In April, the sales volume of the domestic car market fell to the level of 2011, why are the people reluctant to buy a car?

In May, although the weather is getting hotter and hotter, the domestic car market is like a cold winter, so cold that people are shivering.

According to the latest sales data of the Association, the domestic passenger car market is expected to sell 1.1 million in April, down 31.9% year-on-year and 30.3% month-on-month. It is worth mentioning that the sales figures of these 1.1 million vehicles in April are close to the level of 2011, and Since then, April has become the largest decline in the history of the domestic auto market.

Specific to the sales data of car companies, luxury brands such as Mercedes-Benz, BMW and Audi fell by 30% in March, FAW-Volkswagen's output fell by 45.8% in March, FAW Car's production fell by 59%, and SAIC-GM's output also fell by 30%.

I have to say that April this year is indeed the most dismal April in China's automobile history. From the bright side, the automobile market is affected by the control of the epidemic, and the stagnation of production and the closure of terminal stores are the reasons for the direct decline in sales. However, the domestic car market sales fell seriously in April, is it really just the above reasons? It should be known that in order to encourage automobile consumption, the State Council has clearly proposed that all localities must not add new car purchase restrictions. In other words, seeing the current downturn in the domestic auto market economy, the state is actually trying to find ways to get everyone to buy more cars.

It is precisely based on the above situation that there have been a series of measures introduced by the state, such as "gradually increasing the number of incremental indicators for automobiles in areas that have implemented purchase restrictions", "relaxing the qualification restrictions of car buyers", and "studying to further relax the restrictions on pickup trucks entering the city".

In order to actively respond to the call of the State Council, as early as March 29, the Hefei Municipal Government issued a policy to encourage the consumption of new energy vehicles. Those who purchase new energy vehicles will be given a one-time electricity subsidy of 1,000 yuan per vehicle on the basis of the existing electricity subsidy. In addition, the Guangdong Provincial Development and Reform Commission recently announced the list of models promoted by the new energy vehicle purchase subsidy activities. Among them, a total of 45 new energy passenger cars and 4 new energy commercial vehicles can enjoy 8,000 yuan / vehicle purchase subsidy, the only condition is that the car purchase contract signed by the people and the 4S shop can only be within 1 May to 30 days.

In addition, Shenyang, before the May Day holiday, the Shenyang municipal government decided to issue a one-time automobile consumption subsidy totaling 100 million yuan to individual consumers who purchase non-operating vehicles in Shenyang (household registration is not limited) from May 1, 2022. Consumption subsidies are implemented first, and the end is provided. Among them, the new car invoice amount of 50,000 yuan (inclusive) to 100,000 yuan (inclusive) within the subsidy of 2,000 yuan per vehicle; the new car invoice amount of 100,000 yuan (exclusive) to 200,000 yuan (inclusive) within the subsidy of 3,000 yuan per vehicle; the new car invoice amount of 200,000 yuan (exclusive) or more, each subsidy of 5,000 yuan. It can be seen that in order to continue to steadily increase bulk consumption such as automobiles and guide and promote the recovery of the Shenyang automobile market, the Shenyang Municipal Government has done a lot of work.

In order to encourage automobile consumption, Shenzhen has also issued a car purchase policy of "rewarding the purchase of new energy vehicles of 5,000 yuan". Through the above cities to encourage car purchase policies, we can also see that the current automobile market economy is really very poor. At this point, we can't help but ask: Why can't the rapid decline of the auto market in April be prevented from frequently bailing the market everywhere? Why are ordinary people reluctant to buy cars now? Based on this phenomenon at present, I think there are mainly the following reasons.

First, it is affected by the price increase of new energy vehicles. It should be known that it is precisely because of the sharp rise in raw material prices that major car companies have to adjust the prices of their models. From the perspective of price increases, as little as a few thousand yuan, more as high as tens of thousands of yuan, plus the price of new energy vehicles is inflated, so the "price increase tide" will naturally hit the people's purchase confidence, and then let most consumers have a cautious and wait-and-see attitude towards the current purchase of cars.

Second, the price of oil is too high. As of press time, the price of No. 92 gasoline in hunan area where I am located is 8.41 yuan / liter, the price of No. 95 gasoline is 8.93 yuan / liter, and the price of No. 98 gasoline is 9.73 yuan / liter, and it can be seen that oil prices are still maintained at a relatively high level. To be honest, 2 years ago, the oil price was less than 7 yuan / liter, most people are still willing to buy a fuel car, but now? With the high domestic oil price, the cost of the people "supporting" a fuel vehicle has been greatly increased, coupled with the economic downturn under the epidemic, so many consumers who originally planned to buy a car have also tightened their pants belts at the moment.

Third, the domestic first- and second-tier city automobile market has gradually become saturated. Many people may not know that as early as 2019, the number of mainland cars reached 260 million, and the number per thousand people was 186, which is not low. Although compared with the three or four hundred and up to 800 vehicles in developed countries, there are still many distances, but the population of the mainland is 4 times that of the United States, so we should not simply make analogies, but according to the national conditions.

From the perspective of the national automobile market, the car ownership in first- and second-tier cities has gradually become saturated, and such cities are often the main areas of car sales, so in such a situation where basically every family now has a car, it is difficult to continue to achieve stable growth in car sales in first- and second-tier cities.

Fourth, due to the shortage of chips and the impact of the epidemic, many car companies have reduced production and stopped production. This is an objective reason, not a consumer's subjective will not wanting to buy a car. After all, in the Shanghai area where the epidemic is most severe, 17 of the world's top 20 parts suppliers have built factories around Shanghai, and the current epidemic in Shanghai is not completely stable and controlled, so the supply chain shortage is bound to spread to the whole country.

In addition, the epidemic in Shanghai has also led to Volkswagen, BMW, Weilai, Porsche, Volvo, Tesla and many other car companies forced to cut production and stop production due to lack of core supply, and many cities are facing a situation of "no car to sell", so this is also an important reason for the "cliff-like" decline in the automobile market in April.

Fifth, the epidemic has lasted too long, and the people have no spare money to buy cars and change cars. The last point is also affected by the epidemic and the economic downturn. You know, because of the epidemic, many industries have to shut down, a small number of real economies that have not been shut down, such as the catering industry, entertainment industry, hotel industry, not only to face the problem of sudden decline in the flow of people, but also to deal with high rent, water and electricity, personnel costs and so on.

In addition, many companies are now cutting salaries and laying off employees, so in the case of the economic downturn and everyone's lack of spare money, the purchase and replacement of cars is naturally postponed indefinitely. In short, ordinary people have no money in their pockets, and it is reasonable to postpone the purchase of a car, which has nothing to do with life and survival.

Finally, we predict that the winter of the car market may continue for some time, and during this transition period, the sales of fuel vehicles will be drastically reduced, replaced by the rapid rise of plug-in hybrid vehicles and pure electric vehicles. In short, the era of the internal combustion engine should soon be gone, and in the face of the era of new energy vehicles that will be fully popularized, will you open your hands to embrace, or resolutely take the side of fuel vehicles? Leave a message in the comment area to talk about it, let's exchange and discuss it together. (Text/Univision Auto Dazhuo)

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