Auto market enters into slack season with diving prices

Changan brand opens up the curtain of 2017 price cuts. Most Changan models began to lower sales prices during the Dragon Boat Festival, after Changan Ford Kuga and Changan Auchan CX70. Apart from the newly launched CS95 and Ling Xuan, several models including CS15, CS35, CS75, New Eado, New Eado XT, Alsvin V3, Alsvin V7, New Benni and Raeton will all face sales cuts to different degrees. The maximum price cut reaches RMB 18,000.

In fact, Q1 auto sales have shown weak performance, influenced by the halving purchasing tax in 2017. Sales volume has decreased greatly in April. Changan Auto, leader of self-independent brands, has the worst performance with year-on-year decline of 27.61% and monthly decline of 60%.

Currently, Changan brand has not been followed by other mainstream auto brands. Only Brilliance Jinbei Hiace starts price cuts recently, with the maximum price decline of RMB 8,000 and starting price of RMB 69,800. Other brands are engaging all forms of promotion activities.

Shanghai Volkswagen Passat is currently sold in Beijing, with maximum price benefits reaching RMB 52,000 for several models. Beijing Hyundai Mistra has the highest price benefit of RMB 20,000 with a starting price of RMB 129,800. FAW Toyota Vios FS has the highest price benefit of RMB 10,000. Several models of SAIC GM Buick Lacross will have price benefits of RMB 38,000. Changan Ford Mondeo will have the maximum price benefit of RMB 20,000.

It’s learned that June, July and August are the traditional slack seasons for auto sales. Many auto manufacturers will increase sales promotion during this period. It’s also predicted that dealerships will face heavier burdens in July with increasing inventories.