local Auto shows and Aggressive Pricing Drive Sales in China’s Golden Week
China’s auto market is experiencing a surge in activity, fueled by local auto shows, government subsidies, and aggressive pricing strategies from automakers. The traditionally strong “Golden September and Silver October” sales period is proving especially robust this year, with expectations of continued growth through the National day Golden Week.
Auto shows are popping up across the country, including events in Tianjin, around Beijing, and in cities like Xi’an, Lanzhou, Changsha, Yangzhou, Suzhou, Zhongshan, Fuzhou, Xiamen, and Hangzhou.Even districts within Beijing, such as Haidian, are offering special car purchase discounts coinciding with the Mid-Autumn Festival and National Day holidays.
These events are leveraging the government’s old-for-new policy, prominently displaying subsidy details and providing on-site experts to assist consumers. Dealers anticipate a peak in sales in the final days of the auto shows, optimistic about strong transaction volumes during the Golden Week.
Automakers are responding with significant discounts and promotional offers. SAIC Volkswagen is offering discounts of up to 48,000 yuan on the Lavida, bringing the price down to a starting point of 124,800 yuan after the discount. Haoying models have a maximum discount of 56,000 yuan,with prices starting at 129,900 yuan post-discount. SAIC Volkswagen is also employing a “on-price” strategy, with the Xintuyue available starting at 109,900 yuan. GAC Trumpchi is promoting low down payments and extended installment plans, such as a package price of 18,000 yuan for the GS8, payable over 60 months with interest.
Live streaming has become a key component of auto show marketing, utilized by brands to attract potential customers and encourage on-site consultations.
The China Automobile Dealers Association (CADA) attributes the positive trend to the combination of the seasonal peak, full implementation of national subsidies, and the addition of local incentives. CADA notes that some regional subsidies are offered on a first-come, first-served basis, further driving consumer enthusiasm. Early sales data indicates a strong “Golden September” for many car companies.
Yan Jinghui, a member of CADA’s Expert Committee, believes local auto shows are effectively activating the market and boosting consumption.He emphasizes that promotional effects are most pronounced when discounts align with consumer expectations, leading to higher order conversion rates. While the National Day Golden Week auto shows are relatively short, they are expected to have a significant and lasting impact on local automobile consumption.
CADA predicts a strong boost in both market passenger flow and sales, supported by the peak season, continued subsidies, holiday promotions, and the proliferation of auto show activities.
source: Beijing News
Author: Wang Linlin
Original Title: Auto Market Golden Week｜Local auto show attracts passengers, auto companies sell “only price” to increase sales.
