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Hailiang Finance | Are there many car companies withdrawing from the price war? A real investigation of the offline 4S stores "gradually reducing the intensity of discounts and promotions"

2024-07-21

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Poster News reporter Sun Laibin reports from Jinan

A few days ago,BMWRumors such as "BMW will withdraw from the price war" and "BMW will raise prices for all models" have attracted the attention of consumers. On July 20, reporters from Poster News visited several BMW 4S stores in Jinan. In response to the above statements, sales staff said, "Since the third quarter, the manufacturer has reduced the assessment of dealers' sales targets, and the assessment amount has been reduced by one third compared with the previous one. Our inventory pressure has been reduced, so the terminal price discount promotion will be gradually adjusted back."

On July 20, at the BMW 4S store in Jinan High-tech Zone, citizens came to see the cars in an endless stream.BMW 5 Series) There are also a few cars on sale for more than 310,000 yuan, but they have all been sold out. The current discounted price for bare cars is more than 320,000 yuan. "The staff is discussing the price of the car with Mr. Guo, a citizen who came to see the car.

BMW 5 Series sedan on display in a 4S store

Li Yanwei, an expert from the China Automobile Dealers Association, said that automakers will not control terminal prices because this will violate the antitrust law.Benz, BMW has adjusted its product supply structure or dealer sales targets, and these measures will help ease the terminal price war.

A BMW 4S store in Jinan

The reporter learned that at the end of May this year, BMW sent a letter to all dealer stores stating that in view of the market background and the huge impact brought by domestic brands, it decided to offer BMW 4S stores a number of substantial subsidies and exemptions policies, aiming to help dealers cope with short-term difficulties and alleviate business pressure.

After the policy was introduced, the prices of many BMW models dropped sharply. Take the best-selling BMW 5 Series as an example. The former luxury brand was sold at a maximum price reduction of nearly 130,000 yuan. BMW's price war has stimulated sales growth to a certain extent.

However, BMW China officials recently said 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. Influenced by this, BMW dealers have reduced their efforts in terminal price promotions.

Dai Hexuan, CEO of BMW Brilliance, responded that prices are determined by dealers as independent business entities, and BMW will maintain intensive discussions with upstream and downstream partners to see how a sustainable business model should be conducted to ensure that all partners can make enough money and survive into the future.

Mercedes-Benz series cars displayed in a 4S store

Mercedes-Benz, one of the luxury car brands, has a hot-selling model, according to a salesperson at a 4S store in Jinan.Mercedes-Benz C-ClassThe price discount has been reduced by more than 10,000 yuan.Mercedes-Benz E-ClassThe current discount is 90,000 yuan, which is a slight decline of several thousand yuan compared to the previous period. Cui Taojun, sales director of Jinan Runhua Tianze, told reporters,AudiAffected by the manufacturer's policies and sales nodes, the overall selling price of cars is indeed slightly higher than before, but the discounted cars are still on sale in the store and the price fluctuations are not large.

OdysseyCurrently the discount is 60,000 yuan.AccordThe discount is 62,000 yuan, the same as in June. "Guangqi HondaThe sales staff said that the manufacturer has recently reduced the monthly sales quota for dealers from more than 200 units per month to about 80 units, and it is expected that the discount will decline accordingly in August.a ToyotaThe staff of the authorized store also said that they have not received any notice of price increase yet, and the discount is the same as last month. However, they have received a notice from the manufacturer that the factory will reduce vehicle production starting in August. After the production reduction, the inventory will be relatively reduced, and the discount will also be adjusted.

Zhang Xiang, a researcher at the North China University of Technology's Automotive Industry Innovation Research Center, analyzed that price wars are a strategy often used by automakers. There are price increases and price cuts, and companies will make adjustments based on actual sales data. The current sales season is off-season, and consumer demand is relatively low. If automakers engage in price wars, it will be "more haste, less speed." Therefore, some automakers simply reduce production and supply, which will reduce inventory pressure and eliminate the need to cut prices or reduce prices to a smaller extent.

This time BMW took the lead in making market adjustments. Whether it can lead the automobile market to increase both volume and price remains to be seen.