Entered in April, Beijing auto market began to significantly change the specific performance of individual hot car models set to shorten waiting time, while the current price range of cars also increased, while the changes reflect the underlying stock increases. In the flat growth in the stock market and the double pressure, seems to indicate auto market price war imminent.

Increase in Dealer Inventories Mixed Reaction

“Sales did not change much, but more and more manufacturers start volume, and now the two have fit inside the garage.” Qin Chinese Dongfeng Yueda Kia dealer shop said Rita, in order to reduce inventory and make money withdrawn from circulation as soon as possible, Now nearing the price of the basic bottom line.Reporter observed, with the factory production capacity gradually, through the first quarter of grace period, the dealer’s inventory Liangjun increased in varying degrees. At the same time, the market did not significantly increase sales, and some over reliance on small cars brand, in March year on year decline in sales there. So, faced with the urgent need of manufacturers for sales, dealer showed a different response.

Asian Games Village Automobile Exchange Market, general manager of Chi Feng also said: “The current Asian market dealer inventory sales ratio was about 1:1, the increase in inventory, vehicles to ease the tight supply situation, this ratio within the normal range.” But He said, do not rule out individual brand manufacturers as production increases, dealers began to Ya Ku phenomenon.Volkswagen Dealers East Ren 4S shop told reporters, while the sixth generation of Golf [Review Photo Forum] 1.4T to increase the number of stores, but still need to install 15,000 yuan decoration requirements. Meanwhile, the 1.6 liter displacement speed shop Teng [Review Photo Forum] and the New Bora [Review Photo Forum] are now car supply, discount rate was 2,000 yuan and 3,000 yuan, dealers said that prices will remain for some time.

“The recent increase in stock prices also fell.” Deputy general manager of Beijing Hyundai letters made shops Hao Wei told reporters. It is understood that the first quarter of 2010, the store sold 420, up 389 last year, sales increased slightly. He said that although sales volume was up, but the prices of mainstream models offer more substantial.Industry insiders, with the recent increase in dealer hands stock car, some dealers choose the time to increase promotions, favorable increase efforts so that funds withdrawn from circulation as soon as possible, to avoid risk; There is also a small number of dealers, taking reluctant sellers of Celue to maximize sales in the profit cycle.

Price War is Quietly Forming

Beijing market as the country’s largest automobile sales market has always been contested manufacturers. Recently, with the car manufacturers to further improve capacity, but slow growth in consumer demand, the two major factors that contributed to the price war has quietly formed.An unnamed distributor of independent brands, said: “The recent increase in the number of vehicles to the shop nearly 3 percent, to complete the requirements of manufacturers blindly sales target, but the actual market performance is below expectations, if such sales to continue a substantial price reduction will be inevitable. ”

The outlook for the market in April, most dealers have expressed are not good. Guangzhou Honda Automobile Lishuiqiao shop, general manager of Jing Sheng Wang told reporters: “April sales will be very good, the reason is in April is traditionally the low season, the same time, Beijing Auto Show will also affect sales.” He believes that this month’s show will not only attract the attention of some consumers, the same show in the new car show will also make potential buyers hesitant consumers intent to form Chibidaigou situation, thus affecting sales.Hao Wei believes that with the stock increasing pressure, financial pressure led to price cutting dealer behavior, perhaps the Beijing auto market this year will trigger a price war.

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