2023 will be a year full of changes and challenges for the domestic auto market. Affected by multiple factors such as the epidemic, chip shortage, and the National VIB standard, the growth of automobile sales is sluggish, and competition has intensified, especially in the luxury car segment, the "** war" between car companies has intensified, and the price reduction of some models has even exceeded 150,000 yuan. In this "best war", dealers are under tremendous pressure, not only to face problems such as inventory backlog, declining profits, and reduced customer flow, but also to strive to complete the sales task at the end of the year.
In the first half of 2023, the sales volume of the domestic luxury car market will be 28750,000 units, an increase of 118%, accounting for 14% of the passenger car market7%, a record high. However, this growth has been uneven, mainly concentrated in the top brands such as Tesla, Audi, BMW, Mercedes-Benz, etc., while other brands have performed flat or even declined. For example, the sales of brands such as Lexus, Volvo, Jaguar Land Rover, and Infiniti all declined to varying degrees year-on-year.
In the second half of the year, the competition in the luxury car market will become more intense, not only with the impact of new energy models, but also with the rise of localized models and changes in consumer demand. In order to cope with these challenges, major luxury car brands have adopted price reduction strategies in an attempt to attract consumers through discounts, increase market share, and achieve sales targets. According to incomplete statistics, nearly 30 luxury car brands have launched different degrees of price reduction activities, involving more than 100 models, ranging from 100,000 yuan to 1 million yuan.
From the point of view of price reduction, the most "generous" is the Audi brand, whose A7L and Q6 models have a maximum price reduction of 160,000 yuan, and the current price is only about 300,000 yuan, which is equivalent to half price**. These two models were originally Audi's high-end flagship models in China, positioned in the business and luxury markets, but due to strong competition from Tesla's Model S and Model X, as well as consumers' preference for new energy models, sales have been poor and inventory backlog is serious. As a result, Audi had to take drastic price cuts in an attempt to clear its inventory and make room for the launch of new models.
In addition to Audi, other luxury car brands are not to be outdone, and have launched discounts of up to more than 100,000 yuan. For example, Cadillac's XT4, XT5, XT6 and other models are up to 10 discounts80,000 yuan, BMW's 3 Series, 5 Series, X3 and other models up to 10 discounts50,000 yuan, Mercedes-Benz's C-class, E-class, GLC and other models are discounted up to 1020,000 yuan, Lexus ES, NX, RX and other models up to 100,000 yuan, Volvo S60, XC60, XC90 and other models up to 980,000 yuan, Jaguar Land Rover's XEL, XFL, Discovery Shenxing and other models have the highest discount of 950,000 yuan, Infiniti's Q50L, QX50, QX60 and other models are discounted up to 920,000 yuan.
The price reduction activities of these luxury car brands have undoubtedly brought more choices and ** to consumers, and also brought more opportunities and challenges to dealers. On the one hand, price reduction can stimulate consumers' desire to buy, increase dealer traffic and transaction rate, alleviate inventory pressure, increase cash flow, and enhance brand image. On the other hand, price reduction will also affect the profit margin of dealers, reduce customer loyalty, increase after-sales costs, cause confusion, and damage brand value. Therefore, dealers should also pay attention to safeguarding their own interests and long-term development while participating in price reduction activities.
In short, the "** war" of the 2023 luxury car market high-quality author list is a war without gunpowder, and all parties are fighting hard for their own interests. However, this "** war" is not a one-and-done solution, it can only be a stopgap measure. In the context of the ever-changing market environment and consumer demand, luxury car brands need to continuously improve their product strength, technical strength, service strength and innovation in order to maintain their leading edge in the fierce competition if they want to truly win the recognition and trust of consumers.