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This year, the domestic auto market has set off a wave of price reductions, and both new energy vehicles and fuel vehicles are difficult to survive the price war. Although "friends and businessmen" have become synonymous with each other of car companies this year, the mutual stepping and competition between "friends and businessmen" are clear at a glance. Both new car manufacturers and traditional car companies are fighting in the price war to seize the market, and major car companies (groups) have adjusted their price strategies, and price reduction has become the main theme of the current automobile market. At the same time, the speed at which new cars are being launched at an all-time high has not only attracted widespread attention, but also left consumers in a tangle of whether it is the best time to "start".
The ongoing price war has led consumers to wait and see
As the leader of the new energy vehicle market, Tesla has been the focus of the price war. On April 1, Tesla bucked the trend in the context of the price war in Chinese mainland, causing market attention and various analyses. However, on April 21, Tesla suddenly announced a reduction in the price of all products, with a maximum reduction of 14,000 yuan. On April 22, Li Auto also announced a price reduction for the whole series, with a maximum reduction of 30,000 yuan, which once again triggered a chain reaction of other brands.
BYD, as a leading enterprise of new energy vehicles in China, is also facing market pressure. In response to the price reduction strategy of Tesla and other brands, BYD announced price reduction measures for some of its models since the beginning of the year to attract more consumers. At the same time, new forces such as Wenjie and Xiaomi Auto are not to be outdone, and have enhanced their market competitiveness through price concessions and other means.
In this price reduction turmoil, traditional car companies are not to be outdone. Traditional brands such as SAIC-GM, SAIC-Volkswagen, and Guangqi Honda have joined the ranks of price involution, trying to seize market share by combining car-making strength, brand advantage and price advantage. Some directly cut prices, some launched subsidy policies, and some participated in the competition with new cars that broke through the traditional low price to further stimulate consumers' desire to buy.
However, despite the continuous wave of price cuts, the car sales market has not performed prominently. Recently, the data of the passenger association shows that the car market did not rebound significantly at the end of March, and the market heat during the Qingming holiday was not as hot as the regular weekend, and the overall car market still continued the wait-and-see trend at the end of March, and the release of terminal demand was blocked. The price and preferential policies of various enterprises have been adjusted frequently, but the actual effect is relatively limited, and until mid-April, the terminal sentiment has not recovered to the level of the same period in March.
In the interview, the Chuncheng Evening News-Kaiping News reporter learned that the continuous adjustment of prices has created an impression of unstable prices for consumers, causing consumers to wait and see, and the more unstable the price, the easier it is to shake the determination to buy. On the one hand, consumers are worried about the price of the product and the price drop, and on the other hand, they are worried about the product quality and service problems behind the price reduction. Consumers are more cautious about weighing the price reduction wave against their own needs.
Whether to "shoot" this year
Consumers have their own ideas
In the face of price cuts, consumers are more cautious, and whether they should buy a car has become a topic of discussion. In this regard, the reporter interviewed industry experts and consumers, and found that everyone has different views and ideas.
Regarding this price reduction, Liu Jie, president of the Li Auto product line, said that the ideal price reduction is to better adapt to the industry environment. Liu Jie said that the passenger car market of more than 300,000 yuan, where the L series is located, fell by 12% year-on-year in the first quarter of this year. At the same time, the main models of traditional luxury brands of fuel vehicles also fell by 10 to 15 percentage points in terms of terminal transaction prices. In such a market environment, Li Auto decided to readjust its market expectations and made corresponding price adjustments. This is also the reason why many car companies cut prices, and follow up on the price adjustment of "friends" just to strive for a larger market share.
In the interview, BYD's sales staff believes that the reason why BYD can stand in the main position in the price war is completely supported by the company's research and development capabilities, "except for glass and tires, the others are developed and produced by BYD itself." "With our own technology, we have the initiative to set prices. Consumers don't have to worry about price cuts affecting the quality of their cars.
The interviewed car company personnel believe that the price reduction of car companies is the inevitable result of market competition. They believe that with the continuous progress of automobile technology and the continuous reduction of costs, there is room for prices to fall. At the same time, car company personnel also said that each company's supply channels and operating costs are different, and the repeated involution price has increased the burden on enterprises. In particular, most of the sales of new energy vehicles are still in the loss stage, and it is not realistic for consumers to expect or worry that the car will always be in a state of price reduction.
There is a general suggestion for whether or not to buy a car this year – it depends on how the consumer is positioned for the car. If you define the car as a tool attribute, it also means that the car is your current necessity, then it is suitable to buy a car no matter what stage the car market is in, and if there is no demand only thought, then you can compare more. But in any case, the involution will eventually have a limited time, and when the market stabilizes, there may not be so many preferential policies. Cars are consumables, depreciation is a normal product attribute, if the price of the car in your mind to a satisfactory position can be considered, you can also experience the driving experience brought by new technology earlier.
In addition to price, consumers are also concerned about after-sales service and other issues, and have higher requirements and worries about price reductions and product quality. The defeat of WM Gaohe has made consumers have more considerations.
A citizen who looks at a car in the car market said that now he has the idea of buying a car, and he will also look at the price reduction and preferential strength of the brand, but he will still consider many factors such as brand and performance when buying a car. He believes that in the current automobile market, in addition to price, factors such as the level of intelligence, cruising range and safety of vehicles are equally important.
Another user said that the current car intelligence is too high, many cars are made by technology companies, once the enterprise capital chain has a problem, there may be a problem with the update of automotive technology, the price is only one aspect, and the long-term use is the key, so they will choose a powerful company. "Cars don't cost as much as mobile phones. The user said.
Overall, although the current price reduction turmoil in the auto market has provided consumers with more choices, it has also put them in a more complex decision-making dilemma. For consumers, whether they should buy a new car at a reduced price also needs to be comprehensively considered according to their own needs and budget. For car companies, how to ensure product quality and service level while reducing prices, and enhance brand competitiveness will be the key to future market competition.
Note: The price adjustments, market performance and consumer views mentioned in this article are based on publicly available information and are intended to provide readers with a reference on market dynamics. For specific car purchase decisions, it is recommended that consumers consider comprehensively according to their own needs and budget, and consult professional opinions.
Chuncheng Evening News-Kaiping News reporter Liu Yangming Gao Yu photo report
First instance Yan Yuan
Editor-in-charge: He Dan, Chen Jie
Responsible proofreader Luo Qiuxu
Editor-in-chief: Yan Yun
Final Review: Editorial Board Member Li Rong