BMW and Other Luxury Car Brands Withdrawing from the Price War in China
TapTechNews July 20th news, according to a report by China Business News today, the CEO of Brilliance BMW, Dai Hexuan, talked about the 'BBA withdrawing from the price war' when being interviewed. He stated that the price is determined by the dealers as independent business entities, and BMW will maintain intense discussions with upstream and downstream partners to see how a sustainable business model should proceed to ensure that all partners can earn enough money and be able to survive into the future.
Dai Hexuan said that some competitors publicly claim that their pricing is 'below cost', and for now, he will not judge whether it is right or wrong. But at the same time, he believes that at least it should be sustainable in the business model. 'Competition is a driving force for carrying out innovation and being able to provide customers with innovative products at the same time, but all parties in the competition need to follow certain rules and compete fairly, so that such competition is sustainable.'
Dai Hexuan believes that defining the price itself is complex, involving supply and demand relationship, product connotation, soft value and hard value, emotional value, etc. 'But a key element is that the enterprise cannot suffer losses for a long time, otherwise the enterprise cannot survive, and the after-sales service provided for the product will not be sustainable.'
Based on TapTechNews' previous reports, the topic of 'BMW withdrawing from the price war in China' a few days ago caused quite a lot of discussions. In response, the BMW side said: 'In the second half of the year, BMW will focus on business quality in the Chinese market and support dealers to make steady progress'. And not only BMW, but also the other two luxury car brands in BBA, Mercedes-Benz and Audi, will also withdraw from the price war.
Compared to the highest discount at the end of June, the prices of all BMW models have been adjusted upward, among which the prices of BMW X1, BMW X3, BMW 5 Series and BMW X5 have been 'increased' by about 5,000, 8,000, 10,000 and 20,000 yuan respectively.
Not only BBA, but also many brands such as Volkswagen, Toyota, Honda, and Volvo have all decided to adjust the terminal policy from July and reduce the terminal discount力度, or no longer further reduce the price.