Ideal's debut all-electric MPV, MEGA, has just announced a price drop.
A whopping 30,000 RMB discount, starting at 529,800 RMB.
This time, it's not just about the adjustment for the Ideal MEGA, but also a price adjustment for all Ideal's 2024 new models. From L9 to L7, all models have seen a reduction in their starting prices, lowered by 20,000 RMB compared to before.
In the Chinese automotive realm, it's no longer a matter of whether you like it or not, or if you want it or not. BYD is reducing prices, Tesla is reducing prices, Huawei's HarmonyOS smart cars are reducing prices, and both NIO and XPeng are employing different methods to reduce theirs...
Ideal, which previously held a firm position in the mid-range segment, is now feeling the heat too.
So, what about those who just bought their cars?
Ideal Cars Announces Price Reduction
Just now, Ideal Cars released an announcement, highlighting three key points:
The Ideal MEGA sees a price reduction of ¥30,000, now selling at ¥529,800.
For the L Series: Models 7, 8, and 9 receive a price drop ranging from ¥18,000 to ¥20,000.
Reports on the debut of the Ideal L6 reveal impressive numbers: 10,000 orders placed within 72 hours.
Additionally, the latest update on the official website unveils simultaneous price cuts for the Ideal MEGA, along with limited-time benefits: complimentary color options and free charging stations.
Unexpectedly, even the sales champion in 2023, NIO, ended up joining the price war frenzy.
In the opening months of 2024, the battle of prices escalated one after another.
In the past two months, car manufacturers have engaged in fierce price wars, employing various tactics.
On February 19th, BYD fired the first shot in the A-level market with its "798 Qin" model, igniting a rapid blaze across the entire Chinese automotive market. Wuling, Changan, NIO, and Beijing Hyundai promptly followed suit.
In less than half a month thereafter, BYD rolled out multiple Honor Edition models, with prices slashed by varying amounts ranging from 10,000 to 60,000 yuan across the entire lineup. This triggered more competitors to follow suit, leading to the trending topic "Nine car companies slashed prices within one day."
Not only the markets below the 200,000 level were involved, but also in March, Xiaopeng, Zhiji, Weilai, and Huawei joined the price war one after another.
Xiaopeng, Zhiji, Avita, and Wenjie, like BYD, were quite straightforward and directly reduced prices:
On March 2nd, Zhiji, just after securing 8 billion yuan in financing, immediately announced a 10,000 yuan reduction for its main model, the LS6.
The next day, the LS6 competitor, Xiaopeng G6, followed suit with a price reduction of 20,000 yuan, dropping its popular 2023 model to 189,900 yuan. Other models like the P7i and G9 also subsequently saw price reductions.
On March 29th, the 2024 version of the Avita 12, which had only been on the market for a little over four months, was released. Compared to the previous model, the starting price dropped by 35,000 yuan. Additionally, the ADS 2.0 smart driving package, valued at 26,000 yuan, is now offered for free.
Three days later, the popular model, Dadi Chao's M7, with over 150,000 units booked, announced a price reduction. The rear-wheel-drive version saw a price drop of 20,000 yuan, while the smart driving edition decreased by 10,000 yuan.
Some brands, like Zhijie and NIO, take a rather unconventional approach to price reductions:
In mid-April, Zhijie S7, also under the Huawei ecosystem, made an appearance at the HarmonyOS Eco-Communication Conference with upgrades. Although the overall price range remains unchanged, the entry-level battery pack has been upgraded from 62 kWh to 82 kWh, while the top-of-the-line version has been bumped up from 82 kWh to 100 kWh.
NIO's price reduction strategy is rather intriguing. In essence, they leverage their own battery swap stations to lower the monthly rental cost of batteries, thereby reducing the threshold for purchasing a car and the daily operational costs.
There are reports suggesting that in March, NIO offered a smartphone as a gift with car purchases, specifically their own NIO Phone, valued at least at ¥6499.
Every price drop from competitors feels like a blow to the back of the head for new players, leaving them dazed as soon as they step onto the field.
Indeed, on the night of the launch of the Xiaomi SU7, Lei Jun admitted in an interview:
"We got confused."
Lei Jun revealed at the time that the original pricing was actually 229,000 yuan, with the top-of-the-line model at 350,000 yuan, but Xiaomi got confused by the price war among car companies.
Xiaomi's SU7 is now discounted, starting at 215,900 yuan, with the top configuration slashed by a whopping 50,000 yuan.
Lei Jun stated this move demonstrates "sincerity to the fullest," with the pricing of the top configuration being described as "bleeding."
With such intense price competition, even Tesla, which Lei Jun benchmarked throughout the entire press conference, had to lower its prices.
Just a day before the official announcement of price cuts by NIO, Tesla reduced prices across its entire lineup by 14,000 yuan.
Car manufacturers have all jumped into the price war fray, much to the delight of consumers. With each new car owner voting with their feet, what may seem like a small step for individuals is, unwittingly, a giant leap for the era.
The Impact of the Price War Unfolding
Amidst the smoke of the price war, a historic moment unfolds:
According to data from the China Association of Automobile Manufacturers, the penetration rate of new energy vehicles reached 50.39% in the first half of April.
By personally initiating the 2024 price war, Wang Chuanfu has turned his predictions into reality, making gasoline-powered cars a minority in the realm of car purchases.
New energy vehicles have gained unstoppable momentum, hastening the reshuffling of the automotive industry landscape in this era's torrential currents.
When the "798 Qin" came out, it leveled the playing field in terms of purchasing costs compared to models like the Xuan Yi, while also being more fuel-efficient for daily use, immediately denting the sales of the "Big Three" Japanese brands.
In March, we witnessed a significant drop in Toyota's sales by 16.9%, while Honda plummeted by 26.3%.
The combined sales of the top three Japanese brands amounted to 233,600 units, which is less than 80% of BYD's sales.
The former glory of the "Big Three Japanese brands" is no more, and the moats of the "BBA" trio are being breached.
One Mercedes-Benz owner even told Yu Chengdong that after driving the Wey M9, they wanted to sell their old car.
From the latest data, it appears that many people share the same sentiment as the Mercedes owner.
The sales of the AskM9 are surpassing established luxury cars like the "56E," even as the AskM9 is still ramping up production capacity. Without production constraints, the gap between the AskM9 and the second-place contender would likely be even wider.
In summary:
The market share of gasoline cars is gradually declining, with traditional car manufacturers relinquishing a significant portion of the market to eager newcomers.
Therefore, despite the increasing difficulty of making profits in car sales, everyone hopes for growing sales and brand recognition during this period of brand reshaping.
So, despite engaging in a fierce price war to boost sales, now even Ideal has to bow out.
After all, making less profit or even selling at a loss, though uncomfortable, is much better than having no sales and then exiting the market.
In the car industry, it's straightforward: "sell or perish." Those with sales stand tall, while those without fall.
Staying afloat allows you to keep playing the game, and enduring it offers hope of becoming the Toyota or Volkswagen of the new era, the "BBA" of the modern age.
And there's one more historically significant data point: cars have now replaced real estate as China's number one GDP contributor.
One more thing:
Did Ideal betray its loyal customers by lowering prices?
No.
Ideal Motors has implemented a policy of refunding the price difference:
Early buyers not only enjoy early benefits, but now they're getting reimbursed for the price difference.
Simply put: money transfer.
Reference link: here
