The car market in Global financial turmoil

Global financial turmoil, the people's car market worry is not without reason, the U.S. and European markets fell sharply, consumers may Wujin store wallet rainy day. At present, China's auto market almost monthly sales decline than the ring, in a downward trend in the near future, there is news that there will be 90 per cent of the manufacturers could not complete the annual task of production and marketing, predicted that next year could be even negative growth. At the end of season advent of the traditional market, car market seems to be more bad news, in which case, this year's season will Ruqierzhi it?

In my view, despite the bad news of a great, but the current consumption of the automobile market may not be a material impact, especially for seasonal market, the automobile market and also a lot of good news, the news will not only enhance the consumer Confidence-to-end consumer is also a substantial promotion. First of all, the financial turmoil on the Chinese residents in the short term there is not yet feel the pains, especially for such a large consumer goods vehicle of the potential buyers. And the U.S. auto market 70% of consumer loans, China's automobile consumption loans to individuals less than 10%, which shows that the majority of potential Chinese consumers are first enough money to spend, that is, their buying behavior Demand-driven, rather than by purchasing power. Therefore, if the demand for seasonal sales peak is still there. In addition, the introduction of 4 trillion national budget for investment, the market is greatly encouraged by the confidence that the financial turmoil on the bad news has been watered down to a large extent, the recent rise in a row is reflected in the stock market. The introduction of the investment plans aimed at stimulating domestic demand, reflected in the final will also enhance the purchasing power of consumers.

In addition to these external factors, on the automobile market to keep selling at the end of the market there will be two major causes, one of the price, and the other is oil prices. At the end of the price still will have a more significant decrease was mainly due to manufacturers for the completion of the annual sales mission and create impulse. This year the situation may be more serious in 2008 due to different factors, the overall slowdown in the automobile market demand, the data show that there are now 90 per cent of the manufacturers may be unable to complete the task of the year, which is bound to the end of the market Competition is more intense, more intense price war, the decline of the price even more. However, this is the end consumer, there are a lot of promotion, it was observed that in many cases the basic model of the concessions have been million, including some of the already low price of mid-level models, and even A0-class models. In the consumer purchasing power and consumer confidence is not affected, the price is bound to be more appropriate time to give up Chibidaigou, the backlog of demand in the year-end release.

In addition to the sharp decline of the price, there is a potential major oil price is good may also decline. International oil prices have been high from 150 U.S. dollars a barrel down to less than the current 60 U.S. dollars a barrel, fell as much as 60% of the Chinese market, oil prices still remain the same, obviously there was a downward pressure. It was observed that at present, the local oil prices have been loosened, uniform reduction in oil prices has been a matter of time. There is no doubt that oil prices will soon lower consumption of motor vehicles is a major good news, despite the downturn in oil prices has not yet come to the expectations of consumers will purchase a great role in the promotion, which will be pressed to a large extent, consumption The market recovery.

In short, both the country's macro-control policies, or the internal market factors, the market at the end of this year's season will continue to Ruqierzhi

Comments

A real shakeup was needed!

let's hope something really positive comes out of it.

Elly

Wheels in China
Adventures of an Australian English Teacher
About Housesitting

I think this economic...

crisis will actually clean up the markets and add some realism. People lived beyond their means, and then found things difficult when it came to pay the piper. In New Zealand it is now back to 20% deposits for homebuyers - it wasn't very long ago you could get 90% mortgages, and if you wanted a new car - take out another mortgage on your house!

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