On January 6, 2023, Tesla went the other way and launched a price cut. Because at that time, under the double pressure of new energy subsidies and raw materials, domestic new energy brands opened a new round of price increases. According to incomplete statistics, car companies, including BYD, Chery, Changan, and North and South Volkswagen, have adjusted the prices of new energy models that have increased in price, with a maximum increase of 20,000 yuan. Everyone raised their voices, and Tesla seemed to be so "not martial". 
As soon as 2024 begins, Tesla has started to cut prices and launched a limited-time insurance subsidy for Model 3. Only this time, the attitude of all parties towards price reductions is no longer strange, because not only Tesla, but also FAW Toyota, Volvo, Lynk & Co, Buick, Audi The brands you thought of and did not expect have announced their respective preferential policies, but they just said different things. Now that price reduction has become a regular operation, if anyone "goes the other way" to increase the price, it will undoubtedly add blockage to themselves and let their peers see jokes. And this also sets a tone for the Chinese auto market in 2024 - price cuts will not stop, and elimination is intensifying. The inertia data shows that in the first 11 months of 2023, the cumulative production and sales have completed 2,71110,000 and 2,69380,000 units, up 10% and 10% y/y, respectively8%, production and sales exceeded 2702 for the whole of last year10,000 and 268640,000 units. The China Association of Automobile Manufacturers expects annual sales in 2023 to reach 30 million units, which will exceed the level of 2017 and hit a record high. It must be admitted that the growth of the overall sales volume of the Chinese auto market is based on significant price reductions. 
Throughout 2023, almost all car brands in China have been caught up in the wave of price cuts. New forces, second-generation new energy brands and joint venture brands have launched relevant price reduction measures, especially in the second half of the year, to reduce prices once a month, and some brands even drop several times a month. Among the representative brands are BYD, NIO and SAIC Volkswagen IDClan. BYD's production and sales scale is second to none, with cumulative sales of 3.02 million units in 2023. As the top player in the industry, BYD has not been soft at all in terms of price reduction. For many months, he took the lead at the beginning of the month and led the price reduction. On December 1, BYD announced the launch of a limited-time fuel transfer**, with a maximum discount of 20,000 yuan. Among them, Qin PLUS DM-i dropped by 10,000 yuan, and the price was 8 for a limited timeFrom 980,000 yuan. BYD Han dropped up to 20,000 yuan and entered the market below 200,000 yuanDon up to minus 150,000 yuan;Song reduced 10,000 yuan;The maximum drop of yuan is 6,000 yuan. In February 2023, Qin Plus DM-i** dropped to less than 100,000 yuan for the first time, lifted the table of the A-class fuel sedan car, and now ** directly came to the ** range of 80,000 yuan, in the ** range of less than 100,000 yuan, BYD can be regarded as beating ** to the extreme;And NIO's price cut is very smart. Li Bin has repeatedly said in public that "NIO will not reduce prices", and the reason for not reducing prices is that the cost of R&D, manufacturing, service and marketing is extremely high. Taking R&D costs as an example, in the first three quarters of 2023, NIO's R&D expenditure reached 94600 million yuan, while Li Auto spent 7.1 billion yuan on research and development. In comparison, NIO has not sold as much as ideal, and its R&D expenditure has far exceeded ideal, and NIO's cost pressure is undoubtedly greater. However, under the pressure of the general price reduction of competitors, NIO had to start a price reduction in June, but it was a disguised price reduction, and the product ** was lowered by adjusting the rights and interests. I have to say that the price reduction is really a panacea, and NIO's sales immediately rushed to the 20,000 mark in the next two months
SAIC Volkswagen ID3. It is also through price reductions that the market sales have been harvested. On July 7, SAIC Volkswagen ID3. Price reduction for a limited time 370,000 yuan, starting price from 16290,000 yuan dropped to 12590,000 yuan. With the introduction of the ** policy, with its excellent product strength and ** strategy, ID3. The existence of the ceiling of the joint venture electric vehicle. According to official data from SAIC Volkswagen, ID3 models set a new record in December, with a total of 190,000 new vehicles. The cumulative delivery volume for the whole year reached 10970,000 units, with an average monthly sales volume of nearly 10,000 units. In addition, star models such as Xiaopeng G6, Zhiji LS6, and Jiyue 01 are either high-end and low-priced, or they are listed in place, and they have become market hits. It can be said that China's auto market, whether it is a leading brand, an established brand or an emerging brand, is actively reducing prices, and everyone has also reaped satisfactory sales. It can be said that if these brands want to achieve new breakthroughs in 2024, price reduction is still the best to use**. In other words, price reduction has become an inertia that cannot be shaken off. Because if you don't fall, others will fall, and when you want to descend again, the daylily will be cold. Since everyone is thinking about price reduction, and they are all reducing prices, the question is, how to differentiate in price reductions and how to maximize the effect has become a new topic for car companies in 2024. Presumably everyone still remembers that in the first half of 2023, the price reduction of fuel vehicles caused by Hubei Province and Dongfeng swept the entire market and affected dozens of brands. Don't look at the momentum of the battle, but it didn't play a big role in stimulating sales. According to the data of the Passenger Car Association, the cumulative retail sales of domestic passenger cars from January to June were 95280,000 units, compared to 926 in 202210,000 units, up 3% y/y. 
This is mainly because the price reduction in the first half of the year came relatively suddenly, and most of the car companies were urgently following up, and there was a lot of chaos in the busyness, and there was a serious wait-and-see mood, and the market entered a vicious circle. In the second half of the year, car companies learned to exercise restraint and became more refined and targeted in price reductions, and strategies such as time-limited, limited-volume and limited-specific models were more common. For example, time-limited car purchases, financial discounts, fuel transfers**, referral rewards, etc., stimulate consumers' desire to buy through various ways. If it doesn't work this month, come back next month, once a month, then two or three times, the effect is seen by everyone, it's really good. Gold Nine Silver.
10. Impulse at the end of the year, at these time nodes, all cars went all out to hit sales, and completed the annual sales in 2022 in the first 11 months. Whether it's criticism or complaining, this is the effect of refined price reduction. Entering 2024, on the surface, all means have made it almost the same, BYD Qin PLUS DM-i has come to the ** range of 80,000 yuan, and the entry-level products of Xiaopeng G6 and Zhiji LS6 have also reached the ** of more than 200,000 yuan, and it seems that each company has reached the limit. In fact, in various market segments, there is still room for brands to be tapped. 
For example, in the range of 10-150,000 yuan, we see that the market share of joint venture fuel models is still not small. Sylphy, Suteng, Lavida, Rongfang, CR-V, Tiguan L, Tanyue, Camry, Magotan and Passat and other traditional popular models still maintain good salesOn the contrary, the joint venture brand can also rely on a strong brand influence, on the one hand, to make more competitive adjustments to the existing fuel vehicles, on the other hand, to accelerate the launch of cooperative models with new power brands, and then to the benchmark models of the market segment as the anchor point to do precise strikes. To a certain extent, the Chinese auto market in 2024 will no longer be a one-sided competition for Chinese new energy brands, but a more complex and comprehensive competition for all car companies, including joint ventures. It also includes many issues such as the popularization of intelligent technology and the control of the first chain, which will be discussed later. Let's start with the diversity and differentiation possibilities of price reductions. This is a problem for all car companies in the Chinese market. As for who adapts first, who adapts better, the harvest is different. 
The perception of people's car evaluation and price reduction in 2023 and 2024 is different for various car companies. The year 2023 has already taught the market that irrational price reductions will only hurt the market, and in 2024, price reductions should be maintained in moderation and rhythm, it is only a means and not an end. In 2024, car companies need to re-examine this issue, otherwise they can only shoot themselves in the foot. How to break the battle has become a new problem. List of high-quality authors