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China Automobile Dealers Association on Wuhan car price reduction: unfair

via:快科技     time:2023/3/18 15:02:15     readed:43

In the recent past,By Hubei joint Dongfeng automobile set off a wave of price cuts, has swept the country, the whole industry.

At present, many car companies and localities have followed up, issuing subsidies or lowering prices.

That's a good thing for some consumers who are looking to buy a car,But there are arguments against it, especially targeted restrictions.


Tonight, the official micro of the China Automobile Dealers Association published a statement about this matter, saying that Wuhan City and district government together with automobile enterprises launched a strong car purchase subsidy activity on the automobile brands produced in the local market from March 1, which caused a wide impact and shock in the national automobile market, and the majority of member enterprises reacted strongly.

It is a common market behavior for automobile manufacturers to cut prices to promote sales and withdraw funds in order to clear inventory. It is also worth advocating that the government take out funds to encourage automobile consumption.

However, this time, the capital subsidies of Wuhan and the district government are only targeted at locally produced car brands, which is controversial and may lead to a series of problems affecting the orderly development of the car market:

First, it is unfair to subsidize only locally produced automobile brands. This selective approach has obvious color of local protection, which is unfair to non-locally produced automobile brands;

Second, cause the majority of consumers to hold money to buy, but did not play a promotional effect. According to the association's research, except for Wuhan, the customer flow to 4S stores around the country increased significantly, but the turnover decreased significantly.Some consumers began to hold money to buy, waiting for the price reduction subsidy policy;

3. Recently, various local governments have introduced promotion policies successively. If they all follow the example of Wuhan, that is, only subsidize the automobile brands produced in the place where they are located, it will inevitably lead to the segmentation of the automobile market and chaos of the market order, which goes against the spirit of the "Opinions of the CPC Central Committee and The State Council on Accelerating the construction of a National unified large Market".

The association called on government departments at all levels to actively introduce measures to promote automobile consumption and stabilize economic growth amid a relative shortage of demand in the automobile market.

But subsidies should not be selective or targeted.From the point of view of the sustainable development of the automobile market, we should introduce the universal automobile consumption subsidy policy to benefit consumers.


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