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with a price cut of 555,000, bmw is forced to return to the price war!

2024-09-22

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bmw’s sales are slowing down and it’s back to the price war.as proud as bmw was when it withdrew from the price war, it is now embarrassed when it returns to the price war. bmw explained that it made normal price adjustments in order to achieve its annual sales target. it seems that it will be difficult for bmw to achieve its sales target this year. why did bmw return to the price war? there is only one reason:it really isn’t selling well. the sales figures have dropped so drastically.

bmw announced its withdrawal from the price war in july this year. at that time, the price war was so fierce that the bare car price of bmw i3 dropped to 170,000 yuan. some bmw dealers could not bear it, and the bmw group could not bear it either. according to media reports, bmw would lose more than 10,000 yuan for every car it sold. seeing that the loss was too serious, bmw wanted both profit and sales, so it simply withdrew from the price war.

but the price war is not just about price, but also about value. if your bmw i3 is sold at 170,000 yuan, and suddenly it rises back to over 200,000 yuan, will consumers still buy it? when the i3 drops to 170,000 yuan, it is only worth 170,000 yuan. when you raise the price back up, except for bmw's die-hard users who are willing to pay a higher price to buy it, ordinary users will directly switch to audi, mercedes-benz, or other domestic electric vehicles. the effect of withdrawing from the price war is very significant.in august, bmw's sales fell to 34,800, almost halving.

during the same period, audi sold 47,900 vehicles and mercedes-benz sold 49,500 vehicles.mercedes-benz is not only more expensive than bmw, but also sells better. why is this so? there are two main reasons: first, audi's fuel car users are too loyal, and electric cars cannot replace them in the short term. audi's electric car sales are not good, so it focuses on selling fuel cars. when prices should be reduced, they are reduced. audi a4l and a6l have given a lot of discounts. but audi still has a bottom line, and it has not reduced the price to as low as the bmw 3i. audi electric cars are not selling well, so at worst, they will not sell them. the basic market of fuel cars is still very stable.

second, mercedes-benz’s sales increased instead of decreased.mercedes-benz had no intention of lowering prices from the beginning. the prices of the 2024 and 2025 mercedes-benz e-class have been slightly increased, and they are several thousand yuan more expensive. for people who spend four or five hundred thousand to buy a car, this increase of a few thousand yuan does not matter, but the brand tone has stabilized. mercedes-benz's task of grabbing sales is given to mercedes-benz c. but the price of mercedes-benz c has basically stabilized at around 250,000, and it has not fallen as hard as the bmw i3. even mercedes-benz's electric car, the eqe series, has maintained a price of more than 300,000.

in other words, audi and mercedes-benz did not sell off their electric vehicles at low prices in order to clear their inventory. they sold as many as they could, and for electric vehicles that were not selling well, they reduced their production capacity, and their main battlefield remained in the field of fuel vehicles.

the biggest problem with bmw is thatit wants both the sales of electric vehicles and the profits of fuel vehicles.as a result, the price of electric cars was reduced too much, which damaged the brand value of bmw, and users of fuel cars turned to audi and mercedes-benz. at this time, bmw's fuel cars were also forced to reduce prices significantly. for example, the bmw 5 series was reduced to 330,000 yuan, which was a reduction of more than 100,000 yuan compared to the suggested price. once this path of trading price for volume is taken, it will be difficult to raise prices again.

why?because consumers’ minds have been refreshed.everyone thinks that the bmw 5 series should be sold for more than 300,000 yuan. when bmw withdraws from the price war, consumers will wonder, why should they buy bmw? why not go to the next door to see mercedes-benz and audi? among bba, the decline in bmw sales is much faster than that of audi and mercedes-benz. in a panic, bmw made another bad move, reducing the price of the bmw i7 flagship electric sedan by 550,000 yuan, and the bare car price has reached 663,300 yuan.

although the price cut is quite drastic, the bmw i7 is not very competitive in the price range of 660,000 yuan. there are two reasons for this:first, in the price range above 500,000 yuan, the market capacity for electric vehicles is extremely limited.currently, the largest price range for electric vehicle sales worldwide is above 500,000 yuan. as long as the price exceeds 500,000 yuan, any electric vehicle will be difficult to sell, including tesla, porsche, etc.

second, in the field of electric vehicles, the bmw brand is too old-fashioned.rich middle-aged people are not willing to pay a high price for an electric bmw, while rich young people would rather buy a nio et7 worth 400,000 or 500,000 yuan, which at least shows their pursuit of new power and trendy technology. it is okay to buy a bmw 7 series fuel car, but buying a bmw i7 electric car is particularly different.

bmw's return to the price war was not voluntary, but forced. to get out of the predicament, bmw should produce high-end electric vehicles in china and then export them to the european and american markets to achieve a reverse dimensionality reduction attack. china is too competitive, and bmw can't just lie down.