With the formal implementation of the reform measures to lower the value-added tax rate on May 1, there have been official price cuts in the auto market one after another. The first-tier high-end cars such as Mercedes-Benz and BMW and the Jaguar Land Rover in the second-tier high-end cars have also adjusted their prices simultaneously; according to the Ministry of Industry and Information Technology In his statement, he has actively cooperated with the national taxation authority to study and formulate a considerable reduction in import tariffs on automobiles.
As a result, Volvo cars is the only second-tier high-end brand that is still holding inflated prices, and the market position of the mid-size SUV, Volvo XC60, is also at stake in the increasingly fierce competition. After analyzing the competition between Audi Q5L and BMW X3, as well as the bleak prospects of Infiniti QX50, continue to report another frustrated in the high-end mid-size SUV market-Volvo XC60.
High pricing, bad car owners, frequent price cuts are a double-edged sword
Before the launch of the new generation of Volvo XC60, the low price of high-end cars has become a common phenomenon. Various media and consumers also expect that this model will be used to lower the price of the model when the brand is not dominant in order to deal with the same situation. The impact of competing products has enhanced their competitiveness. However, unexpectedly, the price of the new generation of XC60 was further increased on the basis of the already high price. The starting price rose from 358,900 yuan to 369,900 yuan, which was not less than BBA, which also triggered heated discussions from the outside world. , Thinks that it is “overconfident” in prices that are catching up with Mercedes-Benz, BMW, and Audi.
At the 2018 Beijing Auto Show, the BMW X3 was unexpectedly announced by the manufacturer’s guidance price, and it gave the XC60 a “big punch”. On the same day, the owner posted a lament: “Seeing the price of the new BMW X3, I feel that Volvo would not Adjust in time, I really feel helpless!”
On May 6, the reporter learned from a Volvo 4S store in Beijing that the current terminal price of Volvo XC60 has dropped by 30,000 yuan, with an insurance fee of 30,000 yuan, and sufficient inventory—including a comprehensive discount of up to 60,000 yuan. Has become the “selling point” that sales staff rely on most.
Regarding this phenomenon, Wei Xuezhen, editor-in-chief of China Automotive News & Pinhui Auto, said: “The XC60 offers such a large discount, which shows that the original price of this model is indeed higher than the market acceptance, and it also shows that the current market pressure is relatively competitive. It is true that frequent price cuts can reduce inventory pressure and increase retail sales in a short period of time, but in the long run, it will have a negative impact on the brand image of high-end cars, product value retention, and customer trust.
According to sales personnel, Volvo XC60 was sold at the price guided by the manufacturer only in the first month of its launch. After that, there was a discount of nearly 10,000 yuan, and it reached 30,000 yuan before the Spring Festival; and with the BMW X3 When competitors enter the market, the XC60's discount rate will reach the current level… The salesperson added: “If the price of competing models has a downward trend, the XC60's discount rate may be further increased.”
