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Needless to say, what the economic environment was like in the past few years, everyone has been deeply touched, and there is a sense of crisis in the lives of ordinary people, not to mention major enterprises.
In the past two years, prices in various fields have been rising, which has invisibly increased the cost of living for everyone, but there is one area that is just the opposite, prices have been in a state of decline, that is, the mainland's automobile market.
Now the competitiveness of the automobile market is very large, and after everyone's income has shrunk, the enthusiasm for buying cars has also decreased, and the emergence of new energy models has brought a huge impact on traditional fuel models.
This year is regarded as an important year for the mainland's economic recovery, after entering March, domestic car companies have started a new round of price war, and 9 car companies have officially announced price cuts.
1. The price war in the auto market started in March
In the early years, the major international automobile brands in the mainland market competition was very fierce, and in the past two years, there have been a number of car companies in the mainland that have grown rapidly, and BYD is one of the representatives.
In the process of development, BYD changed his development direction, concentrating on conquering the field of new energy, before he had shouted the slogan that electricity is lower than oil, and thought that this was really fulfilled.
The continuous rise in oil prices has made many car owners say that they can afford to buy cars but can't afford to drive, so car sales around the country have plummeted, and car companies have started price wars one after another in order to clear inventory.
Since March, some car companies have increased subsidies, first BYD took the lead in announcing price cuts, and the prices of its two models were reduced by 20,000 yuan.
Subsequently, Changan Qiyuan, Nezha Automobile, Shanghai General Motors, and Wuling new energy brands have also entered the wave of price reductions, originally thought that this was an adjustment made after the year to stimulate the market, but I did not expect that after entering April, some car companies began to cut prices.
Judging from the previous data, the wave of price reductions in the auto market in March was mainly concentrated in the field of new energy, with price reductions of about 5%~15%.
2. Price changes in the auto market in April
After entering April, Geely officially announced a price reduction, with a cash discount of up to 47,000 yuan, of which an interest-free loan of up to 100,000 yuan and a replacement subsidy of up to 10,000 yuan were also set up, with a decrease of 3,000~14,000 yuan.
Shanghai Volkswagen Tourang has also launched a limited-time offer, and the latest Tourang has been reduced in price for both models, and both models can also enjoy a 2,000 yuan cash voucher or a three-year worry-free maintenance package.
This provides different choices for different car owners, so that everyone has a wider range of choices, so this time the benefits of Shanghai Volkswagen are also quite attractive.
Feifan F7 has also joined the price war, and its advanced version, as well as advanced Pro version, long-term Pro version, and performance Pro version, have all been reduced by 25,000 to 30,000 yuan.
In addition, it also provides free upgrades for car owners, and free use of the RISING PILOT fully integrated high-end intelligent driving system software package worth 30,000 yuan for life.
Chery has also formulated a replacement activity, with a trade-in subsidy of up to 40,000 yuan, and some of its models have also launched a number of limited-time discounts, with a maximum comprehensive discount of 19,000 yuan.
Even the international brand Tesla also took action at this time, and he proposed that car owners can enjoy a discount of up to 34,600 yuan when buying a car, and the annual rate of the Model 3/Y rear-wheel drive version is as low as 1.99%.
NIO has launched a subsidy of up to 1 billion yuan for the replacement of oil vehicles since April, and will receive an additional 10,000 yuan of optional fund subsidies for replacing 2024 new cars with oil vehicles.
3. The secret behind the price reduction
Major car companies have cut prices and implemented a number of policy subsidies, which is undoubtedly the best news for people who have the need to buy a car, which indicates that we can spend less money and enjoy the same quality goods.
However, the price war ushered in by the automobile market this time also indicates that behind the rapid development of this industry, there is an increasing competitiveness, and now many car companies have entered the stage of destocking.
The start of the price war will inevitably shrink the profits of car companies, and the profits of the automobile manufacturing industry will only be 5% in 2023, a decrease of 0.7 percentage points compared with the same period of the previous year.
From this, people can feel the impact of the economic downturn on the economic market, the price reduction of new energy models shows that the market has basically been in the saturation stage, we want to compete for more market share, we must achieve industrial and technological innovation and upgrading.
The increase in product supply will inevitably bring homogenization and intensify market competition, which requires major car companies to actively deal with it, and price reductions are only temporary.
summary
The vigorous development of the market has both advantages and disadvantages, it enriches the choice of consumers, meets the needs of most people, and major companies must also pay the price for it, and fierce competition and price war are likely to be only the first step.
Price war is one of the most advantageous weapons in enterprise competition, which can also attract more consumers and inject more vitality into the market. However, in order to achieve long-term development, enterprises need to improve the quality and service of their products in exchange for the trust and support of more consumers.