news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Click above↑"Electric Home"focus on, remember to add ☆“star”!

According to Electric Home, after BMW, Mercedes-Benz and Audi withdrew from the "price war", several joint venture car companies will withdraw from the price war. On July 17, according to Red Star Capital Bureau, Volkswagen, Toyota, Honda, Nissan, Volvo and other brands have decided to adjust their terminal policies from July, reduce terminal discounts, or stop further price cuts.

GAC Toyota dealers told Red Star Capital that they did not raise prices, but starting from July, the price reduction will not be further expanded. "Car prices will remain stable, but the situation is different in each region, each store, and different models." SAIC Volkswagen dealers told Red Star Capital that prices may be recovered in August. However, there will be a wave of discounts at the Chengdu Auto Show at the end of August. Car dealer Mr. Chen told Red Star Capital that the terminal prices of the brands he represented, such as Audi, Volvo, Toyota, and Honda, have been recovered since July. The intensity of the recovery varies from brand to brand and may be adjusted every day. "If the losses are too great, the manufacturers cannot make up for it. Overall, the message I got is that price wars are unsustainable, and we must work hard to return to value competition."

On July 17, according to Cailianshe and other media reports, as BMW took the lead in withdrawing from the price war, Mercedes-Benz and Audi also raised the prices of their models, ending the long-term market price war. This means that the three major domestic joint venture automakers, BMW, Mercedes-Benz and Audi, will withdraw from the "price war".

Cailianshe reported that a sales consultant at a Mercedes-Benz 4S store said, "There will definitely be a price increase in the future." Although Mercedes-Benz will not issue a formal notice like its competitors, it will increase prices at any time, but the increase will not be particularly large. He also said that he learned from an Audi dealer in Beijing that "main selling models such as Audi Q5L, A6L, and A4L have all been slightly increased, and may continue to increase in the future, but the increase will not be too large." The price has increased by 1,000-2,000 yuan compared to before.

BMW has confirmed that it will withdraw from the price war. In response to rumors that BMW China will withdraw from the price war, BMW China responded to reporters that in the second half of the year, BMW will focus on business quality in the Chinese market and support dealers to make steady progress. It was previously reported that because the price war caused serious losses to stores, BMW will stabilize prices by reducing sales from July to ease the operating pressure of stores. It will also lower the rebate threshold and cancel financial penetration and intensive procurement assessments. Last year, BMW's price reduction strategy maintained its market share, with a full-year discount rate of 17.66%, higher than the industry average. However, the price reduction did not result in a significant increase in sales. BMW China sold a total of 376,000 vehicles in the first half of the year, a year-on-year decrease of 4%.

An insider close to BMW dealers revealed that due to the price war, it is expected that the three luxury brands BBA (BMW, Mercedes-Benz, and Audi) will lose about 500,000 vehicles in sales in the Chinese market in 2024. Many industry insiders believe that BMW's price reduction strategy in China will not bring about an increase in sales, but will dilute its brand effect.