A butterfly named “Tesla” fluttered its wings at the beginning of the year, and a few months later the entire auto industry went on a price-cutting rampage. BMW just began a marketing campaign for its all-electric BMW i3 vehicle. Dealers at several BMW 4S retailers claim that the greatest discount can approach 100,000 yuan.
On March 9, the official Weibo account of BYD Auto revealed that the Song PLUS and Seal, the two main models of the BYD Haiyang Net, had launched a special marketing campaign with discounts ranging from 6,800 yuan to 8,800 yuan. Even BBA and BYD attest to the price war’s ferocity. “The three years between 2023 and 2025 will be a brutal knockout game,” said Ideal Auto’s CEO Li Xiang in an interview.
BBA joins in the “Price War”
If the BMW 3 Series is the star of the conventional car market, the i3 is the BMW 3 Series of electric vehicles. However, in China, BMW’s i3 has had a dismal track record in both its first and second generations.
BMW officially announced the discontinuation of the first generation BMW i3 in July 2022. It is believed that this model has been on the market for 9 years, with total sales of more than 250,000 units worldwide. Following the suspension, BMW introduced an all-new generation of the i3 in the Chinese market, which has been improved in many ways, including battery.
BMW sold 13,000 i3 units in China in 2022, with 6,140 sold in December 2022, accounting for nearly half of the year. Of course, there is no explanation for the unexpected increase in sales. The BMW i3 entered discount mode last year.
The large discount is the result of a car sales’ crisis and inventory pressure. According to sales figures from the federation, the combined sales volume of the three main models in January was only 618 units, including 304 units of the Audi A7L, 244 units of the Audi Q6, and 70 units of the Audi Q5e-tron.
Audi and BMW have both entered this “auto price war” in different ways and at different times, and also, another BBA, is not immune.
BYD is also promoting, and the new energy vehicle industry is experiencing a price war
There were media reports at the end of February this year that BYD launched the “first price reduction in this year,” BYD showrooms in Beijing, Shanghai, Shenzhen, Dynasty series products launched a discount program, the discount range of old models is around 10,000 yuan, and the delivery cycle is also shortened.
However, when the reporter contacted BYD as an investor at the time, the relevant staff stated, “At this time, we have no official price reduction.” According to the official, the BYD Han 2021 model may be discounted by dealers in order to clear inventory and promote the new model, but BYD has not begun a comprehensive price reduction.
Almost 30 brands have seen this price war
Overall, a number of provinces and cities throughout the country, as well as major automobile manufacturers, have joined in the auto price war. Behind the promotion is a general decline in the passenger car market. According to the Federation, retail sales of passenger cars in Guangyi fell 19.7 percent year on year to 2.719 million units in the first two months of this year.
“The three years between 2023 and 2025 will be a brutal knockout,” Ideal Auto CEO Li Xiang previously stated. “The market may not require as many firms.”