It is undeniable that comprehensive preferential policy for local car purchases launched by Hubei some time ago has set off a "chain reaction" in many cities across country, and many places have followed suit in a similar "mail form". This time it was turn of Chengdu, Sichuan.
On March 17, according to local news in Chengdu, Sichuan Province, Longquan District, Chengdu, car consumption on principle of "linkage between production and sales" was officially launched. and this activity will continue until June 30 this year.
According to information gathered online, this time brand with biggest discount is Volvo, reaching 150,000 yuan, while Shenlong, FAW Toyota and Hongqi Automobile have discounts of more than 60,000 yuan. It's tempting, but it's not. Surprisingly, news not only sparked a lot of social media and spread, but also voice of "organizing a car buying group in Chengdu" sounded on Internet.
Another wave of "group car buying"? It is understood that blockbuster car discount promotion released by Chengdu this time has much in common with previous car purchase subsidies in Hubei, Shenzhen, Hefei and other places, which also confirms Hubei Province car purchase discount predicted by Travel Association . forecast siphon effect after policy, another typical phenomenon after start of a price war on car market this year.
In addition, Chengdu, as a "southwest city" in China's auto industry structure, has concentrated a large number of Tier 1 auto factories. Against backdrop of this year's social activity and complete liberalization of various industrial processes, this will undoubtedly promote consumption and stimulate domestic demand. This is an effective means to stimulate related industries, especially automotive industry. After poor consumption of cars last year and even in the first three years Because Chengdu, a relatively mature automobile industry and market, also needs to carry out huge subsidizing activities.
It is understood that Chengdu Economic Development Zone (Longquanyi District) is an important automotive industry base in country, integrating up to 10 complete vehicle manufacturers and parts companies, such as FAW-Volkswagen, FAW Toyota, Dongfeng Shenlong, Volvo, Geely Automobile, etc. There are more than 500, in 2022 when market is considered unsatisfactory, output of complete cars in Chengdu will reach 980,000, and in accordance with current market conditions, huge price discounts provided by Chengdu, definitely support country to increase car consumption .Rapid political response complements previous practice of Hubei Province.
The discount is limited, and there are conditions for purchase of a car
But it is worth noting that Chengdu's preferential car buying policy this time is still mainly focused on new energy. According to news released by respective media platforms, "The brand's models participating in event include all-electric, hybrid electric, and plug-in electric vehicles." “Individuals or businesses purchase certain models of FAW-Volkswagen, FAW Toyota, Volvo, Shenlong Automobile, Dayun Automobile, Lynk & Co, Hongqi and other businesses from car dealers operating in Natong in Chengdu. Compliance with preferential subsidies."
Using current "traffic saving" approach on Internet, we have extracted several keywords: "new energy", "working with Natong dealers in Chengdu", "designated brand", "listing within a certain period". .
It can also be concluded from this that the range of this discount is indeed huge and real, but it is also a targeted policy of local subsidies with purchase conditions and restrictions on product categories, and not all brands and models are available. Can enjoy a very high preferential subsidy policy.
What cars can you focus on?
In fact, referring to previous practice, discount rate for purchase of a car has local advantages, but objective fact of price discounts is not limited to locality, probability is extremely small. Citing linkage policy between production and sales launched by Dongfeng Nissan's pure electric Aria SUV in Hubei Province, Aria also received a 60,000 yuan discount in Guangzhou.
So if consumers interested in this Chengdu car buying event can not only go to Chengdu for a tour, but also focus on Toyota Avalon, Peugeot 5008, Volvo XC60, XC90, Sagitar, Jetta and other cars. models are mainly produced in Chengdu Economic and Technological Development Zone. Perhaps discounts in cities and regions outside of Chengdu are not so great, but still surprising enough.
In short term, over next three months, Chengdu's preferential pricing policy may partially ease pressure on local dealer stocks in Chengdu. After all, this year automotive retail market has just started and industry has been liberalized. It's not hard to imagine that there will be a large number of new products entering market this year. OEMs and dealers should hope that there will be more space for new product launches, and not a long-term backlog of some slightly outdated ones. users in form of profit sharing will be a great convenience for some users who just need cars.
In long term, it is highly likely that car price war will continue and more cities and regions will enter battlefield in future, but car buying is not particularly easy for general public. a consumer product that "falls in price", consumers themselves are very sensitive to dynamics of car prices. Those who have not bought a car hope for a price reduction, but those who have bought a car do not want their car to depreciate too much This is common sense, but it also shows that price fluctuations and active promotion of preferential policies can be a "double-edged sword" : consumers who are already on sidelines have a negative impact on their confidence in buying a car: they always think that price will fall and end up as a "wait and see party".
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