The price reduction of 100,000 is just the beginning!More than 30 auto brands fancy price wars, Japanese and German cars were involved in the collapse
Yesterday we reported that more than 30 car brands have joined the army of price cuts, with a maximum price reduction of 100,000 yuan, which has attracted the attention of netizens. Up to now, at least 30 auto brands have participated in this price war, with the highest discount exceeding 100,000 yuan.
Some are official brand activities, some are regional dealer promotions; some are direct price cuts, and some are indirect forms such as cash credits, insurance subsidies, financial discounts, and gift optional packages. Although SAIC Audi’s preferential activities are only for internal employees, there are already transfers of employee car purchase quotas on the second-hand platform.
Cui Dongshu, secretary-general of the Passenger Passenger Association, said that this round of large subsidies jointly implemented by the government and enterprises in Hubei is a powerful measure to reverse the sluggish car sales and cause a huge change in consumer choices in the market. “The car purchase subsidy policies issued by various regions will form a stable and strong support for the auto market in the first quarter, better release the consumption potential of consumers, and help increase sales in the short term.
Whether it is new energy vehicles or the entire auto market, the growth rate has slowed down significantly. The focus of auto companies this year is to compete for stock market share. “Reducing prices may not necessarily lead to sales, but if others lower you, you will definitely lose the market.”
As domestic new energy vehicles join the ranks of price cuts, this has had a great impact on joint venture cars and imported cars. Although joint venture cars still occupy a large market share, their sales will drop from January to February 2023. The year-on-year decline was as high as 30%, and some brands even fell by 50%.
The rise of China-made new energy vehicles has had a huge impact on the dominance of joint venture vehicles in the Chinese market. In the past, the price of the car was always increased, but now it not only does not increase the price, but also reduces the price. Joint venture vehicles, especially those that previously dominated the Chinese market It is impossible for Japanese and German brands to lie down and live a comfortable life like before.
The rise of China‘s domestic new energy vehicles has been a bright spot in China‘s auto market in recent years. China has become the world‘s largest new energy vehicle market, and the penetration rate of new energy vehicles will reach 25.6% in 2022, much higher than other countries.