Shen Rong: Car prices actively reduce sales target is an active response

After rapid growth last year and the first three months of this year, the growth of the domestic auto market has shown signs of slowing growth. In July of this year, domestic automobile production and sales both fell in double-on-quarters, which was the fourth consecutive monthly decline. The auto market has already formed a trend of high, low and high, and the auto market has obviously grown weak. Recently, BYD Auto has adjusted its production and sales target in 2010 from 800,000 vehicles to 600,000 vehicles, with a reduction rate of 25%. Most of the independent brand manufacturers also failed to complete the half mission. They may become BYD's followers and announce sales targets when appropriate. Fenghuangwang Automobile connected to Shen Rong, deputy secretary-general of the China Automobile Dealers Association.

Shen Rong stated to Fenghuangwang.com that the automakers' initiative to reduce their sales targets is an attitude that is actively responding to new market conditions. Last year, the rapid growth of the automotive market led to the loss or distortion of some market information. The re-adjustment of sales targets by car manufacturers in the context of declining sales this year is an attitude that re-understands the market situation and is responsible in the development process. This kind of adjustment is a rational return of car companies pursuing ultra-high growth blindly. It also shows that car companies are gradually becoming mature.

In the past decade, car sales have experienced several explosive growth, but each time it lasted for a short period of time, which means that each time the volume of sales grows by leaps and bounds, it needs a phase to consolidate. At this stage, the structure The importance of adjustment is far greater than the expansion of quantity. This is like the accumulation of quantity. Each car company is rushing to a new level, and the next step is to build a new development platform to deal with the next market situation.

Shen Rong said to Fenghuangwang.com that sales of new cars have been declining every month since the beginning of this year. Although seasonal factors have played a role, they are not decisive factors. This year, the market is not driving demand for cars, which has led to shrinking production. From another perspective, the goal of reducing the sales volume of car companies is also a responsible behavior for dealers. Otherwise, inventory, backlog, and other issues will bring dealers a great price reduction risk.