The domestic Volvo XC90 is priced at more than 400,000? For Volvo, is it a pro or a con?
2022-02-10 22:27 · Zheng Yi
Presumably, everyone has been brushed by the news of the domestic BMW X5, after the BMW X5 domestic production, the original price of millions of luxury brands in the large SUV, now may only need 600,000, or even lower. But this is far from the lower limit, Volvo XC90 will also be domestic, then at that time, it is estimated that the price of domestic XC90 will drop below 500,000. This almost refreshes the perception of ordinary consumers. Remember that when the Volvo XC90 first entered the Chinese market in 2015, it was also a proper million-dollar SUV. Unexpectedly, in just 6 to 7 years, the price will be cut off.
So after the domestic Volvo is so cheap, is it a pro or a disadvantage for the brand?
[1] XC90 sold at a low price after domestic production, is it really a last resort?
XC90 sold at a low price after domestic production, which was really a last resort. Three reasons, the first is that volvo XC90 currently imported models also have a large preferential margin in the terminal market. Usually the price of domestic high-end brand models will drop by about 100,000, according to this speculation, the price of domestic XC90 may only need 450,000.
Secondly, BMW X5, Lincoln Aviator, Cadillac XT6 and other luxury brand cars have also been or will soon be domestically produced. If the XC90 continues to insist on import sales and sell at high prices, then I am afraid that there will be fewer and fewer users. Therefore, XC90 must also be sold at a low price in order to compete with it.
Third, the SPA platform of volvo XC90 has been used by Geely Automobile to produce the Lynk & Co 09. The three major pieces of these two car models are even similar. Therefore, XC90 has actually only left the "brand" in the minds of users, and there is no difference between it and Lynk & Co 09 in terms of technology. Therefore, XC90 is not domestic, and it is estimated that it will not sell.
[2] XC90 domestic production, for Volvo, may not be all bad
As a second-tier luxury brand, Volvo's position in the minds of users is not as good as Mercedes-Benz, BMW, Audi. Therefore, whether XC90 is domestic or not has little to do with the user's impression of it. However, XC90 domestic production is of great benefit to the Volvo brand.
First of all, Volvo has announced a full transition to electrification, and the SPA platform is no longer Volvo's latest technology, and it has been used by Lynk & Co. Therefore, for Volvo, it is very important to finally exert the maximum residual value of the SPA platform. The XC90 domestic production is to give Volvo this opportunity.
Secondly, for current consumers, Volvo's impression of users is not preserved. The rate of depreciation in the used car market is also very fast. After the XC90 was further reduced in price after the domestic production, it actually greatly improved Volvo's retention rate, because the new car has no price reduction range, which has boosted the user's purchase confidence.
Third, the Volvo XC90 is currently the flagship of the Volvo family, but it is not right away. ReplacementSUV for the XC90 or higher end are also under development, and will use a newer platform, newer technology. Therefore, XC90 domestic production for Volvo does not lose anything, because there are more high-end models, perhaps not immediately domestic.
summary:
Therefore, I think that after the XC90 is produced, the price is less than 500,000, which is not particularly bad for the Volvo brand. In fact, just China's past luxury brand cars sold too expensive, look at the United States luxury brand cars to know, in fact, more than 400,000 XC90, more than 500,000 BMW X5, just normal phenomenon!