So the German automaker hopes to encourage falling demand for its cars in China. Fell by almost all the available models in China BMW, but to varying degrees: the price of cars 3-series reduced immediately by 30% , falling prices for other models ranges from 24% to 29%.
It was noted earlier that the profitability of the BMW works in China are reduced. A local company, Brilliance China Automotive Holdings, is engaged in production and sales of BMW cars in China, it warned that income from sales of the German mark in the Chinese car market fell due to lower demand. According to forecasts of the Hong Kong Stock Exchange for the year earnings from BMW business in China will be reduced by 40%.
China for several years held the status of the fastest growing automotive market in the world. Another record was set in 2013, when China became the first country in the world, in which the capacity of the car market exceeded 20 million. All the major European automakers were betting on the Celestial Empire, in particular – manufacturers premium models, as the premium segment of the Chinese market grew faster than the market as a whole.
But this year, the Chinese auto market began to slow down, as predicted by many analysts. In addition, the Chinese economy as a whole shows a decline for the first time in 25 years, according to international news agency Reuters.
According to the Association of passenger cars (China Passenger Car Associataion, CPCA), in June, sales of new passenger cars in China decreased by 3.2% compared with the same month last year. Total in China in June were sold 1.43 million new cars. At the end of six months as a whole, sales of new passenger cars in China rose by 8.4% compared to the same period last year. The demand for sedans fell by 3%, but sales from the SUV-segment of the Chinese market increased immediately by 57%.
The Assistant Secretary General of All-China Federation of Automobile Dealers Association hinted that part of the responsibility for this situation lies with the auto giants themselves. “Car manufacturers blindly pursue sales forcibly overwhelmed warehouses that puts distribution companies in a difficult situation. This is not only conducive to the healthy and sustainable development of the automotive industry, but also can eventually damage the interests of customers “- the official said.