Market Analysis: Trends in Vehicle Promotions and Sales Performance

Key Insights:

• September witnessed 23 vehicle models experiencing price cuts, indicating price stability in the market.
• The promotional intensity for new energy vehicles (NEVs) rose to 10.2%, reflecting a growing trend in the segment.
• Independent brands, particularly those under major state-owned groups, reported a significant year-on-year sales increase of 25%.

Recent trends in the automotive market reveal a stable landscape for vehicle pricing and sales dynamics, particularly in the new energy vehicle sector. According to insights shared by industry leaders, September 2023 saw a total of 23 models undergo price reductions, contrasting with higher figures of 36 models and 11 models in the same months of 2022 and 2023, respectively.

Focusing on promotional strategies, the new energy vehicle sector maintained an elevated promotional intensity of 10.2%. This figure is notably an increase of 2.6 percentage points compared to the previous year, demonstrating a robust market push. Even month-on-month analysis reflects a slight uptick of 0.7 percentage points, indicating sustained promotional efforts within this category.

In contrast, traditional fuel vehicles showed a promotional intensity of 23.9% during the same timeframe, marking a 1 percentage point rise from the previous month and a 1.9 percentage points increase compared to the previous year. This trend suggests that conventional vehicles are also strategically leveraging promotions to capture market attention, although the growth rate is comparatively modest.

The wholesale performance among leading automotive manufacturers continued to evolve in September 2023. Several mid-sized companies, including Geely Automobile, Dongfeng Nissan, Xpeng Motors, Xiaomi Motors, and Leapmotor, showcased significant month-on-month growth. Notably, these brands have been capturing increasing consumer interest, suggesting a potential shift in market preferences.

The independent brands associated with major state-owned groups experienced a remarkable year-on-year growth of 25% in September. This surge is powered by innovative product offerings from companies such as SAIC, Dongfeng, Changan, Chery, and BAIC. Among them, newer second-generation models from brands like Shenlan, Lantu, Jihu, and Da Group are particularly driving their success.

Such growth trends may reflect broader consumer shifts towards both technologically advanced and cost-effective vehicle solutions, positioning independent brands as formidable players in an increasingly competitive landscape.

In conclusion, while the overall market remains stable, the trends indicate that both new energy vehicles and traditional fuel vehicles are engaging in strategic promotions to maintain sales momentum. The observed growth among independent brands suggests a promising future as consumer preferences evolve towards innovation and increased value.