Domestic car prices fell in contrarian


The monitoring conducted by the National Development and Reform Commission's Price Monitoring Center shows that in the first half of this year, due to rising prices of upstream products such as steel products and energy, credit contraction and rising interest rates, the production and operating costs of domestic auto companies have risen sharply. However, the price of automobiles remains A slight decrease in the same period last year.

Why does the domestic car price appear to be in a contrarian decline this anomaly?

A person in charge of a joint venture car company sales company told reporters that in order to absorb the pressure of rising costs, the company significantly reduced the staff's travel expenses. He had previously lived in a three-star hotel on a business trip and can now only live in a chain of cheap hotels. Although various measures have been taken and the methods that can come to mind have come to mind and have been done, they still cannot eliminate the substantial increase in costs.

Affected by rising costs, some domestic automobile manufacturers have suffered a loss this year, and many auto makers' profits have fallen sharply year-on-year.

Due to the pressure of rising costs, many commercial vehicle companies in China have increased the price of automobiles in the previous period, and they have also been understood by users. However, in the most competitive and fastest-growing areas of the car industry, manufacturers are not willing to increase prices in the face of huge pressures for cost increases, and even launch price reduction promotions from time to time.

At present, the overall domestic car production capacity is greater than the demand, and the market competition is extremely fierce. Price warfare has become an important magic weapon for corporate market competition. Many companies are worried that if they increase their prices and their competitors do not rise, they will inevitably weaken their market competitiveness. For Chinese auto consumers, price is a very important factor, and rising prices will inevitably hurt consumers' willingness to purchase cars. This is also an important reason why auto manufacturers do not dare to increase prices.

Zhao Ying, a researcher at the Institute of Industry and Economics of the Chinese Academy of Social Sciences, believes that although the cost of automobiles has risen rapidly, the scale of the domestic auto industry has expanded rapidly, coupled with low labor costs and excessive competition brought about by excess production capacity. Domestic cars will not be excluded in the near future. Prices will continue to fall.
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