Buick's GL8 series, as the former “overlord” of the MPV market, is deeply loved by bosses.However, as more and more car companies launch MPV models, the “overlord” is facing declining sales and downward pressure on prices.
Sina Technology counted its sales changes in the past seven years and found that between 2017 and 2021, Buick GL8 sales have exceeded 140,000 units over the years, and will reach annual sales of 161,000 units in 2021. But in the next two years, GL8 sales began to decline sharply. In 2022, 126,000 units were sold, a year-on-year decrease of 21.37%; in 2023, only 110,908 units were sold, a year-on-year decrease of 12.60%.
Dismal sales forced Buick to “make changes.” Staff at the Buick 4S store in Beijing told Sina Technology that the GL8 used to be sold at a higher price, but recently it has begun to reduce prices – models include Buick GL8 Land Business Class, GL8 ES Lu Zun and Envision, etc., with price cuts ranging from 16,000 to 36,000. between.
4S store staff admitted that this price reduction measure is not an official unified requirement. The core reason for the price reduction is: “The market competition is too fierce. Store sales have dropped significantly this year. In order to compete for performance, we can only cut off the meat. This year is too miserable!”
Sales complaint: “I used to sell at a higher price, but now I can only cut the meat.”
Recently, a number of mainstream MPV models, including Denza D9, Buick GL8, Toyota Sienna, Lantu Dreamer, and GAC Trumpchi M6 and M8, have successively announced price cuts, starting a new round of MPV price cuts.
According to data from the Passenger Car Association, from January to February 2024, domestic MPV cumulative retail sales were 145,000 units. Among them, Wuling Hongguang ranked first in sales, Denza D9 DM-i ranked second, Toyota Sienna, Buick GL8, GAC Trumpchi M6, Toyota Grevia and Trumpchi M8 ranked third, fourth and fifth respectively. , six or seven.
Incomplete statistics from Sina Technology found that from January to February 2024, among the top seven domestic MPV cumulative retail sales models, except for Wuling Hongguang, which ranked first and was positioned in the low-end market, there was no significant price reduction. All other models have started to reduce prices.
Among them, the Denza D9 can enjoy a maximum discount of 25,000 yuan in some areas, and the minimum starting price is 324,800 yuan; the Buick GL8 can enjoy a maximum discount of 26,000 yuan, and the minimum starting price is 216,400 yuan; the Toyota Sienna can enjoy a maximum discount of 15,000 yuan, and the minimum price is 216,400 yuan. The starting price is 294,800 yuan; Toyota Grevia has a discount of 30,000 yuan, and the minimum starting price is 285,800 yuan; the Lantu Dreamer has a maximum discount of 30,000 yuan, and the minimum starting price is 309,900 yuan; GAC Trumpchi M6 and M8 have the highest price There are discounts of 20,000 yuan and 10,000 yuan, and the starting prices are 99,800 yuan and 169,800 yuan.
Specific to stores, the price reduction of the Buick GL8 series is the most special.
Sina Technology's visit found that this price reduction was not a unified request by the manufacturer, “but the offline stores followed up on the price reduction themselves, and consumers could only be informed when they went to offline stores.” As for the reason for the price reduction, the explanation from Buick store personnel is: “The market competition is too fierce. Store sales have dropped significantly this year. In order to compete for performance, we can only cut off the meat. It is really miserable!”.
According to media reports, there have been reports of GL8 price increases many times before: at the end of 2021, after the 2022 Buick GL8 ES Lu Zun arrives in the store, the price will need to increase by 4,000 yuan to purchase it. Most recently, at the beginning of 2023, the prices of some GL8 models were adjusted, with a slight price increase of 1,000 yuan.
“It is true that prices were increased before, but sales were particularly poor after the beginning of this year.” The store staff told Sina Technology, “Currently, you can enjoy a discount of 16,000 yuan for the full payment of GL8 series cars; if you pay in installments, you can apply for a five-year loan. You can enjoy another 10,000 yuan discount, for a total discount of 26,000 yuan.”
Ambiguous positioning: Can’t it be high, or can’t it be low?
In fact, it is not unreasonable for Buick stores to passively reduce prices.
As the former “king” of the domestic MPV market, GL8's sales data are showing a downward trend – according to data released by the Passenger Car Association, from 2017 to 2021, Buick GL8's annual sales have been more than 140,000 units. In the past five years, its annual sales They were 145,129 units, 144,308 units, 147,644 units, 156,879 units and 161,308 units respectively. Although the growth rate has slowed down, they still have a dominant position in the domestic MPV market. However, since 2021, Buick GL8 sales have begun to decline sharply. In 2022, GL8 sales will be only 126,838 units, a year-on-year decrease of 21.37%; by 2023, Buick GL8's full-year sales will be 110,908 units, a year-on-year decrease of 12.60%.
In communication with Sina Technology, a senior person in the automotive industry said that the decline in GL8 sales is related to three aspects:
First, there are more players in the mid-range MPV market and competition is intensifying.With the development of the MPV market, high-end models such as the Toyota Alphard, Wilfa, and Lexus LM, which sell for millions, have become the first choice for the wealthy class; the Denza, Toyota Sienna, Grivia, Honda Odyssey, and Trumpchi M8 and other models have become new choices for middle-class consumers. The high-end MPV market is dominated by Toyota models, the low-end market is dominated by Wuling models, and there are many players in the mid-range market who compete fiercely, eroding GL8 sales.
Second, the needs of MPV owners have changed.The sales volume of GL8 has continued to improve before, because of its high-end, luxury, and business positioning, which met the needs of enterprises and government vehicles at that time, and there were few similar MPVs, so it was popular among business people. However, as the economic level of domestic residents improves, the middle class, which is more in line with the positioning of GL8, pays more attention to practicality and economy when buying cars, and the car use scenarios have begun to extend from business scenarios to families. GL8, which has not been able to keep up with the changes, is no longer required.
Third, new energy MPVs are rising rapidly.New energy MPVs naturally have space advantages and have advantages in intelligence, maneuverability and vehicle economy. Currently, many new energy MPVs such as Denza D9, Lantu Dreamer, and Jikrypton 009 have appeared on the market. However, The first plug-in hybrid version of GL8 will also be launched in the second quarter of this year, lagging behind its peers.
“The MPV market is not big to begin with, and now there are so many competitors. These models are actually taking over the GL8 market, which has caused Buick GL8 to gradually lose its advantage in the MPV track,” the person said. “In the past, , the commercial vehicles ordered by Didi will definitely be GL8, but it is not necessarily the case now. Their market competitiveness has weakened, so they can only lower the price.”
Conclusion
According to Sina Technology statistics, between 2020 and 2023, Buick's domestic market sales over the years were: 926,300 vehicles, 825,100 vehicles, 644,000 vehicles and 516,000 vehicles, which are decreasing year by year and showing an obvious downward trend. Among them, the sedan and SUV fields are seriously lagging behind, and GL8 has become “the brand's life-saving straw” among Buick insiders.
However, judging from the current market structure, Buick, the last remaining position, has reached a moment of life and death. Sadly, Buick will probably not devote much energy to saving the MPV market. After all, there is another big thing plaguing Buick now. According to data from relevant departments, starting from April this year, Buick will recall a total of about 615,000 problem vehicles to the outside world for large-scale free repairs. This may occupy its main energy in the short term.
