AutoBeta(AutoBeta.net)08/12 Report--

Although the luxury car market has achieved reverse growth, the degree of competition and the extent of price reduction are also unprecedented, which has a great impact on brands and is not conducive to healthy development. Earlier, the Cadillac fracture price reduction led to a little boiling in the luxury car market, in fact, there is also a luxury brand also rely on "price for volume" hard support.

Netizens reflected that Volvo dealers put up the slogan of selling S60L at a surprising price. He also said that the Volvo S60L has been sold at this price, enough to fight!

In fact, the quotation of 4S store is not its rock bottom price, and the quotation offered by secondary dealers is even lower. The Volvo car department reduced the price more ruthlessly, the terminal discount can reach 100000 yuan or so, basically at a 30% discount.

In the highly competitive luxury car market, it is difficult to compete with competitors without excellent brand advantages and product strength. And some brands that are not recognized by the market can only fall into the ranks of price reduction competition. In addition, second-tier luxury brands not only face the price reduction of first-tier luxury brands, but also face the price war of competitors at the same level, and the living environment is very bad.

At the product level, Volvo is slow. The main model S60L has not been replaced, the latest 2020 models on the market is still the product of the previous era, the appearance and interior decoration is obviously out of date, while the new generation of models will be launched at the end of 2019 or early 2020.

Volvo sales figures are not bad, but also achieved year-on-year sales growth, mainly supported by price cuts. In the first half of 2019, Volvo sold 67741 vehicles, up 10.2% from a year earlier, firmly holding the third place of second-tier luxury brands.

The latest July figures show that Volvo sold 12639 vehicles in China in July, up 24.9 per cent from a year earlier. Volvo sold 80380 vehicles in China from January to July, up 12.3 per cent from a year earlier.

Volvo's situation is very similar to Cadillac, "price for quantity" to survive, but the price "collapse" effect, the adverse impact on the brand will continue, and the follow-up development will be more and more difficult. One industry insider also pointed out that Volvo's management is running naked. Or the rhythm to be sold by Geely.

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