Auto market in Shanghai: "down" sound burst "etc."

In August, the auto market inherited the overall downward trend for the first three months, and sales remained at a relatively low level. In July and August, it showed a clear off-season trend. This is consistent with the annual trend of the Chinese auto market in the past 10 years. It also indicates that after the “policy market” blowout in 2009, the auto market began to return to rationality.

Following the start of the loosening of prices for some dealers in April this year, dealers in Shanghai have so far chosen to follow suit. The auto market in Shanghai has come a long way. At the same time, with the forthcoming list of the third phase of the “Energy Saving and Benefit-to-Entry Project” and the expectation that the auto market will continue to benefit, many consumers are also beginning to adopt a wait-and-see attitude and wait to be shot down. The "down" sound "shadow" constitutes a unique landscape of the Shanghai auto market in August.

Price cuts or price wars

Since the beginning of April this year, the auto market has experienced polarization, and some brand dealers have begun to increase their inventory pressure. The first-half sales data released in July showed that only seven companies successfully completed the semi-annual target. Even in difficult 2008, there has been no such phenomenon.

Experts analyzed that the auto market in 2010 has a certain degree of particularity, so it is easy to trigger a price war. First of all, in 2009, China's automobile market caused by a series of incentive policies against the market blowout, making auto companies tend to miscalculate the trend of the auto market this year, such as some independent brand enterprises, the first half of the target completion rate is only the whole year About 30%. This makes the company greatly increased sales pressure in the second half, the possibility of a substantial price reduction. Secondly, the market demand for “overdraft” in 2009 and the inertia of high-speed development of car companies have formed a large contrast. Dealers will inevitably face further sales pressure, forcing them to sharply reduce prices for the market. Thirdly, although some European and American joint ventures still experienced rapid growth in the first half of the year, it is difficult to maintain strong prices in the face of price pressures of most Japanese and South Korean and independent brands, including top sellers such as Shanghai GM and Shanghai Volkswagen. Many models have also seen loosening prices in August. This is a dangerous signal. In accordance with the laws of the Chinese auto market, the consequences of dealers' price wars often aggravate the atmosphere of the market for money holding, which leads to a weak auto market.

Jin Jiuyin 10 looks forward to turning

From previous years, the concessionary advantage is the normal practice of manufacturers and dealers in the off-season in July and August. The relevant data from 2005 to 2008 indicate that the dealers have launched concentrated promotions during the summer. However, this year's auto market has been operating at a high level because of the inertia of the bull market in 2009. Therefore, it is not known whether the auto market can simply apply the sales curve of previous years.

In fact, after a declining trend in 2008, dealers reacted somewhat to the arrival of the off-season. Although manufacturers are convinced that the automobile is a rigid demand for current consumption, they are also very concerned about the “year after year” and the “young” year. This mentality may have a greater impact on the development of the auto market this year. In fact, as of August, the price range and breadth of the auto market have exceeded 2008, especially the decline of some economic cars, even more than 20%.

Under such variables, Jin Jiuyin 10 will inevitably become a turning point for the two manufacturers. With the introduction of new cars, price cut storms, and upgrading temptations, the 18-year-old martial arts are already used. The auto market also expects manufacturers to have more fresh and affordable ways to stimulate the weak market.

From the “down” sound of the Shanghai auto market in August, we have seen that for many products, the price cuts are not enough. At the same time, from the consumer's point of view, it is hardly clear that a simple concessionary stimuli effect in the context of the general price drop. As one of China's largest and most invested pillar industries, facing the world's largest consumer market, both manufacturers and distributors should upgrade marketing, service, and product technology to a higher level.

Links: Creative Promotions in "Down"

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