"Half an hour in the economy": When will the car price cut come to an end?
October 04 11:07:43, 2025
China News Network reported that in the economic half-hour segment, today's focus is on the automotive market. In September, the domestic auto market witnessed a new wave of price cuts. Even those who had previously advertised their cars found themselves offering discounts and concessions. Under the guise of consumer purchases, automakers once again adjusted their prices to new highs and lows. Let's now take a look at how different manufacturers are performing in the auto market.
News: Car Prices Are Dropping Rapidly
One of the largest motor vehicle trading markets in Beijing is the Asian Games Village Auto Market, which is often seen as a barometer for the broader auto market. Reporters found that the latest round of price reductions began with drops ranging from 2,000 to 20,000 yuan. In the Asian Games Village market, the price of cars can be described in one word: falling. Various dealers displayed signs indicating price cuts, with some offering 3,000 yuan off, others 6,000, and even some models down by as much as 20,000 yuan.
A dealer said, “Primarily, each model is down by around 10,000 yuan. For example, the 1.6L version originally priced at 133,600 yuan is now 113,600 yuan.†Reporters noted that these price cuts affected almost all well-known domestic brands, not just older models. Even newly launched models like Fit, Corolla, and Elantra have joined the trend. A consumer said, “The Excelle Bora is now available for between 100,000 and 155,000 yuan.â€
Reporters also found that some models that had recently cut prices were still being discounted further. For example, Dongfeng Citroen Elysee had already been given a discount of 12,000 yuan on June 18th, and this time it was reduced by 6,700 yuan. Salespeople mentioned that the Elysee dropped by 10,000 yuan in March, 12,000 in June, and nearly 7,000 this time, leading to a total drop of nearly 30,000 yuan within six months. The car started at 130,000 yuan at the beginning of the year and now stands at 110,000 yuan, with additional perks such as third-party liability insurance and raffles.
Reporters also noticed that even after significant price reductions, many cars still had room for negotiation. A dealer said, “If you want to buy it, you can get an extra 2,000 to 3,000 yuan discount.†According to the dealer, such practices are common in the auto market, where prices are often reduced multiple times to retain customers.
Su Hui, head of the Beijing Asian Games Village Automobile Exchange Market, observed the changes in car prices and summarized three major features of this price reduction: more brands with lower prices, more models with lower prices, and larger price cuts. Reporters conducted preliminary statistics and found that over 50 models had experienced drastic price cuts, including the Cherokee, Dongfeng Citroen Senna, Beijing Hyundai Sonata, Elantra, Hainan Mazda Fumei, Shanghai Volkswagen POLO, FAW Toyota Corolla and Vios, Guangzhou Honda Fit, and more.
Such collective price cuts have made consumers excited, but there are questions about how quickly so many models have cut prices again just months after previous rounds. Industry experts believe there are three main reasons behind this.
Survey: Three Main Reasons for Price Cuts
First, during the Golden Week period, many promotional price cuts or preferential measures are linked to the Mid-Autumn and National Day holidays. Car dealers aim to capitalize on the traditional "golden nine silver ten" sales season. They start promotions a month or even 1.5 months in advance to attract buyers before October 1st. Many people travel by car during the holiday, and some who don’t own a car may choose to buy one in September.
Second, banks have tightened personal car loan credit since April, leading to a drop in demand. This has forced manufacturers to reduce prices to stimulate sales. Jia Xinguang, chief analyst at the Beijing Institute of Automotive Industry Development, explained that banks have high bad debt ratios, so they’ve restricted credit, affecting consumer purchasing power. As a result, many dealers are struggling with inventory and must offer deep discounts to clear stock.
Third, increased inventory pressures have forced manufacturers to cut prices. According to data from the China Association of Automobile Manufacturers, production from January to July this year reached 1.4489 million units, while sales were only 1.3355 million. With rising inventory levels, dealers are under pressure to sell cars quickly, even if it means losing money.
Additionally, the entry of foreign car brands into the Chinese market has intensified competition. Experts suggest that by 2006, tariffs on imported cars will be significantly reduced, further influencing consumer behavior. New models continue to flood the market, raising concerns about future price trends.
In a survey, 92% of respondents believed car prices would continue to fall, with 76% of potential buyers waiting for better deals. While 22% considered buying immediately, most preferred to wait for further price declines.
Compared to the overseas market, where price wars are rare due to strong regulations and monopolies, the Chinese auto market remains highly competitive. Experts predict that after years of intense competition, only a few manufacturers will survive.
In conclusion, the ongoing price cuts have led to challenges for dealers and small manufacturers, while consumers remain cautious. Despite the uncertainty, the downward trend in car prices is expected to continue for several years, shaping the future of the automotive industry.