Analysis of Factors Affecting Automobile Prices and Their Impact on the Market

Abstract

With the rapid development of the global automotive market, automobile price fluctuations have become an important factor affecting consumers' purchasing decisions and market competitiveness. However, there is little systematic analysis of automobile price fluctuations in the existing literature, especially the specific impact mechanisms of price fluctuations in different economic environments. This article mainly examines the major factors influencing the volatility of automobile prices and analyzes the impact of these factors on the market. Using quantitative analysis and regression model, combined with the actual data of domestic and foreign automobile markets, the influence of economic cycle, supply and demand, government policy and raw material price on the fluctuation of automobile prices is studied. The study found that the economic cycle and raw material price fluctuations are the most important influencing factors, while the role of government policies is relatively small. Through an in-depth analysis of market data, this paper also finds that auto price fluctuations have a significant impact on market demand and supply chain stability, especially during economic downturns, when consumers become more sensitive to prices. The study concludes that automakers and policymakers should pay attention to the sources of price volatility and take effective measures to stabilize the market and promote sustainable development.