Chinese Car Dealers Offer Unprecedented Discounts amid Slow Sales
Published By : 10 Aug 2015 | Published By : QYRESEARCH
In the last four years, car dealers in China have experienced the slowest growth for new car sales, forcing them to offer unprecedented discounts. In major cities across China, discounts of at least thirty percent are offered on hundreds of models.
The top of the range model from Audi, A8L luxury sedan, which was originally listed at US$317,000 is now available at 1.28 million yuan as per data from Autohome, a leading car-pricing portal.
Bill Shen, a consumer who wants to upgrade from his 8 year old Citroen for something fancier, such as BMW or an Audi are in no rush. According to consumers like Shen, with cars getting better, prices are also getting better.
Consumers like Shen are the biggest threat to the new vehicle market in China, which took over the United States’ position to become the largest auto market in the world.
With the flagging of the Chinese economy, car registration curbs imposed by the government and volatility in the stock market, would-be car buyers are being skeptical, thus forcing the auto industry for unprecedented offers to boost up sales.
The success of the discounts will be reflected in the July sales figures slated for releast this week to be presented by both China Association of Automobile Manufacturers and Passenger Car Association.
As commented by a personnel at the China Dealers Association, who is also a 26- year veteran of the trade, the round of price cuts has been the worst in the Chinese auto industry both in terms of models involved and depth of the discounts. He further stated, nobody could foresee this type of situation, not the government or the automakers or the dealers.
Along with discounted prices, carmakers and dealers are also offering other incentives such as zero down payments, subsidized insurance, and interest-free financing.