The price of imported cars has dropped significantly and is now approaching the cost price. At last week's North Asian Auto Market Information Conference, Ding Hongxiang, Deputy General Manager of the China Import Auto Trade Center, shared his insights on current trends in the import car market. He pointed out that this year has seen major changes in model structure, pricing, profitability, and marketing strategies for imported vehicles. The prices have returned to a more normal level, and compared to last year, the entire market has undergone a complete transformation. All categories of imported cars—low, medium, and high-end—have experienced notable price declines. For example, the Mercedes-Benz S350, which was priced at 1.2 million yuan last year, now sells for around 1.08 million yuan, nearly at its cost price. Similarly, the BMW 730, which previously ranged from 980,000 to 1.1 million yuan, is now selling for just 920,000 yuan. The BMW X5 3.0L, once priced between 820,000 and 850,000 yuan, now hovers around 760,000 yuan. Even the Toyota Camry 2.4L, a long-standing representative of the imported car market, has seen its price drop from 430,000 yuan last year to 335,000 yuan today—an almost 100,000 yuan decrease in less than a year, with prices still falling. These significant price reductions across different segments clearly indicate that the overall pricing of imported cars has plummeted. "It should be said that this is a normal return of prices," Ding said. "The current level is already back to normal." Although some had anticipated this shift over time, the speed at which it has occurred was unexpected. The era of excessive profit margins in the imported car market is coming to an end. Reports suggest that many models have seen their prices drop so much that some dealers are now selling below cost, leading to intense price competition and further destabilizing the market. While some imported vehicles remain profitable, these profits are now considered normal rather than extraordinary. At the same time, the growth rate of imported car imports has slowed significantly. In the first quarter of this year, a total of 51,000 vehicles were imported nationwide—a mere 8% increase from the previous year. This decline in volume, combined with lower prices, reflects a weakening demand for imported cars. As a result, the distribution network for imported cars is undergoing a major reshuffle. Su Hui, General Manager of North Asia Motor City, recently told reporters that the number of imported car dealers has decreased by seven this year, expressing a sense of helplessness. This trend is not limited to this submarket; other regions are likely experiencing similar challenges. The sharp decline in the number of dealers is due to fierce competition, but even more importantly, the business model for imported cars is changing. Traditionally, trade in bonded areas was a common practice, but now, this is shifting toward officially authorized dealers. Last year, many investors rushed to obtain 4S shop qualifications in the hope of capitalizing on the market. However, the high capital requirements for importing vehicle licenses have kept many potential players out. In the past, the old approach of “selling whatever car can be sold and making money by selling what brings profit” was common. But that is no longer the norm. Today, successful import car dealers focus on building long-term relationships through established brands and reliable channels. This shift marks a move towards more sustainable and professional operations. Ding Hongxiang also noted that relying on bonded area buffers and trading platforms to mitigate risks will eventually change as market conditions and policies evolve. Car manufacturers are increasingly aware of this and are focusing on developing stable, large-scale marketing networks to support long-term strategies.

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