Gasgoo.com (Shanghai Apr. 15th) ĘC In Apr. 6th, Shanghai Volkswagen released price-off promotions, reducing official selling price of Polo and Touran and privileging for Tiguan, Passat, Lamando and Lavida, which is the 1st promotion of auto enterprises in 2015 and rare official promotion in recent 2 years. Industry analyst figure the promotion of SVW, which owns the most sales volume in auto industry, might cause demonstration effect and there would be more promotions of other brands due to large inventory of distributors.
According to the promotion, the price of New Polo Fashion reduced by 10,000 Yuan, the retail prices of New Polo Comfort & Luxury, Cross Polo and Polo GTI reduced by 8,000 Yuan. Besides, the retail price of all Touran models reduced by 10,000 Yuan. For VW brand, the decreasing amount of Tiguan and Passat is 10,000 Yuan. 8,000 Yuan and 5,000 Yuan are highest discount of Lamando and Lavida.
In recent years, SVW has been one of auto enterprises with best sales in China, whose models are almost sold by 10,000 per month. In 2014, the sales volume per month of Lavida, Santana, and Tiguan & Passat was over 30,000, over 20,000 and round 20,000. The data for Polo and Touran were about 13,000 and less than 3,000.
In accordance with statistical data of China Automotive Industry Association, the production and sales volumes of China passenger cars in January were 1,969,300 units, increasing by 1.4% MoM and 15.1% YoY, and 2,038,000 units, declining by 1.1% MoM and increasing by 10.4% YoY. The production and sales volumes in February were 1,631,800 units, declining by 28.65% MoM and 0.38% YoY, and 1,593,300 units, declining by 31.31% MoM and 0.22% YoY. The alert index of inventory of distributors in March was 67.5%, increasing by 16.6% MoM. According to related research, the total auto market demand index in March was 30.1%, declining by 7.7% MoM and 63.2% of distributors figured total quantity demand in March would decline MoM. Auto distributors are facing the pressure of failure on sales target in first half year of 2015.
In fact, the distributors had provided more promotions in March with the support from different auto enterprises, although there had been no official promotions except for SVW. The new models in first quarter of 2015 also led to the promotions of old models.
Almost all models of VW brand were involved in the price-off promotion. It is worth noting there aren't hardly any promotions for Tiguan in recent years and Lavida has been put in official price-off promotion after being released for only 3 months.
The official price-off promotion of SVW might cause demonstration effect and other auto enterprises would follow because of Shanghai International Automobile Industry Exhibition and busy May around the corner.