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After luxury car brands such as BMW, Mercedes Benz, and Audi (referred to as "BBA") withdrew from the "price war", car companies such as NIO, Toyota, Volkswagen, and Volvo also reported a reduction in their discount rates.
Recently, reporters from Huaxia Times visited several 4S stores in Beijing and found that some brands have already adjusted their prices, with price increases ranging from 3000 to 5000 yuan; Although some brands have not adjusted their discount rates, their installment policies have changed and interest rates have increased; Some brands are also adopting a wait-and-see attitude, saying 'it's hard to say'.
Can the automotive market gradually return to a state of rational competition, from fierce competition in the first half of the year to signs of price stabilization now?
Price drop of over 3000 yuan, extending installment repayment time indirectly increases prices
According to online reports, NIO will adjust its preferential policies for some models starting from the 22nd of this month. The existing discounts for NIO's ET5, ET5T, ES6, and EC6 models will be reduced by 3000 to 5000 yuan.
A salesperson from NIO confirmed the authenticity of this news to a reporter from Huaxia Times: "NIO's policy is in a state of decline, and it will become less and less. For example, starting from July 22nd, NIO ET5 prices will be reduced by 3000 yuan, with a discount of 21000 yuan for existing cars, ES6 prices will be reduced by 5000 yuan, and with a discount of 23000 yuan for existing cars At the same time, he also revealed that there are many restrictions on car purchase policies, and choosing a current car is this policy. If there is no current car, it is basically a free option.
Regarding the reasons for the price adjustment, the salesperson from NIO stated, "Many car companies have now withdrawn from the price war, and now everyone is not cutting prices. Prices are stabilizing, and there will not be too many (preferential) policies for buying cars in the future
Volvo, which has also been rumored to experience a price correction, still has significant discounts at the terminal. For example, the Volvo XC60 terminal offers a discount of over 100000 yuan, and the high-end model, which was originally priced at 426000 yuan, only costs over 300000 yuan after the discount; The Volvo XC90 has received a discount of approximately 200000 yuan, with a landing price of 500000 to 520000 yuan.
Although the discount amount has not changed, Volvo has made adjustments to its installment policy. The salesperson told a reporter from Huaxia Times that the current installment plan is to repay a five-year loan one year in advance, and it will soon become a five-year loan with two years in advance. "For example, XC60 can earn about 10000 yuan in interest per year, and this policy will end on July 27th
Similar installment policy adjustments are also being implemented in mass terminals. A salesperson from the Volkswagen ID series told a reporter from Huaxia Times, "If you want to book a car, it's best to get the installment approved this month. Now you can repay one year in advance, and from next month, it will become two years in advance, with a 5% reduction in interest." In other words, if you take out a loan of 100000 yuan, it's equivalent to an increase of 5000 yuan.
In a recent response, GAC Toyota, which passively withdrew from the price war, mentioned: "The official has never said that it will withdraw from the price war. Unexpectedly involved in the BMW incident, GAC Toyota models will still have preferential prices, but the preferential prices tend to stabilize." The Huaxia Times reporter also learned from a salesperson of GAC Toyota that there are indeed discounts available. Taking the entry-level Camry model as an example, it is currently discounted by 25000 yuan.
In addition, a salesperson from Cadillac also revealed to a reporter from Huaxia Times that "the OEM verbally stated that prices will increase starting from August." It is reported that Cadillac will gradually recover the price reduction, and the terminal prices of the entire series will rise from August.
There is a possibility for the automotive market to return to rationality in the future when both price reductions and price increases coexist, but it will take time. Zhang Junyi, Managing Partner of Aowei Consulting, believes that if a car does not have an predictable stable residual value and keeps lowering prices, consumers tend to hesitate when purchasing; For consumers with high brand loyalty, a slight increase can actually calm their minds. However, as long as there are still car companies that insist on exchanging price for quantity, it will be difficult to truly exit the 'price war', and this will take time, "said Tian Li, an automotive industry analyst, to a reporter from Huaxia Times
The wait-and-see sentiment persists, and the effect of trading price for quantity is slightly weakened
Faced with sudden price changes, terminal sales personnel are also confused and hold an uncertain attitude towards the future price direction. When asked if the brand will continue to raise prices in the future, GAC Honda salespeople repeatedly said, "It's hard to say, it's hard to say now
The market changed suddenly in July, and it may still be expensive by the end of the year. It's hard to say now, "said the salesperson from Volvo. At the same time, NIO salespeople also told a reporter from Huaxia Times that if you buy a car, it's okay now. After August, I don't know what policies will be implemented, and the discounts may be reduced. "Anyway, the policies are constantly being adjusted," they said
Although some brands have experienced price adjustments in the short term, conveying their intention to exit the price war to the market, the "uncertainty" conveyed by end sales personnel to consumers has not completely dispelled their wait-and-see attitude.
During the on-site visit, a reporter from Huaxia Times also randomly interviewed several consumers who came to the store. Many of them said, "Except for BMW, cars nowadays will not increase in price, they will only decrease in price." "Actually, it's just a matter of how much to decrease now." "Prices are unstable, and buying a car requires further consideration
The most intuitive reflection of this wait-and-see sentiment is that the passenger car market has experienced a significant decline since July.
According to data from the China Association of Automobile Manufacturers, from July 1st to 21st, the wholesale volume of passenger car manufacturers nationwide was 843000 units, a decrease of 13% compared to last year and a decrease of 17% compared to the same period last month. Since the beginning of this year, a total of 12.595 million vehicles have been wholesale, an increase of 5% compared to last year.
Cui Dongshu, Secretary General of the National Passenger Car Market Information Joint Conference, said, "The significant promotions that continued to strengthen in the first half of the year disrupted the normal price trend of the car market. It will take some time for terminal prices to recover, and coupled with the super strong promotional efforts in the second quarter, it will have an overdrawn effect on the consumption of car buyers in the second half of the year. The effect of exchanging price for volume in July has slightly weakened. Based on the achievements of the first half of the year, car companies have also optimized and adjusted market expectations, product structure, and sales pace. Some car companies have reduced their sales expectations and improved price influencing factors, and the car market has entered a period of stagnation
According to a reporter from Huaxia Times, Porsche has lowered the proportion of pure electric vehicle sales from 13% -15% to 12% -13%, and Volvo has also adjusted its annual sales growth forecast for this year from the previous 15% to 12% -15%. After lowering its sales target from 800000 units to 560000 to 600000 units, there are reports that Ideal Auto will also lower its sales target to 480000 units.
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