A major price cut in the automobile industry has gradually spread to many local automobile enterprises from central China’s Hubei Province. Let's take a look at what is the current situation of the car market in Jiangsu.
At 10:00 a.m., there was a continuous flow of people at multiple brand car sales outlets in Dongshan Automobile 4S Park in Jiangning District of Nanjing.
In the face of intensified market competition, many brands have launched price reduction promotions to benefit consumers through direct price reductions, gift giving, and extended warranty, hoping to further boost car sales.
"We provide a car purchase subsidy of 70000 yuan, the highest in the country, as well as free insurance. Purchasing a designated vehicle model is free of insurance, which is equivalent to giving you commercial insurance. We also provide interest-free and discount policies for loans," said Tang Gaosheng, General Manager of Jiangsu Huahai Shelley Automobile Sales Service Co., Ltd.
"For models such as the Q4e, we have offered a buy-it-now price. At the same time, we have also offered a rights package worth 63000 yuan, including a lifetime free car wash, a lifetime free rescue car pickup and delivery. For some other models, we also offer gift packages, such as discounts on decoration, free maintenance, and replacement for long-time car owners at the original price," said Li Juan, Sales Manager of Jiangsu Tianao Automobile Sales Service Co., Ltd.
From July 1st of this year, the "Sixth National Standard B", known as the most stringent emission standard, will be officially implemented. This means that automotive companies that have previously transitioned to the "National Sixth A" emission standard must increase inventory clearance efforts by July 1, and price reductions are one of the most effective promotional means.
Traditional mainstream brands such as Chang'an, Toyota, Volkswagen, Mercedes, BMW, and some other automotive companies have recently joined the price reduction trend or have launched new promotional activities. According to incomplete statistics, more than 40 automobile companies have got involved in the price war.
Industry insiders said that as the implementation date of the "National Sixth B" standard approaches, car companies are accelerating the inventory clearing of old models, and prices will continue to remain loose, which will further exacerbate the wait-and-see sentiment of potential consumers.
Lian Yuanqiang, Vice Dean of the Business School of Yangzhou University, believes that the core reason for this price reduction is the competition and transformation of various automotive companies. Especially in recent years, the rapid increase in sales of new energy vehicles has given traditional brands a greater sense of urgency.
"The prelude to the price war can be regarded as a manifestation of the accelerated recovery of automotive demand. Currently, the automotive market has entered a new stage of development, with many new forces of vehicle manufacturing likely to accelerate the replacement of traditional fuel vehicles. For automotive companies, innovation, upgrading, intelligence, and green safety are key words for development, so more efforts must be made in product technology, quality, service, brand, and some other aspects so as to launch some products that meet the development trend," said Lian Yuanqiang, Vice Dean of the Business School of Yangzhou University.
