#122 - All price reduction (Part 2)

Not long after these luxury car brands announced price cuts, the news spread like wildfire, stirring up a frenzy online.

"Damn, what's going on? Why are all these luxury brands suddenly slashing prices?"

"Could it be they've had a change of heart, realizing they were charging too much before, fleecing consumers dry, and are now willing to give back a little? Looks like these automotive giants aren't as cold-blooded as we thought."

"Bullshit, a capitalist who isn't cold-blooded isn't a capitalist at all, right? Especially these foreign giants, who have always been high and mighty, never giving a damn about consumers."

"Anyone with eyes can see that this price-cutting spree is just a counterattack because Audi cars are threatening their product positions. They can't compete in terms of product performance, so they can only compete on price. Otherwise, who would buy their cars?"

"Huh, that sounds about right. I was wondering how these foreign automotive giants could suddenly have a conscience. Turns out they're forced to cut prices because they're losing market share."

"Exactly! If they weren't forced to cut prices, would you have ever seen them do it in all these years?"

"Haha, so that's how it is! They're getting their comeuppance! So satisfying! Even if they cut prices, so what? I still wouldn't buy their cars."

"What's the point of cutting prices? What I want is a car's performance. For someone like me who pursues performance, price is irrelevant. To put it bluntly, I wouldn't even take their garbage cars if they gave them to me."

"Don't dream, bro upstairs. You're just being a Monday morning quarterback. If it weren't for Audi cars, would you dare say you don't like these brands?"

"That's different, okay? Those are two separate things, don't mix them up! Anyway, now that there's Audi, I won't choose other car brands."

"For me, Audi's brand awareness isn't high enough. It doesn't have the century-old history and heritage of Benma, Aotuo, and Baolai. Now that they've cut prices so much, I'll definitely still choose these automotive giants' cars."

"You know, the Benma B250 and Baolai E345 models have a list price of over 300,000, but after the price cut of over 100,000, they're less than 200,000. Feels like a pretty good deal."

"I'll go take a look when I have time. If it's good, buying one wouldn't be bad."

"Yeah, that's what I'm thinking too. The Audi A4 is still 50,000 to 60,000 more expensive than these cars. Even if I want to support it, I can't, since my budget is only around 200,000."

"Buying a Benma or Baolai car might seem like we're boosting their sales, but if they lose money on every car they sell, isn't that indirectly helping Audi? As one rises, the other falls. Audi will become stronger and stronger, while they'll become weaker and weaker."

"Alright, alright, that's enough from you with your IQ. You think you're indirectly supporting Audi? Do you think those automotive giants are stupid?"

"Buying a luxury brand that I used to look up to for less than 200,000 feels like a steal."

"I still love my big Audi. All other brands can step aside."

"To the friend upstairs, to each their own. Let's just mind our own business. If they want to kneel, let them kneel! Let's go support Audi!"

……

From everyone's heated discussions, you can see that these car brands' price cuts have indeed had some effect.

Lu Haifeng's plan is only in its first wave. Now, being able to cut the prices of their B-class car brands in half can be considered a good start.

After all, it's absolutely impossible to knock them down completely with one blow. These automotive giants wouldn't have become century-old enterprises without some real strength.

Anyway, you have to take things one step at a time, one bite at a time. Boil the frog slowly. Today, we can relegate them to mid-range brands, and tomorrow, we can relegate them to low-end brands. Don't doubt whether Audi has the technical strength to do it; it's just a matter of time.

This wave of luxury brand price cuts is just the beginning. Perhaps no one expected that this price-cutting craze would not only be a competition between high-end B-class cars but would also evolve into a massive shock to the entire automotive industry.

Because of their significant price cuts, the reaction they brought about caused a great upheaval in the entire B-class car market. Their price cuts directly threatened the market share of mid-range car brands.

After all, now a luxury car brand's price is comparable to that of a mid-range car brand. What do you think consumers will choose?

So, those mid-range brands also followed suit with price cuts. There was no choice; if they didn't cut prices, the market would be completely taken over by high-end brands.

At this time, who cares about profit? Protecting one's market share is the most important thing. What's the point of sticking to prices if you don't have a market?

It was a battle of gods, and mortals suffered. First, survive, then talk.

So, the entire automotive market suddenly became filled with anxiety, fearing another round of price cuts, which would really be disastrous.

This time, they had already squeezed prices to the extreme. If there was another round, they would really lose their shirts.

In short, now, apart from Audi, no other car brand in the B-class car market is doing well. The massive price cuts, coupled with Audi's warranty policy, have really taken a toll on them.

Many Japanese and Korean B-class cars already had very thin profit margins. This shake-up has left them with very little profit. Even those brands that previously had generous profits, such as Benma, Baolai, Aotuo, etc.

Now their profits have also been greatly reduced. Although they can still make a profit, it's not as lucrative as before.

Fortunately, most of the impact has been on B-class cars, which is something they're grateful for. After all, Audi only has one B-class luxury car, the Audi A4.

But can they really rest easy? Right now, it's just that Audi hasn't freed up its hands yet. Once Lu Haifeng puts in more effort, he will definitely get involved in C-class and D-class luxury cars, and then they will probably be terrified again.

……

While Lu Haifeng was in his office, looking at the online comments about the Audi A4 and the news of those automotive giants' price cuts.

Liu Jianyu called to tell him that Da Mi Company was going to release the new Da Mi Digital series on June 30th.

This news also caught Lu Haifeng off guard for a moment. After all, he had only handed over the Qinglong 810 chip processor to Da Mi Company last month, and Da Mi Company was launching a new Digital series phone so quickly, even cutting the Da Mi 3S series and going straight to the Da Mi 4.

Lu Haifeng slowly came back to his senses in surprise. Obviously, he understood that Da Mi Company was releasing the Da Mi 4 phone at this time to target Hua Wei's Honor 3X.

It seemed that Hua Wei's Honor 3X, a phone with a very high price-performance ratio, was giving Da Mi Company a real headache.