Last year, China surpassed the U.S. and became the largest plug-in electric car markets in terms of total annual sales, China was therefore ranked as the best-selling plug-in electric passenger car country market in the world in 2015. With strong government support and relevant encouraging policies, China is on track to become the global leader in electric vehicle (EV) market. Below are the main reasons:-
Enhanced by the Guangzhou limited license policy adjustments plus outer vehicle limit, in May the Guangzhou plate auction witnessed intense competition. Data released yesterday showed that in May, the personal number plate auction price hit a new high, with an average price up to 12,627 yuan (US$ 2,020), far exceeding the average price of 10,998 yuan (US$ 1,760) last month; and for the first time there was no selling at base price; in term of license-plate lottery (车牌摇号), 1 out of 22.3 persons can get the chance to buy a license plate.
Latest statistics showed that in the first quarter of this year, China’s luxury car market achieved an increase of only 8.34%, indicating a fast shrinking. Compared to the first quarter of last year, sales growth year-on-year witnessed a decline of 80%. Industry insiders believed that, from the beginning of this year, the Chinese government carried out strict initiatives such as the regulated use of official vehicles and strict control of other luxury consumption, which had contributed to the overall public opinion change and reduced government demands that had casted a great impact on the consumption of luxury cars.
Question 1: Vehicle turning off with no reason
To some extent, the Volkswagen DSG recall which lasted for more than three years, in fact, is a copy to the U.S. DSG recall event, but under different market environments and regulatory policies, the mass recall in the United States took a month’s time. But in the Chinese market, Volkswagen had managed this process artificially delayed and lasted for more than three years. To a certain extent, with the delay Volkswagen gained the new car sales profits, but in respect of the brand reputation and word of mouth, it is too early to say whether the decision is smart enough.