The price reduction of fuel vehicles is due to National VI B

First, let’s talk about the origins of National VI A and National VI B.

In December 2016, the "Light Vehicle Pollutant Emission Limits and Measurement Methods" led by the Ministry of Environmental Protection and others was officially released, and the document set up two standards: "National VI A" and "National VI B" an emission limit scheme. Among them, the "National VI A" plan will be implemented on July 1, 2020, and the "National VI B" plan will be implemented on July 1, 2023.

From A to B, the state has given a three-year transition period in order to allow car companies sufficient time to respond and avoid a one-size-fits-all approach. Because China VI is also known as the strictest emission regulations in history, some of its index requirements are even more than double those in Europe. The vast majority of domestic car companies have participated in the formulation of National VI emissions. This means that as early as 7 years ago, many OEMs already knew when they would make a complete switch this year.

Compared with the various fire sales in the market when the National 5 to National 6 switch was made a few years ago, the switch from National 6A to National 6B can be said to be very smooth. "Because National VI A and National VI B are developed in parallel, there are no technical problems from A to B, and the increase in the cost of the entire vehicle is limited, so it is easy to do." In fact, even the recent Internet celebrity car C6 , most of them are also National VI B models.

Another figure is that around 2019, 16 regions across the country have completed the switch to National VI emissions ahead of schedule.

So in summary, using a hasty switch to National VI B as a reason for a big promotion in the auto market is completely untenable, and the real reason for this wave of price cuts comes more from the sales volume of OEMs. total loss.

Among the TOP15, except for BYD which had positive growth and Changan which was basically flat, the sales of the remaining 13 car companies in the first two months of this year were all negative year-on-year. As the "initiator" of the new year's big sales, the entire Dongfeng Group's cumulative decline of 49% in the first two months is not only unsatisfactory, but also all business sectors are in a state of sharp decline (Dongfeng Honda -54, Dongfeng Nissan -41.4, Dongfeng Dongfeng - 48, Dongfeng Passenger Car-51).

In fact, Dongfeng is just the tip of the iceberg in the cold weather of the auto market. According to incomplete statistics, more than 30 brands have joined the ranks of price reduction promotions. Behind this, there is a large area of ??"unsaleable" in the entire automobile market.

Data released by the China Automobile Dealers Association show that the comprehensive inventory coefficient of automobile dealers in February was 1.93, an increase of 7.2 month-on-month and a year-on-year increase of 4.3. Among them, 17 brands have inventory depth of more than 2 months, and joint venture brands have become the "hardest hit area."