Let's be honest: Lexus, a second-tier luxury brand, should have withdrawn from the Chinese market a long time ago!

Pick up the car

2024-06-02 21:11Published in Henan

Second-tier luxury brands are completely silent in this era of electrification.

We said a point before, luxury brands are not divided into one or two lines, in essence, they are all tools for squeezing technology, and brands with strong brand appeal can sell at high prices and large sales, such as Mercedes-Benz, BMW, and Audi.

If it is a brand with weak appeal, while reducing prices, sales will drop sharply, such as Lexus, Volvo, etc.

At present, the current situation of the second-hand car market is that the overall price of luxury brands has been significantly reduced, and many users have begun to break away from the traditional luxury brand camp, and the price collapse of the head luxury brands Mercedes-Benz, BMW, and Audi is obvious.

The Mercedes-Benz C-class, which could not land for 300,000 yuan last year, can be won for 260,000 this year, the landing price of the second-tier luxury brand Lexus ES200 is about 250,000, and the price of Cadillac CT5 is about 220,000.

In one year, prices have fallen by more than 15%.

If a luxury brand loses its ability to pay a premium, it cannot be called a luxury brand, because the cost of buying these products is essentially not much different from that of ordinary brands.

In itself, what the luxury brand wants to carve out is a stronger portrait of consumption power.

But taking a step back, the current landing price of the Camry 2.0L hybrid is about 190,000 yuan, which is only about 30,000 yuan cheaper than the Cadillac CT5, and the landing price of the BMW X1 2.0T is exactly the same as that of the Lynk & Co 08, which is about 220,000.

In fact, luxury brands have lost their moats, and more and more consumers no longer need brands to provide social emotions and needs.

Maybe for more people, brand value is still very important, but more important is a new sense of experience, the traditional luxury brand is still the power architecture of the internal combustion engine + gearbox today, and the sense of experience is still the old "mediocre".

In addition, the post-90s users collectively entered the game, and the post-95s and post-00s users also began to gradually appear, and the traditional luxury brands are still "no intelligence, no interconnection, no automatic driving" products, which are still available for the post-70s and post-80s user groups, but for the new batch of users, it is not attractive.

Luxury brands lose their ability to attract new user groups, and they will inevitably initiate price reductions.

Because for these brands, sales volume is always more important than price, because the domestic pricing is already higher than the overseas market, the price of the 3 Series, A4L and other entry-level luxury cars is reasonable, but the price of 5 Series, 7 Series, GLE and other mid-to-high-end luxury cars, the domestic market is significantly higher than the overseas market.

If the price is reduced, the luxury brand still has room to survive, and the price reduction can be used in exchange for the recognition of users.

However, the prices of second-tier luxury brands have long collapsed, and the prices of small-scale second-tier luxury brands such as Cadillac, Volvo, Infiniti, Genesis, Land Rover, and Jaguar have been very low a few years ago.

At the critical juncture of today's rapid decline in the price of the head luxury brand, the second-tier luxury brand chose to "lie flat" and let the CT5, the main model, drop to less than 200,000, which is obviously not suitable.

These second-tier luxury brands are facing the serious problem that prices cannot be reduced, but sales cannot be increased.

In essence, young consumers no longer choose fuel vehicles, and luxury brands are high-value fuel vehicles, obviously in this sector, user demand and enterprise supply are obviously unbalanced, and the problem of oversupply is very obvious.

In other words, the domestic market in the future does not need too many luxury brands, and only a few luxury brands can be retained, because the sales of Chinese electrified brands will be higher and higher.

High-end electrified products such as Tank, ZEEKR, Ideal, and Huawei can easily surpass second-tier luxury brands in terms of sales, and in essence, we have long needed these foreign second-tier luxury brands with low sales volume and cannot provide brand resonance.

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