In the current global automotive market, adjustment has become an important part of manufacturers' competitive strategies. According to CNBC, a new research report from JL Warren Capital reveals that Tesla has slashed its Model 3 and Model Y models significantly in the Chinese market, even more than the Han models owned by local Chinese automaker BYD.
Tesla and BYD are both important players in the new energy vehicle industry, and their best strategies have a profound impact on the market. According to Junheng Li, CEO and head of research at JL Warren Capital, Tesla's Model 3 and Model Y have seen a 6% and 11% cut, respectively, while BYD Han's price cut has increased by 5%. This difference suggests Tesla's aggressive pricing strategy in the Chinese market, likely to maintain its market share and attract more consumers.
BYD Han's pricing is similar to Tesla's, both of which are above 200,000 yuan, which makes the two directly compete in the high-end market. However, BYD has implemented more significant price cuts on other models, with some models dropping by 10% to 17%. This shows BYD's competitive strategy in the mass market, through more aggressive ** adjustments to stimulate sales.
Although the first war was avoided by most car companies in the early stage, the pressure of the market eventually made them have to participate. HSBC analysts point out that the reason why the Chinese market is more competitive than the EU or US markets may be because surplus value is not valued as much in the purchasing decisions of Chinese consumers as it is in other markets.
China's support for new energy vehicles has made China one of the largest new energy vehicle markets in the world. By 2024, the market penetration rate of new energy vehicles in China will reach 40%, but the growth of electric vehicle sales will slow to 20% from 35% in 2023. This slowdown may be due to the close saturation of the market and consumer expectations for new models.
In such a market environment, manufacturers generally set sales targets that are too ambitious. Li noted that only a handful of manufacturers, such as Tesla and Li Auto, will be able to meet their sales targets for this year. This not only illustrates Tesla's strong competitiveness in the market, but also hints that the competition in the Chinese auto market will become more fierce in the future.
The intensification of market competition may lead to a surplus of industries. The frequent introduction of new models has stimulated consumer demand for electric vehicles, but it has also led to an increase in the inventory of obsolete models in the market, further intensifying the war. In addition, the shortening of China's new vehicle development cycle from three years to one to two years now is both an opportunity and a challenge for automakers.
To sum up, Tesla's price reduction strategy in the Chinese market not only reflects its global market strategy, but also shows the competitive situation of China's new energy vehicle market. With the further development of the market, we can foresee that the adjustment will continue to be a big part of the competition for manufacturers, and consumers will have more choices in this competition.