The new car subsidy war that began in Hubei began on March 3, and new cities joined it, and Chengdu announced a maximum subsidy of 17,15 yuan for car purchases, involving multiple car brands. From car companies to local governments, the war for new car subsidies has intensified. The survey also shows that this gradually expanding new car "subsidy fever" is not only affecting the new car market, but also slowly affecting the used car market.
At least 40 car brands join the subsidy war Chengdu announced a maximum subsidy of 15,<> yuan per vehicle
To talk about the biggest topic in the car market in 2023, it must be the car subsidy war that spread from new energy brand vehicles to fuel vehicles, and then ended in many places.
If the previous Tesla price reduction news was still used as a flashpoint to attract the attention of the whole network, the car market in March has been flooded with the Internet slogan of "go, go to Hubei to grab a car". The Citroen C3, which sold more than 3000,6 units last year, relied on the joint subsidy of the Hubei government and Dongfeng Motor to bring down a joint venture B-class car with a guidance price of 21,19 yuan to 12,<> yuan. This also confirms that in the face of price, brand, quality, appearance, fuel consumption and many other problems that were originally criticized are no longer problems, and the only concern consumers are about whether they can grab it.
Citroen's "lifted table" promotion and the effect of having no cars to sell in just a few days seem to have "opened the way" for domestic car brands. For a time, FAW-Volkswagen, SAIC Volkswagen, Changan Deep Blue, Chery and other car companies have launched subsidized car purchase activities, and even traditional luxury brands BMW, Mercedes-Benz, Audi, Cadillac, etc. have also been involved. For example, the price of some Mercedes-Benz models has been reduced by as much as 12,6 yuan, and the price of FAW Audi A9L has been reduced by 40,<> yuan. According to incomplete statistics, at least <> car brands have joined this round of subsidy war.
Not only car companies, but also local governments such as Hubei and Jilin, especially the local government with automobile manufacturing, have also taken out real money to subsidize. And this subsidy war is still expanding its territory.
On March 3, according to the "Chengdu Release", the "production and marketing linkage" automobile consumption activity in Longquanyi District was launched, with a total subsidy of 17 million yuan, and the cumulative subsidy for bicycles was up to 1,15 yuan. The brand models participating in this consumer event cover pure electric, hybrid and plug-in models, including FAW-Volkswagen, FAW Toyota, Volvo, Peugeot-Citroen Automobile, Dayun Auto, Lynk & Co, Hongqi and other designated models. The Beiqing News reporter learned that Chengdu Economic Development Zone (Longquanyi District) is one of the important automobile industry bases in China, bringing together 10 well-known domestic vehicle enterprises.
Or require half a year of social security or restrict household registration to buy cars across provinces
The Beiqing News reporter checked the local media reports, Hubei Citroen 4S store can no longer see the existing car, even the exhibition car is gone, the local factory is working overtime to drive full power to pull up the production capacity. There are even 4S stores to prevent consumers from rowing cars and forcibly buying, and have surrounded the exhibition cars..."People buy cars like cabbage, and such a scene has not appeared in Dongfeng Citroen's dealerships for a long time." Some salespeople said that in just one weekend, Dongfeng Passenger Vehicle 4S stores in Hubei Province reached orders for 275 vehicles, an average daily increase of 2.186% over February.
But in fact, because the preferential scope of car promotion has been clarified in various places, most of them are only for 4S stores in their provinces and cities, which makes many people plan to go to the target provinces and cities to "buy a car". The Beiqing News reporter noticed that although netizens everywhere shouted to go to a certain place to "grab a car", in fact, there are still many thresholds for wanting to "buy a car across provinces".
For example, Hubei Province, which launched the first shot of the automobile subsidy war, although according to the rules, consumers can enjoy the car purchase subsidies jointly provided by car companies and the government as long as they buy a designated brand of car and a license plate in Hubei Province, but in practice, there are still some inconveniences for foreign consumers. For example, the amount of subsidy is that it will take a while to be issued successively, the vehicle will be relocated, and the transfer will take a while. Some Citroen stores have even raised the threshold for buying a car: some stores have increased the deposit from 5000,2 yuan to 4,<> yuan, some require six months of social security in Hubei, and some <>S stores even stuck the car purchase qualification as "only Wuhan household registration".
Some consumers also reported that it is actually difficult to grab the most discounted 12,2021 yuan car, and many of them are sold in stock cars in 4. Due to the high threshold for buying cars, there have also been car scalpers in Wuhan and other places, and <>S stores have also introduced methods such as paying deposits to prevent them.
New cars are cheap The price of used cars will also decrease, and second-hand car dealers do not accept Citroen models
The dominoes of the new car price reduction fell and finally stepped on the used car market. "Citroen, we can't take it at the moment." The Beiqing News reporter visited the Beijing second-hand car market on the grounds of selling cars and consulted the second-hand car market in many places by phone, and a number of second-hand car dealers in different regions gave similar answers.
The Beiqing News reporter inquired about the quotation of Guazi second-hand car and found that the price of Citroen C5 "quasi-new car" with a mileage of less than 2,6 kilometers and less than 13 years on the platform was 27,14 to 43,12 yuan. In Hubei, the minimum of this new car is only <>,<> yuan, and the price has been inverted.
Mr. Huang, a second-hand car dealer, said frankly that Citroen and other French cars were not enough to maintain their value, and now the price of new cars has been reduced by more than 9,6, so that many second-hand car dealers who still have Citroen in their hands are almost smashed in their hands. "Some people in the circle just received the C1 quasi-new car, and announced the subsidy within two days, just comparing the new and old prices, and lost more than 5,8." "My family's 3,8 Citroen three years ago has now sold for <>,<>, and it has not yet been able to sell."
At present, China's second-hand cars can be bought and sold nationwide, and the promotion activities in one place stimulate the nerves of the entire second-hand car market. Some analysts believe that after this round of new "backstabs", all second-hand car dealers will be more cautious about Dongfeng models, especially the brand's quasi-new cars.
Not only the Citroen brand, but also the bad news for second-hand car dealers is that as more car companies and local governments join the subsidy war, many consumers are beginning to wait and see, for fear that the second-hand cars they buy are more expensive than new cars. This psychological expectation makes the sellers of second-hand cars a lot less.
Automotive industry analysts said that the used car market is on the market, new car prices are cheaper, and second-hand car prices will be reduced. Most of the used car dealers who have lost money in this subsidy war are because they have a backlog of vehicles. However, many market participants analyzed that many consumers buy vehicles to upgrade consumption, and after this wave of subsidy wars, more second-hand cars will inevitably enter the market. A short-term impact is inevitable, the market will eventually stabilize, improved consumption and replacement vehicles will form echelon consumption, and the industry will also usher in new development opportunities.
Text/Reporter Zhang Xin Coordinator/Yu Meiying
China Automobile Dealers Association: Subsidies should not be selective or targeted
Recently, Hubei Province has jointly launched government and enterprise car purchase subsidies with a number of car companies, and many car companies have followed suit. Some models even have a situation of "one car is difficult to find". With the emergence of the car buying boom, the automobile consumer market has also attracted a rare wave of price reductions. On March 3, the China Automobile Dealers Association issued a special response to the impact of price cuts on the automobile market.
China Automobile Dealers Association said that recently, the association received a large number of members to reflect that Wuhan municipal and district government joint car companies launched a large number of car purchase subsidy activities for locally produced automobile brands from March 3, this subsidy activity is mainly for Dongfeng Fengshen, Dongfeng Peugeot, Dongfeng Citroen and other real estate brands, the preferential amount ranges from 1,5000 yuan to 90000,<> yuan, which has caused a wide impact and vibration in the national automobile market, and the majority of member enterprises have reacted strongly.
The association believes that it is a common market behavior for automobile manufacturers to reduce prices and return funds to clear inventory, and it is also worth advocating that the government take out funds to encourage automobile consumption. However, the financial subsidies of the Wuhan municipal and district governments are only aimed at locally produced car brands, which has caused controversy and may also cause a series of problems affecting the orderly development of the auto market.
The association pointed out that it is unfair to subsidize only locally produced car brands, and this selective approach has obvious local protection and is unfair to non-locally produced car brands; As a result, the majority of consumers hold coins for purchase, and it has not played a promotional effect. According to the association's research, except for Wuhan, the flow of 4S stores across the country has increased significantly, but the transaction volume has decreased significantly, and some consumers have begun to hold coins for purchase and wait for the price reduction subsidy policy; Recently, local governments have successively introduced promotional policies, and if they all follow Wuhan's example, that is, only subsidize the automobile brands produced in the local area, this will inevitably cause the segmentation of the automobile market and the chaos of the market order, which is contrary to the spirit of the "Opinions of the CPC Central Committee and the State Council on Accelerating the Construction of a Unified National Market".
According to statistics from the China Automobile Dealers Association, the passenger car market retailed 3,1 units from March 12 to 41, down 4% year-on-year and 17% from the same period last month. The cumulative retail sales this year have reached 11.309 million units, down 4% from last year. It can be seen that after the implementation of such subsidies, sales will not increase but decline, and if left unchecked, it will cause great damage to the sustainable and healthy development of the automobile industry.
At the request of the majority of members, the association timely reflected this problem and its consequences to the relevant government departments, and received great attention and positive response from the government departments.
The association calls on that at a time when the demand for the automobile market is relatively insufficient, government departments at all levels should actively introduce various measures to promote automobile consumption and stabilize economic growth. However, subsidies should not be selective or targeted, and inclusive automobile consumption subsidy policies should be introduced from the perspective of sustainable development of the automobile market to benefit consumers. Jointly stabilize and promote automobile consumption, restore and boost consumer confidence! Text/Reporter Song Xia