News Analysis
A low-price auto campaign initiated by Chinese car companies and local governments has been sweeping throughout China since the start of March, but auto sales continue to fall. Experts indicate that middle-class Chinese citizens, the mainstay of consumption, face heavy debts as they lose confidence in the economy.
On March 6, Dongfeng Motor Corporation, in cooperation with the Hubei provincial authorities, launched a car-buying season campaign with the most significant price reduction. A major discount was offered for the Dongfeng Citroen C6, usually priced at 216,800 yuan (about $31,700), with a combined government and corporate subsidy of 90,000 yuan (about $13,000) per vehicle.
It is the first time such a large subsidy of nearly half the price of a car has been offered in Hubei. Besides Dongfeng, several models of Buick and Tianjin FAW Toyota are also included in the scope of subsidies in the province, according to a report by The Paper on March 8….