"Follow me for more exciting content"
In the changing luxury car market, the exit price war of German brands such as BMW, Mercedes-Benz and Audi is undoubtedly a huge shock. Consumers' attention has shifted from traditional luxury brands to rapidly emerging domestic new energy brands.
Cutting-edge forces such as Li Auto, Zeekr and Zhiji are challenging the supremacy of traditional luxury brands through technological innovation and market strategies. This confrontation between the old and new forces has not only changed the market structure, but also triggered countless conjectures and expectations about the future automobile market.
1. Strategic adjustment of German luxury brands: the reasons and effects of withdrawing from the "price war".
In the fiercely competitive auto market, BMW, Mercedes-Benz, and Audi, the three major German luxury brands, suddenly announced their withdrawal from the "price war", a decision that undoubtedly caused an uproar in the market.
The price war has not only severely eroded the profits of these top brands, but also made dealers miserable. In order to salvage the situation, these brands decided to turn around and reduce sales targets to stabilize product prices, in an attempt to ease the operating pressure on their stores.
This strategic realignment is not without a trace. The losses in BMW stores have reached the point where they are unsustainable, and from July, BMW has made it clear that it will stabilize product prices by reducing sales targets. Mercedes-Benz and Audi followed suit and announced their withdrawal from the price war.
This move is not only to alleviate short-term financial pressure, but also for the long-term market layout. However, such an adjustment immediately triggered a chain reaction in the market.
On the one hand, consumers are dissatisfied with the price correction, and on the other hand, they are also starting to wait and see, waiting for a better time to buy a car.
The market's response was swift and immediate. Although some models of BMW, Mercedes-Benz and Audi have seen price corrections, the overall discount margin is still considerable.
For example, the terminal price of the BMW 3 Series still maintains a large discount, showing the delicate balance between maintaining competitiveness and profits.
However, the impact of such price adjustments on dealers is huge. Sandwiched between car companies and consumers, many dealers have to continue operating with meager or even loss-making margins.
The plight of dealers is particularly prominent in this price war. The price offensive of luxury brands has caused dealers' profit margins to be compressed step by step, and many dealers are struggling to support in this battle.
In order to reduce the pressure on dealers, BMW and Mercedes-Benz chose to reduce the task quota and reclaim the discount slightly, which although some dealers breathed a sigh of relief, but it was far from solving the fundamental problem. Faced with multiple challenges such as cost, cash flow and personnel, many dealers are still carrying the load.
However, the strategic realignment of German luxury brands is only the beginning of the story. As these brands exit the price war, the focus of the market has gradually shifted to changes in order volumes and consumer reactions.
3. The market performance of German luxury brands after they withdrew from the price war: the decline in orders and consumer reaction
As soon as the news of the German luxury brand withdrawing from the price war came out, it immediately sparked heated discussions in the market. BMW, Mercedes-Benz, Audi and other brands have seen a rapid pullback in terminal prices, and although the discount margin is still considerable, it has indeed shrunk compared with the previous large discounts.
Specifically, the discount for the BMW 3 Series has been reduced from 100,000 yuan to about 90,000 yuan, and the terminal discount for the Mercedes-Benz C-class has been reduced from 100,000 yuan to about 50,000 yuan. These changes have made consumers more cautious in their car purchase decisions, and the wait-and-see sentiment has increased significantly.
The decline in the number of orders has become a problem that cannot be ignored. Consumers are extremely sensitive to price increases, especially in the luxury car market, where even the slightest price fluctuation can affect purchasing decisions.
Some consumers choose to stay on the sidelines and wait for better deals, while others simply turn to other brands or new energy models. The change in market demand is reflected not only in the decrease in the number of orders, but also in the shaking of brand loyalty.
The response from consumers is even more intriguing. According to market surveys, many consumers have expressed disappointment with the price adjustment of German luxury brands, believing that the discount margins are no longer attractive.
Some potential car buyers said they would prefer to opt for more affordable domestic new energy models, such as brands such as Li Auto or NIO.
These models are not only more competitive in price, but also breakthrough in technology configuration and user experience. Consumer buying behaviour is quietly shifting, which is undoubtedly a warning sign for German luxury brands.
3. The rise of domestic new energy brands: how to encircle and suppress German luxury brands
In the context of the withdrawal of German luxury brands from the price war, domestic new energy brands have risen rapidly and become the new favorites in the market. Brands such as Li Auto, Zeekr, and Zhiji have seized this gap to accelerate counterattacks through technological innovation and market strategies, challenging the status of traditional luxury brands.
The market performance of domestic new energy brands is eye-catching. Taking Li Auto as an example, its sales volume will increase significantly in the second half of 2023, and its market share will increase significantly.
The Ideal L9 and L8 models have quickly won the favor of consumers with their excellent endurance and intelligent configuration.
ZEEKR 001 has successfully attracted the attention of young consumers through its excellent performance and unique design. The data shows that the sales of these domestic brands have begun to threaten the market share of German luxury brands.
Technological innovation is an important driving force for the rise of domestic new energy brands. Breakthroughs in intelligent driving technology, Internet of Vehicles applications, and battery technology have made these brands far ahead in terms of technology configuration.
For example, Zhiji Auto's IM L7 is equipped with an advanced autonomous driving system and an intelligent cockpit, which greatly improves the driving experience of users.
Compared with German luxury brands, domestic new energy brands have shown stronger innovation capabilities and market response speed in technology.
Brand strategy is also the key to the success of domestic new energy brands. Through precise market positioning and differentiated product strategies, these brands have successfully attracted a large number of new generation consumers.
Through its price strategy and rich configurations, Li Auto has broken the "moat" of traditional luxury brands. ZEEKR and Zhiji have created a unique brand image through high-end customized services and brand culture construction.
conclusion
With the strategic adjustment of German luxury brands and the rapid rise of domestic new energy brands, the luxury car market has ushered in unprecedented changes. Technological innovation, market strategy and brand positioning have become the key factors that determine the success or defeat.
In the future, the market competition will be more intense, will traditional luxury brands be able to regain their strength, and will emerging brands continue to innovate and become the dominant force in the market?
This wonderful competition will surely bring more surprises and choices to consumers, and will also profoundly affect the future direction of the automotive industry.