Cadillac cut the price by 80,000 to enter the game? Is the second round of car price wars about to start again?

If you want to ask what words to use in the car market in the first half of this year, "price war" must be the core keyword, just recently Cadillac began to announce a price cut of 80,000 to enter the game, many people are asking even Cadillac has begun, does this mean that the second round of price war is coming again? What exactly should we think about this?

First, Cadillac reduced the price by 80,000 to enter the game?

According to interface news reports, Cadillac officially announced the price and rights adjustment of its pure electric SUV Ruige. The configuration of Ruige will be simplified to 3 versions, and the pricing will be reduced by 60,000 yuan compared with the previous line, and the starting price will be reduced to less than 380,000 yuan. In addition, the official also launched a deposit payment discount of 20,000 yuan and the installation of electric piles, which made the comprehensive price adjustment range of Ruige reach more than 80,000 yuan.

While lowering the price, Cadillac also lowered the rights and interests of Ruige, packaging core rights such as free road assistance into value-added rights packages and selling them separately.

Not long before Cadillac announced the price cut, many brands, including Zeekrypton, Tesla, Geely, NIO, and Xpeng, directly or indirectly lowered the price of their models. While the automobile market has gradually returned to stability after the first round of price wars, the second round of price wars with new energy brands as the protagonists has quietly kicked off.

On June 12, NIO, whose sales have been sluggish for several months, took the lead in announcing a price cut. Similar to Cadillac, NIO has lowered the price of all models by 30,000 yuan, and has also streamlined the rights and interests of car owners, and free power replacement is no longer a basic right. At the end of June, Xpeng released the pure electric SUV model G6, as one of Xpeng's most important products this year, the pricing range of G6 is 209,900 to 276,900 yuan, and the starting price is 50,000 yuan lower than the direct competitor Tesla Model Y after multiple rounds of price reduction.

As the protagonist of the first round of price war, independent and joint venture brands showed more calm in this round of price war. Interface News visited the showrooms of Mercedes-Benz, BMW and Audi and learned that the above brands have not recently expanded the preferential range of their new energy products.

Second, is the second round of price war about to start again?

The price reduction of some Cadillac models is as high as 80,000 yuan, which undoubtedly makes the already competitive automobile market more turbulent. At the same time, people are beginning to wonder, does this mean that the second round of car price war has begun?

First of all, we need to understand the reasons for Cadillac's price reduction. As a well-known luxury car brand, Cadillac has always been competing with first-line luxury brands such as BBA. However, in the current market environment, Cadillac's sales volume and market share are facing greater pressure. Therefore, Cadillac chose to reduce prices in order to achieve better performance in the competition.

However, Cadillac's price reduction cannot be said to be the beginning of the second round of price wars, but a continuation of the first round of price wars. In the past few months, the auto market has experienced a price war for many car companies, especially in the fierce market between fuel vehicles and new energy vehicles, and various car companies have adopted price reduction strategies in order to compete for market share. Although to some extent, the price war has brought sales and market share to car companies, but for the entire market, the negative impact of the price war cannot be ignored.

Second, let's take a look at the overall situation of the current automotive market. With the development of technology and changes in consumer demand, the competition in the automotive market is becoming more and more intense. The market share of traditional fuel vehicles is gradually being replaced by new energy vehicles, and intelligence and electrification have become the trend of industry development. In this environment, car companies are facing great pressure to improve their competitiveness through various means, and price war is one of them. Therefore, it is foreseeable that the strategy of price war may continue in the short term.

Third, we must deeply understand that the price war has led to the chaos of the price system of the entire market. In the short term, car companies can get more sales and market share by reducing prices, but in the long run, price wars are not good for enterprises and markets. On the one hand, the price war has led to a decline in corporate profits, and even some companies have fallen into losses because of the price war. On the other hand, the price war has also led to vicious competition in the market, consumers are increasingly sensitive to the price of automobiles, and it is difficult for enterprises to obtain consumer recognition by improving product quality and services.

At the same time, price wars are also detrimental to industrial innovation and development. In the context of price wars, companies focus more on short-term interests and neglect technology research and development and product innovation. This has led to the decline of the innovation ability and core competitiveness of the entire industry, which cannot provide support for the sustainable development of the industry. Price war is actually only a short-term "prisoner's dilemma", once the enterprise falls into the quagmire of price war, it is likely to enter a vicious circle, which is not beneficial to the development of enterprises.

In the long run, the auto industry will have to look for areas of competition beyond price wars. Only through truly effective competition can we help the entire industry get back on track. Enterprises should focus on improving product quality and technological innovation, increasing product added value, and enhancing brand image and user experience. Only by continuously improving product competitiveness and innovation can we gain a more solid position in the market.