Buy Mercedes-Benz and BMW for hundreds of thousands, choose Weilai for 400,000 o

tech | 2024-05-07

Should we redefine luxury? It's a discussion that can now commence.

 

Currently, traditional luxury brands such as Audi, Mercedes-Benz, and BMW are gradually lowering their price points, while an increasing number of new force brand models are pushing their prices upwards. However, in many discussions, the traditional luxury brand statistical model is still being used. Can we start discussing what the criteria for a luxury car are, and is it time to redefine the definition of a luxury car?

As usual, with a disclaimer for safety:

 

Luxury brands do not have a relatively strict positioning. In English, there is the term "Luxury Brand," which leans more towards the concept of luxury and opulence. There is also "Limousine," which more directly points to luxury cars rather than encompassing the entire brand.

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At present, various automotive vertical media are increasingly less likely to use the statistical classification of luxury brands, opting more for joint ventures, independent brands, or classifications based on price and functional use.Starting from the perspective of price, the topic of "whether to redefine luxury" seems to become quite easy to discuss.

The models under Hongmeng Zhixing, namely the M7, M5, and S7, all have a minimum guide price of 249,800 yuan. The M9 is already a model with a minimum guide price of 469,800 yuan, and it has sold over 15,000 units for three consecutive months recently.

The same is true for Li Auto; the minimum guide price for the L6 is also 249,800 yuan. The representative model, L9, has a minimum guide price of 409,800 yuan, and it has sold over 6,000 units for three consecutive months.

Nio is no different; the minimum guide price for the ET5 is 298,000 yuan, and even with the battery lease purchase option, it is almost at the same price level as Hongmeng and Li Auto. The pre-sale price for the sedan model ET9 has even reached 800,000 yuan.

The key point is that these brands do not offer significant terminal discounts, or as they call it, benefits.In comparison, Audi, BMW, and Mercedes-Benz have recently been frequently featured in social news headlines with their low-priced models. Although the news focuses on entry-level models, the mid-range executive models, in terms of terminal price, are essentially on par with brands like NIO, Li Auto, and XPeng; in terms of sales volume, they are also almost comparable.

Therefore, platforms and articles that categorize and analyze data under the "luxury brand" label are becoming increasingly rare. Content analysis by organizations such as the China Passenger Car Association also appropriately refers to the subject of analysis as "traditional luxury brands."

However, is it appropriate for some brands to self-define their models as "luxury"? Can luxury cars only be those from luxury brands? Are all cars from luxury brands considered luxury cars?

In previous discussions about luxury brands, I agreed with the conclusion of an article that stated, "The definition of a luxury brand is multifaceted, involving aspects such as quality, value, culture, design, innovation, and service."

Even if models like the Audi A3, Mercedes-Benz A-Class, and the former BMW 1 Series are sold at lower prices, they still represent the brand's strength, service system, historical heritage, technical capabilities, and automotive culture. When the Audi A3 and Mercedes-Benz A-Class were first launched, the products themselves still exhibited and provided a more premium experience compared to ordinary joint venture models. According to the suggested retail prices at the time of their launch, they could indeed be considered the "phoenix tail" of the market.Many people have yet to realize that even when you purchase an Audi costing hundreds of thousands of dollars, you still enjoy high-standard services and environments when you go to the 4S store for maintenance. Although the customer meals may not be as good as before, the comfort of the environment and the professionalism of the service are still better than the after-sales service of many new force brands. The establishment of the after-sales experience has not yet been addressed by many brands that have risen in price.

In terms of brand premium and culture, the core point is still the sense of value, which in our colloquial language means having status and face. In the current electrified era, the gap in hardware can be easily narrowed, while the soft power in terms of tuning, design, and brand promotion is not something that can be solved in a short period of time.

Let's discuss two cases here.

When Tesla first entered the domestic market, it was categorized as a luxury brand, mainly because the price and specifications of the Model S at the time met the luxury standards. However, if you look at Tesla's showrooms and after-sales service, some places are not even as good as ordinary joint venture brands.

NIO has not claimed itself to be a luxury brand, and it is rarely included in the luxury brand category in various promotions, yet it has achieved an ultra-high standard of service, known as the "car industry's Haidilao." I personally had a fleeting thought that NIO should not go down the road of being a more affordable brand; perhaps it could try to go up and become an even more luxurious brand, as its service can support it.Here is the translation of the provided text into English:

The current situation is as follows: Traditional luxury brands, relying on a comprehensive system, still have a sufficient foundation of luxury; new force brands have increased their vehicle prices, but their staying power remains unknown.

In this context, the necessity to discuss luxury brands gradually diminishes, and it is more appropriate to discuss in terms of pricing. The creation of luxury car models is very necessary, as it aligns with consumers' high-level pursuit of truth, goodness, and beauty. Building on the foundation of luxury cars to gradually develop a luxury brand is a plan that can be considered in the longer term.

In fact, the value and cultural construction aspects of the brand-building processes of Lexus, Infiniti, Acura, Genesis, and others can be singled out for separate analysis. Although these brands may currently be in an awkward position in the Chinese market, they are still well-established quasi-luxury brands in other global markets for many years.

It is now understandable that the primary goal for new force brands is to survive, but to clarify their thinking, planning from now on whether to develop these high-priced cars towards luxury or whether to accumulate these luxury cars into a luxury brand would be beneficial to overall development. Perhaps many years from now, it will be possible to say that Brand XX is the luxury brand of the year XX.