Gasgoo.com (Shanghai July 20) - As leading automakers compared with others in the Chinese market in sales growth, luxury car brands began to shrink, with a sales growth of only 2.9% in June. The objective reasons included that the overall market entering the minimal growth phase and the anti-corruption movement launched by Chinese government.
BMW reported sales of 36,887 units in June, a 1.3% year-on-year drop, and accumulative sales of 230,601 in the first half of the year, a 2.5% year-on-year increase. Besides, Audi¡¯s sales in June declined 5.8% from a year earlier to 47,831 units, and its accumulative sales increased 39% on a year-on-year basis to 273,853 units. Meanwhile, Mercedes-Benz reported 32,507 units sold in June, surging 39% from a year earlier and its sales for the first half of the year increased 22% to 165,321 units. In addition to the first-line luxury brands, second-line luxury brands also experienced sales slide, like Volvo and Lexus.
After assessing the current situation, Audi lowered its annual sales target from 700,000 units to 65,000 units, which is still not an easily reached target. BMW also alter its sales target for the third quarter. JLR will reduce the sales target for its dealers by 10% to 20%.
To struggle in the fierce competition, luxury car makers also reduced much of their selling price and launched some new models.
For example, the official price reduction for Cadillac from the Shanghai VW reached 30,000 CNY and Audi lowered 80,000 CNY for its ¡°sales engine¡± models. Dongfeng Infiniti launched a concept model of a small SUV.