SAIC Volkswagen's current month's discount promotion offers a maximum price reduction of 37,000 yuan for the ID.3 model. It is reported that the cumulative sales of this model have exceeded 130,000 units since its launch, making it the best-selling pure electric vehicle among joint ventures. Earlier on Friday, Tesla globally launched a cash incentive for recommended car purchases, which is expected to trigger a hidden price war and boost sales.
The "No Price Reduction Alliance" was established just one day ago, and domestic car companies have already reduced their prices.
According to Wall Street News, on Friday, July 7th, SAIC Volkswagen officially announced a price reduction for its ID.3 model, with a maximum reduction of 37,000 yuan. The starting price has been reduced from 162,900 yuan to 125,900 yuan, a reduction of 23%. SAIC Volkswagen stated that this promotional activity will end on July 31st, with only 7,000 units available.
This "limited-time discount" from SAIC Volkswagen has affected approximately 60% of the total sales volume of related models in the first five months of this year, nearly double the monthly average sales volume. According to data from the China Association of Automobile Manufacturers, the ID.3 model sold a total of 11,800 units from January to May this year, with an average monthly sales volume of approximately 2,370 units.
In March of this year, the ID.3 model already experienced a price reduction, with discounts of approximately 20,000 yuan across the entire lineup. This time, the price reduction is even greater. An article from SAIC Volkswagen's official WeChat account on Friday stated that the cumulative sales of the ID pure electric series have exceeded 130,000 units, making it the best-selling joint venture pure electric vehicle. At this time, the ID.3 is being offered at a "historically low price" for a limited time and in limited quantities, offering excellent value for money.
The day before SAIC Volkswagen's official announcement of another price reduction, on Thursday of this week, the China Association of Automobile Manufacturers, together with senior executives from 16 mainstream automotive companies, signed the "Commitment to Maintaining Fair Market Order in the Automotive Industry."
In addition to SAIC Volkswagen's Chinese shareholder, SAIC Group, the car companies that signed the commitment include FAW, Dongfeng, Changan, BAIC, GAC, China National Heavy Duty Truck Group, Chery, JAC, Geely, Great Wall, BYD, NIO, Ideal, Xiaopeng, and Tesla.
According to the commitment, these car companies promise to adhere to industry regulations and norms, regulate marketing activities, maintain a fair competitive order in the market, and not disrupt the fair competitive order of the market with abnormal prices. They will not engage in exaggerated or false advertising, nor mislead consumers in order to attract attention or increase customer acquisition.
However, in addition to SAIC, Tesla also introduced a new policy after signing the commitment, raising suspicions of a disguised price reduction.
Earlier on Friday, Tesla launched a new program globally, allowing buyers to receive additional rewards through referrals from existing customers.
This discount program covers some of Tesla's largest markets, including the United States, mainland China and Hong Kong, Germany, France, Canada, Mexico, and Singapore. In the United States, starting from July 6th, consumers who purchase the new Model 3 or Model Y using a referral link will enjoy a $500 discount.
Tesla stated that new buyers in China who purchase the Model Y or Model 3 and provide a referral from an existing owner will receive a cash rebate of 3,500 yuan and a 90-day free trial of Enhanced Autopilot (EAP). Referrers can enjoy 7,000 points rewards, redeemable for Supercharger credits, children's balance bikes, and more. Some opinions believe that Tesla's new referral policy does have a certain degree of hidden price war promotion effect. However, firstly, it is not a direct price war, and secondly, its content is more focused on consumer rights protection and the balance between new and old customers, which greatly enhances customer loyalty.
According to the Securities Times, quoting the opinions of lawyers, Tesla's actions should be considered as price subsidies, which are within the normal range of subsidy policy upgrades and price discounts. They do not belong to "abnormal prices that disrupt the fair competition order in the market."