Are the continued rising gas prices having an impact on the market for conventionally fueled vehicles?

Whether it's in the United States, Europe or Japan, gas prices clearly play the role of the frustrating number one killer. Every time the price of oil rises, many people ask: what impact will rising oil prices have on the automotive market and the automotive industry? This shows that rising oil prices are a ****together concern. So what changes will China's auto market face in the face of high oil prices?

First of all, for ordinary car owners, this price increase means that each car will increase fuel expenses by 100~200 yuan per month. Some high-end car owners are less sensitive to fuel prices and will be less affected. However, under the current global high oil prices, even the "rich" will start to calculate the price of oil. In the domestic automobile market, the high price of automobiles has always been the most important factor restricting the demand for automobiles. At present, the price of cars in China is far from the international standard. From another perspective, it is much more difficult for Chinese people to own cars than in developed countries. Therefore, the most important factor affecting the automobile market is the price of the car itself.

Secondly, the impact of rising oil prices on the automobile market is far less stringent than the price of the car itself, and the oil price factor is not enough to reduce the reality of automobile demand. However, oil prices will have a significant impact on the structure of automobile demand. The significance of higher oil prices is not only in how much more money you pay per liter, but also affects people's psychology, and higher oil prices will lead to changes in the structure of consumption of models.

Then, from a structural point of view, higher oil prices will favor the sales of models with good fuel economy. China's low-displacement cars generally have a low level of technology and have no obvious advantage in fuel consumption. It's hard to encourage a-class consumers to buy A0 and A00 cars, and consumers of lower-end models are more sensitive to fuel prices.

Finally, due to the limited economic conditions of the target consumer groups of small-displacement cars, their determination to buy is relatively small, and their willingness to buy is greatly affected by uncertainties. Under the influence of external factors such as high oil prices, it is easier to give up the purchase plan. When consumers buy a car, they should not only consider the one-time purchase cost, but also the actual cost of fuel usage. At present, new energy vehicles have problems such as high prices, insufficient supporting facilities and long acceptance time for consumers. It is easier to promote small cars than new energy. From this perspective, the sharp rise in fuel prices is a development opportunity for small cars.

Rising fuel prices are a long-term problem, and rising fuel prices are most affected by consumer psychology. High fuel prices are expected to test the ability of manufacturers in advanced technology and energy-saving products. In the long run, the product mix of the automotive market will undergo significant changes.