The price war has come to an end, Volkswagen, Toyota, Honda and Volvo will adjust their strategies in July and reduce discounts

According to news on July 18, BMW China recently announced that it would withdraw from the price war and decided to stabilize prices by reducing sales volume from July to ease the operating pressure on stores. This move has attracted widespread attention in the market and also highlights the strategic adjustments of luxury car brands in the midst of market changes. According to interviews with Red Star Capital Bureau, many well-known brands such as Volkswagen, Toyota, Honda, and Volvo have also decided to adjust their terminal policies starting from July, reduce terminal discounts, and even choose not to further reduce prices. This series of moves shows that the automotive industry is trying to get rid of the price war strategy of the past and seek a more stable and sustainable development path.

1. Although dealers of some brands such as Nissan, Mercedes-Benz and Audi stated that they have not yet received formal notice of price adjustments from the brands, they have a positive attitude towards the "volume reduction and price stabilization" strategy and will make dynamic adjustments based on market conditions. Adjustment. This kind of flexibility and foresight shows the keen insight and ability of these brands to respond quickly in the face of market changes.

2. However, the price reduction strategy does not seem to bring the expected sales growth to luxury brands. On the contrary, continued deep price cuts may cause huge losses to the brand value of luxury cars. Taking BMW as an example, although its global delivery volume achieved a year-on-year increase of 2.3% in the first half of the year, reaching 1.0965 million vehicles, its sales in the Chinese market declined to 375,900 vehicles (including the MINI brand), a year-on-year decrease of 4.2%. %. This data undoubtedly provides a strong market basis for BMW China's strategic adjustment.
3. At the same time, observations and forecasts within the industry also provide support for this trend. At the 2024 China Automobile Forum, Wang Qing, deputy director of the Institute of Market Economics of the Development Research Center of the State Council, judged that the price war will ease in the second half of the year. In addition, executives from auto companies such as Geely, Chery, JAC, etc. have also called on the industry to stay away from involution and price wars and move towards brand improvement. -->

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