In China's auto market, worries grow that cashback deals and gifts presage damaging price war

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Cashback offers, up to 10 free oil changes, generous prepaid gasoline cards - these are just some of the giveaways China's auto dealerships are using to woo customers out and about after spending much of February and March in lockdown.

HANGZHOU, China/SHANGHAI - Cashback offers, up to 10 free oil changes, generous prepaid gasoline cards - these are just some of the giveaways China’s auto dealerships are using to woo customers out and about after spending much of February and March in lockdown.

That is partly due to delayed demand after China shut down to contain the coronavirus. But it is also thanks to an offer of six free engine oil changes, worth around 3,000 yuan , for customers who buy models such as the Binyue sport utility vehicle. In the nearby city of Ningbo, a Toyota Motor Corp dealership offering 10 free oil changes saw April vehicle sales return to pre-virus levels and is aiming for sales in May to climb 10% month-on-month, its marketing manager Chen Xiaotian told Reuters.

Visits and phone calls by Reuters to dozens of dealerships in the world’s biggest auto market showed most have notched up double-digit percentage jumps in unit sales for April compared to March and many expect May sales to grow at least another 10%.

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