As the first automotive company to implement a fixed pricing system, SAIC Volkswagen is "making waves."
Following the launch of the new TAYRON on August 30 at the Chengdu Auto Show with a starting price of 79,900 yuan, the 2024 WEILAN, a 5.3-meter-long German seven-seater MPV, was announced at the Guangzhou Auto Show on November 15, boasting a starting price of just 199,900 yuan — approximately 80,000 yuan lower than the manufacturer’s previous suggested retail price.
The stunning impact of these fixed prices led to a media interview with Li Jun, Executive Director of Brand Marketing at SAIC Volkswagen, where half of the questions posed revolved around the fixed-price policy: Why was it launched first? What is the market response? Will there be changes in the fixed-price policy in the future?
"Firstly, we don't see a fixed price merely as a simple price reduction. Our aim is to eliminate the uncertainties caused by traditional pricing models for consumers," Li stated. "SAIC Volkswagen is the first car manufacturer to implement a fixed price. This policy facilitates more direct and transparent communication between the company and users, eliminating the need for consumers to compare prices and seek discounts from different dealers. Essentially, a fixed price allows manufacturers to pass on benefits to consumers early and encourages dealers to focus more on service, providing users with a higher-quality experience."
According to him, the launch of the fixed-price policy has struck a chord with consumers, resulting in strong demand. Notably, as the first model to adopt the fixed-price policy, the TAYRON has helped the TAYRON family secure over 20,000 orders in September alone; during the National Day holiday, it led the TAYRON family to surpass 10,000 orders in just 7 days. The Passat Pro was also launched using a fixed pricing approach, offering an exceptionally consumer-friendly price, and its sales are steadily increasing.
Li Jun, Executive Director of Brand Marketing at SAIC Volkswagen
"To best meet user demands, we have been concentrating on ramping up production. Currently, the TAYRON factory operates 24 hours a day," said Li. Additionally, instead of continuously competing on fixed prices, SAIC Volkswagen prefers to provide customers with more valuable benefits after an affordable price is announced, such as a lifetime warranty for the powertrain and guaranteed buyback options to enhance user experience.
Today, policies like fixed pricing, value retention renewals, and lifetime warranties for the powertrain have become distinctive advantages and features of the SAIC Volkswagen brand. This reflects SAIC Volkswagen's confidence in German quality and showcases the strength of the brand.
The aggressive pricing of the WEILAN also aims to make a significant impact. "The driving experience of the WEILAN is beyond imagination, and we want more consumers to see, hear, drive, and touch this car."
"I believe fixed pricing is not just a gimmick; it requires manufacturers to be wise in their pricing strategies, ensuring that the price is appropriate, cost-effective, and purchasable for users. If the car quality is subpar and lacks appeal, even with a fixed price, no one would buy it; it would merely be a price tag. Fixed pricing is more down-to-earth, free from additional schemes or discounting space, enabling dealers to focus more on improving service quality, which is our original intention. The relationship between supply and demand in the market primarily determines prices. What manufacturers can do is launch excellent products along with unbeatable fixed prices, making users feel their purchase is worthwhile; this is our fixed pricing strategy.”
Li revealed that Germans have extremely high standards for product quality. For instance, in the process of tightening bolts, which seems trivial, factors like temperature, humidity, surface cleanliness, and oil residue can significantly affect the long-term performance of the vehicle. Consequently, each bolt has strict standards. Volkswagen Germany employs a meticulous manufacturing process to ensure each bolt's tightening force is precisely controlled and documented in the system for long-term traceability. Recently, SAIC Volkswagen conducted an event titled "Invisible Quality — Dealer Factory Exploration," where the general manager personally led a dealer team to tour the factory, quality assurance center, and testing grounds, sharing deep insights into automotive R&D, manufacturing, and quality assurance processes.
"We will install about 700 yuan worth of aluminum alloy materials at the A, B, and C pillars to ensure that in the event of a side collision, regardless of the impact point, vehicle deformation is minimized, thus enhancing safety. Although consumers may not be aware of this investment at the time of purchase, and other companies might not make such an investment, these materials are crucial for vehicle safety, and we are committed to quality and quantity in production," Li explained. Moving forward, SAIC Volkswagen plans to strengthen the marketing of these "invisible qualities," allowing consumers to gain a deeper understanding of the complexities and meticulous processes in automotive manufacturing. We want everyone to know that making a car is far more complicated than it appears; it involves numerous meticulously designed technologies and stringent production steps.
"We are clear on the competitiveness of our products and have decided to fully implement the fixed-price strategy without compromise," Li stated.
He also mentioned that looking ahead to 2025, SAIC Volkswagen will continue to adjust its offerings in both fuel and electric vehicle sectors. The Pro family currently includes the Tiguan L Pro and Passat Pro, with the Teramont Pro set to debut in the first quarter of next year, equipped with the Volkswagen brand's global debut of the enhanced EA888 fifth-generation high-power engine, boasting remarkable performance with low fuel consumption, high power, and high torque.
Electric vehicles will also see adjustments, continuously adapting to market trends and customer needs. For example, noticing the ID.3 has garnered popularity among female customers, plans for the next year include selecting a warmer and more Q-oriented color appealing to women, along with enhancing interior designs.
"SAIC Volkswagen's brand will undergo a qualitative leap and transition in 2026. The lineup will cover hybrid, electric, and fuel vehicles across A-segment cars, B-segment cars, sedans, SUVs, and more, making significant breakthroughs across the board; stay tuned."
Li noted that SAIC Volkswagen is currently a dominant player in the fuel vehicle market, and he hopes to achieve progress in all three markets in the future, aiming to become a high-efficiency group. "The price war is likely to continue next year. Our goal is to leverage our current market advantages to respond to the impending price war through improved efficiency, ensuring that our brand maintains its competitive edge and market leadership."
