The luxury car market has changed, and "BBA" has become "AYT"?

Smart car

2024-07-11 14:20Posted on the official account of Shanghai Zhixuanche

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01BBA's luxury brand sales in the Chinese market declined, with BMW's cumulative sales in the first five months being 294,100 units, down 6.9% year-on-year; Mercedes-Benz's cumulative sales were 285,000 units, down 9.6% year-on-year.

02 However, Audi's sales grew against the trend, with a total of 273,800 units sold in the first five months of 2024, a year-on-year increase of 8.8%.

03Sales of domestic luxury upstarts such as Wenjie and Denza continued to grow, occupying the core price range of traditional luxury brands of 300,000-600,000 yuan.

04 Sales of traditional luxury brands such as Porsche, Ferrari, Lamborghini and Bentley also declined in the Chinese market.

05Due to the surge in demand for new energy and the increase in demand for intelligence, BBA needs to improve its innovation capabilities to enhance product competitiveness.

The above content is generated by Tencent's hybrid model and is for reference only

BBA is declining and will be replaced by domestic cars?

BBA or Questioning, Looking Up and Denza? I believe that everyone would not hesitate to choose BBA before, but the current sales data shows that everyone's hearts have been shaken.

What's more noteworthy is that the BBA terminal price reduction is continuous, "six percent off oil cars, five percent off on trams" has become the norm, and discounts are constantly encroaching on BBA's luxury heritage, and a vicious circle seems to have begun.

Although BBA has not yet announced its sales in China in the first half of 2024, it is not difficult to find from the performance in May that they are not having a comfortable time.

BMW's cumulative sales in the first five months were 294,100 units, a year-on-year decrease of 6.9%; Mercedes-Benz's cumulative sales were 285,000 units, down 9.6% year-on-year.

Among the BBAs, only Audi's sales grew against the trend, with a total of 273,800 units sold in the first five months of 2024, a year-on-year increase of 8.8%, gradually narrowing the gap with Mercedes-Benz and BMW.

It is worth noting that SAIC Audi's sales have increased significantly, with a total of nearly 20,000 units sold in the first half of the year, a year-on-year increase of 107%. Among them, SAIC Audi A7L became the main sales force, selling 13,500 units in the current period, a year-on-year increase of more than 160%.

In the live broadcast room of a SAIC Audi dealer, the anchor said that the guide price of the A7L after a 70% down payment in installments is as low as 258,000 yuan, and the starting price of this car is 418,700 yuan.

BMW also opened the price for volume, the current BMW 3 series, BMW X3 terminal price reduction of about 20%, BMW i3 is because of the "five fold cut in half" directly rushed to the hot search.

Mercedes-Benz, which had relatively strong prices in the past, also failed to withstand the pressure, with terminal discounts of 80,000 or 90,000 yuan, and the decline of the main sales models Mercedes-Benz C-class and Mercedes-Benz GLC came to 20%-30%. The decline in new energy models is even greater, the price of Mercedes-Benz EQE SUV is nearly 200,000 yuan, and the Mercedes-Benz EQB is close to halving, and there is even room for discussion.

Not only that, but the chill has also spread to every traditional luxury brand.

Porsche is also among them, not only sales have fallen sharply, but pure electric models are sold at a loss, such as the Macan discount about 100,000 yuan, and the Taycan price reduction by more than 300,000 yuan.

In order to complete the sales task, Porsche China chose to press the dealer for the warehouse, and the contradiction between the two sides intensified. Some dealers even protested together, demanding that the headquarters give sales subsidies and replace relevant executives, otherwise they would "stop picking up cars".

In addition, ultra-luxury brands such as Ferrari, Lamborghini, and Bentley have also suffered varying degrees of sales decline in the Chinese market.

In contrast to traditional luxury brands, the sales of luxury car upstarts such as Wenjie and Denza continue to grow, and continue to occupy the core price range of 300,000-600,000 yuan, which is the traditional luxury brand.

In other words, I didn't have the money to buy a BBA before, but now I don't have the money to buy a BBA.

With Huawei's empowerment, Wenjie has gained a lot in the first half of the year, with a total of nearly 180,000 units sold, of which the sales volume in June exceeded 40,000 units, second only to Ideal among new power brands.

It is worth mentioning that the best-selling models in the Wenjie series are not the M5, which has the lowest price, but the M7 and M9, which are relatively more expensive.

Among them, the M7 delivered a total of 18,500 units in June, and the cumulative sales in the first half of the year exceeded 110,000 units, surpassing the ideal L7 and ZEEKR 001 to become the sales champion of the new power models in the current period.

The M9, with an average price of more than 500,000 yuan, showed full stamina, with a total of 17,200 units delivered in June, topping the domestic large SUV segment and the sales champion with a price of more than 500,000 yuan for three consecutive months.

This segment was originally led by joint venture brands such as BMW X5, which means that traditional luxury brands are gradually losing control of the 500,000-600,000 yuan market.

On the other hand, Denza and Yangwang have entered the 300,000-500,000 yuan and million-dollar luxury car market, and have strongly carved up the share of traditional luxury brands.

DENZA sold a total of 12,300 units in June, a year-on-year increase of 11%, and a total of 59,600 units were sold in the first half of the year.

Among them, the DENZA D9 topped the monthly sales volume and semi-annual cumulative sales of MPVs in China, becoming one of the must-have options for luxury MPVs.

In addition, the all-new Denza N7 SUV model reached 2,089 units delivered in the first month, and is also expected to become another major model of the brand.

The Z9 GT, the smart luxury flagship sedan, has been unveiled at the 2024 Beijing Auto Show and is expected to be launched this year, with a combination of dual refrigerators and large screens.

Zhao Changjiang, general manager of BYD's Denza sales division, previously said in a public statement: "Why are so many people asking me today when I can book the Denza Z9 GT. From this point of view, the new car has accumulated a lot of popularity.

Yangwang has gained a firm foothold in the million-dollar luxury car market, with sales exceeding 7,000 units since its launch, and more than 1,000 units sold in many months.

Officially, more than 80% of the owners of the main model Yangwang U8 are business owners, partners and company executives.

Luxury, black technology, etc. are the reasons why everyone chooses to look up to U8, but more importantly, looking up to U8 relies on independent research and development to achieve technology and market breakthroughs, and finally surpasses the joint venture brand to achieve the lead, the development process of self-made has resonated with many Chinese entrepreneurs, and this sentiment prompts them to finally choose to look up to U8.

There are many reasons why the sales of traditional luxury brands are unsustainable, in addition to the continuous influx of domestic cars into the price range of luxury cars of more than 300,000 yuan, the change in consumer demand of Chinese users is also a major reason.

On the one hand, there is a surge in demand for new energy. In the third week of May this year, the penetration rate of new energy in the mainland exceeded 50%, which means that more than half of the people have chosen new energy vehicles instead of fuel vehicles.

The transformation of BBAs is slow, and many cars launched in the early stage are suspected of "oil to electricity", which dissuades many consumers, and the newly launched models are not strong enough to finally "reduce prices to survive".

On the other hand, the demand for intelligence is increasing. In the past, the advantage of traditional luxury car brands was engine technology, but with the entry of new energy models, this advantage disappeared instantly, and the demand for intelligence rose.

There is no doubt that China's new energy vehicle companies are far ahead in terms of intelligent cockpit and intelligent driving, and it is precisely because of this that independent brands such as Wenjie and Denza can quickly occupy the market.

"BBAs" can still exchange price reductions for a certain amount of sales, but this is tantamount to drinking to quench their thirst, and cannot solve the fundamental problem. How to improve the innovation ability and then enhance the competitiveness of products is the top priority of BBA.

Although there is still a certain gap between the sales of AYT and BBA, if BBA does not want to forge ahead, then it is only a matter of time before it is replaced by AYT, what do you think?

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