news

In July, several joint venture auto brands announced adjustments to their sales strategies in the Chinese market, quitting price wars and switching to volume reduction to maintain prices, including both first-tier luxury brands and second-tier luxury brands.Volvo、Lexus, there are also non-luxury brands of Volkswagen,HondaThese car companies have adjusted their terminal policies since July, reducing discounts or no longer lowering prices further.

Recently, I visited many offline stores and found that some car companies' terminal 4S stores have started to increase prices, and the discount has further narrowed. This wave of operations by car companies has also confused many consumers. They originally planned to take advantage of the price war to buy more cars, but now they have to pay more. What is the price increase situation of each car company? Is the price increase of each dealer premeditated or helpless?

How are joint venture car companies doing with price increases?

The price war in the domestic auto market in 2024 will soon become fierce.BMW i3、Mercedes-Benz GLBThere are reports of large discounts on popular models such as the SUV and the SUV. The bare car price of some models has dropped to the range of 150,000 to 200,000 yuan after discounts, which has aroused heated discussions in the market.BenzBMWAudiand Lexus, down to VolkswagenToyotaHonda andNissan, the prices of its models can be said to have hit a new low in the domestic market. However, the price war has limited effect, and the price reduction has not brought a significant increase in sales. All major car companies have the idea of ​​withdrawing from the price war.

A dealer of SAIC-GM revealed that he had received verbal notice that the headquarters will gradually recover the price reduction at the terminal and the prices of the entire series will increase from August.Buick Veranopro、ELECTRA E5、GL8 Models such as ES Lu Zun have launched preferential activities such as limited-time discount prices, employee and friends prices, and high replacement subsidies. It is still uncertain whether these promotional policies will continue in the future.

Many netizens reported thatHonda Accord、Civic,publicPassatThe prices of other models have increased. A Hunan netizen said that the price of all local Honda models has increased by about 10,000 yuan. In Guangzhou, the price of the Honda Civic Fuel Edition has also increased by more than 10,000 yuan compared to June. There is also news thatNIO ET5/5T and ES6/EC6 will increase in price after July 22, with the price increase of the two models being RMB 3,000 and RMB 5,000 respectively.NIOThe store staff responded that it was a limited-time reduction in benefits, and the price increase was achieved by reducing the discount on the current car. Currently, the purchase of ET5/5T can enjoy a replacement subsidy of 10,000 yuan, an optional fund of 8,000 yuan and a current car discount of 6,000 yuan, while the purchase of ES6/EC6 can get a discount of 8,000 yuan.

GAC Toyota dealers said they did not raise prices, but starting from July, the price reduction will not be further expanded. Currently, GAC Toyota's July promotion is still in progress. The 2L gasoline version of the 9th generationCamryStarting from 139,800 yuan, the manufacturer's suggested price starts from 179,800 yuan;LandaThe gasoline version starts at 95,800 yuan, and the manufacturer's suggested price starts at 125,800 yuan. It is reported that these two official promotions will be cancelled after July.

SAIC VolkswagenA dealer told me that prices may be reduced in August. However, there will be a wave of discounts at the Chengdu Auto Show at the end of August. A staff member said that the terminal prices of Audi, Volvo, Toyota, Honda and other brands represented by their company have been reduced since July. The reduction varies from brand to brand and may be adjusted every day.

Now it is mainly the car dealers who raise the prices at the terminal, and the car companies have basically not said anything. However, the car companies allow dealers to raise prices and do not interfere with this behavior, which to a certain extent shows that the car companies are more accepting of the car companies' price increase plan.

From joining the price war vigorously at the beginning to leaving the market one after another now, some people say that joint venture car companies have begun to look at market changes rationally. I think that in fact, the joint venture brands announced their withdrawal from the price war more because they wanted to give up market share to ensure a certain profit. After all, these joint venture brands do not want to give up profits and still fail to get the market share they want.

Can lowering prices boost sales?

The main consideration for joint venture brands to withdraw from price wars is to maintain brand value. If they blindly pursue the lower limit of prices, they will cut corners, shorten the test cycle, and lower quality and safety standards, which will not only damage brand value, but also cause great damage to market order and consumer interests. Price wars that exchange price for volume are an established fact as the industry enters deep competition, but the effect of "price wars" is limited to the short term.

The price war among car companies will not only affect product R&D investment, but will also be transmitted to the entire industry chain, compressing upstream supply chain costs and bringing a greater economic burden to downstream dealers, which will inevitably form a vicious cycle in the long run. The withdrawal of car companies from the price war means that the industry is no longer based on price alone, but returns to comprehensive strength competition, which will be beneficial to the long-term development of the automobile industry.

However, the disadvantages of joint venture models after the price increase are also obvious. Now, domestic models, relying on the advantages of the new energy industry chain, have continued to lower their prices and are more popular in the market. For example, even though the price of Camry will be around 140,000 yuan and Passat will even be 130,000 yuan, these joint venture cars are still not as popular as the similarly positioned mid-size sedans.BYD Qin LIn the first natural month after the car was launched on the market, its sales volume exceeded 20,000 units.

This result shows that the status of joint venture cars in the minds of consumers has changed greatly. Independent brands and new car-making forces have taken advantage of the opportunity of the transformation to new energy vehicles to gain more recognition from domestic consumers with waves of smarter, more cost-effective and better services.

On the other hand, joint venture cars do not have an advantage in performance and configuration, and their prices are relatively strong, which will further weaken their market competitiveness. The core reason for the problems faced by joint venture car companies is not the price issue, but the problem that their products cannot keep up with the development of the times. Because joint venture car companies are large and have too many factors to consider and the interests of many parties, they are not resolute enough in the transformation to electrification, and it is even more difficult for their models to be ultra-low-priced.

With the popularity of electric vehicles, future competition in the auto market will be more reflected in technological innovation and service experience. If joint venture brands only think about occupying the market through price wars, they will be eliminated by the market sooner or later. Now they choose to withdraw, perhaps to make full preparations and return to regain market share with a stronger electric vehicle product line.

People's car reviews

The automobile market has never been an isolated island. The ups and downs it has experienced are closely related to the overall macroeconomic environment, consumer purchasing power, and the linkage between upstream and downstream of the industrial chain. The reason why the price war this year is so bloody is related to the misjudgment of major brands on production capacity and inventory in the early stage. Now, as the supply and demand relationship gradually balances, the market behavior of various companies has become more rational again, and price wars are unlikely to have lasting vitality.

After August, most joint venture automakers will withdraw from the price war. Joint venture gasoline cars are under unprecedented pressure, and simply reducing prices is no longer enough to attract consumers. Because now people buy cars not only based on price, but also on product innovation, quality, and whether it fits their lifestyle, so the joint venture brands are forced to withdraw from the price war.