According to the WeChat public account of the China Association of Automobile Manufacturers on March 3, since March, automobile promotion and price reduction have aroused widespread attention and heated discussions in the market. The China Association of Automobile Manufacturers (CAAM) has also taken note of the evolution of events. Combined with the recent situation reflected by all parties, the China Association of Automobile Manufacturers believes that the hype of this round of price cuts should cool down as soon as possible, so that the industry can return to normal operation and ensure the healthy and stable development of the industry throughout the year.

First, combined with the performance of the automobile market since last year, it is necessary to take measures to stabilize growth

In the first half of 2022, the epidemic had a huge impact on the automotive industry chain and supply chain, the state timely introduced a stable growth policy, and local governments also actively responded to the call of the Party Central Committee and the State Council to promote automobile consumption according to local conditions, so that the automotive industry gradually returned to normal operation, and played an active role in stabilizing growth and promoting consumption. In the fourth quarter of last year, especially since the outbreak of the national epidemic in December, the rhythm of automobile production and sales has been seriously affected again. Entering 12, the overall sales of the automotive industry fell significantly from January to February, the terminal inventory of enterprises rose sharply, the operating pressure increased, and enterprises took various measures to reduce inventory. Local governments, including Hubei Province, have jointly launched a large-scale pro-consumption policy with enterprises to stimulate local automobile consumption and alleviate difficulties for enterprises.

Second, the promotion is mostly for old inventory models, and exaggerated price reduction publicity misleads consumers

There are many reasons for this round of short-term promotion, and most of the preferential models launched by various enterprises are long-term inventory age, old models or slow-moving inventory models. In the terminal market, these models have had considerable preferential prices before this round of promotion, and terminal publicity in order to attract attention, exaggerate the intensity of price reduction, increase customer acquisition, and easily mislead consumers. The China Automobile Association called for proper marketing and media reports.

Third, China's new energy vehicles are growing rapidly, and fuel vehicles are also accelerating technological upgrading

In the past two years, China's new energy vehicle industry has accumulated a lot, and the market has shown explosive growth, with the total production and sales reaching about 700 million vehicles last year, and the market share has reached a quarter. Looking forward to 2023, the production and sales of new energy vehicles are expected to reach 900 million units, continuing to maintain a rapid growth rate. The China Association of Automobile Manufacturers believes that although new energy vehicles are developing rapidly, fuel vehicles are also accelerating technological upgrades and constantly adapting to new changes in market demand, and the two will coexist for a long time in the future to jointly meet different consumption needs. Consumers should make their own choices according to their own usage scenarios and needs.

Fourth, the price war is not a long-term solution, and the auto market should return to normal order as soon as possible

With the acceleration of the transformation and upgrading of the automotive industry, traditional car companies have invested heavily in the fields of electrification, intelligence and networking, and have suffered the dual pressure of stable operation and transformation and upgrading, and their profitability is weak. Of course, reducing prices to deal with inventory and properly recovering costs is a normal business measure, but it should not be reduced to a price war. Price wars don't last long, and value for money is an eternal business rule. In the new journey of China's modernization, the automobile industry undertakes the important task of building an automobile power. Automobile companies should focus on the long term, make more efforts in product technology, quality, service, brand power, etc., and strive for high-quality development. In the process of stabilizing growth and promoting consumption, local governments must have appropriate methods and methods. The government, enterprises and the media should take a rational view of this and jointly maintain market order. The China Association of Automobile Manufacturers calls on the society and the media to provide positive public opinion guidance for the healthy and sustainable development of the automotive industry and create a good consumer psychology and market atmosphere.

The China Association of Automobile Manufacturers emphasized that the effect of the current national policy of stabilizing the economy continues to appear, and the overall macroeconomic operation shows a trend of stabilization and recovery. It is hoped that the automotive industry will return to normal market order as soon as possible and make due contributions to the steady growth of the national economy. (Zhongxin Finance)