On august 14th, fast technology reported that, in a recent interview with the german media, the mercedes ceo ola källenius said that the chinese motor market had a “darvin-style” (survival of the fittest) internal competition involving more than 100 cars, a price reduction that was jeopardizing all cars。
During the first half of this year, there was a marked decline in the earnings and profits of large german automobile factories such as mercedes, bmw and the public. In an interview, corinson stated that the decline in mercedes profits was linked to the excessive length of the united states equivalent tariff, china's domestic roll, and the transition of electric vehicles。
Conlinson states that in the area of high-quality cars, which is essential for mercedes, chinese consumption enthusiasm has been very limited in recent years and, together with the above-mentioned phenomenon, has put a very high level of competitive pressure on mercedes in the chinese motor city, affecting all participants。
Under china's homemade motor vehicles, mercedes is currently selling about 1,000 electric vehicles on the chinese market only every month, well below the sales of a year ago。
Conlinson said that, unlike his competitors, mercedes did not want to take china’s share of the market at any cost, because it was wrong to maintain high-market pricing through large-scale promotions。
According to sino-intergenerational research institute, the mercedes price system collapsed under intense competition. Recently, multiple car types such as mercedes a, mercedes c, mercedes eqa and mercedes eqb have been reduced by a minimum of 50 per cent. Of these, shanghai distributors offered only $125. 6 million in a mercedes-a price, a new low。
There are many mercedes-door shops that are not able to carry out the price reductions, including the sudden closure of multiple gates such as tangshan, camp east and luoyang. The official benz customer service responded to the sub-generational car research column that part of the closure was due to business restructuring。
In the first half of this year, mercedes handed over a poor performance. After-tax net profits declined by 55. 8 per cent, compared with 8. 6 per cent in the same year, of which after-tax net profits declined by 68. 7 per cent in the second quarter, and china also became the largest market for global sales at mercedes。
