Hong Kong, 29 March 2024 /Mainstream Community/ -- China Leading Automotive Internet Service Platform Car Home(NYSE Stock Code: ATHM; Stock Exchange Code: 2518) United Rollenberg, Reliance on Automotive's powerful data resources and Rolenberg's insights into the automotive industry, jointly publish “Winning the Price War” — China Passenger Car Price Trends and Pricing Strategy Study Report to Help Cars Try to win the price war.

With a cumulative sales volume of approximately 2,171 million vehicles in China in 2023, the Chinese car market is experiencing a U-shaped recovery, with sales returning to pre-pandemic levels, and the trend of price declines throughout the year has stimulated the release of consumer demand. Compared to 2022, the average price of terminal bikes for fuel cars and new energy cars decreased by 1-3% in 2023, and the decline of new energy cars was much higher than that of fuel vehicles.

User Perceptions and Expectations of Price Changes

Analysis of research data from the Automotive Home Research Institute found that almost 80% of users get price reduction information through automotive media, and users can only partially perceive price drops, and there are differences in perception of different brands/fuel types. 74% of users believe that the decrease in joint-branded fuel vehicles is greater. In actual market performance, the decrease in joint brand fuel vehicles is also relatively large, with a discount margin of 18.2% in 2023; however, users are not aware of the price reduction of new energy cars for joint venture, luxury brands, and the discount is close to 20%, but only 10% Users are aware of.

The trend of price reductions since 2023 has had a greater impact on users' purchasing decisions, with nearly three percent of users accelerating their purchase decisions due to the reduction in the price of the car they want to buy. In terms of future price reductions, nearly 70% of users believe that prices will continue to fall throughout 2024, potentially raising the prospect of holding currency for buyers.

Fuel car market “lost in volume”

In 2023, the fuel car market sales slowly recovered, and the price war began in March. By December, the average price of bicycles at the terminal had dropped by 3.2 million, but sales did not noticeably increase. Until December, all manufacturers were on the pulse. Under the price conversion strategy, the fuel car market fell by more than 7% in December and sales increased by more than 35%, at which time the preferential ratio of the fuel car market was close to 20%.

New Energy Market “Price Conversion”

As some new energy brands adopt a standard-price sales strategy, the price reduction of new energy vehicles is more reflective of the direct reduction in MSRP. However, from the changes in the discount margin, we can still see that the margin continues to increase, and by the end of 2023, the discount margin for new energy cars has reached 7.7%. In terms of monthly trends, the average price volatility of terminal bikes in 2022 is mainly driven by quarterly fluctuations in Tesla sales, causing the average price of terminal bikes to show a volatile upward trend. In 2023, affected by the expected market downturn and price wars, some brands targeting the high-end market are also launching more price-friendly products for greater sales, such as the Ideal L7 and the Smart LS6. This move further lowered the average price of terminal bikes and increased sales.

More about Motor Home

CAR HOUSE (NYSE STOCK CODE: ATHM; HKEX CODE: 2518) IS CHINA'S LEADING ONLINE SERVICE PLATFORM FOR AUTOMOTIVE CONSUMERS. According to QuestMobile data, average daily mobile users in December 2023 increased by 25.4% year-on-year to reach 6,819 million. The company's mission is to enhance the shopping and driving experience of Chinese car consumers. CAR HOUSE PROVIDES AUTOMOTIVE CONSUMERS WITH ORIGINAL CONTENT (OGC), PROFESSIONAL CREATIVE CONTENT (PGC), USER CREATED CONTENT (UGC), AI CREATION CONTENT, A COMPREHENSIVE CAR MODEL LIBRARY, AND EXTENSIVE CAR PUBLISHING INFORMATION COVERING THE ENTIRE PURCHASE AND USE CYCLE. Because of its ability to reach a large and active user base of automotive consumers, Car Home has become the preferred platform for advertising campaigns for automakers and dealers. In addition, our dealer subscription and advertising services enable dealers to market their inventory and services through the Car Home platform, expand their physical showrooms to millions of potential network users in China, and gain sales leads. We provide sales leads, data analytics and marketing services to help automakers and dealers improve efficiency and facilitate transactions. Car Home operates its “Car Shop”, a full-featured online trading platform that helps automakers and dealers facilitate transactions. In addition, we also provide other value-added services through its website and mobile applications, including auto finance, auto insurance, used car trading and after-sales services.

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