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Auto Consumers are upset by market chaos

The Chinese auto production and sales volumes all exceed 28m units in 2016, with double-digit year-to-year growth. The auto market is still hot. However, relevant problems and market chaos also exist, which have seriously influenced the consumption experience.

Information asymmetry is one important factor interfering auto after-sales market. Promoted by the Internet technologies, auto after-sales market emerges a large group of Internet ventures and independent after-sale maintenance enterprises. But the disordered market has not been changed. Fake commodities and inferior goods are still worrying consumers.

Second-hand online retailers are also facing continuous disputes. Fake data, selling problem vehicles and other credit problems have decreased second-hand online retailer’ reputation greatly, along with the declining year-to-year growth for transaction volume. All large second-hand online retailers are adjusting their strategies in 2017 to develop towards a more regulated and professional way.

The high growth of alternative energy vehicles also stimulates the development of power battery industry in recent years. On one hand, the enlarging industry size and upgrading technologies have lowered the unit cost, bringing convenience for the marketization of alternative energy vehicles. On the other hand, the low-end excess manufacturing capacity also arouses problems such as resources wasting, security risk and bad consumption experience.

On the first half of 2016, Ministry of Industry and Information Technology released a notice to collect opinions for the formulation of auto power battery industry regulation, lifting entry level of power battery technologies greatly. In the future, if the manufacturing costs of power system decrease 50%, the unit price gap between alternative energy vehicles and traditional cars will also declines greatly.