This year, the Chinese auto market finds itself caught in an intense “price war.” Fuelled by the government’s trade-in subsidy policy and the National Day holiday shopping frenzy, car dealerships are stepping up their discounting efforts in hopes of achieving strong sales in October and boosting their fourth-quarter performance. Auto expos are being organized across various regions in China during this time, prompting companies to ramp up their promotional strategies. Joint venture brands, facing high sales pressure, seem to prioritize volume over pricing.
According to CCTV reports, the National Day holiday witnessed a notable rise in automotive consumption, attributed to a series of auto shows across the country, bolstered by the popularity of new energy vehicles and enticing trade-in incentives. For example, the Tianjin Municipal Bureau of Commerce introduced a vehicle replacement policy, while the Jinnan District offered consumption vouchers totaling 4 million yuan (around $566,000).
During this extended holiday, car dealerships rolled out a range of promotions. A report from First Financial reveals that several 4S dealerships in an automotive hub in Beijing held special offers for National Day car purchases. For instance, a GAC Toyota dealership is providing trade-in subsidies of up to 35,000 yuan, while certain Changan Auto models are featuring maximum subsidies of 65,000 yuan. Additionally, a Dongfeng Honda 4S store has introduced discounted vehicles and flexible installment payment options.
Overall, the auto market has shown signs of weakness this year, with monthly sales growth rates declining. This has prompted manufacturers and dealerships to engage in aggressive promotional campaigns as the ongoing price war continues to unfold.
