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In response to the policy call to stimulate car consumption and to boost the sales of its brands, SAIC held a large offline promotion in the first half of the year, with a 55% discount on a number of new cars, including SAIC Volkswagen, Cadillac, Buick, Roewe and other brands. At the same time, Shanghai automobile products have also appeared on the e-commerce platform for many times to sell at a discount. With the advent of double 11, SAIC cooperated with Alibaba to subsidize its new cars, so as to achieve the effect of price reduction and promotion.

There is a view that SAIC Group has many promotions and subsidies, consumers enjoy substantial benefits at the same time, enterprises can also promote sales. Another view is that SAIC is so keen on promotional subsidies that it has participated in many activities to reduce the price of its models, which to a certain extent has something to do with the sales difficulties of the enterprise.

On November 8th, SAIC Group and Alibaba Group reached a new retail strategic cooperation. As part of the cooperation between the two sides, Tmall launched a "10 billion subsidy" covering Volkswagen, Buick, Chevrolet, Cadillac, Roewe, Mingjue, Chase, Wuling, Baojun and other brands. Specifically, consumers can lock in the car purchase subsidy provided by Tmall on Taobao and use it after talking about the rock bottom price in 4S stores offline.

It is understood that in this Tmall "car purchase subsidy" activities, including SAIC Volkswagen, Buick, Chevrolet, Cadillac and other brands are involved in the corresponding promotion activities.

Specifically, the models participating in the SAIC-Volkswagen brand subsidy this time include Lang Yi, Santana, Polo Plus, Tu Gai, Lingdu, Tuan L, Passat, Huieng, Tuyue, Tuang X, Wei ran, Tuguan L and other models. The subsidized models almost cover the models on sale, and different models have different subsidies. For example, Tu Ang X can deduct 18000 yuan, while long Yi departure only deducts 300 yuan.

Other brands are more or less the same. Buick brand subsidy models include micro-blue 7 pure electricity, micro-blue 6 pure electricity, micro-blue 7 plug and Anke S, the deduction amount is between 5000 and 25000 yuan. Chevrolet brands include Chevrolet New Energy, Malibu XL, Trailblazer, New Entrepreneur, Cruze, Chuangku, Volando, Chuangjie and Kowoz models with a maximum deduction of 30800 yuan, while Cadillac includes CT4, CT5, CT6, XT4, XT5 and other models.

In addition, SAIC independent brand models such as Jue 6, Roewe RX5, Roewe CLEVER, Hongguang MINI EV, Baojun E300 and other models are also in the Tmall automobile subsidy activity.

This time, Tmall's auto sales are all SAIC-Volkswagen, Chevrolet, Buick and Cadillac brands. after Tmall locked the corresponding products and paid a deposit, the 4S stores offline discussed the rock bottom price and superimposed them. Take the 2021 Passat as an example, the official guiding price of the model is 18.59-282900 yuan, which can reach 13000 yuan after paying a deposit on Tmall, equivalent to a reduction in the guiding price of the car from 185900 yuan to 172900 yuan.

It is worth mentioning that this is not the first time SAIC has sold cars at reduced prices on the e-commerce platform. In May this year, SAIC held offline promotions with its five major enterprises, including Roewe, Mingjue, SAIC Volkswagen, Skoda, Buick, Chevrolet, Cadillac and other nine vehicle brands. In this event, a number of models are sold at reduced prices, including SAIC-Volkswagen, SAIC-GM Buick and Mingjue also have 100 SUV5.5 discounts.

Earlier, a number of SAIC products were sold at a 50% discount on the pinduoduo platform, including 55 SAIC new Cadillac XT5, Volkswagen Touguan, Volkswagen Tuen, etc., with a maximum price reduction of nearly 160000 yuan.

SAIC is keen to sell new cars through similar channels, reducing prices by means of subsidies and discounts, on the one hand, for the purpose of marketing, and on the other hand, to promote car sales. Overall, although SAIC's monthly sales have recovered, it is still under pressure throughout the year, with SAIC Volkswagen and SAIC GM's main brands still showing double-digit declines.

Data show that SAIC's car sales fell 15.09 per cent from January to October compared with the same period last year to 4209947 vehicles. Among them, SAIC-Volkswagen fell 23.99% to 1136835 vehicles, the product strength of many models of the brand and the collapse of word-of-mouth are the main reasons for the decline in SAIC-Volkswagen sales; SAIC GM sales fell 18.34% to 1107575 vehicles. Buick, Chevrolet triengine strategy and Cadillac "price for volume" seriously damaged the brand image.

"price reduction subsidy" is the most direct and easy way to get sales, but the blow to the brand is also huge, especially in the case of negative news, this kind of price reduction may also eat back the brand. Generally speaking, price is a sensitive topic for Shanghai automobile products, which reflects the unfavorable phenomenon of the decline of product competitiveness and the decline of brand value. SAIC's announcement of "subsidies" under such circumstances actually better reflects its current situation in the market.

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