AutoBeta(AutoBeta.net)03/12 Report--

After the Spring Festival of the year of the Dragon, BYD was the first to launch a price reduction promotion, with the slogan "electricity is lower than oil". More and more independent brands followed the market price reduction, while the price war in the domestic car market continued, and joint venture brands began to follow the market price reduction.

On March 11, FAW-Volkswagen launched the third anniversary version of ID.4 CROZZ, with a limited-time transaction price of 139800 yuan, a discount of 54100 yuan compared with the previous 2024 pure limited edition model of 193900 yuan.

ID.4 CROZZ is the first ID introduced by FAW-Volkswagen. Series of models, based on Volkswagen MEB platform, length, width and height are 4592/1852/1629mm, wheelbase is 2765mm, positioning compact pure electric SUV, officially launched in January 2021 and announced the price, the new car launched a total of 5 models, the subsidized price range is 19.99-279900 yuan. In September 2023, the 2024 Volkswagen ID.4 CROZZ launched a total of three models with a price range of 23.99-293900 yuan, while the official time-limited discount was launched, with a price range of 19.64-250400 yuan after the price reduction. The following month, ID.4 CROZZ added a new exclusive limited edition with a price of 193900 yuan.

The price of 139800 yuan is still relatively cracked for a joint venture compact pure electric SUV. Recently, the price of the glory version launched by BYD is relatively low, while as one of the competitors of ID.4 CROZZ, the glory version of Song PLUS EV starts at 149800 yuan. By contrast, the price of ID.4 CROZZ is even cheaper than Song PLUS EV, which can be said to be competitive as a whole.

Compared with its own products, the ID.4 X from SAIC-Volkswagen is currently priced at 149800 yuan, which is also 10, 000 yuan higher than its sister model ID.4 CROZZ, and is expected to be delivered within eight weeks. Compared with competitive joint venture compact electric cars, ID.4 CROZZ also has advantages, such as Kia EV5 starting at 149800 yuan and Nissan Aliya starting at 199900 yuan. From the perspective of market performance, ID.4 is still relatively popular in the joint venture electric vehicle market, with cumulative ID.4 sales of 6738 vehicles from January to February 2024.

As for the reason for the price reduction of joint venture electric vehicles such as ID.4 CROZZ, it is mainly the problem of market competition. After BYD's price reduction, Chinese car companies, including Geely, Changan, Chery and Guangzhou Automobile, also followed the price reduction, especially in the market below 200000 yuan, while less than 200000 yuan is the key market for joint venture car companies. If they do not follow up with the price reduction, then the market will be eroded by independent new energy vehicles and eventually lose the ability to compete with independent brands.

BYD led the first wave of price cuts in the year of the Dragon, and demand for passenger cars is expected to resume after the Spring Festival. Since 2024, the trend of price cuts by car companies has continued in the form of direct price cuts, subsidies and the introduction of lower-priced models. The first wave of price cuts in the year of the Dragon focused on the 100000 mainstream market, which accounts for the majority of the passenger car industry and has long been dominated by joint venture brands. Low-cost models launched by BYD and other brands are expected to impact the hinterland of fuel vehicles of joint venture brands. From the effect point of view, price reduction is indeed an effective marketing method. Tesla and BYD, which were the first to launch price reduction in 2023, have achieved eye-catching sales performance, and the result of the price reduction tide is to accelerate the arrival of the knockout stage of the passenger car industry and the general trend of increasing industry concentration.

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