How many of the 16 car companies that signed the non-price reduction agreement have reduced prices?
Source: understand the car (id: idongche), understand the car and understand you better!
Author: All Weekly; Please bring the above information to be regarded as automatic authorization
On July 6, at the 2023 China Automotive Forum, led by the organizer China Association of Automobile Manufacturers (CAAM), 16 vehicles jointly signed the "Commitment to Maintain Fair Competition in the Automotive Industry".
via:chinaautoforum.cn
The first article of the Letter of Commitment is to "adhere to the rules and regulations of the industry, regulate marketing activities, maintain the order of fair competition, and do not disrupt the order of fair competition in the market with abnormal prices".
This is also the "No Price Reduction Agreement" that is often mentioned by netizens.
Although two days later, the Association of Automobile Manufacturers issued a statement deleting from the "letter of commitment" "not to disrupt the order of fair competition in the market at abnormal prices" and urging 16 car companies to strictly abide by the Anti-Monopoly Law.
via:chinaautoforum.cn
Although we have explained many times that this commitment is led by the Association of Automotive Manufacturers, not by car companies. And China, as the world's largest and most competitive auto market, cannot limit car companies from price wars with a single letter of commitment.
Think about when two classmates fought when they were children, and the teacher asked them to write a review and apologize to each other, did they really forgive each other?
But even now, you can often see the "no price reduction agreement" statement, today let's take a look at how many of the 16 car companies that signed the "letter of commitment" have reduced prices?
Here is the conclusion first: all 16 car companies have reduced prices, and some car companies even started price reduction activities on the day of signing the "Letter of Commitment".
tesla
Let's start with Tesla, the only foreign-funded car company among the 16 car companies.
Tesla turned around and launched the activity on the next day (July 7): successfully introduce friends to order and pick up the car, the car buyer can get 3500 yuan referral reward, and the referrer and car buyer can get 90-day EAP free trial rights.
Note that here the car buyer can get a 3500 yuan referral reward, which is equivalent to a cash subsidy of 3500 yuan directly.
Saic
Also reducing the price the next day was SAIC-Volkswagen, which announced a 37,000 discount on the ID.3 limited edition and the starting price of the car was reduced to 125,900, only half the price in Germany.
The price of the ID.3 in China has also caused dissatisfaction among German netizens, who posted angrily on the Internet. No way, who let the Chinese auto market be so rolled, you can't live without lowering prices!
FAW
You may think that Tesla and SAIC are "all the same", but these two are not the first car companies to cut prices.
On the day of signing the "Letter of Commitment", FAW-Volkswagen announced a discount for ID series models, and the ID.4 CROZZ was discounted from 193,900 yuan to 155,900 yuan.
lucky
Four days later, Geely announced a limited-time price reduction for Geely Boyue L Glory Edition, from a guide price of 128,700 yuan to 118,700 yuan, and also gave 3 years or 60,000 kilometers of basic maintenance, as well as 5,500 replacement subsidies and 70,000 2-year zero-interest loans.
In addition, the sub-brand Extreme Krypton opened a limited-time offer on August 11, and Extreme Krypton 001 has a limited-time discount of 3-37,000.
BYD
BYD actually has nothing to talk about, this year has been releasing the champion version of "price reduction and additional configuration", and the terminal discounts of models like Qin PLUS DM-i are also increasing.
As long as you know that BYD will hit the annual sales of 3 million units this year, and the sales volume will exceed 300,000 units every month in the next month, you know that it is impossible for BYD not to reduce prices.
East wind
A week later (July 14), Dongfeng Peugeot launched the "National Partner" campaign, and the recommender successfully recommended a friend to buy the Peugeot 408. Partners can get 2,500 cash + 25,000 points, and car buyers get 50,000 points (worth 5,000 yuan).
To be honest, there is a reason why Dongfeng Peugeot cars do not sell well, other car companies are giving points to recommenders, cash discounts for car buyers, but to Dongfeng Peugeot is the other way around.
Changan
Changan made more moves, first announcing on July 11 that Yida would launch a model with a lower guidance price, and there would be a discount of 4,000 yuan on the listing.
On July 12, a CS75PLUS $999 deposit to deduct $9,999 for the purchase of a car was launched, which is equivalent to a disguised discount of $9,000.
Great Wall
Great Wall has long called for fair competition in the Chinese auto market, and has also reported BYD for this, but it is impossible not to reduce prices.
A week later, Great Wall launched a 2,000 yuan deposit to 8,000 yuan for the Thunder Dragon series models, and teachers and medical workers could also make up another 3,000 yuan, equivalent to a direct cash discount of 9,000 yuan.
BAIC
BAIC ARCFOX POLAR FOX LAUNCHED TWO CARS, THE ALFA S AND ALFA T, IN FOUR CONFIGURATIONS ON AUGUST 18.
The four configurations are basically the same as the current model, the cruising range remains unchanged, but the motor performance, battery energy and other aspects have been improved, and the price has been reduced by more than 20,000 yuan.
GAC
GAC is the most unlikely car company that does not reduce prices, and last year it was GAC Toyota that tore open the mouth of Japanese price reduction. In particular, Highlander has changed from a 20,000 price increase in the past to a discount of 35,000 when you enter the door.
In addition, GAC Toyota's car, if you don't understand the preferential market, the discount of 35,000 is a baseline line, and it is right to cut up.
Chery
Chery launched the 2.0T version of Arrizo 8 and Explorer 06 in July and August respectively, with a discount of 1,000 yuan to 7,000 yuan. The guidance price of the 2024 Tiggo 8Pro has also been lowered from 133,900 yuan for the 22 models to 126,900 yuan.
However, these offers can only be regarded as "small favors" in the face of Chery Jaguar Land Rover discounts, and it is currently found that the discounts of sports PHEV and Jaguar XFL are about 140,000. No price reduction? How else do we sell cars in Jaguar and Land Rover?
Jianghuai
To be honest, the impact of Jianghuai lowering prices is not large, and this car company has few cars in the field of passenger cars. If anyone mentions Jianghuai on the Internet, it is likely to be attacking NIO for being manufactured by Jianghuai, which is not worthy of being called a luxury brand.
However, Jianghuai has indeed begun to have some discounts, such as the high-end model of JAC Yttrium 3 with a cost performance close to BYD Dolphin, and there are also small discounts.
Sinotruk VGV
Sinotruk's popularity is smaller than that of JAC, and the current brand only has two passenger car series, U70 and U75.
On the second day of signing the "Letter of Commitment", Sinotruk VGV launched the "Summer Peak Discount", including a guaranteed lottery of 1,000-8,000 yuan and a car purchase coupon of 2,000 yuan.
NIO
Finally, looking at "Wei Xiaoli", NIO announced on June 12 that all models would be officially reduced by 30,000 yuan before signing the "Letter of Commitment".
In addition, the recently listed EC6, the entry configuration guidance price is also 38,000 yuan cheaper than the 2022 model.
Xiaopeng
Just on September 19, Xpeng launched the 2024 Xpeng G9, and the entry configuration dropped from 309,900 yuan to 263,900 yuan under the premise of not changing the battery life. The price war of new car companies is much more ruthless than traditional car companies!
ideal
The ideal discount currently on the surface is only 10,000 yuan of insurance subsidies, but the actual discount can be up to about 18,000, plus some regional subsidies, even more than 20,000 yuan.
In summary, in a mature, free, and highly competitive market, it is impossible to stop the fierce competition between manufacturers without a legally binding commitment letter.