Beijing Auto Market Price War Imminent

Entered in April, Beijing auto market began toDeputy general manager of Beijing Hyundai letters
significantly change the specific performance ofmade shops Hao Wei told reporters. It is
individual hot car models set to shorten waitingunderstood that the first quarter of 2010, the
time, while the current price range of cars alsostore sold 420, up 389 last year, sales increased
increased, while the changes reflect the underlyingslightly. He said that although sales volume was up,
stock increases. In the flat growth in the stockbut the prices of mainstream models offer more
market and the double pressure, seems tosubstantial.Industry insiders, with the recent
indicate auto market price war imminent.increase in dealer hands stock car, some dealers
Increase in Dealer Inventories Mixed Reactionchoose the time to increase promotions,
"Sales did not change much, but more and morefavorable increase efforts so that funds
manufacturers start volume, and now the twowithdrawn from circulation as soon as possible, to
have fit inside the garage." Qin Chinese Dongfengavoid risk; There is also a small number of
Yueda Kia dealer shop said Rita, in order todealers, taking reluctant sellers of Celue to
reduce inventory and make money withdrawnmaximize sales in the profit cycle.
from circulation as soon as possible, Now nearingPrice War is Quietly Forming
the price of the basic bottom line.ReporterBeijing market as the country's largest automobile
observed, with the factory production capacitysales market has always been contested
gradually, through the first quarter of gracemanufacturers. Recently, with the car
period, the dealer's inventory Liangjun increased inmanufacturers to further improve capacity, but
varying degrees. At the same time, the marketslow growth in consumer demand, the two major
did not significantly increase sales, and some overfactors that contributed to the price war has
reliance on small cars brand, in March year onquietly formed.An unnamed distributor of
year decline in sales there. So, faced with theindependent brands, said: "The recent increase in
urgent need of manufacturers for sales, dealerthe number of vehicles to the shop nearly 3
showed a different response.percent, to complete the requirements of
Asian Games Village Automobile Exchange Market,manufacturers blindly sales target, but the actual
general manager of Chi Feng also said: "Themarket performance is below expectations, if
current Asian market dealer inventory sales ratiosuch sales to continue a substantial price reduction
was about 1:1, the increase in inventory, vehicleswill be inevitable. "
to ease the tight supply situation, this ratio withinThe outlook for the market in April, most dealers
the normal range." But He said, do not rule outhave expressed are not good. Guangzhou Honda
individual brand manufacturers as productionAutomobile Lishuiqiao shop, general manager of
increases, dealers began to Ya KuJing Sheng Wang told reporters: "April sales will be
phenomenon.Volkswagen Dealers East Ren 4Svery good, the reason is in April is traditionally the
shop told reporters, while the sixth generation oflow season, the same time, Beijing Auto Show will
Golf [Review Photo Forum] 1.4T to increase thealso affect sales." He believes that this month's
number of stores, but still need to install 15,000show will not only attract the attention of some
yuan decoration requirements. Meanwhile, the 1.6consumers, the same show in the new car show
liter displacement speed shop Teng [Review Photowill also make potential buyers hesitant consumers
Forum] and the New Bora [Review Photo Forum]intent to form Chibidaigou situation, thus affecting
are now car supply, discount rate was 2,000 yuansales.Hao Wei believes that with the stock
and 3,000 yuan, dealers said that prices will remainincreasing pressure, financial pressure led to price
for some time.cutting dealer behavior, perhaps the Beijing auto
"The recent increase in stock prices also fell."market this year will trigger a price war.