BYD's advertisement of "electricity is lower than oil" swept the whole network, opening the prelude to the first battle of the New Year's car market. With BYD's "official guide price of 7980,000 yuan" Qin plus glory version was officially launched, Wuling, Changan, Nezha, Beijing Hyundai, SAIC-GM and other car companies have joined the first battle, collectively announcing a number of models of price reduction. The capital market was obviously frightened by this kind of battle to "roll" its peers, and voted with its feet, and the stock prices of new forces such as BYD, Cialis, and "Wei Xiaoli" fell one after another.
However, the capital market is obviously short-sighted, they only see the car companies in the "volume", but do not know why the car companies are "rolling", and what they are rolling!
1. BYD's product matrix
According to the data of "Owner's Home", BYD currently has a total of 22 models on sale, involving BYD (including Qin, Han, Yuan, Song and other sub-brands), Denza, Equation Leopard, Yangwang and other four major brands, with a total sales volume of about 2.3 million units in 2023.
What BYD took out to fight the first battle is the Qin plus model and the destroyer 05 model, which are "far ahead" in sales. Among them, the Qin plus petrol-electric hybrid glory version is on sale with 5 models, guiding **7980,000 yuan to 12580,000 yuan, with an official reduction of 20,000 yuan; The Qin plus pure electric version is on sale with 5 models, and the guide** is 10980,000 yuan to 13980,000 yuan, with an official reduction of 20,000 yuan; Destroyer 05 Glory Edition has 6 models on sale, and the guide ** is 7980,000 yuan to 12880,000 yuan, with an official reduction of 2-220,000 yuan.
Regardless of whether BYD's other models will follow suit and reduce prices, the average price reduction of these two models by 20,000 yuan will have an impact on the company's annual sales of about 10 billion yuan. According to BYD's 2023 annual performance forecast, BYD's net profit in 2023 will be about 30 billion yuan. BYD took out 1 3 of its annual profit to fight this ** war, what is the intention? You must know that Qin plus is still the best-selling model.
IIThere is no intelligent driving below 10,000 yuan
The M9 model of Cialis is out of the circle quickly because of the intelligent driving system. As the general public's understanding of the safety and convenience of intelligent driving continues to deepen, intelligent driving technology will become an important consideration in car purchase decisions in the future. However, due to the difficulty and high investment in the technical research and development of intelligent driving systems, the progress of traditional tram companies in the field of intelligent driving is relatively slow, and it is difficult to meet the urgent demand of the market for intelligent driving technology. Taking Huawei's intelligent driving system as an example, Huawei's intelligent vehicle solution BU has invested a total of US$3 billion (about RMB 20.6 billion) from its inception to the end of 2022, and has a technology R&D team of 7,000 people. And on average, it still needs to maintain an investment of about 10 billion yuan per year (70% to 80% of the investment is in the field of intelligent driving).
According to public information, the one-time purchase of Huawei's intelligent driving system is 36,000 yuan, the annual subscription is 7,200 yuan, and the monthly subscription is 720 yuan. As for the buyout price of Tesla's intelligent driving system, it is even more expensive, 64,000 yuan. Therefore, it is difficult to imagine that consumers who buy trams with a unit price of less than 150,000 yuan will choose intelligent driving systems.
This, in turn, also illustrates a problem, trams with a unit price of less than 150,000 yuan are about to become a product of the old era, and will soon be rejected by consumers because it is difficult to carry advanced intelligent driving systems.
BYD's price reduction is mainly focused on low-priced models below 150,000 yuan, which is not only a response to market competition, but also a manifestation of the shortcomings of traditional electric cars in intelligent driving technology.
3. Will the war be expanded?
Theoretically, trams with intelligent driving systems will not be affected by the first war. Taking the question series of Cialis as an example, due to the rush of consumers for the intelligent driving system, orders are flocking to the product, and the product is in short supply, so there is no need to worry about the impact of the first war.
As for whether the ** war will expand, I don't think it will be, because BYD's net profit margin is too low. In the first three quarters of 2023, BYD's net profit margin was only 5%. If BYD implements a price cut of 20,000 yuan for all models, then BYD's annual sales will be reduced by 46 billion yuan. BYD has seen the crisis, but it has not yet faced an existential crisis, and it does not need to be so ruthless to itself.
Recently, BYD's "Announcement on the Action Plan for "Double Improvement of Quality Returns" proposed that BYD will launch a number of high-end luxury models. BYD's intention could not be more obvious, to reduce the price of low-cost cars and clear inventory, free up manpower, material and financial resources to study intelligent driving systems and create mid-to-high-end models.
However, the transformation of traditional oil car companies needs to be accelerated, and BYD cut its net profit margin by 1 3 (about 1.).7%), if SAIC also follows the trend to reduce prices, the net profit margin will also fall by 17%, it seems that the breakeven line has been reached, and there is a high probability of annual losses.
Fourth, summary
As soon as many people see the ** war, they think it is negative. Especially some of the shareholders of Cialis, don't listen to the wind or the rain. Doesn't the crisis of peers represent the correctness of the intelligent driving route? The "far ahead" of intelligent driving will further widen the gap between Cialis and other car companies. Cialis will never be dragged down by the so-called "** war", let's wait and see!