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Since General Motors (GM) initiated a price reduction at the end of May, it disrupted the previously stable pricing structure in the domestic automobile market. In the past two weeks, many car manufacturers have been closely watching the developments, as the once-stable pricing strategies have become increasingly unstable. According to data released by the SASAC Information Center, statistics from January to April this year show that the finished goods inventory of 13 key state-owned automotive enterprises has risen sharply. By the end of April, the total value of finished goods inventory reached 14.21 billion yuan, up 27.9% compared to the previous year. Industry insiders believe that the rising inventory levels are pushing automakers to consider further price cuts.
In particular, Volkswagen, which once dominated half of the Chinese auto market, is under immense pressure. Reports indicate that both FAW-Volkswagen and SAIC-Volkswagen are planning to lower their prices. According to recent industry sources, SAIC-Volkswagen is set to announce its price adjustments this Wednesday. The models affected include the entire range of Shanghai Volkswagen vehicles—Passat, POLO hatchback, POLO sedan, and the newly launched Santana 3000 Transcender. Compared to the 8% price drop by Shanghai GM, some analysts are questioning whether SAIC-Volkswagen’s move will be more strategic.
Industry insiders suggest that the price cuts by SAIC-Volkswagen will likely not exceed 8%, with estimates hovering around 5%. Additionally, the POLO hatchback and sedan have already seen price reductions, bringing their prices closer to international levels. Therefore, the decline may not be as dramatic as expected. When contacted, a representative from SAIC-Volkswagen confirmed, "There will definitely be a price drop this week," but did not provide an exact date.
Meanwhile, FAW-Volkswagen has remained quiet on the matter. Contrary to earlier rumors that Polaris would also cut prices, a reliable industry source revealed that FAW-Volkswagen has no immediate plans for a price adjustment. When contacted, the public relations department of Volkswagen China also denied any collaboration between the North and South units.
However, industry observers believe that after SAIC-Volkswagen implements its new pricing strategy, it could trigger a chain reaction across the market. Companies such as FAW-Volkswagen, Beijing Hyundai, Ford, and Dongfeng are likely to respond soon. As the competition intensifies, the pressure on all automakers is expected to grow, leading to more aggressive pricing strategies in the coming months.
The Double-Sided Slotting Machine can be classified into several types based on different characteristics: