Red Star Capital Bureau reported on October 25th that there have been new developments in the "price war" between JD.com and Tiggo.
According to a report by The Paper, the case of the goodwill dispute between two major chain brands in the domestic car maintenance industry, Tuhu Car Maintenance and JD Car Maintenance, has been officially heard in court recently. Tuhu Auto's lawsuit against JD Auto's "Zhenhu Price" involves unfair competition and demands that JD Auto immediately stop using the "Zhenhu Price" brand. The Shanghai Minhang District Court, which accepted this case, has not yet made a judgment.
On October 25th, an insider from JD Auto Care told Red Star Capital that the company had received a notice of lawsuit and submitted evidence to the court to respond. "The company feels very helpless about the lawsuit filed by Tuhu against Zhenhu Price, and JD Double 11 will insist on low prices. Low price names like Zhenhu Price are very common in the industry and are ready to deal with it
Red Star Capital Bureau has noticed that in June 2023, JD Retail will integrate its entire vehicle, automotive products, second wheel, and maintenance channels to establish a new JD Automotive Business Unit. "Zhenhu Price" is a low-priced marketing campaign launched by JD Car Maintenance, a subsidiary of the Automotive Business Unit. At the beginning of this year, JD.com specifically launched slogans such as "Spring Festival never closes, tiger prices never stop shaking" and "Keeping a car shaking tiger prices, worry free and cheap" during the annual sales festival. JD APP, JD Car Care APP, JD Auto WeChat official account and video number, JD Auto Tiktok official flagship store, JD Auto Weibo and relevant live broadcast rooms all have relevant publicity of "Zhenhu Price". At that time, Chen Haifeng, Vice President of JD Retail Automotive Business Unit and General Manager of Vehicle Maintenance Omnichannel Business Unit, stated during a media briefing that the "tiger price" would not only continue to rise, but also continue to increase.
On January 24th, Shanghai Lantu Information Technology Co., Ltd. (Tuhu Car Maintenance Subject Company) filed a lawsuit with the Minhang District People's Court in Shanghai, requesting an order for three defendants, including Beijing Auto Guanghang Information Technology Co., Ltd. (JD Car Maintenance Subject Company), to compensate 5 million yuan. The reason for the lawsuit is that JD Auto had previously pushed the "Zhenhu Price", which had an impact on the plaintiff's reputation. Tuhu advocates that the defendant delete the relevant expressions of "Zhenhu Price" in all channels. Regarding the lawsuit filed by Tuhu Car Maintenance against JD for a compensation of 5 million yuan, the relevant person in charge of JD Car Maintenance responded to the media at the time, stating that there are many "roadblocks" in the car maintenance market that affect everyone's experience, such as inflated prices, excessive maintenance, lack of standards, and uneven services, and "there is no situation targeting any particular enterprise