August auto market may enter the peak of price cuts

Although the trend of the inflection point of the Chinese auto market has not yet been established, the price reduction has hit.

Since the off-season of the auto market in July, car companies have had to sacrifice their magic to cut prices to ensure that this year's sales tasks are completed. During the Changchun Motor Show (July 15 to July 22), auto companies headed by FAW-Toyota have begun to announce discount promotion.

Subsequently, Changan Ford Focus and Changan Mazda3 both announced the use of the same strategy in the off-season of the auto market: the introduction of configuration changes in the new car will pull the price down, and then further price drop in the market terminal, with a view to grab in the off-season Market opportunities.

At the same time, Beijing Hyundai Elantra Yuet Jing Jing Xian terminal price of 96,800 yuan; Dongfeng Yueda Kia Freddie minimum down to 92,800 yuan; Dongfeng Peugeot 307 market terminal price is the lowest 98,800 yuan......

The competition for inventory pressure and market share will further drive down the overall price trend of Class A vehicles. Cui Dongshu, deputy secretary-general of the National Passenger Vehicles Association, predicts that after entering August, the prices of car companies will become more pronounced. “At present, the price is returning, 8 The month is even better. August is the best time for the new launch, and policies and models for energy-saving vehicles are clear. Therefore, the July price cuts are only a prelude."

In fact, the price cut caused by car companies trying to protect sales is a double-edged sword.

Taking FAW Toyota as an example, in order to promote the new Corolla, the new Corolla will offer 15,000 yuan per car, and in the next half year, it will be able to sell 40,000 cars. In view of the target, the concession will force companies to earn around 600 million yuan less income. Businesses have to pay the price at the expense of profits.

The reason for all this is the unsatisfactory sales performance in the first half of the year: Affected by the Toyota recall, FAW Toyota's sales volume was 238,000, and half of its sales time was not more than half.