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In Lexus 36% growth situation, Cadillac pressure increased, a little careless may lose the second-tier luxury brand champion position. In 2019, the sales volume of new cars in China continued to decline. Although luxury cars did not fall but rose instead, the price war became more and more fierce. In addition, the task of clearing the treasury of the National Five Dynasties was heavy, and the phenomenon of price inversion was also very common. Led by Cadillac brand, the main models are basically sold at a discount of 60%.

The "price-for-quantity" approach seems to have achieved remarkable results in Cadillac, not only clearing the inventory of five vehicles, but also maintaining sales data. According to the latest data, Cadillac sales in June continued to break 20,000 units, actual sales of 21210 units, January-June cumulative sales of Cadillac reached 114592 units, an increase of 2% year-on-year.

By contrast, Lexus sold 93823 units in China from January to June, an increase of 36.5%, the largest increase among all luxury brands. The luxury car market is currently in a polarized situation, BMW, Cadillac, Lexus and so on still maintain sales growth, but Jaguar Land Rover, Infiniti, DS, Acura and other brands, still have not improved.

Cadillac's "fracture strategy" successfully cleared the warehouse. Earlier news about Cadillac's big price reduction was flying all over the sky, and a number of national five-stock cars sold off at a discount of 60%, causing an upsurge on the Internet. SAIC GM also internally issued employee car purchase discounts, ATS-L employee prices as low as 180,000, XTS only 210,000.

Until June, Cadillac was basically cleared under the strong price reduction, and the preferential margin was tightened. According to the circle of friends selling cars in the current month, it is claimed that not only are there few resources for the five cars in the country, but also extra consumption is needed to buy cars, and even queuing is required.

I have to admit, thanks to unprecedented price cuts, Cadillac really caught fire in the final stage of the National Five. Some netizens also said: "There is no car that cannot be sold, only the price that cannot be sold."

National five cars sold, sales maintained, but this is always a "double-edged sword", for brands and loyal customers, is undoubtedly a kind of harm. The decline in brand premium has a negative impact on the overall brand image, which is difficult to compensate for. Cadillac used cars don't sell, and they don't sell for a price.

Insiders said: Cadillac price for volume in 17 years 18 years seems to be very successful, but also buried hidden dangers, second-hand residual value is low, customer loyalty rate is lower, now there are many 17,18 years of second-hand cars hanging 200,000 +, but how many deals actually? The ultimate harm or former customers and potential customers.

In the long run, the sales volume of China's automobile market narrows and the market competition intensifies. For brands, to seize market share, the key is to do a good job in brand construction, products and services, which is the long-term solution.

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