AutoBeta(AutoBeta.net)03/07 Report--

On March 7, Dongfeng Motor rose strongly by its daily limit, leading other auto stocks higher. As of the close, Dongfeng Motor closed at 6.8 yuan per share, with a total market capitalization of 13.6 billion yuan.

Dongfeng Motor trading limit, or Dongfeng Motor's brands to open time-limited car purchase discount activities, the scope of subsidies, involving a wide range of models, aroused market concern. According to incomplete statistics, Dongfeng Honda, Dongfeng Nissan, Dongfeng Citroen, Dongfeng Peugeot, Dongfeng Fengshen, Dongfeng Lantu, Dongfeng Fukang a total of 7 brands 58 models participated in car purchase subsidies. It is understood that this round of subsidies is limited to Hubei Province and is valid until March 31.

The biggest concession is the French joint venture brand Dongfeng Citroen. The subsidies for Citroen C6 co-creation models and C6 comfort models with original guidance prices of 211900 yuan and 226800 yuan are all up to 90, 000 yuan, plus purchase tax, license fees and insurance. Citroen C6 may eventually land at about 140000 yuan, the price is quite seductive and powerful. In the eyes of many consumers, although the Citroen brand does not have a strong sense of existence in the market, does not maintain the value of Japanese cars, and even has many defects, the Citroen C6, which costs only 120000 yuan for a naked car, is really fragrant. Netizens lamented one after another, "there are no cars that cannot be sold, only inappropriate prices."

In this government-enterprise joint subsidy activity, Dongfeng Honda subsidized models basically cover all its models, including subsidies up to 68000 yuan discount. Among them, the subsidy amount of the UR-V model is the highest, which is 68000 yuan, followed by the 2022 CR-V PHEV model, which is 60000 yuan. The 2023 CR-V PHEV model, which will go on sale on March 10, will also receive a subsidy of 20, 000 yuan, which is enough to show the strength of this subsidy. In addition, the subsidy is 54000 yuan for Ericsson and 20000 yuan for Civic.

Such a huge discount has also attracted a large number of non-local consumers to buy cars in Hubei. A salesperson at Dongfeng Citroen 4S store in Wuhan said that this event is a campaign to promote car consumption initiated by the Hubei provincial government. Some models produced by some automakers in Wuhan can enjoy government subsidies and manufacturers' subsidies. However, to enjoy this subsidy, you need to buy vehicles in Hubei Province and be licensed in Hubei Province. The salesperson said that for models with such large discounts as the Citroen C6, there are no cars available in the store at present.

It is worth mentioning that with the hot discussion about the price reduction of subsidies, some non-Dongfeng brands are also on the lookout. On March 7, Buick, a subsidiary of SAIC GM, also announced that it would join the army of "subsidized price cuts". According to relevant posters, Buick's Regal, LaCrosse, Ankewei Plus, Ankewei S, Anke Banner and other models are eligible for subsidies, with government and enterprises subsidizing up to 70, 000 yuan until March 31.

Since the beginning of this year, more than a dozen provinces and cities, including Shandong Province, Hunan Province, Hefei City, Shanghai, and so on, have distributed "big gift packages" for car purchases, but the preferential rate is generally less than 10,000 yuan. however, it is rare for Hubei Province and Dongfeng Motor to jointly subsidize the government and enterprises this time.

On February 5, the Wuhan Municipal people's Government issued a circular on policies and measures to stimulate the vitality of market entities to promote high-quality economic development, saying that it should seize the opportunity to extend the province's special policy on promoting automobile consumption and support Wuhan Economic Development District and Jiangxia District in conjunction with automobile production and sales enterprises to carry out car purchase subsidy activities, which will last until March 31, 2023.

Hubei Province has invested real money and silver to stimulate automobile consumption, which shows the importance of the automobile industry to the economic development of Hubei Province. However, some people in the industry believe that manufacturers are in order to clear inventory and do publicity, there is no need to over-interpret. The person believes that, taking Dongfeng Honda as an example, the decline of the main models such as CR-V and Civic is very small, and the sales of several models with large declines, such as UR-V, have been poor, which is in fact a very normal corporate promotion behavior.

Dongfeng Motor Group sold 124600 vehicles in January, down 63.5 per cent from a year earlier, according to data released by Dongfeng Motor Co., Ltd. Among them, Dongfeng's daily production and sales volume was 34800, down 72.65% from the same period last year; Dongfeng Honda's sales were 77400, down 60.57% from the same period last year; Shenlong car sales were 5265, down 59.5% from the same period last year; and Lanto's car sales were 1548, down 0.32% from the same period last year.

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