Yesterday, the latest statistics released by the China Association of Automobile Manufacturers show that auto sales in July 1,503,000, a decrease of 16.64% compared to 7.12%. Faced with declining market demand, under enormous pressure, the automakers have taken steps to reduce prices again boosted sales of handsets.
Sales below expectations double
China Automobile Industry Association Vice President and Secretary General Dong Yang said that this month, China Yuchang Power Co.,Ltd sales Caterpillar 320D injector valve continued the downward trend of the previous two consecutive drop, and the large decline than expected.
Statistics show that in July, car production 1.518 million, down 17.99 percent, 11.76 percent; sales of 1.503 million, a decrease of 16.64% compared to 7.12%. Where the ring in April for four consecutive months of decline, year after year after May both fell for three consecutive months. January to July, car sales 13.6127 million and 13.3533 million, an increase of 0.8% and 0.39%. January to July, growth in car sales was less than 1%, with the first six months continued to fall compared.
By convention, the normal rate of growth in the passenger car industry is generally 1-1.5 times GDP growth, therefore, 7% -10% are considered reasonable. This year from January to July car sales rose only 4.01% and 3.39%, and the downward trend is still not diminished, so the China Association of Automobile Manufacturers has reduced its growth target for the year established earlier this year, from 7% at the start of up to 3%.
Car prices cut to relieve stress
In the Chinese auto market as a whole environment downstream sales target major car companies earlier this year to develop the production and poor weather it has become the only alternative to deal with the crisis.
It is reported that in the first half of this year, BMW took the lead in the second quarter shipments fell distributors. Beijing Hyundai also take the initiative in June lowered its sales target and reduce the volume Wholesale, reduce dealer inventories, sales of Jaguar Land Rover dealers is also clear objectives and requirements are reduced by 10% -20% .
Meanwhile, FAW - Volkswagen, Shanghai GM, Ford and other car companies 7 per month to a larger cut than the original plan, including FAW - Volkswagen in July to cut more than 30,000, a decrease of almost 30%. Base SAIC-GM-Beisheng cut almost million cut by almost 40 percent.
Although major car companies in July to perform equipment maintenance summer, the production will be reduced, but the industry generally believe that this year the heat of the major car companies were significantly longer in previous years, a higher rate of vehicle production also excludes no companies by extending the maintenance period to further reduce production, reduce inventory possible.
The second round of price cuts coming
In fact, the price has become the preferred means to stimulate the market. Back in April of this year, including the North-South Volkswagen, Shanghai GM, Ford and other large joint ventures have passed formal round of price cuts to try and save the city.
In August, Beijing Hyundai, once again officially announced its ix35 two wins and a price reduction of official target of new SUV models, in which the whole system of prices have fallen 2,000,000 ix35, new victories and reached the biggest decline of about 30,000 yuan. Followed by KIA Sportage SUV officially announced price of 50,000 yuan, 20,000 yuan price Sportage.
Notably, the official drop behavior has been extended to a joint venture brand their own brands. After the Great Wall, FAW Car announced the official price two independent brands, the JAC has recently joined the ranks of the official price. The official fall of their own brand policy are related to their best sellers.
According to Wilson Autodata research shows that in June passenger car market average transaction price of 145,000 yuan, a decrease of 2104.2 yuan, down 4% discount rate of 12.2%, amounting to 20,097 discount yuan. Discount rate of 10.4% global market, compared with last year was only 6.9 percent, more than 4,770 yuan discount.
Industry analysts believe that, along with the major automobile companies announced a series of official drop, the pressure will be released soon transfer to the main competitor of the same grade, and create enormous pressure for other brands and similar models, markets or It will lead to a new increase in prices.
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