2004 was an extraordinary year for the Chinese auto market. At the beginning of this year, many auto manufacturers played "04 cards". However, after a while, the rising Chinese auto market has still not escaped the tragedy of the price war. Beijing Auto Show Turns into a Turning Point At the end of April, the Chinese auto market had its first peak in 2004 before the Big Five holiday. However, just a week later, the auto market began to show signs of weakness. Even the May 1 Golden Week did not appear. Any satisfactory sales performance. "Black May", many car dealers, professionals, the media have speculated that perhaps the Beijing International Motor Show will become the benchmark for Chinese car prices, it may become a new milestone in the Chinese auto market, this prediction is indeed groundless. On June 16, the heat of the Beijing International Auto Show has not yet receded. FAW-Volkswagen and Shanghai Volkswagen have jointly cut their prices for the first time. Subsequently, Dongfeng Citroen quickly followed up, the maximum drop of more than 10,000 yuan. In fact, starting in mid-May, some domestic mainstream car dealers began to quietly cut prices in the name of promotions, and the decline was not lower than in 2003. Some experts predict that “04 price cuts†indicates that the Chinese auto market has entered a new stage. Except for a few tight models, the Chinese auto market has basically entered the buyer’s market. This shows that the Chinese auto market is gradually maturing and has stronger resistance to risks. The profitability of domestic cars tends to be reasonable. From 2002 to 2003, it was the year of “blowout†consumption in the domestic auto market. During this period, many car dealers gained huge profits, and the auto industry quickly rose in the country, so some new auto plants also It has sprung up all over the country. There has been a phenomenon of “repairing cars†and “buying cars†in the country, which has also caused the domestic market to release an almost overloaded consumer purchasing power. Deng Kai, the president of automotive market research organization Asian Automotive Resources, once revealed that the profits of the Chinese auto market are unusually high. Take mid-size cars as an example. The profit of a mid-range car in the domestic market is 4,000 U.S. dollars, while in the U.S. it is only 600 U.S. dollars. 5 times. The profit of a German brand car in the Chinese market is 3,000 US dollars, while in the United States is only 600 US dollars, a difference of 4 times between the two. As a globally circulated commodity, China needs to be in line with the world. As long as the gap exists, price reduction is inevitable. The high profits of the domestic auto market have been difficult to sustain and consumers are constantly taking a price cut. This tells us that the Chinese auto market is slowly entering the buyer's market. Some experts predict that after the price reduction in 2004, China’s auto consumption market will develop in a rational and rational direction, and the profits of automakers will gradually approach the direction of rationalization. The old brand is still the mainstream of consumption Statistics from the China Association of Automobile Manufacturers show that from January to May this year, the domestic automobile sales momentum remains unabated. Although new brands emerge in an endless stream, the absolute number of sales is not much different from that in 2003. Statistics show that from January to May, the largest amount of the entire automotive market is Santana 95313, accounting for 9.79% of the market, Jetta sales of 56099 vehicles accounted for 5.765% of the entire automotive market, Buick sales of 52441, accounting for the total 5.38% (The above data is for reference only). Statistics show that the mature consumers in the consumer market choose vehicles mainly based on comprehensive performance, price, brand, etc. The consumer market is still dominated by middle and low grades, and the high consumption of overload is slowly withdrawing from the stage of history. The era of high profit is gone forever. Both the buyer and the seller's markets are approaching and integrating into the mature international market. Reporter Li Lei Beijing Reports Sichuan Online - Huaxi Metropolis Daily
Beijing Auto Show becomes a turning point Chinese auto market enters the buyer's market
2004 was an extraordinary year for the Chinese auto market. At the beginning of this year, many auto manufacturers played "04 cards". However, after a while, the rising Chinese auto market has still not escaped the tragedy of the price war. Beijing Auto Show Turns into a Turning Point At the end of April, the Chinese auto market had its first peak in 2004 before the Big Five holiday. However, just a week later, the auto market began to show signs of weakness. Even the May 1 Golden Week did not appear. Any satisfactory sales performance. "Black May", many car dealers, professionals, the media have speculated that perhaps the Beijing International Motor Show will become the benchmark for Chinese car prices, it may become a new milestone in the Chinese auto market, this prediction is indeed groundless. On June 16, the heat of the Beijing International Auto Show has not yet receded. FAW-Volkswagen and Shanghai Volkswagen have jointly cut their prices for the first time. Subsequently, Dongfeng Citroen quickly followed up, the maximum drop of more than 10,000 yuan. In fact, starting in mid-May, some domestic mainstream car dealers began to quietly cut prices in the name of promotions, and the decline was not lower than in 2003. Some experts predict that “04 price cuts†indicates that the Chinese auto market has entered a new stage. Except for a few tight models, the Chinese auto market has basically entered the buyer’s market. This shows that the Chinese auto market is gradually maturing and has stronger resistance to risks. The profitability of domestic cars tends to be reasonable. From 2002 to 2003, it was the year of “blowout†consumption in the domestic auto market. During this period, many car dealers gained huge profits, and the auto industry quickly rose in the country, so some new auto plants also It has sprung up all over the country. There has been a phenomenon of “repairing cars†and “buying cars†in the country, which has also caused the domestic market to release an almost overloaded consumer purchasing power. Deng Kai, the president of automotive market research organization Asian Automotive Resources, once revealed that the profits of the Chinese auto market are unusually high. Take mid-size cars as an example. The profit of a mid-range car in the domestic market is 4,000 U.S. dollars, while in the U.S. it is only 600 U.S. dollars. 5 times. The profit of a German brand car in the Chinese market is 3,000 US dollars, while in the United States is only 600 US dollars, a difference of 4 times between the two. As a globally circulated commodity, China needs to be in line with the world. As long as the gap exists, price reduction is inevitable. The high profits of the domestic auto market have been difficult to sustain and consumers are constantly taking a price cut. This tells us that the Chinese auto market is slowly entering the buyer's market. Some experts predict that after the price reduction in 2004, China’s auto consumption market will develop in a rational and rational direction, and the profits of automakers will gradually approach the direction of rationalization. The old brand is still the mainstream of consumption Statistics from the China Association of Automobile Manufacturers show that from January to May this year, the domestic automobile sales momentum remains unabated. Although new brands emerge in an endless stream, the absolute number of sales is not much different from that in 2003. Statistics show that from January to May, the largest amount of the entire automotive market is Santana 95313, accounting for 9.79% of the market, Jetta sales of 56099 vehicles accounted for 5.765% of the entire automotive market, Buick sales of 52441, accounting for the total 5.38% (The above data is for reference only). Statistics show that the mature consumers in the consumer market choose vehicles mainly based on comprehensive performance, price, brand, etc. The consumer market is still dominated by middle and low grades, and the high consumption of overload is slowly withdrawing from the stage of history. The era of high profit is gone forever. Both the buyer and the seller's markets are approaching and integrating into the mature international market. Reporter Li Lei Beijing Reports Sichuan Online - Huaxi Metropolis Daily