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In 2020, the ranking of luxury brand sales has changed greatly, and the polarization has been further highlighted. Cadillac, which is firmly at the top of the second tier, was temporarily lost to Lexus after its sales fluctuated in 2020. However, Cadillac has rebounded as it hits its annual goals and rankings.

Cadillac sold a total of 25316 cars in October, up 81 per cent from a year earlier and the biggest increase of the year, according to the latest official figures. Meanwhile, Cadillac sold 178176 vehicles from January to October, roughly the same as the same period last year.

It is worth noting that the dispute over the first name of second-tier luxury is still in suspense. Lexus has yet to release figures for October sales in China, but the brand sold 158439 vehicles in the first three quarters, up 9.6 per cent from a year earlier. If according to its monthly performance analysis of 20,000 units, the current gap between Lexus and Cadillac is very small. At the same time, Cadillac is likely to adopt a sustained "momentum" market strategy at the end of the year, so it is likely to help it eventually return to the top of the second-tier luxury list.

With the in-depth adjustment and upgrading of the product line, the Cadillac product line has been further improved and the market positioning has become clearer, thus helping to increase brand sales. On the other hand, the sales strategy of Cadillac terminal price reduction for volume is also an important way for the brand to continue to obtain sales.

In terms of cars, Cadillac, which has three models, the CT4, CT5 and CT6, sold a total of 9641 cars in October, accounting for 38 per cent of total sales. The Cadillac CT4, which went on sale in April, sold 2764 cars in October with an official guiding price of 2.397-259700 yuan, but soon a dealer put up posters with a price reduction of 50, 000 yuan, thus attracting consumers and becoming another Cadillac medium-sized sedan with a terminal price of less than 200000 yuan. In addition, the Cadillac CT5 sold 5000 vehicles in October.

For SUV, Cadillac XT4, XT5 and XT6 sold 15673 vehicles in October, up 52 per cent from a year earlier. Among them, Cadillac XT4 sold 6663 vehicles in October, up 67% from a year earlier, the second highest monthly sales since its launch, with cumulative sales of 45739 vehicles from January to October.

Cadillac XT5 sold 5779 vehicles in October, with a cumulative sales of 49821 vehicles from January to October, an increase of 12% over the same period last year. Medium and large SUV Cadillac XT6 sold 3231 vehicles in October and 20412 vehicles in January-October.

The development of the Cadillac brand in China is full of "drama". The sharp price reduction competition has enabled it to gain short-term benefits, and its sales have grown rapidly and gained a firm position. This can easily lead to a serious decline in brand premium, product market price confusion, low second-hand salvage value, and brand loyalty. Especially with the market returning to rationality, this phenomenon is particularly obvious. So far, Cadillac sales growth is still weak, while the luxury car market continues to grow rapidly, Cadillac has just caught up with last year's sales figures.

An executive of a luxury car company pointed out that at present, competitive means such as price for quantity are no longer applicable to luxury cars, and if they continue to pursue sales at the expense of brand value, they will encounter greater challenges and difficulties in the future. "luxury brands should adhere to value marketing, not blindly pursue sales. Even in the most difficult circumstances, it is absolutely impossible to exchange quantity with price, and absolutely cannot engage in wholesale and pressure storage. "

Wang Yongqing, general manager of SAIC General Motors, has also said that as consumers begin to return to rationality, brand concentration and loyalty are getting higher and higher, and customers' requirements for enterprises are getting higher and higher. in such a competitive environment, only a "price war" is out of date.

With the momentum at the end of the year, Cadillac may return to the top of the second-tier luxury list, but the future is still challenging for brands.

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