All kinds of signs show that after a price war of dizzying weather in 2003, economical cars have become one of the highest-level auto market in the country. Related industry sources pointed out that in 2004, the contradiction of oversupply of economical cars will become more apparent. It can be foreseen that some weak brands will face the fate of being eliminated by the market.
Economy car "leads down" this year's auto market
After Dongfeng Yueda Kia’s “Thousands of Malaysia†announced price cuts on January 1 this year and the lowest price of mainstream brands of economic cars fell below 80,000 yuan, the economical sedan market continued to “lead down†the auto market in 2004, and Shanghai General Motors’ “Sailâ€. Changan Suzuki has successively joined the group.
A few days ago from Tianjin FAW news came again, its ordinary type Xiali today from the overall price cuts, Xiali brand in the main models of price cuts ranging from 2,000 yuan to 6,000 yuan, the highest drop of 10%, including four-cylinder A-series four-cylinder Ya-type has fallen below 60,000 yuan in one fell swoop. At the same time, there was still Geely, Zhejiang, who had passed down the word “downâ€. The lowest car even fell below 40,000 yuan.
Economic car "drop" word, the price continued to fall is not without reason. Relevant industry sources pointed out that after rounds of “price wars†in 2003, economical cars are undoubtedly the most highly-automated car market in the country. From the second half of 2003, the contradiction of oversupply has already begun. Obviously exposed, the market has been quite sensitive to the price.
Intermediate cars have gradually become mainstream consumer
Another important reason that led to the disappearance of economical cars is that mid-size cars are beginning to show off. According to industry sources, in the auto market in 2003, economical cars are still one of the “protagonists†that are doing their best, and “price wars†have become dizzy. At the same time, the new Accord, Regal, M6 and other mid- to high-end cars are due to capacity constraints. Problems such as "occupation of exotic goods" appear to be a problem, while mid-level cars are not as insignificant. However, from the second half of 2003, from the Dongfeng Citroen Seine to Hainan Mazda's 1.6-liter Fumei Lai, from the Shanghai Volkswagen's sedan POLO, FAW Volkswagen's Bora to Shanghai GM Excelle, the concept of mid-level car gradually began to gain roots.
According to reports, a survey shows that unlike most people who purchased the first car when they purchased the first car in previous years, the situation is different. At present, nearly half of the people plan to purchase mid-size cars that cost between 100,000 and 200,000 yuan. People concerned believe that in the next few years, mid-size cars will likely replace economic cars and become the mainstream of market consumption.
Some economic vehicles are facing elimination
In this context, the competition of economical cars in 2004 will become even more cruel. According to relevant distributors, although the price of economical cars dropped again and again, the sales of some brands have already experienced a significant decline. An economic car dealer told the reporter that he had sold more than 100 vehicles a month on behalf of a brand he had represented, but only recently had 30 or 40 vehicles.
According to industry insiders, there are numerous economical car brands on the market, and more and more mid-size cars will appear on the market to form a squeeze on economic cars. This market will be fiercely competitive in 2004. It is expected that the price reduction of economic cars will continue this year. For some weak brands, it is difficult to recover the price reduction. Brands that do not have guaranteed after-sales service and lack successful marketing strategies will face the risk of being eliminated by the market.
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