Incomplete statistics, as of now, there have been more than 40 car brands and about 100 models to start price reduction promotion activities.
According to the China Business News, Dongfeng Automobile and the Hubei Provincial Government on March 6 for 7 brands including Dongfeng Honda, Dongfeng Citroen, Dongfeng Nissan, a subsidiary of Dongfeng Automobile Group, and 56 models.The subsidy quota is up to 90,000 yuan (RMB, the same below, S $ 17,500).
After Dongfeng Automobile Group, about half a month, BYD, Geely, FAW, SAIC, GAC, Changan, Toyota, Mercedes -Benz, BMW and other car companies followed up the price and reduced the price.10,000 yuan.Up to now, more than 40 car brands and about 100 models have started price reduction promotion activities.
Why does the automotive industry burst out of the "price war"? The person in charge of the China Automobile Industry Association believes that the reasons for the promotion of this price war: First, the sales of traditional fuel vehicles are sluggish and the inventory is high.The second is the adjustment of the National Six emission standards.Third, joint venture brands increase their market share at a price conversion.Fourth, local governments boost the economy and help regional industrial development.
The trend of price reduction in China's domestic automobile market also affects the used car industry.A used car dealer in Wuhan City, Hubei Province said: "Many models now have reduced prices, and second -hand cars are difficult to have markets without lowering prices. Everyone is thinking about ways." At present, many used car dealers are more cautious about collecting cars.
For the recent price reduction measures for some car companies, Chen Shihua, deputy secretary -general of the China Automobile Association, believes that the price war cannot bring long -term positive results. "Moderate reduction of product prices will help stimulate consumers' purchase needs.However, taking a simple price competition strategy is not a long -term plan. Enterprises should work more in terms of product technology, quality, service, brand power. "
