International luxury cars have cut prices, China's new energy vehicles are rising strongly

For international luxury car brand new car discount sales rumors, Shanghai Securities News reporter recently Porsche, Mercedes-Benz and many other first-line point of sale conducted a field investigation, found that discounts, interest rates and other promotional means wide range of Porsche electric car discounts and even as low as 60% or more, 500,000 yuan to buy a Porsche is no longer a dream. In addition, Mercedes-Benz and other international luxury car brands are also affected by the "wave of price reductions", a number of models significantly reduced prices.

On July 1, Porsche China responded that the manufacturer's suggested retail price of Porsche models has not been adjusted. FAW Audi responded to the reporter that the adjustment of some local market prices is not the adjustment of Audi's official guide price.

Industry experts analyzed the reporter, international luxury cars to join the "price war" is the industry volume and the embodiment of fierce competition, but also shows that the Sailis and other independent research and development advantages of China's intelligent new energy automobile companies are rising strongly.

Porsche can also play 60% off

On July 1, there were only a handful of consumers at the Porsche Center Shanghai Puxi on West Nanjing Road. Staff told reporters that in terms of discounts, the Porsche 911 model gives a 90% discount, "The lowest discount for the Taycan electric model is over 60%. The bare car price is more than 800,000 yuan, plus 1.1 million yuan, and then a 60% discount can reach about 700,000 yuan. Nationally, Porsche even has models for under $500,000." .

A salesperson at the Porsche Center Shanghai Pudong on Dongfang Road revealed that one of the key reasons for the discount is to extract funds. "Sales are bad right now, so if ordinary families are not so tight, they won't buy a new car that costs more than 1 million yuan."

At the Mercedes-Benz Shanghai Guansong Star on Wenshui East Road, the staff introduced a new Mercedes-Benz C-Class car with an original price of 355,000 yuan, for example, with a loan plus a bank rebate and a combined discount of about 120,000 yuan.

On July 1, Porsche China responded that the manufacturer's suggested retail price for Porsche models had not been adjusted. FAW Audi responded to reporters that some local market price adjustments are not adjustments to Audi's official guide price, "belonging to the auto market competition and customer collection methods."

A senior car dealer told reporters that international luxury car companies have been producing and selling in the Chinese market. In order to ensure the performance of the sales company, the management of the sales company will also allow dealers to pick up the car, and then give some incentives after picking up the car. In the case of the impact of the automobile market, this mode of operation is prone to problems.

The depth of the industry imploded under the "price war".

In the first five months of 2024, retail sales in the domestic passenger car market, including fuel cars, declined by about 400,000 units compared with the same period in 2019, a lower point in the same period in history. The overall sales shock was accompanied by one "price war" after another, with the industry in deep involution. between January and May 2024, industry prices fell by 6%, on top of last year's 10% decline. more than 120 models from more than 40 automotive companies implemented price reductions, and more than 60% of the models that had price reductions in 2023, were down. "The industry's deep implosion has not only exacerbated consumers' wait-and-see sentiment, but has also had a significant impact on the stable operations of auto companies." Wang Xiaoqiu, president of SAIC, told reporters.

Meanwhile, track switching accelerated. from January to May 2024, the domestic traditional fuel passenger car market sales accounted for 60.3%, down 9 percentage points from the same period in 2023. Wang Xiaoqiu said that the current reality of the industry is that the profitable fuel car market continues to be under pressure, while the profitability of new energy vehicles with relatively fast sales growth is generally poor.

International luxury car companies are also feeling more of a crisis in the Chinese auto market. Taking Porsche as an example, Porsche's sales in China have declined for two consecutive years since 2022; in the first quarter of 2024, Porsche delivered 77,640 new cars globally, down 4% year-on-year; during the same period, Porsche delivered 16,340 cars in the Chinese market, a year-on-year decline of 24%.

The Rise of New Energy Vehicles in China

As international luxury cars go cold in the Chinese market, China's smart new energy vehicles are rising strongly. The latest data shows that the AITOM9 model, a collaboration between Ceres and Huawei, has accumulated more than 100,000 units in just six months since its launch, occupying the top spot in sales of more than 500,000 yuan for nine consecutive weeks. The new M7 Ultra model has been on the market for only 20 days, with a large number of over 30,000 units. These achievements have already surpassed many international luxury brand automobile companies.

According to the Askworld M9 First Owners Portrait Report released by automotive data agency Gerland Road, the average age is 37.3 years old, with 30% of owners over 40 years old, 90% married, and the average number of cohabitants is 4.2 with multiple children. The report also points out that most of the first owners of Ask M9 are additional or replacement, of which international luxury brand cars are the main source of purchase, accounting for about 50%. In addition, a certain percentage of sports cars/high-performance cars such as Porsche 718, Mercedes-Benz GLE, etc., and AMG, etc., account for a certain percentage of the purchase source.

Kang Bo, Vice President of Ceres, said that against the backdrop of the rapid development of the global new energy vehicle market, Ceres is exploring the development path of Chinese automotive companies through continuous innovation and practice.

In the first quarter of 2024, Sailix's total revenue was 26.5 billion yuan, up 421% year-on-year; new energy vehicle sales of 95,000 units, up 374% year-on-year.AITO's first-quarter sales ranked fifth among the luxury brands in China's automobile market, and it was the highest-ranking Chinese brand on the list. (Reporter Yu)