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Shen Jinjun: Car prices are going up around the world, but they are going down in China

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Release: 2024-06-18 21:10:34
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According to news on June 17, Shen Jinjun, president of the China Automobile Dealers Association, said in an interview with the media recently that It is strange that car prices around the world are going up, but we are going down. He mentioned, “At this year’s American Automobile Dealers Conference, they all said that 2023 will be very good and they will make a lot of money. Car prices around the world are going up, but we are heading towards Going down, I don’t know if it’s better to go up or down, I’m just telling everyone this information.”

Shen Jinjun: Car prices are going up around the world, but they are going down in China

Chairman Shen Jinjun pointed out that the root cause of the "price war" phenomenon in the domestic automobile market lies in the serious imbalance between production and demand. He emphasized that in order to avoid price wars, major automobile brands need to closely integrate the production rhythm with the sales rhythm to achieve healthy competition. In addition, Chairman Shen also suggested that automobile companies should pay more attention to market demand and produce models that better meet consumer expectations. According to the editor’s understanding, Shen Jinjun found in the association’s survey that 2023 will be the most difficult year for dealers since entering the new century. Especially in the first half of this year, dealers' difficulties continued and new changes occurred. Even luxury brand dealers began to suffer large losses. Dealers that mainly focus on fuel vehicles are facing many problems such as unreasonable outlet layout, serious inventory backlog, insufficient profitability, and tense relationships with manufacturers.

Chairman Shen Jinjun also noticed that the focus of enterprises in market competition is changing.

In the past, companies generally put profits first, but now in the market environment of survival of the fittest, market share has gradually become the primary goal pursued by companies. However, he warned that it was unsustainable for companies to sacrifice profits in order to maintain market share.

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source:itbear.com
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