Since the beginning of the year, luxury car prices have begun to drop. In May, the domestic luxury car price "cash shopping" gradually culminated. By June, it was hard to find a car with no price reduction, and it was exaggerated that almost all brands had a drop of 20%.

This Bode Department of the Japanese Department of the United States crash across the board is not a casual promotion of the brand, but the general industry price reduction behavior. Behind its focus on the tight funding chain of luxury car dealers and luxury car manufacturers' rapid expansion of the Chinese market is worthy of attention.

"Down" sound of a domestic luxury car market has formed Mercedes-Benz, BMW, Audi three German oligarchy, the price war is also ignited by the three.

In the first half of this year, some cities Mercedes-Benz S300 "time limit" 70% off sale; high-performance sports car SLS AMG straight down in Beijing area 1 million (manufacturer guide price 3.62 million yuan), S400Hybrid straight down 41 million (manufacturer guide price 1.41 million (M); and Mercedes-Benz domestic E-Class and C-class cars since 2011, cash concessions have been maintained at 100,000 yuan and 80,000 yuan; until last week, some Mercedes-Benz dealers are still open in the media "selling": C180K Only 230,000 yuan.

Mercedes-Benz's substantial price reduction is undoubtedly worth the consumer's gratefulness: The high price of luxury cars in China has once again been "sun" in the sun, and its distance from the average consumer has never been so close. For a wider range of consumer groups, the chain reaction triggered by the price cuts of luxury cars has made China's car prices further in line with international standards, raising consumers' expectations - "no minimum, only lower."

An unnamed Mercedes-Benz dealer said in an interview with the Morning Post that dealers may be able to sell some unmarketable vehicles for sale in order to withdraw funds or seek more rebates from manufacturers, as long as the capital chain is not cut off. Profit or no loss on the line. The current problem is that for some luxury car dealers, it is hard to think about it. In fact, some luxury car dealers have begun to lose money. This phenomenon deserves special attention.

Crazy "bottom"

When Mercedes-Benz, BMW and other high-end German cars took the lead in price cuts, from the imported cars to the domestic cars, a round of top-down madness began. As a response to Mercedes-Benz's price cuts, the old BMW 3 Series, which is about to delist, has given a “bread price” of 230,000 yuan.

This is certainly not the only BMW model to cut prices - BMW's domestic X1 price fell to 282,000 yuan, BMW's old 3 Series average discount of 60,000 yuan. Mercedes-Benz car discount 7.5 fold for sale, domestic Mercedes-Benz G LK as low as 408,000 yuan ... ... wave after wave of diving prices behind, luxury car brand distributors miserable inventory pressure and capital chain tension reality.

The increase in the risk of dealers shopping is worth noting that this round of price reduction is not a source of low-priced products. The car was sold, but the dealer did not make money. In order to reduce the pressure on cash flow and to digest the growing demand for cars, dealers continue to replace profits with sales... It can be seen that what happened to the self-owned brands in the past two years is also on the surface today. The upmarket luxury car dealers have verified it.

The “shopping” between distributors actually bears the risk of the unlimited expansion of manufacturers. The boom in the luxury car market makes sales targets even higher than a year in both domestic and imported models. In the face of a rapidly expanding market, all car companies have accelerated the pace of network expansion. In order to complete the volume, dealers can only sacrifice profits for price reduction promotions.

An industry veteran said that from a deeper perspective, for the German luxury car brands, the first to launch a price cut or more is to gain preemptive advantages in the Chinese high-end market. Therefore, we have seen that in 2011, these brands expanded the number and density of branded dealers in the Chinese market, and on the other hand, they implemented the indexed database. Because Mercedes-Benz, BMW, and Audi have always had an absolute advantage in Europe, they have long been affected by Toyota Lexus, Nissan Infiniti, and Honda Acura in North America.

Now faced with this emerging market in China, all three Ashkenazi companies operate the Chinese market as the second European market. They hope to build domestic and expansion offensives against other adversaries, and in the Japanese Infiniti and US Cadillac companies announced production in China. In the context of expansion of production, Mercedes-Benz, BMW and Audi directly picked up the price reduction banner to gain market share.