Group 1 - The automotive market is experiencing a new round of price wars, with significant price reductions on various models, such as the Geely Emgrand at 29,900 yuan and the Chery Tiggo 3X at 34,900 yuan [1][2] - Following BYD's promotional campaign on May 23, other brands like Geely and Chery quickly adopted similar strategies, but the discounts often involve repackaging existing subsidies rather than genuine price cuts [2][3] - Sales personnel from various companies indicate that the current price reductions are primarily aimed at clearing inventory and boosting sales, rather than reflecting a true decrease in vehicle prices [2][8] Group 2 - Geely's recent "Million Welfare" campaign offers subsidies ranging from 5,000 to 20,000 yuan, with the Geely Star Wish priced at 59,800 yuan, positioning it competitively against BYD's models [5] - Chery has also launched a "100 Billion Factory Subsidy" initiative, with the Tiggo 3X starting at 34,900 yuan, indicating that price reductions are often tied to subsidies [5][8] - The pressure to meet sales targets is evident, with reports of single vehicle profits being as low as 2,000 yuan, as manufacturers strive to improve sales figures before the end of the first half of the year [8][12] Group 3 - The automotive industry is seeing a decline in the number of models experiencing price cuts, with only 14 models reduced in April compared to 41 in the previous year, suggesting a cooling of the price-cutting trend [13] - Despite the price reductions, consumer sentiment is mixed, with some potential buyers expressing concern over the quality of vehicles due to fears of further price drops [15] - Industry experts suggest that while price promotions can temporarily boost sales, they are not sustainable long-term and may hinder overall industry growth [16][17]

Core Viewpoint - The phenomenon of "0-kilometer used cars" has emerged as a significant issue in the automotive industry, reflecting deeper structural contradictions within the sector [1][5]. Group 1: Industry Context - "0-kilometer used cars" refer to vehicles that are registered but not genuinely sold, often returning to used car dealers, creating a chaotic market environment with thousands of dealers involved [1]. - The concept is not new and dates back over a decade to the early implementation of subsidies for new energy vehicles, where companies registered new cars to inflate sales figures and obtain more subsidies [1]. - The recent attention on "0-kilometer used cars" has prompted the Ministry of Commerce to convene a meeting with car manufacturers and industry associations to discuss the implications and promote the circulation of used cars [1]. Group 2: Market Dynamics - In the domestic market, "0-kilometer used cars" can be categorized into three main types: 1. "Resource cars" sold in bulk by manufacturers, often consisting of older or unsold models [4]. 2. "Volume cars" that authorized 4S dealerships register in advance to meet sales targets [4]. 3. "Return cars" where dealers take over payments for vehicles that customers have backed out of [4]. - This practice allows manufacturers to quickly recover funds and improve sales figures while maintaining stable pricing within their distribution networks [4]. Group 3: Risks and Implications - The rise of "0-kilometer used cars" poses risks to industry development and consumer interests, such as the potential for dealers to fraudulently claim government subsidies [5]. - These vehicles, while technically new, lack official manufacturer warranties and may carry hidden risks, including debt issues related to the vehicle's ownership [5]. - The increase in "0-kilometer used cars" highlights the survival pressures faced by manufacturers amid market saturation and the need for industry transformation, suggesting that such practices undermine fair competition and could have long-term negative impacts on brands and consumers [5].