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When it comes to luxury brands, terminal offers give larger brands than Jaguar Land Rover and Cadillac, because the market performance is generally only through the "price for volume" model. However, with the unprecedented impact of the COVID-19 epidemic on the domestic automobile market, the already flagging market has become even worse, so more and more brands have joined the array of expanded offers.

A few days ago, a suspected discount on Volvo's models in Beijing has been exposed. According to this price, all Volvo models are included, including newly launched sedan models and SUV models, with discounts ranging from 7.1 to 8.2%. The maximum cash discount is up to 170000 yuan.

Specifically, nothing can give a maximum discount of 170000 yuan than Volvo's flagship SUV model XC90, which belongs to its most expensive model, so it can naturally give a higher terminal discount. After all, if the terminal price cannot reach the ideal price for consumers, it will also lose its competitiveness with BBA and other second-tier luxury brands.

The biggest discount of 7.1% is for its medium-sized and large sedan S90, not only because it is one of its best-selling models, but also because it belongs to a more modern model. after all, the declaration map of the new S90 model has been exposed, which means that the new model is about to be on the market. To this end, increasing the discount will also help Volvo achieve the peak of the last wave of sales.

In addition, the rest of the models are about 75% off, only the newly listed medium-sized sedan S60 has not been enlarged by the terminal discount, and the maximum discount can only be up to 20% discount, which is also the smallest discount among its models. However, for this discount, although all its models have a discount, but not all configured models are given a discount, only its more popular configuration models, but also enough to meet the majority of consumers.

No matter whether the current preferential price of Volvo is big or not, it all reflects the behavior of luxury brands "giving way to survival" in the current environment of the next trip in the car market. after all, the market is so big that if you don't choose this brand, you will choose that brand. so that even in the face of losses, car companies can only choose to sell at a profit, after all, they can only become inventory cars.

In this regard, it is not just Volvo brands that offer greater concession, such as Cadillac, which previously offered a "45% discount". As well as the more layout advantage of the second-tier luxury brand Infiniti and other models just hit the market with a discount of 70,000 to 80,000, which shows that the current market is so difficult.

Of course, the decline of luxury brands will also bring a certain chain reaction. After all, the price of this discount such as Volvo XC40 has gone to 200000, which is even lower than that of many joint venture models. To this end, it will further have a certain impact on the joint venture brand, so that consumers will find it difficult to make a choice on the model.

Judging from the terminal sales of luxury brands in the first quarter of this year, the best-selling brand is Mercedes-Benz, with a total of 136200 vehicles sold. Nevertheless, according to the latest financial report of Beijing Automobile, the company reported revenue of 32.983 billion yuan in the first quarter of 2020, down 29% from the same period last year, while its home net profit fell 95.1% to 60.8498 million yuan. It can be seen that Beijing Mercedes-Benz sales did not decline sharply, but profits plummeted, Beijing Mercedes-Benz sales stability did not bring high profits to the company. According to the profit of Beijing Automobile in 2019, 89% of the profit comes from Beijing Automobile.

According to Mercedes-Benz's official explanation, the sharp drop in profits is due to an increase in the proportion of sales of relatively low-priced models, in other words, Beijing Mercedes-Benz has also adopted a "price-for-volume" approach to achieve high sales growth. Therefore, even the Mercedes-Benz brand is so difficult to go against the market, not to mention other first-and second-tier luxury brands.

In any case, in the face of the current downward environment of the car market, "price for volume" is already the behavior of most car companies, especially in luxury brands. This form also attracts the attention of consumers, but it will undoubtedly have a great impact on the revenue of car companies, and even lead to the abnormal development of the market. For this reason, before the market returns to normal, car companies will also face more challenges.

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