At the Chengdu Auto Show, it's easy to sell many things. For example, Luckin Coffee has to stop taking orders from time to time, and buying a cup of coffee from another brand often requires waiting in line for more than half an hour. However, in 2024, selling a traditionally defined car has become extremely difficult.

Chengdu is directly associated with many keywords such as delicious food, slow life, leisure, and Tianfu. In many consumer sectors, including automobiles, it leads the way in terms of spending power. In the early years, when online celebrities posed for photos with Maseratis and high-speed trains, Maserati's global sales growth was driven by Chengdu. From BMW, Mercedes-Benz, Bentley, Lamborghini, to Toyota's Crown and Alphard, to Huawei HarmonyOS, NIO, and Li Auto, every automaker aiming to make a splash in the market above 300,000 yuan, or even above 1 million yuan, has made Chengdu its core battleground.

For example, BMW was jokingly referred to as "saving the Chengdu Auto Show" this time because the ongoing price war had caused many automakers to incur losses, leading them to cancel their Chengdu Auto Show activities and media invitations, while BMW remained committed. In recent years, it has unveiled the all-new 7 Series, 4 Series, and X1 in Chengdu, and this time it's the seventh-generation M5 and long-wheelbase X3.

However, Chengdu has changed. Not only has its GDP surged to seventh place in the first half of 2024, but the city has also transformed from a laid-back atmosphere to intense competition. Recently, due to power rationing, Chengdu's ride-hailing drivers suddenly found themselves among the top three most competitive cities for ride-hailing in China.

Chengdu people in 2024 are no longer willing to pay for simple luxury

The 2022 Chengdu Auto Show was suspended and resumed after it started. Amid high temperatures and power rationing due to limited rainfall, Chengdu people suddenly realized that new energy vehicles weren't all that great, especially since pure electric vehicles brought their own set of anxieties. As early as two years ago, Chengdu people had already realized that plug-in hybrids were better than battery electric vehicles when it came to replacing traditional gasoline cars;

The 2023 Chengdu Auto Show coincided with intense price wars, driving down consumer expectations for car prices and resulting in a 430 million yuan decrease in final sales compared to 2022. This trend reflected a weakening in Chengdu people's pursuit of joint venture brands;

In 2024, as social competition intensifies, Chengdu people continue to shift their preferences. What was once a stronghold for luxury car consumption has now shifted to a mindset of "if it's just a luxurious car with nothing new, then I'll pass."

Chengdu seems like a mirror, using people's wallets to vote and select the latest trends. Luxury cars are at the heart of this profound reshuffling. The clearest example is that there are a total of 16 halls at the auto show. Theoretically, everyone who pays to attend (100 yuan on the first day, 40 yuan or less thereafter) will take a closer look as the show nears its end.

However, Halls 15 and 16 are typically low-energy areas. The first thing one notices is the cooler temperature, followed by the lower decibel level. Despite the high temperatures of 38 degrees Celsius or more during the first few days of the Chengdu Auto Show, the halls were actually not cold due to the large number of visitors. But in Halls 15 and 16, near the end of the show, it's cooler because there are fewer people. The noise level is also more pleasant due to the reduced number of visitors.

These two halls used to be crowded with people taking photos of Bentley, Lamborghini, and Porsche, as well as Audi, Jaguar Land Rover, and Genesis.

But now, the once bustling scene has become desolate. Audi models like the A4L, A6L, and Q5L, which used to attract customers with discounts, are now overlooked by visitors at the auto show. The first public day after the media day, which is a Saturday holiday, is the most important sales kick-off point. It's a crucial moment for automakers to gauge the sales performance of each auto show, but the number of visitors on-site has halved compared to the media day.

The Audi booth, on the other hand, is so deserted that it doesn't even need a description. This is not just about declining foot traffic or the lack of exciting new models on display. Nor is it solely due to the absence of events. The problem lies in the fact that Audi has become disconnected, offering only traditional cars. The Audi booth is filled with colorful RS models that are expensive and hard to sell. The Audi A4L facelift and Audi A5, which have already been launched in Europe, are expected to be saved for the Guangzhou Auto Show.

"BBAs are everywhere, and driving one doesn't give you much superiority anymore. They're not as fun as domestic cars," this is the core issue facing Audi. Originally, Audi relied on its spacious interiors and affordable prices to become the first luxury brand family car for the middle class. But now, with each of its main sales models flooded with famous new products, Audi's story remains the same: quattro all-wheel drive and extended wheelbase.

Moreover, the competitive cycle in the market has evolved such that even as prices drop, domestic cars quickly fill the void with new models introduced every year or even every eight months. Compared to two years ago, the base price of the Audi A4L has now fallen to around 220,000 yuan, the Audi A6L to just over 300,000 yuan, and the Audi Q5L to a starting price of 270,000 yuan. However, as prices drop, the number of competitors increases. In the 200,000-250,000 yuan range, there are crowded options like the Xiaomi SU7, Tesla Model 3, ZEEKR 001, ZEEKR 007, and NIO ET5. In the 250,000-350,000 yuan range, there are models like the AITO Askey S9, AITO M7, Li Auto L6 and L7, and Tesla Model Y, all of which easily sell over 10,000 units per month.

The competition is no longer just about how fast the in-car voice assistant responds or whether it has intelligent driving capabilities. Even in terms of acceleration and fuel efficiency, Audi still relies on technologies like the over-a-decade-old EA888 engine and Quattro all-wheel drive.

According to the 2023 Hurun China Rich List released in March 2024, the number of "wealthy families" with assets of 6 million yuan decreased by 0.8% to 5.14 million; "high-net-worth families" with assets of 10 million yuan decreased by 1.3% to 2.08 million; and "ultra-high-net-worth families" with assets of 100 million yuan decreased by 3.8% to 133,000. The number of "international ultra-high-net-worth families" with assets of US$3 million decreased by 4.5% to 88,000.

The consumption market is evolving such that the middle class's demand for cars is no longer limited to owning a prestigious and comfortable mode of transportation. The gradual popularization of traditional luxury cars has negated the sense of differentiation. Moreover, more and more affordable vehicles can offer similar driving experiences, and at the same price point, they can offer features that Audi cannot. For example, with a budget of 500,000 yuan, the choice between an Audi Q7 and an AITO M9 is simple. The standard answer is undoubtedly to choose Huawei.

Chengdu people, who were once optimistic spenders, are starting to learn from the frugal mindset of Guangdong people

In short, everything reflected in the Chengdu Auto Show often leads the overall social trend by half a year or even a year.

Nowadays, Chengdu people's impulse to spend is diminishing, and they are becoming more frugal when making decisions. This shift in consumption logic closely mirrors the trajectory of Guangdong people since the early days of reform and opening up.

They were able to acquire wealth quickly and had optimistic expectations for future income. However, as income and the economy fluctuated, they became more cautious about spending and only made large purchases after careful consideration.

Like Guangzhou people, Chengdu people are no longer willing to pay solely for luxury, driving convenience, or driving pleasure. Instead, they prioritize saving money, having fun, and, most importantly, making themselves happy rather than impressing others.

Audi is undoubtedly a prime example of this shift. Guangdong, with its innate connection to Japanese car culture, has never had a strong affinity for German cars, but Mercedes-Benz and BMW have managed to gain recognition. Chengdu, on the other hand, was once a blank slate in automotive culture but is now indifferent to Audi. The commonality between the two is that people are only willing to pay for advanced technology.

Since 2018, automakers in China have been shouting about the "new four modernizations" and transitioning from traditional to new models. Six years have passed, but it's still evident that many automakers are treading water.

Why are sales low? It's not easy to explain with a single reason. From the 2024 Chengdu Auto Show, it's clear that the reasons go beyond "it can't get a green license plate," "its infotainment system is difficult to use," or "it doesn't have intelligent driving capabilities." A one-size-fits-all answer doesn't address the core issues.

A closer look at the Chengdu Auto Show reveals a stark contrast between automakers that performed relatively well and those that didn't: the extent of their progress. Among similar multinational automakers, BMW extended the X3 to the standard wheelbase of the X5. In addition to significantly upgrading the interior space, the entire design of the vehicle was overhauled. For example, both the front and rear ends feature an "X" shape through design, and physical buttons were restored inside the cabin along with intelligent upgrades.

Another example is the seventh-generation BMW M5, which combines a 4.4T V8 engine with a plug-in hybrid system. It qualifies for a green license plate, and the electric motor assists the engine. Even the smallest details are considered, such as the ability to switch to silent electric mode at night to avoid disturbing neighbors.

Mercedes-Benz is no exception. Although it didn't hold a press conference, the stealthy launch of the GLC plug-in hybrid attracted many potential buyers who were previously considering Li Auto and AITO. Among similar automakers, Cadillac was the only one besides BYD to display outdoor advertisements. Its slogan "The Strongest Dual-Clutch All-Wheel Drive" may have deterred car enthusiasts, but it undoubtedly attracted many family customers with its larger size.

At the auto show, Chengdu people are also paying more attention to "getting more bang for their buck." For example, Li Auto's announcement of "entering supervised autonomous driving" and Huawei HarmonyOS's promotion of end-to-end solutions and ADS 3.0 continued to attract crowds. Additionally, plug-in hybrids began to show new trends at the auto show.

In the current market, when discussing plug-in hybrids and extended-range electric vehicles, it can be observed that almost all engines used are 1.5T. However, at the Chengdu Auto Show, it becomes evident that an increasing number of automakers are opting to abandon the 1.5T engine in favor of the 2.0T for vehicles priced above 300,000 yuan, in order to achieve a better perception of luxury. For instance, the FANGCHENGBAO BAO 8, expected to cost around 500,000 yuan, has adopted a 2.0T+plug-in hybrid powertrain. Similarly, the Mercedes-Benz GLC plug-in hybrid also features a 2.0T+plug-in hybrid setup. Additionally, the possible future plug-in hybrid version of the BMW X3 Long Wheelbase is also likely to be equipped with a 2.0T+plug-in hybrid combination.

Consumers now seek to get more for less, consume less fuel, and enjoy a higher level of intelligent driving experience. They are no longer solely influenced by brand recognition, advertising, or sales figures. Instead, they place greater emphasis on personal experience and analysis.

This conclusion is further validated by the fact that despite He Xiaopeng's announcement of 30,000 pre-orders for the Xpeng MONA M03 within 48 hours, marketed as the first 3 Series car for young people, the Xpeng booth at the Chengdu Auto Show, from media day to the end of public days, was only crowded during the press conference, with little activity at other times.

While the car's price is indeed affordable, its core feature essentially boils down to its low cost. Xpeng has been emphasizing intelligent features in its vehicles for 10 years, but the main selling point of the M03 is its long range and low price. The high-end intelligent driving version will not be delivered for another five months. This lack of refinement, quality, and immediate availability clearly fails to satisfy Chengdu consumers.

Final Thoughts

Cars without distinct features have no future. This trend has been evident since the Guangzhou Auto Show at the end of 2022. Chengdu Auto Show, known for its strong consumer spending power, has traditionally been more tolerant and contributed to sales growth for automakers. However, starting in 2024, this golden era is gradually coming to an end.

It is true that the industry is undergoing transformation, but some players are merely going through the motions without truly adapting. Each automaker has its unique characteristics and labels. Mercedes-Benz maintains its luxury image, BMW retains its innovation and sportiness, Huawei emerges as a disruptor in intelligence, and Li Auto follows suit. NIO, beyond its renowned service and battery swapping capabilities, is also showcasing its technological prowess.

BYD, synonymous with technology and new energy, joins the likes of Geely, Changan, Great Wall Motor, AITO, Chery, and EXEED in emphasizing technological advancements and establishing clear identity keywords for themselves.

Consumers are becoming increasingly discerning and knowledgeable, not just in terms of cost-effectiveness and active product experiences but also in evaluating the technological prowess of automakers. The booth's level of activity after consumers have cast their votes with their wallets speaks volumes about an automaker's appeal and relevance in today's market.