China Automobile Dealers Association: Auto sales in March fell short of expectations, and the impact of the price war is apparent

News on April 1 showed that recently, the China Automobile Dealers Association disclosed the latest developments in the automobile market after the Spring Festival. It is reported that the auto market once again fell into a price war after the holidays, with many well-known auto companies including BYD, Geely, Chery, and SAIC Volkswagen announcing price reduction measures. This move further deepened consumers' wait-and-see attitude.

The association pointed out that in March, in order to attract customers, major car companies and dealers held various promotional activities such as auto shows, and also launched many new models on the market in order to boost sales. However, as some areas have entered the busy farming season, dealer traffic and transaction rates have been affected to a certain extent, resulting in no significant increase in overall auto market sales.

According to the editor’s understanding, considering all factors, the performance of the automobile market in March did not reach the expected level. It is expected that terminal sales of passenger cars will remain at 1.65 million units. about. In addition, as the end of the quarter approaches, car companies' purchasing tasks have intensified, and inventory pressure has also increased. The continuous escalation of price wars has led to an increasingly obvious phenomenon of dealers exchanging price for volume, thus compressing their profit margins.

Looking to the future, the China Automobile Dealers Association predicts that the auto market in April will show a smooth operation. Although the holding of spring auto shows in many places and the launch of many blockbuster new cars will bring certain benefits to the market, due to factors such as the traditional customs of Qingming Festival, busy farming and holiday travel, the demand for car purchases in April may appear insufficient, and dealers Businesses' expectations for market demand and sales have also been lowered accordingly. The China Automobile Dealers Association believes that in the face of lower sales demand and sales expectations, dealers should increase promotional activities, discounts and other methods to stimulate market demand. At the same time, we actively respond to the impact of factors such as traditional Qingming Festival customs and holiday travel, and adopt differentiated marketing strategies to increase sales. In addition, expectations for market demand and sales also need to be adjusted appropriately. Dealers can communicate and cooperate with manufacturers. This month, the Passenger Car Association predicts that sales will reach 1.65 million units, of which new energy vehicles will account for 750,000 units, with a penetration rate of approximately 45.5%. According to the analysis of the Passenger Car Association, the price reduction of new energy vehicles after the Spring Festival helped to promote customer conversion, resulting in rapid growth in sales of new energy vehicles in early March, providing strong support for the auto market that month. Although the order conversion situation is not ideal, there is still a strong trend of consumers holding currency to purchase.

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