After the National Day, the long-awaited high-end car price war has finally been staged. On October 7, FAW-Volkswagen announced that Audi had cut its price by 20,000 yuan across the board, plus the previous Audi D4 discount package of "DTM" with a maximum discount of 65,000. In late September, FAW-Volkswagen executives talked about three reasons why Audi did not cut prices. However, the situation was not based on human will. As the leader of domestic luxury cars, Audi's sales growth rate has fallen sharply for several consecutive months, and will face the full siege of domestic Mercedes-Benz, BMW, Cadillac, and Tian Hao. It is indeed time to have to send. In particular, after the day's 242,800-349,800 yuan on the moon in the Moon Festival debut, Audi's high-level nerves are even more exciting. Of course, it is not excluded that Audi's move is also giving way to the new Audi listing. Looking at the market now, the introduction of Tianhe’s listing and Audi’s price cuts have already caused the so-called luxury cars to compete with mid- to high-end cars. Audi has pulled the price below 300,000. It has not only hit Tianmu, BMW, and Mercedes-Benz, but it has also grabbed the power of midsize cars such as Regal, Accord, and Mondeo. Next, will some midsize cars fight back? The price war in the Chinese auto market first started in the economy car and gradually spread to mid-size cars. Now it is finally kicking off in the premium car. This is the result of market competition. When there is only one product in the market, the manufacturer’s pricing is not comparable to the adversary, which ensures that the profit is sufficiently rich. However, when the product is large, the manufacturer must ensure that the price of the product is competitive, especially latecomers. Therefore, Tianhe listed, Audi price reduction can be regarded as the beginning of the prosperity of domestic high-end car market. Before the market is stable and prosperous, it must be a period of trouble. It can be foreseen that when domestic Cadillac and Mercedes-Benz go public, the fight between various manufacturers will become more intense. But the price strategy is not the only magic weapon to win. Differences in technology, branding, localization strategies, etc., are all carefully considered by car dealers. From the successful experience of Shanghai GM and other rising stars, the advantages of the policies and the strength of the joint venture car dealers are indispensable. It is also indispensable to study the localization of the Chinese market and to have a sensitive and flexible market response. When the competition is fierce, the importance of the latter becomes more prominent. We expect car dealers to come up with surprise killers. The market is happy with this competition and consumers will be more than happy.
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