AutoBeta(AutoBeta.net)07/21 Report--

After BMW announced its withdrawal from the price war, many car companies are rumored to follow suit and withdraw from the price war.

According to several media reports, Volkswagen, Toyota, Honda, Volvo and other auto companies have said that they will adjust their terminal policies from July to reduce the intensity of terminal discounts, or not to cut prices further. At present, the discount rates of some car companies' models have shrunk, and even some models have experienced varying degrees of price increases.

Many netizens revealed on the Internet that the prices of several Audi models have increased by 1 to 2, 000 yuan compared with before. The terminal prices of some popular models, such as Audi A4L and Mercedes-Benz C-Class, have risen by as much as 10,000 yuan. At the same time, many netizens reflected that the prices of Honda Accord, Civic, Volkswagen Passat and other models have risen. Some netizens said that the price of Honda in Hunan, where they are located, has gone up by about 10,000 yuan. In Guangzhou, the price of the Honda Civic incendiary version has also increased by more than 10,000 yuan compared with June.

It is worth mentioning that BMW's withdrawal from the price war has not only affected some traditional car companies, but also affected the new power of car-building. A few days ago, there is news in the market that the prices of ET5/5T and ES6/EC6 will rise after July 22, with a price increase of 3000 yuan and 5000 yuan respectively. In response to this news, the staff of the Weilai store responded that it was a retrogression of time-limited rights and interests and realized a disguised price increase by reducing the discount for existing cars. It is understood that at present, the purchase of ET5/5T can enjoy 10,000 yuan of replacement subsidies, 8000 yuan of optional funds and 6000 yuan of discount for existing cars, while the purchase of ES6/EC6 can get a discount of 8000 yuan.

In fact, since last year, the price war in the automobile industry has become more and more fierce. In 2024, BYD launched a number of cost-effective "glory version" models one after another in February, with the slogan "electricity is lower than oil". Among them, the prices of Qin PLUS Honor Edition and Destroyer 05 Glory Edition are both down to 79800 yuan, a reduction of as much as 20, 000 yuan compared with last year's models. After BYD's price reduction in disguise, many new energy car companies and traditional car companies have also followed suit to cut prices.

Geely also offers limited-time discounts for its Xingyue L-series, Xingrui series, Boyue series, Dihao series and other models. Tesla, as a new energy giant, also launched time-limited discount activities for his models at that time, with a discount range of up to 8000 yuan.

Under the background that car companies have joined the price war, traditional luxury brands have to follow up on price cuts and are forced to join the price war. Earlier, it was revealed that the price of the BMW i3 had fallen sharply, of which the original guide price of the BMW i35L was 353900 yuan, which was reported to be less than 200000 in June. "price for volume" is one of the means for car companies to grab market share. However, it is a pity that the price reduction of luxury brands has not brought a considerable increase in sales, and the domestic market share of traditional luxury brands has still been reduced. Data show that BMW's cumulative sales in China from January to June were 375900, down 4.2 per cent from a year earlier. Mercedes-Benz sold 352600 vehicles in China from January to June, down 6 per cent from a year earlier.

Of course, behind the "price war" is more to reduce prices for survival, to increase sales. Although car companies hope to exchange price for volume to achieve sales growth to seize market share, but with the intensification of the volume of the car market, the effect of price reduction is not obvious. In this regard, some people in the industry have pointed out that the price war of "price for quantity" is an established fact for the industry to enter into in-depth competition, but the effect of the "price war" is limited to the short term.

As for the price war, Zeng Qinghong, chairman of GAC, once pointed out that the competition in the whole market is very fierce, especially in the price war, and the enterprise is now "giving up capital" rather than "making a profit." Volume is no problem, this is the law of the market, this is the relationship between supply and demand, this is the law, GAC is not afraid of price war, let the profit is no problem, but let this is the problem, not sustainable. "in addition, some well-known institutions have pointed out that more car companies may not cut prices on their models in the second half of the year. after all, if you want to maintain high-quality growth in the highly competitive car market, you have to fight a value war in the end.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat