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On April 20, Changan Auchan announced a time-limited purchase discount for its five models from April 20 to May 7, 2023, reducing the rate to as high as 17000 yuan.

From the official poster, Auchan Z6 fuel version all cash dropped to as high as 10000 yuan, the price from 99900 yuan; Auchan X5 PLUS all cash straight down to 10000 yuan, the price from 85900 yuan; Auchan X5 1.5T automatic luxury cash drop 12000 yuan, price 76900 yuan; Auchan Z6 smart electric iDD direct drop cash 15000 yuan, price 140800; Auchan X7 PLUS automatic premium seven directly reduced cash 17000 yuan, price 89900 yuan.

Changan Auchan Automobile is a brand new passenger car brand of Changan Automobile Group, which together with Changan Automobile forms the "one body and two wings" of the development of Changan independent passenger car brand. Changan Auchan, formerly a Changan commercial vehicle, was renamed Auchan Automobile in 2018 under the promotion of Changan commercial vehicle "commercial transfer" strategy. At present, it has two major vehicle manufacturing bases in Chongqing and Nanjing, with more than 5500 employees. In fact, Auchan Automobile has always wanted to become an independent high-end brand, but due to the younger consumers in the car market and the quality requirements of automotive products, Auchan Automobile deviates from the high-end market positioning.

Changan Auchan was established in April 2018, and then it was unveiled at the Beijing Auto Show and officially launched in September of the same year. So far, Auchan X5, Auchan X7, Kesai 5, Keshan and other models are still on sale. Among them, Auchan X5 was officially launched on November 29th, 2020. The new car is based on Changan MPA platform, and the current guiding price range is 6.99-107900 yuan.

According to the sales data of "Automotive Industry concern", Auchan X5 is the model with the highest sales volume of Auchan cars, with a total retail sales of 128525 vehicles in 2021, followed by Auchan X7, with a cumulative retail volume of 51454 vehicles, and no other models exceed 10,000. The latest data of new car traffic insurance show that from January to February 2023, Changan Auchan sold only 1409 vehicles, with a market share of 0.16%.

"Price reduction promotion by car companies" has become a key word in the automobile industry since 2023, spreading from the new energy market at the beginning of the year to the fuel car market, and many car companies have started to cut prices. After the crazy price war of domestic fuel vehicles in March, a number of domestic new energy vehicles began to have "subsidy concessions" in April, and the way of price reduction is different from the ambiguous rate of reduction and promotion model of the fuel vehicle price war in March. On April 7, BYD launched a car purchase activity for its seal models, with a comprehensive discount of up to 31000 yuan, including 15000 cash subsidy, 10,000 yuan financial discount and 6000 yuan replacement subsidy. On April 8, Dongfeng New Energy adjusted the prices of its EX1 PRO and nano-BOX models to a maximum of 6000 yuan. On April 9, Geely's Ruilan Auto released Ruilan 9 price adjustment description, Geely Ruilan 9 down to 20000 yuan; April 10, SAIC GM Wuling announced that the purchase of Wuling new energy models before May 31 to enjoy up to 10,000 yuan preferential subsidies, including cash concessions, financial discounts, etc., Hongguang MINI models can enjoy the relevant concessions On April 15, Tesla Hong Kong announced that it would adjust the prices of Model 3 and Model Y by up to 14%.

According to the retail data of the Federation of passengers, retail sales in the domestic narrow passenger car market from January to March in 2023 were 4.262 million, down 13.4% from the same period last year. Retail sales in March were weak, with retail sales at 1.59 million, unchanged from the same period last year. The main reason is the result of a combination of factors such as sluggish consumption and increased wait-and-see atmosphere caused by market price chaos. Industry insiders believe that whether it is new energy vehicles or the auto market as a whole, the sales growth rate of car companies has slowed significantly, and this year the focus of car companies is to compete for stock market share.

It should be noted that car companies' price cuts are directly linked to profits, but between sales and profits, from the number of car companies that have cut prices since the beginning of the year, it seems that more car companies have chosen the former. Tesla CEO Elon Musk previously said that in the short term, at the expense of profits, actively strive for market share, even if the gross profit margin and profits fall, Tesla will continue to reduce prices to pursue sales, and made it clear that vehicle costs are falling, Tesla will continue to adjust vehicle prices and pursue sales rather than profit margins. Of course, some car companies have announced that they will not cut prices. Li Bin, chairman of the new car-building power, Li Bin, said: definitely not to participate in the price war, because the low gross profit of Lailai cannot participate in the price war. Li Bin believes that blindly reducing prices will form vicious competition in the automobile industry. On April 20th Renault said a price cut for electric cars would "stifle" the discounted value of cars. In addition, Li Yunfei, general manager of BYD Brand and Public Relations, has said that the price war does great harm to brands, but it may accelerate the penetration growth of new energy vehicles.

Industry insiders expect that after this Shanghai auto show, the automobile industry will usher in a new round of price cuts for new energy vehicles, a large number of new cars will be released at the auto show, the technology of new energy vehicles will change with each passing day, and related technologies will be greatly upgraded. The competitiveness of old models is bound to decline, and the inventory must be digested by price reduction. There are also industry insiders predict that the follow-up auto price reduction or cooling, industry competition is intensifying, high-cost homogenization capacity will gradually clear, reducing costs and improving efficiency will become the trend of industrial development.

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