stocks

Auto Market Golden week: Subsidies Fuel Consumer Interest in⁣ New Vehicles

Beijing, October ‍8th – ‍The recent “Golden september and Silver October” ⁢period, coinciding with the national Day holiday, has seen a surge in auto market activity, driven ⁣largely‍ by‍ government subsidies and a‍ consumer appetite for new vehicles, especially from emerging brands.

NIO, Avita, and Xiaopeng Motors (XPEV) are among the manufacturers reporting increased foot traffic and sales, though maintaining consistent nationwide pricing.‍ Representatives from thes companies emphasize a direct-sales model with fixed, clear pricing, supplemented by holiday-specific ⁣gifts or lucky draws, effectively ‌acting as incentives.

The current market dynamic represents a shift from earlier this year, when intense “price wars” prompted regulatory intervention. According to a salesperson‍ from a new ​energy vehicle (NEV) brand, promotions and price reductions have become more rational, with current discounts‍ stemming primarily ⁤from state and local government⁤ subsidy programs.

These policies are proving effective. The Ministry of Commerce reports that, ‌as of September 10th, applications for the “old-for-new”​ car replacement program reached 8.3 million. ‌ Furthermore, provinces and cities like Handan, Zhengzhou, and Nanjing have introduced additional consumption coupons and subsidies to further stimulate demand.

The ability⁣ to leverage these localized incentives is becoming a key strategy for dealerships.Beijing News​ Beike Finance‌ reporters found that new energy vehicle brands⁢ are assisting customers in identifying locations with the most advantageous subsidy policies to maximize savings.

The China Passenger Union Branch notes that ⁤the combination ⁤of national subsidies and the implementation of local incentives ​is releasing pent-up⁤ consumer ‍demand,⁢ particularly during the traditional peak sales season of “Golden september and Silver October.” Some regional subsidies are offered on a first-come, first-served basis, adding a sense of urgency to purchases.

Geng Hongzhou, a first-level inspector of the market Operation and Consumption Promotion Department of the ‌Ministry of Commerce, highlighted the success of the “old-for-new” policy, stating it‍ effectively‍ promotes‍ automobile consumption, industrial upgrading, and resource management.

Source: Beijing News
Author: Zhang Bing
Original Title: Auto Market Golden Week｜New cars attract “tasting new” consumers, and subsidy policies drive consumption to heat up

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.