Zhongxin Finance, May 18 (Ge Cheng) The "chillest" April that the auto industry has experienced in the past ten years has passed. On the road" has become a portrayal of many 4S stores.

Data map: New cars waiting to be shipped out of Hong Kong.

Photo by Yin Liqin

Auto production and sales hit record low

  "In April this year, automobile production and sales hit a new monthly low for the same period in the past ten years, with a monthly production and sales of only about 1.2 million vehicles." Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, said previously.

  As for the reason, Chen Shihua said that since April, the domestic epidemic situation has been complicated, and the difficulties of market players have increased significantly.

The industrial chain and supply chain of the automobile industry have experienced the most severe test in history. Some enterprises have stopped production and production, and logistics and transportation have been greatly hindered.

  In addition, under the epidemic, consumers' purchasing power has declined, which has affected automobile consumption.

According to data released by the National Bureau of Statistics recently, in April 2022, the retail sales of automobiles was 256.7 billion yuan, a year-on-year decrease of 31.6%.

  According to data from the Passenger Car Association, the proportion of production and sales of traditional fuel vehicles has continued to decline in recent years, while the proportion of new energy vehicles has continued to increase. The domestic passenger vehicle market has shown a polarized growth trend.

At present, fuel vehicle products are facing greater growth pressure, while new energy vehicle products are on the rise.

  According to Cui Dongshu, Secretary-General of the Passenger Federation, the consumption power of the car-free group has been temporarily hindered, which has reduced the purchase demand of traditional entry-level fuel vehicles.

This is also an important reason why the sales of entry-level models of self-owned brands and joint venture brands have dropped significantly, and the overall performance of traditional car companies has declined.

Fuel car prices have gone up

  It is worth noting that in this case, the price of fuel vehicles has also increased.

  Since 2022, the price of some models of new energy vehicles has risen by more than 10,000 yuan.

Since April, Mercedes-Benz has taken the lead in increasing the price of fuel vehicles, raising the prices of many of its fuel vehicles, ranging from 3,000 yuan to 121,000 yuan.

  In addition to Mercedes-Benz, SAIC Volkswagen raised the price of its models on May 11, ranging from 1,000 yuan to 3,000 yuan for fuel models, and 3,000 yuan to 5,000 yuan for new energy models.

BMW raised the price of its models twice within two months, with a cumulative increase ranging from 1,000 yuan to 21,100 yuan.

  A person related to a car company told a reporter from Zhongxin Finance that since the beginning of this year, nearly 50 models of more than 20 car companies have announced price increases.

This wave of price increases from electric vehicles to fuel vehicles is mainly affected by the shortage of chips, the decline of subsidies for electric vehicles, the rise in raw materials, and the shortage of supply chains caused by the epidemic.

  Zhongxin Finance found that battery materials including lithium and nickel, as well as car body materials such as steel and aluminum, have shown a trend of price increases, and the price of some materials has increased by more than ten times within a year.

  "Due to rising raw material costs such as rhodium, palladium and steel, BMW's overall manufacturing costs may increase by $1.2 billion in the near future," said Dr. Nicolas Peter, director of finance and China affairs at BMW Group. 

Data map: Cars in a city store.

Photo by China News Agency reporter Zhang Yun

"Cars are on the way


  An industry insider told Zhongxin Finance reporter: "It is not common for traditional car companies to directly increase prices. In the past, car companies often chose to indirectly increase prices through dealers reducing terminal discounts, or increase prices in the name of remodeling."

  In his view, traditional dealers can play the role of "price regulators" between car companies and consumers.

  A reporter from Zhongxin Finance and Economics recently visited a number of 4S stores and found that the terminal discounts of some hot-selling models are narrowing, from tens of thousands of yuan to about a thousand yuan.

Some models are out of stock, and there are no existing cars in the dealers' hands, but the phenomenon of "raising the car with a price increase" has not yet occurred.

  "The cars are all on the road, and many have not yet arrived at the store." A salesperson told reporters.

For the in-demand models inquired by the reporter, he suggested to wait and see again next month.

The phenomenon of "raising the price of the car" is coming soon?

  However, the production and sales problems in the automotive field may become a "past tense".

Zhongxin Finance has learned that with the improvement of the epidemic prevention and control situation, the situation of the automobile supply chain is improving.

Some auto companies are working overtime in an effort to recover the lost production capacity caused by the shutdown.

  On May 3, China FAW held an oath meeting. Xu Liuping, chairman of China FAW, proposed the goal of "fighting for 60 days and winning the first half of the year", and completed the production and operation tasks in the first half of the year with high quality.

As of May 14, the resumption rate of industrial enterprises above designated size in Jilin Province reached 98%.

  The relevant person in charge of SAIC Group also told Zhongxin Finance that SAIC Group's vehicle companies are expected to gradually resume normal production in mid-May, and vehicle production and sales in the month may reach the level of the same period last year.

  At the same time, the Passenger Federation calls for the promotion of automobile consumption and overall economic growth through measures such as car going to the countryside, reduction and exemption of purchase tax, and encouragement of marriage and car purchase.

  "Affected by the epidemic in April, the domestic consumption of automobiles and other commodities saw a short-term decline, which will not change the trend of continued growth in China's consumption." Fu Linghui, spokesperson of the National Bureau of Statistics and director of the Department of Comprehensive Statistics of the National Economy, said a few days ago.

  Fu Linghui emphasized that since entering a new stage of development, China has generally expanded its consumption scale, upgraded its consumption structure, and innovated its consumption model.

Since the impact of the epidemic in 2020, consumption has gradually recovered.

my country has the advantage of a super-large market with a population of 1.4 billion. The impact of the epidemic in the short term cannot change the long-term positive trend of consumption development.