It is expected that the price of most car models will be in line with international standards in 2006-2007

A report released by the China Automotive Technology and Research Center, entitled "Analysis of China's Car Price Trends," pointed out that at present most of China's cars are purchased privately. In 2003, the proportion of private cars purchased in China exceeded 70%, and Beijing currently reaches 90%. China Automotive Technology and Research Center believes that compared with official cars, consumers of private cars are more concerned with the cost of buying and using the car. To some extent, car prices have become a decisive factor in private car purchases. The report said that in 2003 the domestic automobile price adjustment period was shortened from 8 months to 3 months, and fierce market competition forced auto manufacturers to have to adjust prices on a quarterly basis in order to gain market share. In the first half of 2004, the price of cars continued to decrease. The prominent feature of this round of price adjustment is that mainstream car companies, such as Shanghai Volkswagen, FAW-Volkswagen, Shanghai GM, etc., have fully participated in price competition, which has led directly to major changes in the ranking of major car manufacturers. It also has a profound impact on the car market and promoted private car purchases. The report believes that in the next 3 to 5 years, the price of cars in China will continue to decline. It is expected that the prices of most car models will be in line with international standards from 2006 to 2007. At present, more adequate market competition has brought the price of small cars to the bottom line of the cost and there is little room for price reduction in the future.

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