According to the analysis of the China Passenger Car Association (CPCA), the passenger car industry has been no longer a high-profit industry. Although automobile production and sales recovered in March, monthly car sales profit margin was only 4.7%.
Some car companies sold cars with sharp discounts, and the pressure was too great. In particular, the imminent implementation of the world's most stringent National VI B standard will bring certain pressure to the production of car companies, and the cuts in production and inventory will bring about a large loss in profit.
Tesla's price increase is a good signal, reflecting car companies' attention to operating quality and helping to improve the wait-and-see mentality of consumers. This will drive consumers to return to the normal buying rhythm.
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