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    It’s the first criterion to survive. The price reduction of these autonomous car companies is better than that of Mercedes-Benz.

    2019-04-06 15:45:11

    Daily economic news

    Who is the most "squeaky" than the price cut, watch the luxury, see independence!

    Since the release of the manufacturing value-added tax reduction policy, luxury brand car companies represented by BMW, Mercedes-Benz and Audi have taken the lead in reducing the price, leading a round of “price reduction tide”, followed by joint venture brands, price reduction range from several thousand to several Ten thousand yuan.

    The downward pressure on the luxury joint venture car layer has brought invisible pressure to the independent brands that were originally in the low-cost zone. Down, the decline is not limited by profit; if it does not fall, the living space is squeezed.

    However, on April 1st, the domestic brands that are in a dilemma are still unable to sit still. The self-owned brand car enterprises represented by Dongfeng Fengshen released a big move, and announced that the highest official has dropped 39,000 yuan, which is even more "deaf" than Mercedes-Benz.

    VAT reduction, independent brand amplification

    On April 1, the company's VAT reduction policy, which was originally applied to the 16% tax rate, will be reduced to 13% tax rate.

    In fact, after the government explicitly decided to lower the manufacturing value-added tax on March 15, the auto industry responded in the first time. Mercedes-Benz, BMW and other first-line luxury brands took the lead in announcing the downward adjustment of the price of their models.

    On the evening of March 15, Beijing Mercedes-Benz Sales & Service Co., Ltd. announced on its official WeChat that it will respond to the national value-added tax reduction policy and purchase the whole car products from now on to enjoy the price concessions in advance, with a price reduction of up to 64,000. yuan. Then BMW, Jaguar Land Rover, Volvo, Lincoln, Lexus, Audi, Infiniti and other luxury brands have also adjusted prices.

    Under this downward pressure, on March 27th, the joint venture brand with FAW-Volkswagen as the vanguard was also gradually adjusted. As a result, the auto industry has formed a domino effect under the influence of the VAT reduction. The deluxe brand has been devolved to the joint venture brand pressure, and the price reduction of the joint venture brand model has brought invisible pressure to the development of independent brand car enterprises.

    After the silence, the independent brand, after the double pressure of luxury and joint venture, has also joined the price reduction, including SAIC passenger cars and MG brand, Beiqi Sic Bo and other independent brands have lowered the price of its various models, the first brand of its own brand The VAT is lowered and there is a tide of price cuts.

    On March 27th, SAIC passenger cars Roewe and MG brand announced that they will reduce the price of the models sold. Among them, Roewe brand downgraded its Internet car Roewe RX8, Roewe RX5, Roewe RX3, Roewe i6 official guide price 3000-5000 yuan; In respect, since April 1st, the sales of the famous models such as the MG HS, the MG ZS, and the new MG 6 can enjoy a comprehensive discount of up to 29,000 yuan.

    Living is the first criterion

    In this wave of price cuts, the luxury brand has been crowned with the protagonist, taking the lead in making price concessions, and the Land Rover brand model has given the highest price of 85,000 yuan.

    However, the price cuts of luxury brands have not ignited the enthusiasm of consumers to buy luxury cars. Some netizens joked: "I am worse than these tens of thousands? I am the one that is 1 million", "just like Apple has dropped hundreds of dollars, can't afford it, you drop it hundreds of thousands, you try Can someone buy it?"

    For luxury car brands, the millions of models, the tens of thousands of yuan reduction, has little effect on the average consumer, still can not drive the purchasing passion of low- and middle-level consumers. Some netizens said: "It seems like you can afford it when you finish it."

    However, can you imagine a model with a price of only a few hundred thousand yuan, and the car company will pay a maximum of nearly 40,000 yuan? You are not mistaken, compared to Mercedes-Benz's millions of luxury cars, the price reduction of independent brands is "more awkward".

    On April 2, Dongfeng Fengshen official website sent a message, in response to the national value-added tax reduction, Dongfeng Fengshen has launched the “tax reduction and enjoy purchase” activity from April 1st, for its new generation AX7, classic AX7, AX4, AX3, etc. A number of major sales models have been priced, with multiple comprehensive offers up to $39,000.

    SAIC passenger car chose to provide a subsidy of 20,000 yuan for the i6 PLUS just listed, and the price of the new car was pulled down to 6.98-11.98 million.

    Wang Xiaoqiu, general manager of SAIC Passenger Vehicle Company, said frankly, "Today's auto market is already very serious. We must survive first and survive forever."

    Price cuts are not enough to stimulate the market

    Cui Dongshu, secretary-general of the National Passenger Car Market Information Association, believes that self-owned car companies are affected by the decline in value-added tax, and the vitality of enterprises is constantly increasing.

    In fact, the country’s downward adjustment to the manufacturing value-added tax is the second reduction since May 1st, 2018, from 17% to 16%.

    On May 1 last year, the State Administration of Finance and the State Administration of Taxation issued the "Notice on Adjusting the Value-Added Tax Rate" to reduce the value-added tax rate of manufacturing and other industries from 17% to 16%. It is worth noting that under the policy of 1% VAT reduction, only a number of luxury brand car companies have announced the downward adjustment of the car's guiding retail prices, such as BMW and Mercedes-Benz.

    With the increase in the proportion of VAT reduction, the range of car prices has been fully covered, from luxury brands to joint venture brands, and then extended to independent brands.

    "The purpose of national tax reduction is not to cut prices, but to give enterprises more profitable space, so that enterprises can better invest and increase investment to achieve sound development." Cui Dongshu said.

    In 2018, the Chinese auto sales market experienced the first negative growth in 28 years. After entering 2019, the auto market continued its downturn since last year. According to data from the China Automobile Association, domestic vehicle sales fell by 14.94% in the first two months of the year. In contrast, sales of new energy vehicles increased by 98.93% over the same period last year.

    Some analysts pointed out that with the continuous expansion of the range of price reductions among various brands, the automobile market will usher in a new wave of consumption, which in turn will drive sales.

    However, the daily economic journalists visited a number of brand stores in Beijing recently and found that the terminal market did not cause sales to rise due to the sales of various brands. A Volvo 4s in-store salesperson told reporters that since the price cut, the number of people who came to buy in-store has not increased significantly.

    "The situation of the auto market in April should be eased, but in the long run, the price cuts of automakers will not save the market." Cui Dongshu, secretary general of the National Passenger Vehicle Market Information Association, said in an interview with the daily economic news reporter, "The current car. The price reduction behavior of enterprises is mainly in response to the policy call, and it is also an adjustment that has to be made in the context of the downturn of the automobile market. However, the purchasing power of consumers is still insufficient, so it is not enough to stimulate the automobile market."

    Hot searchCar company Price reduction

    Editor in charge: Zhang Zhenjiang

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