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Why is China's auto market still soaring despite the decline in consumption power in 2023?

author:Kijuro
In 2023, the total production and sales of China's auto market will enter the 30 million mark, a year-on-year increase of 10%. This seems a bit out of place in the context of declining demand, why is that?

I think this has something to do with the changes of the times, for example, many villages in many areas are now connected to cement roads, for example, the per capita income has increased, for example, under the relevant policy subsidies, preferential policies for buying cars, etc., many people will buy cars. Buying a car and buying a house is also one of the very important inputs in many people's lives, in these three cases, even if the consumption is downgraded, many newly married families, many families who want to get married, and some urban and rural areas will generate a lot of purchasing power.

Why is China's auto market still soaring despite the decline in consumption power in 2023?

In the data of Double 11 in 2023, we can also find that digital and automobiles, fishing equipment and other products still have strong consumption power, especially for boys. All of this can invisibly boost the sales of automobiles.

First of all, the first big aspect, the villages are connected to cement roads

Every year before the Chinese New Year, there will be an urge to buy a car, because it is very convenient to return to your hometown and go to relatives to have a car during the Chinese New Year in winter. At this time, I saw that there were more vehicles on the rural road, some of them bought their own cars, and even some people in the village also bought cars because of the convenience of the road, which was a motorcycle before, and they also began to have cars over the years. Just to go out without fear of wind and rain. Wind and sun.

Why is China's auto market still soaring despite the decline in consumption power in 2023?

Of course, there are also some people from other places who go home for the New Year to rent a car, so there is a wave of car buying peaks before the New Year. Many people buy a car because of travel, because of the high-speed traffic, and the convenience of driving. Therefore, on holidays, we can find that private cars on the highway are very congested.

The second aspect is the change in the policy of buying a car

With the advent of new energy vehicles, the market impact is great, whether it is new energy vehicles or electric vehicles have relevant policies, the country and various regions have launched new energy car policies, to encourage everyone to buy new energy vehicles. In order to face the market impact, oil trucks began to carry out subsidy tactics in 4S stores, hoping to increase sales.

In the past two years, with the rise of the town's economy, the countryside has been opened to roads, and the sales of many cars of the 100,000 level and less than 200,000 are very good, and they have also generated strong purchasing power. Every time there is something in my hometown, I can see many people in the village driving home.

Of course, there are other reasons, such as

The third aspect is the process of urbanization

Why is China's auto market still soaring despite the decline in consumption power in 2023?

As China's urbanization continues to advance, more and more people are pouring into cities, and the demand for cars is also increasing. With the increasing problem of urban traffic congestion, many people are also beginning to consider buying a private car to solve the problem of personalized mobility. As well as travel issues and the convenience of returning home every time.

Third, consumption upgrading

With the rapid development of China's economy, people's consumption level is also rising. For some families, buying a car has become one of the necessities of life. In addition, with the change of young people's consumption concepts, they pay more attention to personalized and high-quality consumer experience, which also provides new opportunities for the development of the automobile market.

Why is China's auto market still soaring despite the decline in consumption power in 2023?

Fourth, technological innovation

With the continuous advancement of science and technology, the automotive industry is also constantly undergoing technological innovation. For example, the emergence of new energy vehicles can not only meet people's needs for environmental protection, but also provide a more intelligent and convenient travel experience. The introduction of these innovative technologies has also injected new impetus into the development of the automotive market.

Why is China's auto market still soaring despite the decline in consumption power in 2023?