In January 2024, the "Spring Festival car buying boom" in the auto market ushered in an unexpected downturn. Major auto brands have launched price cuts** campaigns, but the number of orders has not improved as expected. The number of customer visits and orders in Tesla stores has fallen by 60%-70%, and the sales of other new brands have also been substantial**. Even last year's global new energy sales champion, BYD's January sales were surpassed by Volkswagen for three consecutive weeks. The sales of brands such as Wuling and Aion also declined month-on-month, and even popular models also fell by more than 30%.
Overall, this year's Spring Festival car buying boom in the auto market is not as expected. So, why is this year's Spring Festival car buying boom in the auto market not as expected? We can analyze it from several aspects. First of all, the market is highly competitive. With the continuous expansion of the new energy vehicle market, more and more brands have entered the market, and the competition has become more and more fierce. In addition to traditional car brands, new power brands are also rising rapidly. Consumers are faced with a multitude of choices, resulting in fragmented market demand and no obvious car-buying boom. Second, consumers have a strong wait-and-see mood.
Despite the price reductions** offered by car brands, consumers' concerns about the economic situation and the cost of post-purchase maintenance have made them more cautious. Many consumers choose to wait and see, waiting for better car buying opportunities or more competitive product launches. Thirdly, the policy adjustment has affected the car buying boom. In recent years, the policies for the automobile market have been continuously adjusted, such as canceling the preferential purchase tax policy and increasing subsidies for new energy vehicles.
These policy changes have led to a change in consumers' mentality towards car purchases, and they are no longer as eager to buy cars as they were in the past, leading to a decline in market demand. Finally, the impact of the pandemic cannot be ignored. The outbreak of the new crown epidemic in 2023 has had a huge impact on the global economy, and the automotive market has also been affected. The pandemic has led to a decline in consumer travel demand, and car purchase plans have been postponed or cancelled. In addition, the interruption of the ** chain and traffic restrictions have also affected the normal operation of the automobile industry, further restricting the formation of a car buying boom.
In short, this year's Spring Festival car buying boom in the auto market is not as expected, which is the result of fierce market competition, strong consumer wait-and-see sentiment, policy adjustments and the new crown epidemic and other factors. Auto brands need to actively respond to market changes, find breakthroughs, and enhance product competitiveness and brand image to adapt to changes in market demand. In January 2024, sales of traditional car brands declined month-on-month, but the year-on-year performance was relatively good. Volkswagen surpassed BYD's sales for three consecutive weeks, with cumulative sales exceeding 150,000 units, an increase from January last year.
Toyota's sales have also remained stable and are expected to be the same as those in January last year. Other joint venture and luxury brands also performed similarly. Traditional brands have generally adopted a price reduction strategy, while new power brands have more attractive policies. However, overall, the market was cold in January, and the Spring Festival car buying wave that car companies were looking forward to did not appear. According to the data of the passenger association, the satisfaction index was 92% in December last year, and dropped to 79% in January this year. This may be due to the fact that some consumers bought their cars in advance in December last year, as well as the lack of demand and purchasing power.
In addition, after experiencing the ** war in 2023, consumers have become accustomed to large discounts, and the ** policy in January is difficult to stimulate the desire to buy. 2024 is off to an unfavorable start, boding well for a year of fierce competition between automakers. However, can we find some hidden opportunities behind this seemingly sluggish market? While sales are declining overall, there are a few brands that are doing well. For example, Volkswagen surpassed BYD in sales for three consecutive weeks, which is an impressive achievement. Volkswagen's product strategy and market positioning may have played a key role to some extent.
In addition, Toyota's sales are stable, which also speaks to the competitiveness of this brand in the market. We can conclude from this that the quality of the product and the user experience are of paramount importance to the car company. In addition to the competition of traditional brands, new power brands are also emerging in the market. They have more attractive policies, which have attracted the attention of a part of consumers. However, we can't ignore the advantages of traditional brands either. They have a long-term accumulated brand influence and user reputation in the market, which is difficult for new power brands to shake. However, what is the reason for the cold market?
Why didn't consumers respond enthusiastically to January's policy? On the one hand, some consumers may have purchased their cars in December last year, which led to a decline in sales in January. On the other hand, consumer purchasing power and demand may be relatively insufficient, which was one reason for the poor performance of the market in January. In addition, after the first battle in 2023, consumers' expectations for discounts have gradually increased. They have become accustomed to large discounts, and the ** policy in January is difficult to stimulate their desire to buy again.
This also puts a certain amount of pressure on car companies, and they need to find new best strategies to attract the attention of consumers. Faced with an unfavorable start to 2024, car companies will face fierce competition among themselves. But we can also see that there are some opportunities. Behind the cold market, some brands still maintain stable sales, which shows that they still have a place in the hearts of users. In addition, the rise of new power brands is also worthy of our attention, and they are constantly challenging the status of traditional brands through innovative products and attractive policies.
In this highly competitive market, product quality and user experience will be the difference between victory and defeat. Only by continuously improving the quality of products and meeting the needs of consumers can we stand out in the market. At the same time, car companies also need to find new strategies to attract consumers' attention and desire to buy. 2024 is destined to be a year full of challenges, but it is also a year full of opportunities. Only by constantly adjusting strategies and adapting to changes in the market can we remain invincible in the competition.
Whether it is a traditional brand or a new power brand, only by insisting on innovation and quality service can we gain a foothold and succeed in this highly competitive market.