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leadWord |　It’s still increasing the price, so it’s destroyed?

To be honest, among all luxury brands, the service attitude of the center is the most commendable, and the training is even better than that of the center.

This "hindsight" American luxury brand has had a somewhat anticlimactic market performance since its high-profile entry into China in 2014. In 2017, it handed over the best answer in China: 54,000 wholesale vehicles.

But this should be ashamed in front of you, and it is even more incomparable. According to statistics, the cumulative wholesale of vehicles in China in the first half of 2018 was 25,000, and considering the tariff issue in the second half of the year, the whole 2018 may not be expected to exceed last year’s level.

Recently, Che Jujun visited a center to understand the end point sales of the brand and share it with readers.

First, it is not affected for the time being

In May, China’s tariffs were lowered to 15%, and all import brands cheered. But less than two months later, due to the impact of the trade war on July 6, 25% tariffs were imposed on products originating in the United States, raising the US tariff to 40%.

The X5, X6, GLE, GLS and other models are non-American brands, but due to their origin in the United States, they have also been affected by tariffs, and their prices have been raised by varying degrees.

As an all-import American brand, it naturally bore the brunt and was labeled "annihilated" by the media. Indeed, it is currently an all-import, but not an all-American import.

Of the models on sale, the MKZ is native to Mexico, and the MKX is native to Canada, which is not affected by the trade war for the time being. The MKC,,, and three models are all produced in the United States. Among them, the MKC and the MKC are produced at the Lucieville plant in Kentucky, while they are produced at the plant in Michigan.

Therefore, at least the two main models, MKZ and MKX, will not be affected by the tariff increase for the time being. And it is a niche model, and its price adjustment has little impact on overall sales.

According to the sales introduction, the stock of new cars declared by their stores before July 6 is sufficient, which will not affect the sales in July and August. But starting from September, the impact of tariffs will be highlighted. But the specific impact will be adjusted according to the manufacturer’s pricing strategy.

Che Jujun visited the store this time, and still saw consumers coming to inquire. Currently ordering all models, the price is the same as usual.

Will Lincoln’s price increase?

According to the sales statistics of different models in the first half of the year, the highest number of wholesale vehicles sold in a single month was the MKC, with a total of 7,503 units from January to June, making it the best-selling model in the brand.

The MKC, and MKC, made in the United States, accounted for about 57% of all sales in the first half of the year. If the price of these three cars rises, it will still be a big blow to sales.

This may not be the case. At present, all models, in addition, have purchase tax subsidies ranging from 2 to 40,000. In fact, it is a discount. When I entered China, I sold cars strictly according to the official guide price.

For example, the 2.0T version of the subsidy 33,000 or so. The lowest two-wheel drive exclusive version guide price 418,800 (the price after the tax reduction), after the subsidy is about 355,800; while the MKZ starting price 261,800, the subsidy 20,000 or so, so that the price fell to 230,000.

This year’s sales volume is precisely achieved by making profits. The question is, will prices increase in the future in response to the 40% tariff? When brands such as,,, and others raise prices, they still stay put.

Che Jujun believes that the next price increase is very unlikely.

First, because they are sold at the guide price, the so-called preferential treatment is interpreted as "subsidy"; after the tariff increases, the additional costs may be borne by the buyer to maintain the current transaction price; at most, the subsidy is only reduced;

Second, because of the dismal sales this year, the current price reduction sales are barely maintained, let alone the price increase.

III. It will not be annihilated.

There is still a chance to turn around. From the end of 2019 to 2022, there will be domestic, MKC, MKZ, and one model one after another. In the new car planning, pure electric and plug-in models are also undertaken.

With product expansion and localization, the "Chinese Dream" is close at hand. After all, in the Chinese market, the American department is relatively absent, and there is only one facade. Che Jujun also hopes to have a second choice when choosing the American department.

If the price is self-aware after domestic production, it is expected to become the second. After all, in terms of luxury, Che Jujun thinks it is still better.

But turning over still depends on the product. Now it can’t be sold, and it’s not all the fault of branding impression, mainly because the product is not good. Che Jujun tested the 500,000 MKX, but there is no automatic start and stop function. And sales are selling the combination lock configuration over and over again.

It can be said that the overall lag in technology has seriously limited the play. Today, spend 500,000 buy one, with the case of yes, except that is.

And some technical inputs are full of selling points, and now they have begun to promote Super Cruise assisted driving; from the book data, it is also much higher, making it difficult for Chinese consumers who pay attention to comparison parameters.

A good example is that the same as the 300,000 class B car, there is no threat to it at all. The people who buy this car are generally young people, like luxury to buy BBA, like big rear drive, of course, choose, and ATS modification space is also large.

When consumers heard that MKZ was based on, they lost interest. But it doesn’t matter. After all, there are some craftsmanship and configuration, but these two cars are exactly the same. What do you want consumers to think?

At least MKZ and MKC are in the young market, how can the "way" be more competitive than the big + 8AT?

Car Gathering Summary

In the view of Che Jujun, the only successful model in China is the monthly sales of about 200 units. According to the sales introduction, this car is currently sold at a price increase of 15 to 200,000, usually selling 1 or 2 units a month, but it sold 8 units in July.

The reason is very simple, it is the most distinctive product and the only car of this kind in the luxury brand. 5355mm, bigger than GLS. People will only have the confidence to stand up to BBA when driving.

In fact, from the perspective of configuration, the current model is still cost-effective, but many functions are more "off-the-door", such as remote start, combination lock, induction rear trunk, etc.

BBA models in the same price range do not have such a rich configuration, because these brands have a premium price, and the product power is also concentrated on the powertrain, display screen and intelligent configuration.

The salesperson said: "When we get up, there will be a premium."

On the evening of November 9, LI announced its financial report for the third quarter of 2023. The company’s quarterly delivery volume and financial data both hit record highs, with operating profit and net profit of 2.34 billion yuan and 2.81 billion yuan respectively in the same period, achieving four consecutive quarters of profit. As of September 30th, the accumulated revenue of LI in 2023 was 82.12 billion yuan. According to the current development trend, it is within sight to achieve the goal of 100 billion revenue by the end of the year.

For the next development, Li Xiang, Chairman and CEO of LI, said at the performance exchange meeting in the third quarter of 2023 that night that in October, Changzhou manufacturing base in LI completed the capacity upgrade, preparing for the fourth quarter production climbing. In the aspect of supply chain management, the bottleneck of spare parts supply is constantly broken by optimizing management strategy, upgrading management process and strengthening efficient cooperation with suppliers. It is estimated that the total delivery volume of the company will reach 125,000 to 128,000 units in the fourth quarter.

The performance is the best in history

According to the financial report, in the third quarter of 2023, LI delivered 105,108 vehicles, up by 296.3% year-on-year. In this quarter, it won the first place in SUV models and new energy vehicles with a price of over 300,000 yuan.

Image source: LI Financial Report

With the intensification of competition in the domestic new energy vehicle market, the market share of head enterprises has been increasing. In the third quarter of this year, the penetration rate of LI in the new energy vehicle market of over 200,000 yuan reached 15.4%, an increase of 4.5 percentage points over the first quarter.

"I believe that the continued strong sales performance of the ideal L series and the delivery of new pure electric vehicles next year will support LI to further replace traditional fuel vehicles on a large scale in 2024." Li wants to say.

Image source: LI Financial Report

Strong market demand boosted LI’s revenue growth. In the third quarter of this year, the company achieved revenue of 34.68 billion yuan, a year-on-year increase of 271.2%. In the same period, the company’s operating profit and net profit were 2.34 billion yuan and 2.81 billion yuan respectively. The above quarterly delivery volume and financial data are all the best in history.

It is worth noting that LI’s cost has been continuously reduced, with a gross profit margin of 22.0% in the third quarter. In addition, the free cash flow is 13.22 billion yuan. At the end of the third quarter, the company’s cash reserve reached 88.52 billion yuan, which also effectively guaranteed LI’s long-term investment in R&D and new product layout.

In terms of R&D, LI’s R&D expenditure in the third quarter was 2.82 billion yuan, a year-on-year increase of 56.1%. LI said that the increase in R&D expenses will further expand the scale of R&D talents, expand the product matrix and enhance the R&D innovation capability. Based on the "dual-energy strategy", the company promotes the technical layout of extended-range electric, high-voltage pure electric, intelligent driving, intelligent space, system research and development and forward-looking research and development.

It is expected to maintain a high growth rate.

LI also looked forward to the fourth quarter of 2023 in the financial report. The company’s delivery volume in the fourth quarter is expected to reach 125,000 to 128,000, an increase of 169.9% to 176.3% year-on-year; Revenue in the fourth quarter is expected to reach 38.46 billion yuan to 39.38 billion yuan, up 117.9% year-on-year to 123.1%. On this basis, it is a high probability that LI’s revenue will exceed 100 billion yuan this year.

A few days ago, LI disclosed the delivery data in October this year, showing that the company delivered 40,422 new cars that month, up 302.1% year-on-year, and the monthly delivery exceeded 40,000 vehicles for the first time.

"LI ushered in the moment of delivering more than 40,000 vehicles per month, marking the further improvement of the company’s organizational capabilities such as manufacturing, sales and service." Li Xiang said, "This is also the first time that China’s new car companies have reached this scale, and LI has entered a new cycle of accelerating large-scale development."

Li Xiang introduced that in the fourth quarter, LI will continue to accelerate the expansion of stores, aiming to have more than 400 stores covering 140 cities nationwide by the end of this year, so as to increase its market share in the new energy vehicle market in China.

Regarding the progress of the ideal MEGA concerned by the market, Li Xiang said at the performance exchange meeting that the ideal MEGA will be officially released in December this year, and the car will be exhibited in the store in January 2024 and delivered by users in February. "All our pure electric products must have" three important breakthroughs ",namely, the breakthrough in charging, the breakthrough in space and the breakthrough in modeling. All pure electric products in LI will adhere to these three important principles." Li wants to say.

Based on this, the ideal MEGA integrates the latest technological achievements of LI in the field of pure electricity, and carries out research and development and manufacturing according to the above-mentioned "three important breakthroughs".

Li Xiang also said that the company will continue to expand the construction of 5C high-voltage super charging network. Up to now, LI has built and operated 130 ideal super charging stations along the national expressway. By the end of this year, LI will have completed the construction of 300 high-speed super charging stations, covering the four economic belts of Beijing-Tianjin-Hebei, Yangtze River Delta, Greater Bay Area and Sichuan-Chongqing.

"In the future, we will speed up the laying of the ideal overcharge network, encrypt and cover the national high-speed network while promoting the layout of urban overcharge stations, and enhance the user’s full-scene recharge experience." Li wants to say.