The Chinese auto market ushered in a sharp price cut! BMW, in China, the price is reduced by 15,000 US dollars, and you can buy it for 35,000 US dolla

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China's auto market ushered in fierce price cuts! The prices of BMW, Peugeot, Toyota, Citroen, and Audi in China have been reduced by US$15,000, and they can be purchased for US$35,000.
[BMW's pure electric model i3 terminal has a large promotion, with a maximum drop of more than 100,000 yuan. March 9th, the reporter learned from a number of BMW 4S stores today that BMW has recently launched a substantial promotional promotion, and its pure electric model BMW i3 has dropped by more than 100,000 yuan. Taking BMW i3 eDrive 35L as an example, its official guide price is 353,900 yuan, and some 4S stores sell it at 248,000 yuan after discounts. In addition, on March 7, Ford China officially announced that its pure electric model Mustang Mach-E will offer a limited-time discount of 40,000 yuan from now until April 30, 2023. Other Peugeots, Citroen, and Toyota are cutting prices by 40,000 to 60,000 RMB

 

[从八品主簿]

The highest discount is 100,000, and over 30 auto brands have cut prices in a fancy way. Is the "price cut tide" really coming?
The phrase "There are no unsalable cars, only unsalable prices" should be the best summary of "the strongest car purchase discount season in Hubei history". With a subsidy of 90,000 yuan and a price of less than 130,000 yuan after the discount, the Dongfeng Citroen C6, which was once the car of the French president, was sold out amidst the voices of "go to Hubei to grab a car!" The cars were all bought. This wave of price cuts planned by local governments and car companies is like a "catfish", quickly motivating other regions and companies to follow up, and the "big price cuts" are showing a spreading trend. A "tide of price cuts" that started with new energy vehicles and swept across fuel vehicles is coming quickly.

More than 30 brands fancy price war Car "price cut tide" is coming! With the "out of the circle" of the Dongfeng series, other car companies are also trying to borrow a wave of "Dongfeng", and the price war in the auto market is imminent. According to the Nanfang Daily, China FAW launched the "Flag Benefit Jilin - 100 million yuan time-limited subsidy for the people" campaign, with a total subsidy of 150 million yuan, and the maximum amount of bicycle subsidies can reach 37,000 yuan. Dealers from all over the country are also following up. Jining Dongfeng Peugeot models can enjoy government subsidies of 30,000 yuan, and corporate subsidies can reach 75,000 yuan. SAIC-GM Buick announced that as of March 31, various models under it are eligible for subsidies, and consumers in Hubei can enjoy Government and enterprise subsidies up to 70,000. Many brand distribution stores in Guangzhou are also "grabbing" consumers. GAC Honda Haoying and Accord offer a discount of 20,000 to 30,000 yuan. FAW-Volkswagen launches any brand to replace the tour and the environment, and can enjoy a replacement support of 16,000 yuan. GAC Toyota Highlander landed at 308,800 yuan, and enjoy another 5,000 yuan during the pre-sale period Yuan car gift. The highest discount for SAIC Audi A7L is 38,000 yuan, the price of some Mercedes-Benz models has been reduced by as much as 120,000 yuan, and the price of FAW Audi A6L has been reduced by 90,000 yuan. According to The Paper, on March 8, Mustang Mach-E, Ford's pure electric brand, announced that all models on sale will be cleared and the price will be reduced by 40,000 yuan. The promotion will last until April 30. The price ranges from RMB 209,900 to RMB 329,900.

According to incomplete statistics from the Red Star Capital Bureau, at least 30 auto brands have participated in this price war so far, with a maximum discount of more than 100,000 yuan. Some are official brand activities, some are regional dealer promotions; some are direct price cuts, and some are indirect forms such as cash credits, insurance subsidies, financial discounts, and gift optional packages. Although SAIC Audi's preferential activities are only for internal employees, there are already transfers of employee car purchase quotas on the second-hand platform. In addition, Henan will continue the car purchase subsidy policy until the end of March 2023, and will provide consumers with a subsidy of 5% of the purchase price for newly purchased cars in the province. Tianjin will issue 60 million yuan of auto consumption subsidies, and Shandong will issue 200 million yuan of auto consumption coupons, etc. . The new standard of "National Six B" will be implemented soon Car companies have large inventories and have to cut prices According to Beijing Business Daily, Yan Jinghui, a member of the expert committee of the China Circulation Association, believes that whether it is government subsidies or car companies and dealers to increase preferential efforts, the ultimate goal is to promote car consumption. "Giving high discounts can stimulate the market in the short term." He said.

It is worth noting that starting from July 1 this year, the "National Six B", known as the most stringent emission standard, will also be officially implemented. This means that car companies that previously used the "National Six A" emission standard models must increase inventory clearance before July 1, and price discounts are one of the most effective means. Cui Dongshu, secretary-general of the Passenger Car Market Information Association, said that this round of promotions is also a way for companies to clear inventory for the replacement of National VI emission standard models. According to Nanfang Daily, data from the Passenger Federation show that the retail sales of passenger vehicles in February 2023 will reach 1.39 million units, a year-on-year increase of 10.4% and a month-on-month increase of 7.5%. From January to February, the cumulative retail sales were 2.679 million vehicles, a year-on-year decrease of 19.8%. As one of the national pillar industries, automobiles are becoming more and more important to boost domestic consumption, stabilize industry and economic development. Behind the comprehensive price reduction of automobiles is that the pressure on the automobile market that needs to be boosted is too great, and the inventory index continues to rise. Automobile companies have to compete for customers at low prices to stimulate the desire for automobile consumption. According to data from the China Automobile Dealers Association, the inventory warning index of Chinese auto dealers in February was 58.1%, an increase of 2% year-on-year. According to the survey, 80.2% of dealers believed that the sales in February fell short of expectations, the inventory pressure was high, and the capital flow was poor , due to fierce market competition, many car companies have cut prices and sales, and the operating conditions of dealers have declined. This is also an important factor for car price reductions.

Bo Wenxi, Chief Economist of IPG China, said in an interview with a reporter from the Securities Times that there has been a wave of price cuts for new energy vehicles, and car companies led by Tesla have cut prices one after another. In order to fight the battle, we must either quickly switch to new energy vehicles, or drastically reduce prices to meet the challenge. There is no other choice. The government is also promoting car consumption According to China Youth Daily, according to Cui Dongshu, secretary-general of the Passenger Car Market Information Association, the key to stabilizing bulk consumption is to stabilize car consumption. "In the future, we need to focus on the entire life cycle of automobiles, combine the expansion of automobile consumption with the promotion of long-term industrial development, and continuously improve automobile consumption policies." Statistics show that in the past five years, automobile consumption has accounted for about 10% of the total consumption in the domestic market on average, and it is a veritable pillar of the domestic consumption market. Among them, new energy vehicles are playing an increasingly important role. In 2022, the production and sales of new energy vehicles in my country will be 7.058 million and 6.887 million respectively, and the penetration rate of new energy vehicles has reached 25.6%. This means that my country has achieved the previously set goal of "20% market share in 2025" for new energy vehicles three years ahead of schedule.

Cui Dongshu, secretary-general of the Passenger Passenger Association, said that this round of large subsidies jointly implemented by the government and enterprises in Hubei is a powerful measure to reverse the sluggish car sales and cause a huge change in consumer choices in the market. "The car purchase subsidy policies introduced by various regions will form a stable and strong support for the auto market in the first quarter, which can better release the consumption potential of consumers and help increase sales in the short term." Feng Xingya, deputy to the National People's Congress and general manager of Guangzhou Automobile Group, said that under the background of a large-scale decline in subsidies and tax reduction policies and consumers' desire for commodity consumption has not yet recovered, it is recommended that the national subsidy policy be transformed to a demand-side strategy. Implement continuous subsidies, directly provide preferential subsidies to consumers, and continue the car purchase tax reduction and exemption policy. Yao Jinbo, a representative of the National People's Congress and CEO of 58.com, suggested that, on the one hand, the 0.5% VAT reduction policy for used cars should be determined for a long time; Digital means improve the level of facilitation of used car transactions.