Is the 'price war' between car companies stalled? Many car companies such as Weilai and Ideal were exposed to have reduced their promotional efforts.

【ITBEAR】According to news on August 12, recently, multiple car brands have reported "shrinking the discount range". According to The Paper, a salesperson at a 4S store of Shanghai NIO revealed that starting from August 11, due to the cancellation of car purchase subsidies, the price of preferential models will increase by at least 10,000 yuan. A salesperson at another Weilai store also said that some gifts will be reduced in the future and the discounts will not be as strong as before. Not only Weilai, but also brands such as Li Auto and FAW-Volkswagen have also announced adjustments to their preferential policies. It is understood that the preferential policy of "loan interest as low as 1.99% and subsidy of 5,000 yuan" currently enjoyed by Li Auto's L6 model will end on August 13. At the same time, a salesperson at a FAW-Volkswagen 4S store in Shanghai revealed that after August 15, discounts on all models of the brand will be reduced.

Toyota’s sales staff also confirmed the reduction in discounts and explained that this may be due to the company’s lowered production target for the second half of the year, and production is expected to be reduced. Volvo salespeople expressed a similar sentiment, mentioning possible production cuts in the second half of the year.

As early as July 11, there was news that due to the price war, the stores suffered serious losses, and BMW decided to reduce sales volume from July to stabilize prices, thereby alleviating the operating pressure on the stores. In response to rumors that BMW China will withdraw from the price war, BMW China responded that it will focus on business quality in the second half of the year to support dealers' steady operations.

In addition, reports indicate that Volkswagen, Toyota, Honda, Volvo and other brands have also decided to adjust their sales strategies from July, reduce terminal discounts, or stop further price reduction activities.

However, the previous price war does not seem to have brought significant sales increases to brands such as BMW. According to data, the BMW Group’s sales in the Chinese market in the first half of 2024 were 375,900 vehicles, a year-on-year decrease of 4.2%. Sales in China in the second quarter of this year reached 188,500 vehicles, a year-on-year decrease of 4.7%.

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