Carmakers cash in on demand for auto replacement
- Source: CE.cn
- [09:07 August 06 2010]
- Comments
This year, another peak of changing private vehicle comes into China.
Different from the consumption rule of vehicle in developed countries where such a replacing cycle comes when cars are over three years old, vehicle consumption in China is still in a developing period, therefore, the average service life of one car is relatively longer, up to five or six years.
Around 2003, private vehicle consumption entered the blowout time in our country, and until now new vehicle consumption is still rapidly increasing. At present, with the vehicle price gradually hitting bottom and the faster speed of launching new vehicle as well as the promoting of consumption capacity, the frequency of car owners changing their vehicles speeds up.
In 2002, the inventory of private vehicles in China was 9.69 million sets, and then the datum soared to 18.52 million sets by the end of 2005.
The ages of these vehicles have been about 5 years in 2010, and the price of them also has reached the peak value of the used car. Even though a small part of them are to be eliminated or replaced, the number would not a small one.
At the end of last year, Shen Rong, the Assistant Secretary General of China Automobile Dealers Association, expressed that it is divinable that a blowout market will appear at the second-hand car market in China in 2010.
According to the used-car market data, 1.1046 million used cars were sold out from January to April this year, increased by 125,800 sets compared with that of last year, up 12.85 percent year on year.
At the same time, a series of consumption encouragement policy issued by the government undoubtedly also pushed the vehicle replacing flows forward.
Besides favorable purchase tax, early in this year, the State Council approved and raised the old-for-new subsidy standard of vehicle, and adjusted related policies. That followed is sharply increased consumption of old-for-new cars.
The number of vehicles, of which the subsidies have been granted in March and April, increased by 267 percent and 93 percent month on month respectively. Since May, there are 2,758 vehicles getting subsidies everyday, which are 18 times that before policy adjustment.
In models, sedan is the most affected by the policy adjustment. The amount of sedans receiving subsidies is 34,000 from early 2010 to May 24, 2010, increased by 67-fold than that before policy adjustment.
Up to May 24, there were 106,000 vehicles that obtained old-for-new subsidies in China, with the subsidy amount of 1.4 billion yuan, which brought along the new car consumption valued RMB12.6 billion yuan.
Based on the strong market prospect, it has become a focal point for each automobile company to grasp the opportunity brought by the replacing vehicle flows.
Because of different consumption habits, Chinese consumers prefer to focus on the price, configuration, appearance and modeling to brand. Ms. Liu, a consumer who plans to purchase a car in August, told the reporter that she has never considered buying a car with the same brand, and what she focused on firstly is the price followed by appearance and inner space, and then the configuration.
Actually, there are many consumers in our country, who do not choose vehicles of the same brands in virtue of loyalty when they replace their vehicles, but hope to try and experience more.
