Why do cars go up in price when they go down?

there may be retaliatory price increases. The following are some possible reasons:

1. Shortage of supply: Automobile consumers quickly poured into the market at a sharp price reduction, resulting in a shortage of automobile supply. Carmakers will reduce production to meet market demand, but this may lead to an increase in car prices.

2. Rising cost of raw materials: As the automobile market has been in a state of price reduction in the past few years, many automobile manufacturers have reduced their costs by compressing the supply chain and reducing manufacturing costs. However, once the market no longer keeps the trend of continuous price reduction, automobile manufacturers need to restore costs. The prices of some raw materials may also rise, especially in the case of tense international trade relations.

3. Inflation: Inflation is an important reason for the price increase. If the inflation rate rises, car manufacturers may have to raise car prices to maintain their profit margins.

it should be noted that the above reasons may not happen at the same time, nor may they affect all automobile markets at the same time. Retaliatory price increase is possible, but it may not be as intense and persistent as consumers expected.