prices and all models will follow in the second half of the year. The persistent downturn in the auto market is a sign of the collective diving price of this round of auto market prices starting from May this year. In late April, when a dealer from the car dealership in the Asian Games Village spoke to a reporter, the sales of the car were obviously not as good as at the beginning of the month, but his analysis was based on past experience. Consumers would choose May Day’s holiday to buy a car. It will come soon," he said optimistically. As long as the May 1st period arrives, the auto market has appeared rare deserted. The holiday is not over, many dealers began to complain. “There were a lot of people buying cars and watching cars in the previous holiday season,†said one dealer. “This year’s May Day holiday has fewer people looking at cars.†The first thing that could not be sustained was the dealer. “We pressed more than 200 people. Trolley, you can not sell it without money to enter the new model.†An Shanxi dealer manager in an interview with reporters, said the car sales will not go out, the company does not have cash flow, "had no money to make sales." In fact, in Shanghai While GM announced price cuts, many distributors of FAW-Volkswagen and Shanghai Volkswagen were selling their cars under the Curry brand at reduced prices, and some models even had price cuts that exceeded the prices that Volkswagen had announced. During the auto show, even if FAW Toyota, whose sales have been favored by the market, its general manager Mr. Furuya Gugu, in an interview with reporters, admitted that sales had fallen by 20% in the past May. The previous month also optimistically predicted to reporters that this year's red flag sales target is 50,000 general manager of the FAW Car Sales Company, Wang Dianming, said in an interview with reporters that the sales target depends on the changes in the market, he said with emotion. The automobile market in May was "unparalleled with last year." In fact, this downturn is not only in May, but sales in June are also a mess. The reporter learned from the automobile market in the Asian Games Village that, before May, it could sell nearly 10 cars a day, and now it can only sell one or two cars a day. This downturn even led to the used-car trading market. The reporter learned from the market the day before yesterday that a well-known second-hand car trading market in Beijing, which had a trading volume of up to RMB 6 million a day, had not sold a car for two consecutive days. During the auto show, many executives stated that the auto market was not as bad as the media said. “Even if there is no growth of 50%, it can reach about 20% growth.†The CEO of Guangzhou Honda even expressed satisfaction: “This growth is Foreign countries have been able to make headlines.†But now it seems that they are somewhat optimistic and experts have analyzed that at least in the second half of this year, the growth of the auto market will not reach these CEOs’ forecasts. Is it possible to save the market by reducing the price of a large-scale price reduction in the auto market? Of course, automakers hope that price cuts will have the effect of increasing sales, but now it seems that the effect is very limited. After Volkswagen announced the price cut, the reporter saw in the market that the Volkswagen brand cars did not appear to be hot in the imagination. Many consumers and some dealers attributed the lack of selling to the low price of the Volkswagen brand. In fact, the reason why price cuts have not caused hot sales is by no means simpler than a big drop. In fact, before and after mass cuts, many major brands have already lowered their prices. In the future, there will be brands that follow suit to lower their prices. This means that consumers will return to the same starting line to choose to purchase, and the difference in prices will no longer exist. The most important reason for the downturn in the auto market is not caused by the purchase of coins by the common people. The increase in production capacity of cars is far exceeding the demand of consumers. According to the statistics of the China Automobile Industry Association Information Center, in May this year, the national car production and sales amounted to 21.03 million units and 177,700 units, and the sales-to-sales rate was 84.5%, which means that in the month of May alone, 32,600 cars were added nationwide. in stock. In addition, in terms of sales volume, the number of cars in May decreased by 20% from April. Despite an increase over the same period of last year, in view of the impact of SARS last May, in fact, China’s car growth was negative in May this year. Inventory is just one of the reasons that caused the auto market to be deserted. In fact, policy reasons including bank-controlled loans, rising oil prices, and the impact of too many new models and price cuts are the reasons that caused the auto market to be deserted. Some people have analyzed that under such circumstances, even large companies such as the general public and GM, it is difficult to stimulate market buying enthusiasm. Source: Beijing Times