Shanghai GM Chevrolet detonating A0-Grade price war

Recently Shanghai GM reduced the prices of all 9 fist products including Chevrolet Lova and Aveo. The reduction ranged from 5,000 to 9,000 accounting for 6%--10% of previous price. It's the second reduction of GM after reducing the price of Buick Regal and Chevrolet Jingchen up to 21,000 Yuan in Jan, 2006.

Shanghai GM shifted its focus on A0-Grade market from B-Grade this time. Analyst agreed and said this move would certainly detonate the price war in A0-Grade market.

It is reported that the price is the first factor influencing brand choice of consumers who can afford 70,000—110,000 for the automobile with 1.0L—1.6L emission, and brand loyalty as the second factor. GM reduced the price before the spring festival intending to capture holiday opportunity and see the response of the rivals like Polo, Fit and TIIDA and so on. The analyst said small-size vehicle market was most sensitive to price and most important diversified market so the price fluctuation of main models would cause consequent responses.