Beijing Hyundai unleashes new price cutting war in SUV in China in H2

Gasgoo.com (Shanghai August 26) - Followed by other mainstream automakers in China, Beijing Hyundai unleashes a price cutting war in the SUV market segment, which enjoys the fastest growth in Chinese auto industry this year. The company adds three more models with 2.0T engine when cutting the price of new Santa and ix35 by up to 30,000 yuan.

Amid the recession in Chinese auto industry this year, almost all the mainstream automobile manufactures compete with each other to cut official price by a larger margin to promote sales against others. And now the price reduction competition stretches to SUV market segment. Beijing Hyundai makes the first movement in preparing for the last sales peak of the year in second half.

The overall sales in Chinese passenger vehicle slid 6.58 percent from a year earlier to 1,268,600 units in July, while SUV surged 34.16 percent to 3,931,100 units in the same period. In the first half of the year, SUV sales grow reached 48 percent compared with the same period of last year.

Seeing the lasting momentum in SUV market expansion, increasingly automakers are targeting the market segment. For example, Great Wall put forward official promotion activities for its products in June, followed by Beijing Hyundai and Dongfeng Yueda Kia announcing official price reduction.

The current SUV market is divided into two groups, one of which is middle- and high- end SUV models of 150,000 to 250,000 yuan selling price from foreign joint-ventures and the other is Chinese domestic brand SUV of 100,000 to 150,000 yuan selling price. And joint-ventures are adding more new model with selling price inclining to the latter group.

As the final sales promotion period of the year will soon began in September, alongside the price cutting war a bunch of new SUV models will be published soon. For example, twenty new SUV models from 13 brands including Soueast Motors, Dongfeng, Geely and BAIC will be released latter this year.