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In recent months, consumer car costs are expected to see a downward trend. Hainan Mazda recently announced that the prices of over 200 parts and components for models like Premar and Fujimair will be reduced across the board, with an average decrease of approximately 18%, and some items seeing reductions exceeding 50%. Earlier this year, Nanjing Fiat also revealed plans to lower auto part prices comprehensively. Meanwhile, BYD has announced a full-scale adjustment of its retail pricing for all vehicle parts. Following the intense competition in the vehicle market, a new price war is now intensifying in the auto parts sector.
As the automotive market continues to face challenges, the cost of car ownership has become a major concern for consumers. Both manufacturers and dealers have started to realize that reducing accessory prices can be more effective than simply lowering the price of the entire vehicle. This shift in strategy has led Nanjing Fiat to publicly highlight its 50 key consumable prices, showcasing its competitive advantage. Similarly, a German automaker has established a new parts base in Changchun, promising to offer cheaper spare parts in the near future.
These moves have been well-received by dealers. A Nanjing Fiat dealer noted that while the profit margin on after-sales services has decreased due to lower part prices, the increased sales volume has offset this loss. Beijing Hyundai dealers also mentioned that many customers choose their vehicles because of lower maintenance costs. In response, they plan to adjust part and labor prices in line with new manufacturer standards in the second half of the year to maintain their pricing edge.
According to Chen Yusong, manager of the automotive division's product research center at Xinhuaxin Market Research & Consulting Co., parts and components typically account for around 70% of the total vehicle cost structure. A significant portion of the recent vehicle price reductions has come from cuts in parts pricing. Since parts are often purchased together, their prices tend to move in tandem.
Industry analysts believe that as production scales up and more manufacturers enter the parts market, the competitive pressure is driving down component prices. Currently, both manufacturers and distributors enjoy relatively high profit margins, but there is still room for further price reductions. With the growing demand for affordable car ownership, the auto parts market is poised for continued price adjustments. (Reporter: Xu Fanghua)
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