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Will the car increase in price after the price reduction?
After the car is reduced in price, it may rise in the short term (relative to before the price reduction), but the price reduction of fuel vehicles is an inevitable trend.

In fact, the rise and fall of car prices is determined by the relationship between supply and demand in the market. With the increasingly fierce market competition, when the market demand is lower than the supply, automobile manufacturers will take some promotional measures to promote sales, such as price reduction and discount, to attract consumers to buy. However, when the market demand rises, automobile manufacturers may gradually stop reducing prices or promoting sales, because more consumers are willing to buy vehicles at this time. For automobile manufacturers, raising prices is a reasonable business strategy. At the same time, car prices are also affected by raw material prices. If the price of some raw materials rises, the production cost of automobile manufacturers will increase, which may lead to an increase in automobile prices. Therefore, changes in the relationship between supply and demand of raw materials will also have an impact on automobile prices.

Recently, there have been some price reduction promotions in the automobile industry, but this does not mean that retaliatory price increases will inevitably occur.

First of all, the reason for this round of price reduction is considered to be the "clearing inventory" of cars, but why is it so urgent to clear inventory? The fundamental reason is that the National Six-stage "B Standard", referred to as "National 6B", will be implemented on July 1 2023! From July 1 day in 2020 to July 1 day in 2023, the "National 6A" emission standard will be implemented, and all vehicles that can be put on the market must meet this standard. Vehicles below this standard are not allowed to be sold, except of course used cars. Therefore, before the implementation of the new regulations, the price reduction promotion will go out of stock. This will bring a benefit to consumers, that is, the price of the car is low, and the overall positioning of the fuel car will be lower; Only this time, the brands participating in the price war are mainly fuel vehicle manufacturers, which will cause the decline of users' confidence in fuel vehicles to a certain extent, and fuel vehicles will accelerate their withdrawal from the historical stage. In addition, with the gradual popularization of new energy vehicles, the market demand of traditional fuel vehicles is declining, and automobile manufacturers may increase the production and sales of new energy vehicles without paying too much attention to the price rise and fall of traditional fuel vehicles. This also shows that the fluctuation of automobile prices in the future may be more complicated and changeable.

In short, the rise and fall of automobile prices depends not only on market demand and supply, but also on the prices of raw materials and other factors. Therefore, it is impossible to determine whether there will be retaliatory price increases after the price reduction of automobiles, and it is necessary to judge the trend of automobile prices according to market conditions and changes in supply and demand. At the same time, with the popularization of new energy vehicles and the change of market demand, the pricing strategy of automobile manufacturers may also change. For consumers, it is necessary to pay attention to market dynamics in order to make more informed car purchase decisions.