From：Internet Info Agency 2019-04-02 17:42:24
From April 1, 2019, the decision to reduce VAT in the manufacturing industry came into effect. On the day when the VAT was lowered, a number of automakers announced a price cut. Previously, a number of luxury car brands have announced a reduction in the suggested retail price.
Many manufacturers have said that this reduction in the manufacturer's suggested retail price (guided price) is in response to the tax reduction and fee reduction policy, and will truly benefit the Chinese consumers. However, some people think that in the current situation, just lowering the guide price of a few points does not help much for the transaction price, and consumers do not enjoy much benefit.
From the automakers that have announced the reduction of the guidance price, the transaction price will be lowered after the guidance price is lowered. For most car brands, dealers have always lost money to sell cars, even if the guide price is lowered, there will be no impact on the transaction price. The transaction price of many car brands has been far below the manufacturer's suggested retail price, which is even as high as 20%. The guide price for downgrading 3 points is simply a drizzle.
There are also people worried that automakers have lowered the manufacturer's suggested retail price, whether it will lead to another price war. In fact, you don't have to worry about it. The price war has already begun, and it has become more and more fierce.
China has a strange phenomenon in recent years, that is, everything has risen, and only car prices are falling. In fact, the raw materials, spare parts and labor costs related to automobiles are also rising. Why does the car not only not increase in price but continue to fall? On the one hand, the cost is reduced due to the expansion of scale. Another important reason is the oversupply caused by severe overcapacity. Under such fierce competition, no one dares to raise prices.
According to the China Automobile Industry Association, the wholesale data of automobiles in 2018 is 28.08 million, while the retail sales of automobiles according to the traffic insurance is only 25.13 million, a difference of nearly 3 million. Under normal circumstances, the number of wholesale and retail should be roughly the same. However, in the case of abnormal conditions, the wholesale quantity is far greater than the retail quantity, indicating that there are nearly 3 million abnormal stocks.
In order to reduce abnormal stocks and reduce the pressure on dealers, many auto manufacturers in the first two months of this year intentionally reduced production and reduced the wholesale volume. This is a good thing.
Only when dealers can make money, the auto market can develop normally. Only when the price is stable, the automobile market can be stable and be able to develop in a healthy way.
Some people say that car price cuts are not good for consumers? As an industrial product with more than 10,000 parts, the car has a long product chain. To ensure the quality of automotive products, we need to strictly control every aspect to provide reliable products. In order to meet the requirements, the supplier may take measures to ensure its own profits. Only when every part of the automobile industry chain has money to make, this industry can function normally.
As an automaker, in the big environment where the Chinese auto market has entered the competition for stocks, it is imperative to set too high unrealistic growth targets, and stress the dealers. There is no benefit in the price war and if the price war is going on, the whole industry will see the doom day soon.
