In the first half of the month, an average of 25 kinds of cars participated in price reductions and the vehicle price dropped by more than 9%.
In the past six months, the automotive market has seen an average of 25 models each month undergoing price reductions. During the first three months alone, nearly 80 models were involved in price cuts, covering over 20 major auto brands. The number of models experiencing price drops has gradually decreased compared to the full year of 2003, with a decline of more than 9% in the first half of this year.
January was marked by widespread price cuts on low-end vehicles. As usual, economic cars were the first to see price adjustments. This year was no different. On January 1, Chongqing Changan Suzuki announced a price cut for the Antelope model, with a maximum reduction of 10,000 yuan. On the same day, Dongfeng Yueda Kia reduced the price of the 04 Maxima by several thousand to 10,000 yuan. Compared to the older model, the new Maxima added features like central locking and rear power windows, yet its price dropped by 11,000 yuan. On January 6, Zhengzhou Nissan adjusted prices for its pickup and Paladin models, with the two-wheel drive version of the Paladin dropping by 10,000 yuan, and the pickup model seeing a general reduction of 5,000 yuan. After the adjustment, the Paladin’s price fell below 200,000 yuan, with the two-wheel drive model priced at 199,800 yuan.
February saw a small rebound in price cuts after the initial inventory clearance in the first quarter. February had the highest number of models participating in price reductions. On February 1, Beijing Jeep completed a full price adjustment, marking the first time the Mitsubishi Pajero SPORT was listed at a lower price. The GLX2.4 model dropped below 200,000 yuan for the first time. Later, Chevrolet Trailblazers also saw significant price drops, with some models falling by as much as 20,000 yuan. On February 5, Geely announced a 4,000-5,000 yuan price cut across its sedan lineup, once again disrupting the mini car market. Geely's move triggered a chain reaction, with Xiali reducing its main model prices by up to 10% on February 6, ranging from 2,000 to 6,000 yuan. The base model of the three-cylinder hatchback dropped from 39,800 to 37,800 yuan. On the same day, Hafei Racing also introduced a 3,000-5,000 yuan price cut, with the lowest model priced at 76,800 yuan. FAW's decision aimed to create room for the new Ville model launch. On February 13, Changan Ford Mondeo 2.0 classic was launched at a price of 209,800 yuan, which was already close to 20,000 yuan due to added features. On February 25, Beijing Jeep reduced the price of the 04 Jeep 4000 luxury model from 424,000 to 399,000 yuan, marking the third price cut for Beijing Jeep after the Outlander launch and Pajero Sport price reductions. On February 27, Dongfeng Citroen significantly reduced prices for its Fukang series, with a drop of 8,000-14,000 yuan, and the 04 New Freelancer priced at just 79,800 yuan.
March brought more voluntary price cuts by dealers, but the market remained quiet. Many manufacturers had not yet identified the root causes of the slowdown and were hesitant to make large price adjustments. On March 10, Santana dealers secretly lowered prices, adjusting the original 98,900 yuan price down to 91,100 yuan. The Century’s rookie metal paint ABS model dropped from 115,000 to 107,500 yuan, a decrease of over 7,000 yuan. The car was also reduced from 106,300 to 9,900 yuan, showing strong price competition. Similar dealer behavior occurred at Saifu stores, where the 04 Great Wall Saifu model was introduced, causing the 03 Saifu to drop in price, with the lowest reaching 718,000 yuan—matching the factory's ex-factory price.
April saw a surge in promotions, especially ahead of the "May 1" holiday. Many car models were involved in price cuts, driven by the desire to stimulate sales during the Golden Week. Dongfeng Citroen launched the first price reduction banner since the Azerbaijan introduction, offering dealers a profit of 8,000 yuan. The Elysee series also saw a price drop of 1 million yuan, with the lowest model priced at 10.98 million yuan. NISSAN announced that the new Bluebird would be reduced by 10,000 to 20,000 yuan by May 31. From April 22 onwards, the Beijing market saw Freer quietly reduce its price by 6,000 yuan to join the "May 1" rush. In this month, Mercedes-Benz S600 and BMW 760Li both dropped from 1.85 million to 1.75 million yuan, while Maybach fell from 12 million to 10.9 million yuan—a drop of over 1 million. Import vehicle prices fell due to the cancellation of licenses next year, making this trend inevitable.
May was dominated by Shanghai GM's aggressive price cuts. If there were no such moves, the auto market might have remained quiet. On May 11, FAW Hongta launched the new “Happiness Messenger†model, with some old models seeing price reductions of 4,000-10,000 yuan. A few days later, Nanjing Fiat began its own price war, with Palio, Siena, and Weekend Wind models averaging a 10,000 yuan drop. On May 17, Shanghai GM unexpectedly announced a full price cut for its “market benchmark†models, with an average drop of 8%, and some models falling by over 11%. It could be said that Shanghai GM used a comprehensive pricing strategy to “explore†the market.
June saw a complete collapse in auto market prices, with Shanghai GM’s performance continuing into the second half of the year. Volkswagen and Citroen also cut prices, signaling more changes to come. On June 1, the Alto series saw significant price cuts, with reductions ranging from 3,000 to 5,000 yuan, and the highest drop reaching 13.23%. After the adjustment, all Alto models were priced below 40,000 yuan. On June 7, mid-to-high-end cars also experienced price changes. Dongfeng Motor Co. announced nationwide price cuts for its Sunshine and Blue Jays models, with the minimum price for Sunshine at 153,800 yuan and the Bluebird falling below 200,000 yuan at 196,800 yuan. On June 17, Volkswagen products in China were cut across the board. Shanghai Volkswagen models dropped by 3,000 to 10,000 yuan, involving 44 brands under 9 different models. FAW-Volkswagen’s new Jetta series saw a 12,000 yuan reduction, Golf series 5,000 yuan, and Polaris series 10,000 yuan, with the highest drop exceeding 10%. On the same day, Dongfeng Citroen held an emergency meeting and decided to adjust the Elysee sedan’s price starting the next day. On June 18, Elysée models saw the highest price cut of 12,000 yuan. (Jia Yan)
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