Chinese carmakers begin new round of price cuts as market loses its momentum
Chinese carmakers and their foreign partners have begun a new round of price cuts as competition intensifies in a market that has lost the momentum of the past three years' double-digit growth rates.
Joint ventures operated by Ford, Honda and Audi, part of the Volkswagen group, announced price reductions in recent weeks, bringing prices for some models to about 27 per cent lower than 18 months ago.
The latest reductions have surprised some dealers and analysts, who had expected a period of relative calm in a market that has experienced large swings since 2002.
The Honda Accord, one of the best selling cars in China, has had its price cut by just over Rmb20,000 to about Rmb198,000 ($24,000).
The Mondeo, Ford's full-size sedan that competes with the Accord, has gone even lower, to Rmb193,000, from Rmb220,000 last year, and as high as about Rmb265,000 18 months ago.
The price cuts follow profit drops announced by western manufacturers that failed to cut manufacturing costs in China as quickly as prices fell.
Chinese car dealers, surveyed in early March by Automotive Resources Asia, a Shanghai consultancy, had expected prices would begin to fall again during the northern hemisphere summer, when a series of new models is due to come onto the market.
Chinese car sales increased by 60-70 per cent in 2002 and 2003 and in the first quarter of 2004, before slowing abruptly later in the year, leaving dealers saddled with large stocks of unsold cars.
The survey of dealers found that most expected the market to grow by 5-10 per cent in 2005, compared with 16 per cent for the whole of 2004.
The price cuts represent a concession by the manufacturers, because they broadly reflect the discount that dealers had been offering consumers to clear stocks last year.
The cuts may increase sales, but they risk encouraging consumers to delay buying vehicles in the expectation of further price reductions.
Financial analysts have voiced fears that a glut of new cars will further hurt profitability as more than $10bn is invested to double vehicle factory capacity to 7m units in the next two years.
China is the third biggest automotive producer in the world and until recently had the highest profit margins. Although no multinationals have backtracked from their investment announcements, they might be pursuing their expansion plans with less vigour than they had initially expected. “My sense is that they are stringing it out they are not moving with the same tenacity as before,” said Mr Michael Dunne, of ARA.
He said that dealers had become more optimistic in the early weeks of March because manufacturers had set more realistic sales targets. ARA found that 90 per cent of dealers expected to meet sales targets this year.
Additional reporting by James Mackintosh in LondonJoy of going topless, Page 18
中国：汽车新一轮降价 增长失去动力
中国汽车制造商及其外国合作伙伴已开始新一轮降价，原因是中国市场竞争加剧。中国汽车市场过去3年里年增长率达两位数，但现已失去了增长动力。
福特(Ford)、本田(Honda)和大众(Volkswagen)集团旗下部门奥迪(Audi)经营的合资企业近几周宣布降价，从而使某些车型的价格比18个月前低了约27%。
最新一轮降价使一些汽车经销商和分析师感到意外，他们一度预期市场将相对平静一段时间，因为自2002年以来，该市场大起大落。
本田雅阁(Honda Accord)是中国最畅销车型之一，该车型已降价逾2万元人民币，至19.8万元(合2.4万美元)。
与雅阁竞争的福特全尺寸轿车蒙迪欧(Mondeo)价格降得更低，从去年的22万降至19.3万，18个月前该车价格还高达约26.5万元。
降价前，西方制造商由于削减在华制造成本的速度不及价格下跌快，因而宣布利润下挫。
亚洲汽车资源(Automotive Resources Asia)是上海一家咨询机构，三月初该机构对中国的汽车经销商进行了调查。经销商们曾预期，价格将在北半球夏季期间再次下跌，届时新款车型将上市。
2002年、2003年和2004年第一季，中国汽车销售增长60%至70%，之后在2004年晚些时候突然减缓，令经销商出现大量汽车存货积压。
对经销商所作的调查发现，它们中的多数预期市场在2005年增长5%至10%，相比之下，2004年全年增长为16%。
降价表明生产商作出让步，因为这些降价在很大程度上表明，经销商们去年为了清理库存而向消费者提供折扣。
降价可能会令销售增长，但也有风险，因为消费者预期价格会进一步下调，而推迟购车。
金融分析师已表达了担忧。他们担心，由于未来两年生产商将投资逾100亿美元，将车厂产能翻倍至700万辆，新车供应过剩将进一步损害盈利能力。
詹姆斯?麦金托什(James Mackintosh)伦敦补充报道。
