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Exclusive | The price war in the auto market has come to an end, and Ideal is about to end its L6-related discounts

2024-08-02

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Image source: Visual China

Blue Whale News, August 2 (Reporter Li Zhuoling)After BBA’s “price increase”, another brand followed suit, and this time it was the turn of new energy vehicle companies.

On August 2, Blue Whale News learned from Ideal Auto that its benefits will be reduced in the future. According to relevant personnel from the Ideal Auto brand, the cash benefits of Ideal L6 will decline in August. According to the benefit of "5,000 deposit to offset 10,000 car purchase price", the car is currently equivalent to a discount of 5,000.

In this regard, Blue Whale News called the Ideal Auto sales store, and the relevant person said, "We have indeed received the notice, and the official will also start to push relevant price reduction information in the future. The 5,000 yuan discount for L6 will end on the 14th of this month, and there will be no discount at that time."

Coincidentally, according to a sales person at a Weilai store, the brand will also start to reduce benefits in August. "Before the 11th of this month, there was no reduction. After the 11th, there will be no discounts such as battery swap coupons. Currently, 20 battery swap coupons can be given when buying a car, which is equivalent to a discount of 2,000 yuan." He told Blue Whale News.

According to incomplete statistics, after BMW fired the "first shot" to withdraw from the price war on July 12, waves of "price increases" have been brewing in the terminal market in the past 20 days, and about 10 brands have been exposed to follow suit.

According to the analysis, the first wave of brands to follow suit were other members of the BBA luxury car camp, with Mercedes-Benz and Audi both reportedly gradually reducing their discounts. Then came mainstream foreign and joint venture brands such as Honda, Toyota, Volkswagen, and Volvo. According to reports, these brands have adjusted their terminal policies since July, reducing terminal discounts or no longer cutting prices further.

The third wave has begun to hit domestic brands. BYD, the "king of price cuts" in the auto market, launched its 2025 Song PLUS DM-i on July 25, with a price increase of 6,000 yuan compared to the old Honor version, but with a number of new configurations, as well as upgraded smart cockpits and hybrid technology.

Next came the aforementioned new energy car companies. Leapmotor was also recently reported to "make adjustments this month and recover the rights of some models." However, a person from Leapmotor told Blue Whale News that the source of the aforementioned online news was unknown and that they would update the news when there was confirmed news.

It is worth noting that the price increase at the terminal of most automakers is relative to the previous large discount price, not a direct price increase on the official guide price. In other words, the discount has been reduced, and consumers may pay more and more for subsequent car purchases.

"The price war may slow down in the second half of the year. After the fierce competition in the first half of the year, the market may gradually form a new price balance point." On July 29, Cui Dongshu, secretary-general of the China Passenger Car Association, wrote that some manufacturers have realized that the price war is unsustainable, but no one will take the initiative to withdraw because there is no system to control the policy steps of each company, so the price war in the early stage will only continue.

In his view, the continued loss of each vehicle by automakers is not a long-term solution. After a round of price wars, automakers may re-evaluate their pricing strategies and seek a more stable profit model. At present, the quickest way to reduce inventory is to reduce production and stabilize the system.