Since the beginning of 2024, the automotive industry has been engaged in a vigorous price war. From BYD's release of a number of new cars such as Song PLUS DM-i Glory Edition and Seal DM-i Glory Edition in one fell swoop, to Geely, Wuling, Nezha, Ideal, Weilai, Zeekrypton and other car companies have followed up, the entire market can be described as changing.
According to incomplete statistics, 202 new products will be released in 2024, of which new energy products account for 75%, which is equivalent to an average of one new energy car launched every 2.4 days, which means that the price war will only become more and more fierce in 2024. Data shows that in the first three months of this year, more than 60 models have announced price cuts, and more than 10 brands have directly or indirectly launched price reduction activities on April 1 alone.
However, just when consumers are facing waves of price "bombardment" and are about to desensitize, SAIC Roewe announced the "Rong Tornado" price action, with a number of star models dropping by 20,000 yuan, and it is expected to invest more than 5 billion yuan in daily subsidies.
If BYD previously shouted the slogan of "electricity is lower than oil" with the strategy of increasing allocation and reducing prices, trying to completely subvert the fuel vehicle market, this comprehensive price war represents the determination and ambition of new energy vehicle companies. So now, Roewe insists on using new products and new values to let users get real benefits and real new travel experience, not only to achieve "electricity is lower than oil", but also to achieve "B is stronger than A" in one step, and take the lead in bringing B-class new energy cars to the price range of A-class cars, directly pushing the price war of the car market to a new stage, announcing that the price war of car companies has completely started in the "deep water area" of quality.
Electricity is lower than oil, and "B" is stronger than "A".
The reason why Roewe has pushed the price war of car companies to a new stage is that on the one hand, Roewe has not only achieved BYD's "electricity is lower than oil", but also on this basis, it has further launched the value innovation war of "pure electric AB sedan at the same price" through Roewe D7 EV.
As a B-class pure electric car, the Roewe D7 EV after a direct drop of 20,000 yuan took the lead in bringing the B-class new energy sedan to the A-class car price range, as a reference, among the current popular B-class pure electric cars, the entry price of the dark blue SL03 starts at 139,900 yuan, the entry price of the seal starts at 179,800 yuan, and the joint venture hot-selling B-class car Passat 2024 outstanding model is also 188,300 yuan, and the Camry gasoline version starts at 171,800 yuan. In contrast, the Roewe D7 EV, which starts at 120,000, undoubtedly provides consumers with a very cost-effective choice.
Moreover, the Roewe D7 EV is not only affordable, but also has excellent performance in performance, configuration and comfort. Taking the Roewe D7 EV 510 Flagship Edition and the Qin PLUS 510 Excellence Edition, which are about the same price, as an example, the Roewe D7 EV has shown a crushing advantage in terms of body size, space comfort, core technology, intelligent cabin experience and other dimensions.
On the other hand, Roewe pays tribute to "Glory" at the same time, it has also achieved a more cost-effective than "Glory", Roewe D7 DMH equipped with DMH super hybrid system is not only larger than Qin PLUS DM-i, but also has a larger battery capacity and stronger power, and is also equipped with multi-link independent rear overhang, "double 12.3 inches" central control screen + LCD instrument, leather luxury seats, main driver lumbar support and front seat heating, 10 speakers and other high-value configurations that the Glory Edition does not have, to meet the needs of users in real driving scenarios.
Enjoy state-of-the-art products at the best prices
In fact, as the price war becomes more and more intense, the entire industry has begun to face huge operating pressure. According to the data, in January-February 2024, the profit margin of the automotive industry has fallen to 4.3%, which is much lower than the average of the entire industrial enterprise.
Even so, some car companies have to keep up with the rhythm and launch various preferential policies to compete with them, and over time they will fall into the cycle of "the more you sell, the less profit", and "the less profit, the more you have to fight the price war". As the main force of the national team of independent brands, Roewe is backed by the strong strength of SAIC Group, one of the world's top 500 companies, through long-term and continuous technological investment in technological innovation, to enhance the core competitiveness of products, transform technical value into user value, and form a scale effect, which is more confident than the new force that has just entered the auto market.
However, normally speaking, Roewe has the strength of "not afraid of volume, but also dare to fight for a long time", even if it is "dead" with the price war, it will definitely fight to the end, why do you have to invest 5 billion yuan to fight the quality popularization war at this time?
In fact, it is not difficult to understand that the protracted price war has also brought some problems to the industry, and the car companies have focused more on price competition, while ignoring product innovation and technological upgrading, and secondly, the price war of some car companies is still based on sacrificing the use value of the product and the total cost of ownership of the user. This kind of short-term behavior will undoubtedly hinder the long-term development of the entire industry.
Starting from the healthy development of the industry and user experience, the main force of the independent brand "national team" Roewe has started a quality popularization war, with 100 million subsidies, oil and electricity shared, not only Roewe D7 EV, Roewe D7 DMH, but also the new Roewe i5, Roewe RX5, Roewe superhybrid eRX5, Roewe RX5 PLUS, Roewe iMAX8, Roewe RX9 and other main models, the official guide price has been reduced by 20,000 yuan.
More importantly, this price reduction does not reduce the allocation, nor does it produce a simple version of the fish eye mixture. For example, from 79,900 yuan, you can get a Roewe RX5 PLUS that is 30,000 cheaper than Changan CS75 PLUS Champion Edition, with abundant power and economic fuel consumption, and from 49,900 yuan, you can have a new Roewe i5 with six dimensions of design, space, cockpit, technology, power and safety.
It is reported that the original intention of the SAIC Roewe brand to launch the "Rong Tornado" price reduction campaign is to use the best price in the world to let Chinese users take the lead in experiencing the world's leading Chinese technology and Chinese brands.
Taking the Roewe DMH super hybrid system as an example, the Roewe D7 DMH on offer this time is equipped with this technology, which has crushing advantages in terms of power and battery life. In particular, the Roewe D7 DMH has run a range of 1962 kilometers when fully charged and fully fueled, and the average fuel consumption has also achieved an ultra-low 2.8L/100km. What is the concept? BYD's upcoming all-new mid-size sedan Qin L, which will be equipped with the fifth-generation DM-i hybrid for the first time, has a fuel consumption of less than 4 liters per 100 kilometers. That said, the Roewe D7 DMH is now comparable to or possibly surpassing BYD's latest technology that has not yet been released.
Obviously, this promotion is not only a sincere feedback to consumers, but also a confident display of the brand's own technical strength and product quality. In the face of the surging tide of price reductions in the market, Roewe did not blindly follow the trend, but showed its strength and responsibility as the main force of the national team of its own brand through the "Rong Tornado" price action, which is guided by user needs and driven by technological innovation. In the future development, we also have reason to believe that Roewe will continue to adhere to technological innovation and quality improvement, bring more high-quality products and services to consumers, and contribute more to the rise of China's automobile industry.