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many of you may know that in june and july, bmw took the lead in announcing that it would withdraw from the price war, lower its annual sales target, narrow the terminal discount range, reduce the burden on dealers, and "protect profits" for dealers. perhaps in the eyes of bmw at the time, as a domestic first-tier luxury brand, bmw has a strong brand appeal in the domestic market, so even if the discount is narrowed, it will not have a significant impact on sales. because in the previous domestic auto market price wars, the sales of the three major luxury brands, bmw, audi, and mercedes-benz, were not significantly affected.

but it is obvious that bmw has "played too much" this time, because when the sales of bmw brilliance in august came out, everyone realized that it was broken! in august, the sales of bmw brilliance in china were 43,875 units, a month-on-month decrease of 28.81% compared with july, and the lowest sales among the three luxury brands. mercedes-benz (beijing benz and fujian benz) sold 49,500 units in the same month, a month-on-month decrease of 0.13%, and audi (faw audi and saic audi) sold 47,900 units in the same month, a month-on-month increase of 5.9%. overall, bmw is still the worst.

of course, as bmw's sales reached 35,000 units, bmw's sales for the same month were surpassed by ideal's 48,000 units. so if we talk about first-tier luxury brands, ideal should be considered one of them, and its sales are second only to audi.

previously, bmw announced that it would withdraw from the price war. we commented that this was the lesser of two evils. if prices continue to drop, dealers will have a very difficult time surviving, because many models have huge terminal discounts, and many dealers and 4s stores are basically selling cars at a loss. if this continues, the capital chain of many dealers is likely to break, and eventually bmw's terminal business may be paralyzed in some places!

however, if the terminal discounts are narrowed, it will inevitably lead to a decline in overall sales. we believe that the bmw brand made this decision at the beginning, to a large extent, because it felt that with bmw's brand influence, even if the terminal discounts were narrowed, it would not have a particularly large impact on sales. at most, it would only affect sales slightly. therefore, after weighing the two options, bmw chose to narrow the terminal discounts.

as you can see, the sales of bmw brilliance have dropped significantly, and no model of bmw brilliance sold more than 10,000 units in august. the bmw 3 series sold the best, with the highest sales of only 7,921 units; the sales of the bmw i3 dropped to 2,144 units; the sales of the bmw 5 series dropped to 5,600 units; and the sales of the bmw x3 were 5,971 units. it can be said that the sales performance of each model of bmw brilliance in august did drop quite sharply.

so why did bmw's sales drop sharply, instead of remaining unchanged or declining slightly as many people expected?

the reason is actually very simple, that is, the current market environment is different. a few years ago, in the field of luxury brands, the only ones that people could choose and were willing to choose were actually bmw, mercedes-benz and audi, which were generally good-looking. but now, when brands such as tesla, ideal, weilai, and hongmeng zhixing join the competition, the situation is completely different.

these new energy vehicles have stronger performance, higher intelligence, richer configuration, and better user experience. with the popularization of mobile internet, everyone knows the value of these new energy brand models, that is, they agree with their luxury brand positioning. therefore, when bmw, mercedes-benz, and audi raise prices, those wavering users either choose second-tier luxury models that are willing to reduce prices, or directly choose these new energy luxury brands with better overall product performance. therefore, we see that the sales of domestic mid-to-high-end brands such as ideal, tesla, hongmeng zhixing, and weilai are getting better and better.

therefore, the fact that bmw's sales in august dropped to more than 30,000 only proves one thing, that is, the traditional luxury brands no longer have the power. if these traditional luxury brands are willing to lower prices, then many consumers are willing to pay for them due to the "inertia" of the brand. however, once these luxury brands narrow their discounts or even raise prices, consumers and the market will not "spoil" them and will turn around to buy products that are willing to offer discounts and excellent product strength.