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Reducing prices to deal with sales pressure February 18 is the second day of the Lantern Festival. According to the traditional Chinese customs, the New Year will not be considered until after the Lantern Festival. BYD can not wait to announce price cuts as soon as it is finished, which indicates its anxious attitude. The industry believes that sales of BYD last year still have a certain gap from expectations. In 2011, the sales pressure was huge and the price cut became the only choice.
In fact, before BYD announced price cuts, industry insiders generally believed that independent brands would take the lead in cutting prices, but did not expect to blew up the horn of price cuts so quickly, and the price cuts were so ferocious that BYD G3 had dropped by 15,000 yuan. After the car market experienced two consecutive years of madness, it finally waited for a long absence.
"After the price reduction, the customer's incoming electricity has increased noticeably." A related person from the BYD dealer Hangzhou Huidi Marketing Department told reporters that they expect sales to increase, but at least the price reduction effect needs to be observed for at least one week. In any case, BYD launched the first price war, will win more initiative in the next market competition. After the first shot, there will naturally be more gunfire rings.
After the holiday, the price of Hangcheng City went down in 2009 and 2010. As in all parts of the country, the Hangzhou automobile market has almost grown up. This time, BYD's price cut can be interpreted from a side as the car market will usher in a stage inflection point - to return to the decline in vehicle prices.
A survey by the reporter found that the majority of mainstream automobile models in the Hangzhou automobile market had a stable price drop compared with that before the Spring Festival. For example, Guangfeng's Yaris, Camry, Guangben's Accord/Fan Fan, Fit, Dongfeng Peugeot's 307/408, Roewe's 350/550, prices all dropped by 2,000 yuan. Unlike BYD's official price cuts, these models are all price-reduced by dealers. Luxury cars such as BMW, Mercedes-Benz, Audi, and Lexus also saw a slight drop in prices.
The price of strong models, mainly in the FAW-Volkswagen, Shanghai Volkswagen, Shanghai General Motors and other German and American brands. These models, the current source of the car is still tight, in the short term still can not see the signs of loosening prices. However, compared with price-reduced models, these models are only a minority.
The wave of price cuts can fall next month with the expiration of various subsidy policies such as purchase tax concessions, autos going to the countryside, and trade-in, as well as the negative effects of blockade policies on the auto market and the impact of national macro-controls. It is a foregone conclusion, and this is the most direct reason why the price of cars has returned to the decline.
Although sales of Chinese automobiles soared 34% last year, many industry experts predict that this year's growth rate is likely to fall below 10%. The rapid decline in growth rate will inevitably lead to a situation in which the auto market exceeds supply, and the price war is inevitable. In contrast, joint venture brands are much less stressful than their own brands, but this does not mean that joint venture brands can stay out of the question. With more than half of the joint venture's market share, it is impossible to maintain a relatively high growth rate by rushing to market share of its own brand.
After BYD cut prices, it is unlikely that other manufacturers will immediately follow up. The most likely time for price cuts to occur is next month. “February and March are the off-season sales of the auto market. After the end of the rapid growth of the auto market this year, the sales pressure in the off-season will increase. At present, Hangzhou dealers generally increase the preferential treatment, this trend will continue until March, until 4 The monthly market is getting warmer.†Shao Xianbin, general manager of Guangben Shuntian Store, believes that the price reduction trend is most likely to occur in March, where sales pressure is greatest. Consumers who have recently purchased a car plan may choose to start at that time.
On February 18th, BYD announced that its five models will cut their prices by a maximum of 15,000 yuan. This is the first official price cut for the auto market in 2011, which indicates that the decline in the price of the vehicle has reopened. Next month, the auto market may set off a long-term price drop.