Core Viewpoint - The adjustment of the consumption tax policy for ultra-luxury cars in China, lowering the threshold from 1.3 million yuan to 900,000 yuan, is expected to significantly impact the market dynamics and pricing strategies of luxury car manufacturers [1][4]. Group 1: Market Reaction - Prior to the policy implementation, there was a surge in demand for ultra-luxury cars, with some dealerships reporting sales up to three times their usual volume [1]. - After the new tax regulation took effect, customer traffic in dealerships quickly returned to normal levels, indicating a short-lived buying frenzy [1]. Group 2: Tax Implications - The new consumption tax threshold means that only vehicles priced above 1.017 million yuan (including VAT) will incur the tax, affecting the pricing of many popular luxury models [2]. - The adjustment is expected to increase the purchase costs of several high-end models, with price increases ranging from 100,000 to 150,000 yuan for various vehicles [3]. Group 3: Market Structure Changes - The policy change reflects a significant shift in the automotive market, as the previous tax threshold no longer aligns with current vehicle pricing trends [4]. - The new tax structure aims to create a more equitable competitive environment between traditional fuel vehicles and new energy vehicles, while also benefiting the second-hand luxury car market by exempting it from the consumption tax [4]. Group 4: Company Strategies - In response to the tax changes, some car manufacturers have introduced "safety net" policies to mitigate the impact on consumers, such as covering the additional tax costs for purchases made within a specific timeframe [5]. - These strategies highlight the competitive pressures within the ultra-luxury car market and the need for companies to adapt quickly to regulatory changes [5].