It is expected that the auto market will turn red in September
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This week, a reporter gathered insights from three major automobile markets in the Beijing Asian Games Village, the North, and China United, revealing that overall car sales remained stable in August despite the approaching September sales season. While some market participants believe September will mark a peak period for auto sales, August's growth was relatively modest.
Li Manli, General Manager of the Northern Automobile Trading Market, noted that although sales figures at the end of August didn't show a significant increase, market sentiment had improved considerably. She expects this growing optimism to translate into higher sales as September progresses.
At the North Asian Auto Market, reports suggest that sales for the last week of August haven’t been officially tallied yet, but according to data from the Market Business Information Center and Xiaogang’s analysis, there hasn’t been a noticeable change compared to the previous two weeks. Sales have remained steady around 800 vehicles per week, with mainstream models still spread out and no clear hotspots emerging.
The top three selling models continue to be Jetta, Xiali, and Elysee. Meanwhile, at the China United Automotive Markets, Yang Yang, head of the marketing department, shared that sales increased by nearly 20% in August compared to July. However, the last week of August didn’t see a significant rise over the prior week.
As September approaches, the capital’s three major auto markets are already buzzing with activity. The Asian Games Village Auto Trading Market, in particular, has become a hub for traders, with dealers offering various brand models tailored to customer preferences. Prices vary widely, with some models available at significantly lower prices than others.
For example, the same Vios model might be priced 5,000 yuan cheaper or even 8,000 yuan more expensive depending on the dealer. While some traders offer steep discounts, most dealers still provide reasonable price reductions, albeit with smaller profit margins. Even some brand-level dealers, though unable to offer private price cuts without penalties, can still manage to give consumers a discount of 1,000 to 2,000 yuan on the same model.
In one instance, a customer asked a salesperson about the new Xiali model, and the response was, “We can give you up to 1,000 yuan off.†The salesperson added, “This car just launched, and the price is already low. A 1,000-yuan discount isn’t small. If you don’t buy it now, the store may launch a new promotion in September.â€
The customer then decided to wait until September for the purchase. This interaction highlights how many consumers have already accepted discounted prices and are waiting for better deals.
Historically, most dealers introduce short-term promotions before the “Golden Week†holiday. Some dealers plan to create a big buzz with early September campaigns, expecting September to be the peak sales month. Although market professionals have varying views, the consensus is that September will likely be the strongest sales period.
Li Manli from the Northern Market is optimistic, believing that the second half of the year will perform better than the first. However, she notes that there hasn’t been a significant improvement in the past seven or eight months. She expects several dealers to launch promotional campaigns ahead of the Golden Week, which could bring more benefits to buyers. Still, she cautions that there won’t be substantial growth in the second half of the year, and the growth rate will stabilize.
Xiao Gang from the Asian Games Village Market analyzed the remaining four months of the year and believes that, based on historical trends, the car market typically performs well before the Golden Week. Therefore, he expects a noticeable increase in September sales due to more promotional activities. However, sales may gradually decline in October, continuing until November. A new peak is expected before the New Year in December.
Yang Yang from China United Motor Transaction Market is less optimistic. He predicts that the China United Market will see a sales increase of over 30% in September compared to August, but the overall auto market won’t experience a significant jump. He attributes this to the current chaotic pricing environment, where despite manufacturers’ claims of strict price control, the market remains disorganized, making consumers hesitant to buy.
He also expects that most car manufacturers will re-adjust their prices next year and implement stricter regulations. (Reporter Li Wei / Business Daily)