130000 to buy Cadillac, 170000 to buy BMW

Recently, during the 6.18 shopping festival, many car companies have launched promotional activities, such as the official Weibo account of FAW Toyota announcing a 24-hour limited time special sale on the same day. Among them, the compact SUV Corolla starts at a price of 99800 yuan and offers a limited time comprehensive discount of 30000 yuan; The compact sedan Corolla starts at 79800 yuan and offers a limited time comprehensive discount of 43000 yuan

GAC Toyota has also launched the "618" limited time purchase rights, with the Camry dual engine model's starting price reduced by 30000 yuan and starting at 149800 yuan; The starting price of the Highlander dual engine model has been reduced by 32000 yuan, starting at 217800 yuan. In addition to traditional car companies, multiple new car manufacturers are also participating in the event. For example, Xiaopeng Motors has launched limited time discount policies for models such as Xiaopeng P5, P7i, G6, and G9. The entire Xiaopeng G6 series has been directly reduced by 20000 yuan and comes with a lifetime battery warranty.

It is understood that multiple domestic car companies have participated in this year's 6.18 promotion in different forms. Some have organized activities with the platform, while others have chosen to create their own festivals. However, regardless of the form, they all revolve around one theme: price reduction.

A netizen has compiled representative discounted car models in recent times, such as buying Corolla for 80000 yuan, Cadillac for 130000 yuan, Camry for 150000 yuan, BMW i3 for 170000 yuan, Audi A7L for 350000 yuan... Looking around, in the words of netizens, the car market is simply "crazy". According to data statistics, the average terminal transaction price in the Chinese car market decreased by about 15% last year compared to the previous year; From January to April this year, it decreased by about 10%, with a cumulative decrease of about 25% over the past two years.

The price war that has been escalating since last year has been satisfying for consumers, but car companies have generally fallen into losses. On March 28th, Dongfeng Motor Group announced on the Hong Kong Stock Exchange that its net profit had turned from profit to loss, with a net loss of 3.996 billion yuan in 2023 and a net profit of 10.265 billion yuan in the same period last year. This is the first time in 18 years that this large state-owned enterprise has incurred losses since going public. The situation of new forces in car manufacturing is also not optimistic: in the first quarter of this year, NIO suffered a net loss of 5.18 billion yuan, while Xiaopeng Automobile suffered a net loss of 1.37 billion yuan. Although Ideal is still profitable, its net profit in the first quarter was 600 million yuan, a year-on-year decrease of 37%

Shen Jinjun, President of the China Automobile Distribution Association, revealed that in the association's research, dealers generally reported that 2023 is the most difficult year since entering the new century. However, in the first half of this year, the difficulties faced by dealers continued and further changes occurred, and luxury brand dealers also experienced significant losses.

The dilemma of car companies not increasing their incremental revenue has caused concern among many industry insiders. At recent industry forums, relevant automotive industry leaders and industry insiders have called for a dialectical approach to price wars and healthy competition.