Luxury Car Market Sees Large Discounts Triggered by Dropped Sales
The Shenzhen luxury car market is witnessing large discounts for the month of July that was triggered by dropping sales paired with the restrictions of the number of new car that are allowed to be registered. Discounts of 70,000 to 80,000 yuan is common while some cars were sold at even lower by taking off several hundreds of thousands yuan.
When competition intensifies dealers always give out large discounts, with some vehicles being sold at 30 percent discount and the highest discount offered was for an imported Volkswagen Golf with discount of 13,480 yuan and Audi is currently selling at a record low price for 2015. Not only the prices affected car dealers but is spreading to car manufacturers as well as Land Rover announced that it will be dropping 50,000 yuan from their prices.
Total number of imported cars that were sold at dealerships as of May was 379,800 showing a decrease of 21 percent compared to the same period were Volkswagen, Land Rover, Renault and Audi saw a drop of 40 percent in sales, Mercedes Benz was the only car dealer who didn’t feel the drop in sale prices. The shrinking sales are due to the government limiting the number of new cars to be sold which took effect last December 2014 and the vehicle administration only issued 119,800 license plates for the first half of 2015.
Although the policy affected car dealers and manufacturers, a majority of the manufacturing employees are on leave since July and August are off season for the luxury car market.