The automotive price war of 2024 has just concluded, with national and local trade-in subsidies coming to an end. It was anticipated that this smokeless battle would momentarily subside. Surprisingly, many automakers remain fiercely competitive, even dipping into their own pockets to secure greater market share.

According to incomplete statistics, at least 30 automakers and brands, comprising 11 independent brands, 11 new force brands, and 9 joint venture or luxury brands, have announced price reduction and promotional policies. These policies encompass limited-time direct discounts, cash incentives, and fallback measures in anticipation of potential delays in national and local subsidies. In terms of the magnitude and intensity of price reductions, joint ventures and luxury automakers are the most willing to invest heavily, wielding their "competitive swords" and relentlessly focusing on prices and cost-effectiveness.

Currently, the market share of joint venture and luxury automakers is gradually shrinking due to the influx of multiple models from independent and new force automakers. Furthermore, the electrification trend in the Chinese market is evident, with consumer recognition of new energy vehicles significantly improving. However, the product competitiveness of joint venture brands struggles to keep pace with industry leaders in electrification within a short period. Coincidentally, joint venture luxury cars also align with subtle shifts in the Chinese consumer market, where buyers are no longer solely attracted by the car logo but are increasingly focused on the vehicle's intelligence and interactivity. Overall, joint venture automakers are indeed facing challenging times. To compete with new force and independent brand automakers, they rely heavily on accumulated resources and significant price reductions to barely uphold the prestige of their joint venture brands.

In terms of price reductions and incentives, FAW-Volkswagen, SAIC Volkswagen, FAW Toyota Prado, Audi, and others offer direct cash discounts of tens of thousands of yuan, marking considerable promotional intensity. Notably, the second-tier luxury brand Jaguar has achieved a maximum price reduction of 170,000 yuan, enabling consumers to drive away a luxury car at the price of an original joint venture B-class vehicle. Similarly, Cadillac, another second-tier luxury brand, has introduced a fixed-price policy, allowing consumers to purchase the GT4 starting at 149,900 yuan. Although currently only a handful of joint venture and luxury brands are offering price reductions, with only 9 automakers, based on the response speed of joint venture automakers, it can be inferred that most joint venture vehicles will join the price reduction and promotion campaign before the Spring Festival.

Examining the firepower prepared by independent brands, according to incomplete statistics, over 11 independent brands have already provided substantial preferential policies at the beginning of January 2025. Whether it's BYD, leading in sales, or formidable automakers like Geely, Wuling, Changan, closely trailing in sales, they have all made arrangements to seize the initiative.

Rivaling the immediate discounts offered by joint venture brands, independent brands are also formidable, introducing a series of limited-time replacement and financial subsidy policies to attract consumers. Among them, BYD's fixed-price, financial policy, and free insurance benefits have also conferred substantial benefits to consumers. The Shanhai Jietu series boasts the most promotional intensity, offering up to 40,000 yuan in trade-in subsidies for the Shanhai series, alongside a 10,000 yuan discount on the entire vehicle, a lifetime warranty on the three electric components, and other policies. The smallest price reduction belongs to the Wuling Bingguo SUV, with only a 2,000 yuan discount for the 401 km range version and a 6,000 yuan discount for the long-range version. Some automakers are also going all in for sales. Roewe has not only offered a limited-time replacement subsidy of 10,000 yuan for the entire DMH series but also launched activities such as a three-year 80% guaranteed repurchase and the opportunity to win a Huawei foldable phone. In the current Chinese market, new force automakers are undoubtedly the dark horses. Although their sales may not rival some joint venture luxury brands and independent brands, the momentum of development among new force automakers is indeed robust.

On January 1, NIO and its sub-brand Ledao took the lead in announcing that for users who issue invoices for car purchases from January 1 to February 28, if they are unable to apply for trade-in subsidies due to the invoice date of the new car preceding the government policy requirement, the automaker will fully cover the cost in the form of points and equivalent power replenishment subsidies. Currently, brands such as Lixiang, Lantu, ARCFOX, and AVITA have successively introduced fallback plans, spontaneously "continuing subsidies" for consumers during the policy transition period to encourage immediate ordering and mitigate waiting and observing sentiments. Tesla, XPeng, ZEEKR, and Leapmotor have chosen to attract users through various methods such as "0% interest" financial incentive plans, increased New Year benefits, and cash incentives. Notably, many automakers have limited the validity period of these benefits to within January this year. This is done for two reasons: first, to ensure a smooth transition with the relevant national subsidy policies that ended at the end of 2024; second, to prepare in advance for the Spring Festival holiday, capture consumers with car purchase intentions before the holiday, accelerate sales volume, and thereby compensate for the sales lull during the Spring Festival holiday market.

Speaking of the sales sprint among various automakers, it's impossible to overlook the current Chinese auto market, which has already fallen into a buyer's market. Under these circumstances, price reductions remain an important and straightforward promotional tool. When a group of automakers finds itself in the vortex of an "elimination round," prioritizing sales over profits becomes a straightforward choice. With the battle reaching this juncture, no brand is willing to relinquish market share or surrender willingly. Industry insiders predict that the multifaceted internal competition in the automotive industry will persist for 3-5 years. In this "marathon," perseverance is particularly crucial. Prioritizing "money" or "survival"? This is a question that automakers must answer this year.

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