· People's car evaluation: the car market slows down "official drop" or will become the norm

An unprecedented "official" battle is taking place. "Official drop" is different from the dealers' various price reduction promotion means, but an act of automakers actively adjusting the official guide price. In fact, "official drop" has always been in the past, but this time the difference is the centralized outbreak of car companies. Shanghai Volkswagen, Changan Ford, Beijing Hyundai, FAW Volkswagen, Shanghai GM and many other car companies have announced the "official drop" measures in the past period.
The first to cause the "official drop" warfare was Shanghai Volkswagen, and then various car companies followed suit. On April 5th, Shanghai Volkswagen announced that it lowered the official price of the two models Polo and Touran, with a drop of 8,000-10,000 yuan. At the same time, Tiguan, Passat, Lingdu and Langyi also gave different degrees of concessions, the preferential amount ranged from 5000-10000 yuan. This has also become the fuse of the "official" battle of car companies, and the "official drop" has entered the outbreak period. Subsequently, Changan Ford introduced some models to enjoy the tax exemption; all FAW-Volkswagen models have a one-year insurance discount and cash discounts. In recent days, Shanghai GM's 40 models have all cut prices, with a maximum straight drop of 53,900 yuan, making it the most declining car company.
But no matter how different the form of “official drop” of each car company, the intention behind it is the same – attracting consumers in the form of official price cuts, which makes the market sales increase. And behind this, it also reflects a phenomenon - the market situation of the auto market at the beginning of this year is very low, and the growth rate is slowing down.
Different from previous years, the first-line joint venture car companies began to slow down and even stagnated. According to data released by the China Automobile Association on May 11, the production and sales of passenger cars in the category of passenger cars in April reached 967,500 and 932,200, down 13.77% and 13.13% from the previous month, down 8.83% and 9.63% year-on-year.
Among the top ten passenger car sales companies in April, five sales showed a year-on-year decline. Among them, Shanghai Volkswagen, FAW-Volkswagen, Shanghai GM, Dongfeng Nissan and Beijing Hyundai's declines were 5.6%, 16.9%, 16.7%, 14.3% and 0.8% respectively. Four of the five car companies participated in the "official" battle.
In addition, according to the data released by the China Automobile Association on April 20, in March this year, the comprehensive inventory factor of automobile dealers was 1.77 (the inventory coefficient was within the reasonable range of 0.8~1.2, and the warning level was 1.5), up 28% year-on-year. The China Automobile Dealers Association pointed out that as the output of the manufacturers increased, and some of them still had the pressure of the warehouse, the forced tying of slow-moving models and other behaviors, causing the dealer inventory pressure to exceed the warning line.
As can be seen from the above data, the year-on-year decline in sales, the slowdown in growth, and the increase in dealer inventory pressure may be the main reason behind the participation of many auto companies in the “Official Drop” war. Therefore, price reduction promotion, let the benefits to consumers, thereby reducing dealer inventory to increase sales, this is the end result of many car companies to participate in the "official" war. I believe that this "official" promotion will be followed by more car companies to actively or passively participate in it, and gradually evolve into a "price reduction melee", but also become a gimmick of car marketing.

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