For the automotive market, sales volume remains an important indicator of the operating conditions of automakers. Sales data from various automakers in August show that brands such as BYD, Geely, and Chery continue to make significant progress, while some brands have stagnated, falling far short of their expected annual sales targets. The new energy vehicle market is beginning to further differentiate, with leading automakers consolidating their market positions by enhancing brand influence, expanding product lines, mastering key technologies, and achieving economies of scale, while smaller automakers face greater challenges.

Meanwhile, in terms of the completion rate of annual sales targets, although two-thirds of 2024 have already passed, the completion rate of most new energy automakers has not yet exceeded 50%. On the one hand, this is due to overly ambitious targets set at the beginning of the year, underestimating the competitive pressure in the market in 2024. On the other hand, it is influenced by the sales cycle of the industry. As we all know, the automotive market exhibits a full-year cycle with low sales in the beginning and high sales towards the end. The peak sales season of the "golden September and silver October" has arrived, which is expected to further stimulate market consumption. Of course, automakers are employing various tactics to stimulate consumption. Many automakers have launched various promotional activities to attract consumers to purchase vehicles, with some offering direct cash discounts, while others offer diverse benefits such as 0% interest financing policies, free electricity cards, and gifts worth over 10,000 yuan in value.

Interestingly, it was once expected that the price war in China's automotive market was coming to an end, as information from various sources indicated that some manufacturers were already struggling to bear the pressure of price wars and cost pressures. Some foreign and joint venture automakers have abandoned price wars, ceding more pricing (profit) margins to dealers and no longer placing stringent requirements on sales volume. As a result, some subsidies have gradually been withdrawn. With no sales pressure, dealers have become less sensitive to pricing, or have begun to rescind previous promotional measures. However, the market does not seem to be swayed by manufacturers' decisions. When prices are no longer "weak," consumers may hold off on making purchases, preferring to wait and see. Without sales volume guarantees, both manufacturers and dealers will undoubtedly face significant pressure. How can they afford to maintain a large workforce and sales team if they are not selling many vehicles?

To stimulate market demand, pricing is undoubtedly the most direct and effective means. We can see that every change in sales volume is implicitly driven and stimulated by pricing, whether for traditional automakers or new energy automakers. Therefore, when the market becomes too calm, it may actually be brewing for the next "explosion."

During the Chengdu Auto Show, we noticed that the price war had reignited, which has undoubtedly been a focus of market attention. This time, it was SAIC Volkswagen that took the lead in playing the price card, specifically with the well-known Passat model. This model holds a prominent position in the eyes of Chinese consumers and has a long history, once being a preferred choice for official vehicles.

The auto show is no longer a stage dominated by beautiful models and automotive executives making frequent appearances. This time, driven by pricing, salespersonnel finally took center stage. It is reported that on August 31, the first day of the professional public day at the Chengdu Auto Show, a significant price reduction became a keyword at this A-class auto show. Dealers began to focus on "selling cars," and selling cars necessitates pricing incentives, which explains why the focus of this Chengdu Auto Show was slightly different.

At the Chengdu Auto Show, the eye-catching advertisement "Direct Discount of RMB 35,000 at the Auto Show" attracted much attention. The bare-bones Passat, known as the "bureaucrat's car" with a guide price of RMB 181,900, was only sold for RMB 131,900 at the auto show. This time, the Passat took the lead in pricing, and market attention has increased significantly. Additionally, the price of the low-end Magotan has dropped to the RMB 120,000 range, with a guide price of RMB 174,900. The price reduction is quite attractive and compelling.

Furthermore, with the encouragement and direct participation of some executives, live streaming has gradually become a mainstream choice in the automotive sales market. At this Chengdu Auto Show, there were live streaming promotions for car sales. Selling cars through live streaming has become one of the current sales models. Consumers do not necessarily need to visit a 4S dealership; they can place orders by watching various operations and performance introductions live online. As a result, we saw some dealers facing the camera, showcasing models, introducing performance, and continuously announcing prices that stimulate consumer purchasing power. Some live streaming car sales even continually inquire about the bottom prices of other dealers to ensure that their quotes are sufficiently competitive.

When some automakers' executives declare that they cannot reduce prices any further, it gives us the impression that "losses" are already severe. When some automakers' executives announce that their companies are continuously laying off employees, consumers remain unmoved. Consumers' purchasing desires are still driven by pricing. Without sufficiently attractive pricing incentives, consumers are unlikely to easily open their wallets. The direct beneficiaries of the price war are undoubtedly consumers. Everyone wants to purchase their desired car models at lower prices. At the same time, fierce price competition places enormous pressure on automakers and dealers, motivating them to engage in more technological innovation and cost control. Only technological innovation can lead to performance improvements and cost control in production capacity. In this regard, we can see that some state-owned automakers have already done quite well.

In addition to the well-known models that offer "affordable" prices, this time SAIC Volkswagen has clearly invested more capital. It is reported that on the opening day of the exhibition, SAIC Volkswagen officially launched its all-new SUV, the Tharu X, under its brand. A total of four models were introduced, priced between RMB 125,900 and RMB 153,900. Moreover, SAIC Volkswagen directly offered a fixed price model with an entry-level price of only RMB 79,900. Buying a joint venture brand SUV for less than RMB 80,000 was previously unimaginable. Nowadays, under fierce market competition, we see more and more automakers adopting a "price blind box" model, using various prices to stimulate consumers' purchasing desires, thereby boosting their sales volume. Only with a certain level of sales volume guarantee can automakers secure more development opportunities. This is an unchanging truth in the business world.