Introduction

The difference is that some take the initiative, while others are forced to cut losses...

On the morning of November 25, Beijing time, Tesla officially announced in China that for its Model Y rear-wheel-drive version and long-range all-wheel-drive version, customers who purchase a car and complete the final payment will receive an immediate discount of 10,000 yuan, and can also enjoy a promotional activity of "0% interest for 5 years" on top of that.

Instantly, it became clear that the brutal and bloody final showdown had slowly begun.

For all OEMs in China's auto market, there are only two paths ahead. Either actively or passively follow suit, trying to draw a relatively perfect conclusion for the year; or turn a blind eye and play according to their established rhythm.

Rationally and objectively speaking, looking at the entire market, there are very few brands with enough capital and confidence to choose the latter approach. In contrast, due to various reasons, most auto companies have jumped into the wave of trying every means to snatch potential customers and orders.

As the title of today's article says, "In the final month, everyone is going crazy!"

Precisely based on this background, it is entirely foreseeable that next year's Chinese auto market will not be tranquil. In a jungle full of thorns, where the strong prey on the weak, everyone will have to shed a layer of skin.

Interest-free, discounts, and subsidies all come into play

Just four days after Tesla's move, Lixiang became the fastest to respond among all competitors.

Specifically, customers who purchase any of its products by the end of the year can enjoy a financial plan with a minimum down payment and 0% interest for 3 years. The minimum down payment for each model is 159,800 yuan for the Lixiang MEGA, 129,800 yuan for the Lixiang L9, 99,800 yuan for the Lixiang L8 and Lixiang L7, and 69,800 yuan for the Lixiang L6.

The purpose is very clear, to make a final crazy push.

In fact, looking at the development of this new force in auto manufacturing this year, it has not been smooth sailing. In the first quarter, the Lixiang MEGA encountered a "Waterloo", forcing it to postpone the launch of subsequent products in the pure electric segment and even lowering its annual sales target as a result.

Fortunately, the subsequent Lixiang L6 was strong enough. With precise positioning and the empowerment of extended-range technology, it quickly became the "pillar" of the entire company, reversing the downtrend to a large extent. As of the end of November, Lixiang had delivered a total of 441,995 new vehicles. With the stimulus of the above "benefits", this new force in auto manufacturing is racing towards the 500,000-unit mark.

Coincidentally, following Lixiang, more and more auto companies have shown their sincerity since December.

For example, Denza officially announced three years of interest-free financing with a minimum down payment of 89,900 yuan; HOVO Auto not only launched a cash discount of up to 30,000 yuan and a two-year interest-free installment policy for the FREE 318 model, but also provided a lifetime warranty for the entire vehicle and its battery, motor, and electronic control system.

For example, IM Motors followed Tesla's lead and directly offered "0% interest for 5 years" for the new LS6 and L6 models, as well as a 5,000 yuan insurance subsidy for trade-in and upgrade customers; ARCFOX started a limited-time "0% interest for 3 years" promotion; and Deep Blue offers a 999 yuan deposit that can be used to offset a 5,999 yuan purchase price for its entire lineup...

In short, the means are varied and dazzling.

Following this trend, looking at the joint venture camp, with the intensifying wave of electrification transformation, the days of making easy money in China are long gone. In order to slow down the erosion of their market share, they must humble themselves and attract customers by lowering their prices.

Indeed, just this month, it was learned from official sources that by the end of this year, the Buick GL8 PHEV will officially launch an interest-free and no-tricks purchase policy, with a 24-month interest-free period for a 50% down payment.

Following this trend, during visits to the terminal stores of many strong Japanese and German brands, it was found that in the final month, in order to clear inventory and boost sales, the "price war" was heating up.

Taking BMW as an example, a sales poster this week advertising an "i3 limited-time special price of 159,000 yuan" sparked heated discussions among netizens.

Although further investigation revealed that it was a marketing gimmick by dealers, with the actual price after discounts being 177,000 yuan, minus a provincial trade-in subsidy of 15,000 yuan and a full-brand trade-in subsidy of 3,000 yuan, it still attracted a lot of attention.

Of course, whether it's Buick or BMW, they can be seen as typical examples of joint venture auto companies' "year-end sales push" in China. The cold and warm realities behind it can only be known by themselves.

The purpose is still to stay at the table. After all, even the recognized "top stream" players are offering interest-free financing, discounts, and subsidies, leaving them with little room for negotiation.

OEMs benefit, consumers benefit

At the beginning of this section, I would like to share two viewpoints from the China Passenger Car Association (CPCA).

"According to the latest data from the Ministry of Commerce, as of November 18, applications for both scrap and replacement subsidies for car purchases nationwide exceeded 2 million, totaling over 4 million. Although the implementation time for replacement subsidies is short, the increase in volume is significantly faster than the growth in scrap updates."

"The national scrap and replacement subsidy standards implement differentiated incentives, offering a subsidy of 20,000 yuan for the purchase of new energy passenger vehicles and 15,000 yuan for the purchase of fuel passenger vehicles with a displacement of 2.0 liters or less. Due to the 5,000 yuan subsidy advantage for new energy vehicles over fuel vehicles in scrap updates, as well as the fact that new energy vehicle trade-in policies in various regions generally offer about 3,000 yuan more in subsidies than fuel vehicles, the vast majority of scrap update and some trade-in users choose to purchase new energy vehicles. The subsidy policy, especially, has driven strong growth in the entry-level pure electric vehicle and narrow-definition plug-in hybrid markets."

In summary, powerful policies have served as a "catalyst" for the thriving Chinese auto market this year. Slight differences in policy levels have given new energy vehicles a leading edge over traditional fuel vehicles.

As evidence, the retail penetration rate has steadily exceeded the 50% threshold for multiple consecutive months, which is the best proof. In the just-concluded November, combined with the CPCA's estimates, wholesale sales of new energy passenger vehicles may reach 1.46 million units, a year-on-year increase of 51%.

Yes, you read that right, the growth rate is astonishing.

Precisely based on this background, in the final month, car companies are indeed "going crazy," as if under immense pressure.

Among them, most auto companies that have fully transitioned to electrification are more like temporarily taking the initiative to give discounts to consolidate their position; in contrast, those that must rely on traditional fuel vehicles to maintain their base have a sense of having to cut losses and survive despite the pain.

In this process, who are the beneficiaries?

The answer is obvious: every consumer with corresponding needs. Without exaggeration, these 30 days may be the most appropriate, relaxed, and empowering stage for everyone to buy a new car, enjoy benefits, and even negotiate with dealers.

Just in my circle, there have been no less than 10 recent first-time buyers, additional purchases, and trade-ins.

Among them, borrowing the exact words of a friend who just sold his old Volkswagen Tiguan and happily picked up a Tesla Model Y: "There's a 10,000 yuan discount on the final payment, plus 0% interest for 5 years, and the state's trade-in subsidy. There's really nothing to hesitate about. Besides, with the refreshed version coming next year, according to Tesla's style, it will definitely increase in price. Buying the current model at the end of the year is definitely the most cost-effective choice."

This simple statement also indirectly expresses what I want to say: "Emotionally and rationally, just go for it."

As I write this, the article is gradually approaching its conclusion. Finally, I would like to raise a more open-ended topic: Since the final month of this year has been so fiercely competitive, what will the Chinese auto market be like next year?

First, consumers will continue to benefit, able to buy more and more affordable and high-quality products.

Second, the living space for joint venture auto companies will be further squeezed, and their overall market share may shrink to around 30%.

Furthermore, the leading edge of new energy vehicles over traditional fuel vehicles will continue to expand, and the retail penetration rate may even exceed 60%.

Lastly, and a point of concern for many, according to the current "winds," in order to ensure the continued growth of the entire market, people-oriented policies such as trade-ins and replacement subsidies are likely to continue, and there is even a possibility of the introduction of a halved vehicle purchase tax for new cars.

That's the situation. And next year's Chinese auto market will usher in a decisive battle for all participants regarding the overall landscape.