Group 1 - The automotive market is experiencing a price war during the "May Day" holiday, with various car manufacturers offering significant discounts and promotions to attract buyers [1][5] - Different car companies are employing various strategies for price reductions, including "one price" discounts, substantial reductions from pre-sale prices, and promotional offers such as zero-interest loans [2][3] - Tesla has introduced a "5-year zero interest" financing option for its Model Y, which has reportedly increased customer traffic to its stores [2][4] Group 2 - Despite the aggressive pricing strategies, the effectiveness of these price cuts in boosting sales is diminishing, with a report indicating that the net stimulation effect of the price war is only 3.6% [5] - Local government initiatives are also playing a role in promoting car sales, with subsidies for trade-ins and replacements being offered [5] - The sales of new energy vehicles (NEVs) have been rising, with several new energy brands reporting significant year-on-year growth in deliveries [9]

Core Viewpoint - The automotive market is experiencing a price war during the "May Day" holiday, with various car manufacturers offering significant discounts and promotions to boost sales [1][2]. Group 1: Price War Strategies - Car manufacturers are employing diverse strategies for price reductions, including direct price cuts, promotional offers like "5 years 0 interest," and bundled incentives such as free appliances and subsidies [1][5]. - Tesla has introduced a "5 years 0 interest" promotion for its Model Y, which has increased foot traffic to its stores during the holiday period [3][5]. - Smart, a brand under Mercedes-Benz, is using a fixed price strategy, offering its Smart EQ for a limited time at a price of 149,900 yuan, which is a reduction of 14,000 yuan from the original price [5]. Group 2: Sales Performance and Market Response - Despite the aggressive pricing strategies, the effectiveness of these price cuts in stimulating sales is diminishing, with a net stimulation effect of only 3.6% reported by McKinsey [6]. - Local government initiatives are also playing a role in promoting car sales, with subsidies for trade-ins and replacements being offered in cities like Shenzhen [6]. Group 3: New Energy Vehicle Trends - Sales of new energy vehicles (NEVs) have been on the rise, with companies like Xiaomi, NIO, and Li Auto reporting significant year-on-year growth in deliveries for April [10]. - Xiaomi delivered over 28,000 vehicles in April, while NIO and Li Auto reported deliveries of 23,900 and 33,900 vehicles, respectively, indicating strong market demand [10]. - However, the overall inventory of NEVs is increasing, leading to heightened pressure on manufacturers, with total inventory rising to 800,000 units by March 2025 [11].