BYD is crazy, and fuel car manufacturers have responded to the big price cuts
Written by IT Times reporter Jia Tianrong
Edited by Wang Xin and Sun Yan
The stronger the stronger, and the Matthew effect is becoming ubiquitous in the industrial economy. Recently, BYD, the "head horse" of domestic new energy vehicle companies, has made a "winner and loser", trying to reshuffle the domestic new energy vehicle market through the simplest but most effective **.
At the beginning of the Year of the Dragon, BYD dropped a "bombshell" for the car market, known as the "plug-in hybrid double" BYD Qin plus glory edition, destroyer 05 glory version was launched, the new car configuration is not reduced, the starting price is 7980,000 yuan, holding high the slogan of "electricity is lower than oil", opened a vigorous wave of price reduction.
On February 28, BYD launched another new car, and the glory version of the flagship model "Han" and "Tang" was launched, of which the lowest starting price of the Han glory version was 16980,000 yuan, the lowest starting price of Tang Glory Edition is 17980,000 yuan.
For a time, the war of the first car rim has gradually spread from 100,000 yuan to 200,000 yuan. Coupled with the much-talked-about Xiaomi car listing**, the nerves of car companies are stirred by the sensitive word "**" all the time.
Sold out in the first week of listing
The current car will have to wait for a month
On February 27, a reporter from the "IT Times" came to a BYD Dynasty network sales point in Shanghai, and a salesman told the reporter that although the hybrid model of Qin PLUS could not be licensed in Shanghai, it was 7The price starting at 980,000 yuan is still full of appeal to consumers, "Since the price reduction, there have been a lot of people who have come to ask about this car recently." According to BYD's official data, orders for the Qin Plus Glory Edition reached 23,590 in the first week of its launch.
The above-mentioned salesperson said that including the cost of foreign cards and insurance, 7The Qin plus glory version of the 980,000 yuan starting price landed 860,000 yuan, at present, only one white model has an existing car, and the rest of the colors will have to wait for about 1 month. And about the 6The price of 980,000 yuan or even lower, its response: "If you buy it in a regular BYD store, it will not be lower than this (7.).980,000 yuan). ”
The reporter noticed that the ** Han DM-i released this time was 18The starting price of 980,000 yuan has dropped by 20,000 yuan. Tang DM-I lowered it by 30,000 yuan. The design and power of the new car remain unchanged, the equipment has been improved, and the Han EV Honor Edition has become the first model of the BYD brand to be equipped with the "Eye of the Gods" intelligent driving assistance system DIPILOT 100.
On the day of the release of the Qin Plus Glory Edition, on February 19, Zhou Jin, deputy general manager of the SAIC-GM-Wuling Brand Division, said on Weibo: "One word, with! Its accompanying picture shows that the glory price of Wuling Starlight 150km advanced version is 9980,000 yuan, compared with the original price of 10580,000 yuan dropped by 6,000 yuan. On the same day, the 333km endurance version of the Wuling Binguo model was adjusted to 6Starting from 880,000 yuan, the maximum subsidy is 8,000 yuan; Changan Qiyuan has set the starting price of the Q05 and A05 models at 7390,000 yuan; Nezha Automobile announced that the latest ** of the Nezha X model is 9980,000 yuan, a price reduction of 220,000 yuan; The next day, Geely Automobile announced that the Emgrand L HIP Dragon Edition will be priced at 8980,000 yuan, and also announced to join the ** melee.
BYD's continuous "big move" not only triggered a chain reaction in the industry, but also caught some old car owners "off guard", "two years ago spent 150,000 yuan to buy a 'Qin', got up early and ran Didi for two years, and opened his eyes in the morning, 7980,000, two years in vain! The above passage is a "joke" on the Internet, but in the eyes of the owner Li Lei (pseudonym), it is a "mirror", he bought BYD Qin plus in 2022, and runs Didi part-time after work, and now there is still a year before the car loan is repaid, but BYD took the lead in lowering the price: "I feel that I have been working for car companies and Didi for more than a year." ”
Ending the "oil and electricity war"?
Price reduction strategies have always been an important means for car companies to boost sales and seize market share. The new energy A-class entry sedan Qin series is one of the pillars of BYD's sales, but BYD's aggressive ** strategy is precisely based on the Qin model that seems to be not worrying about sales, which shows its ambition and ambition.
According to data from the Automobile Market Research Branch of the China Automobile Dealers Association (hereinafter referred to as the "Passenger Association"), in the 2023 sedan market sales ranking, the BYD Qin PLUS DM-i ranks 30Annual sales of 740,000 units ranked third, second only to 37610,000 units of the Nissan Sylphy and 34The 580,000 Volkswagen Lavida, and now the Qin plus's bottoming out is regarded as a direct cross-border impact on the market of these two joint venture models.
Previously, the ** range of Sylphy and Lavida models was about 780,000 yuan. After BYD Qin's price cut, it has created a new low for plug-in hybrid cars of the same level in the industry, which is close to the aforementioned "sales champion" model.
In the second-hand car market, BYD Qin also performed eye-catching, although the value retention rate of new energy vehicles is generally low compared with fuel vehicles, but BYD Qin still maintains a good sales trend in the second-hand market by virtue of its brand and quality advantages. A second-hand car dealer in Changzhou, Jiangsu Province, told the "IT Times" reporter that the price reduction of BYD Qin PLUS new cars is still not obvious on the second-hand car market, and fuel vehicles such as Sylphy and Lavida continue to sell well because of their high value retention rate and market demand.
In the face of the declaration that "electricity is lower than oil", fuel car manufacturers have taken action to "fight back". Beijing Hyundai has played the slogan "oil is stronger than electricity", and at the same time announced that it will start selling the all-new Elantra from 9980,000 yuan dropped sharply to 7580,000 yuan; SAIC-GM's Buick brand announced that it will reduce prices and subsidies for some models from February 19 to February 29, including Buick LaCrosse, Valeant Pro and Envision PLUS will provide 350,000 yuan, 550,000 yuan and 650,000 yuan bicycle discount and replacement subsidy.
If you say 7980,000 yuan of Qin plus has been in the A-class car market to give the joint venture fuel car enough to stir up the shock, and now the release of the "Han" and "Tang" glory version, the familiar "increase and reduce the price" formula, but also let a group of netizens exclaim "This is not a way to live for fuel vehicles".
In 2023, the penetration rate of new energy vehicles in China will be 37Around 7%. Industry insiders pointed out that although the market share of fuel vehicles is still more than half, BYD's price reduction will accelerate the replacement of fuel vehicles in the overall market.
According to reports, BYD's sales target for 2024 is initially planned to be 4 million units, which will increase by 32 million year-on-year on the basis of 3.02 million units in 202345%。"Next, who will buy a fuel car? Li Yunfei, general manager of BYD Group's brand and public relations department, said.
Reconstruct the market with the advantages of production capacity and scale
As the initiator of this ** price cut, where does BYD's confidence come from?
According to the previously announced financial report for the third quarter of 2023, BYD's bicycle ** fell 030,000 yuan, but thanks to the rapid increase in sales (a year-on-year increase of 132% to 82.).40,000 units), the cost of automobile manufacturing and amortization depreciation has been effectively diluted, and the cost of a single vehicle has been saved by 090,000 yuan.
Industry insiders estimate that BYD made a gross profit of 3 by selling a car in the third quarter90,000 yuan, an increase of 5,000 yuan from the previous quarter. In this situation of small profits and quick turnover, some people even boldly speculate that "7980,000 yuan" Qin plus glory version still has room for price reduction.
On the other hand, the fluctuation of battery costs, which accounts for about 40% of the cost of the whole vehicle, is particularly critical. In November 2022, the highest level of battery-grade lithium carbonate was close to 600,000 tons, and in February this year, battery-grade lithium carbonate** once fell below 100,000 tons. At the same time, core raw materials such as separators, electrolytes, and anode materials** also decreased significantly. This series of changes has significantly reduced BYD's production costs, allowing it to release profit concessions in advance when the new car is launched.
"The same price of oil and electricity" has brought huge pressure to fuel vehicle manufacturers. The Federation of Passenger Cars issued a document pointing out that 2024 is a critical year for new energy vehicle companies to gain a firm foothold, and the competition is destined to be very fierce. From the perspective of fuel vehicles, the cost of new energy has fallen, the upgrading of fuel vehicle products is relatively slow, the degree of product intelligence is not high, and more relies on preferential products to continue to attract customers; From the perspective of new energy vehicles, with the reduction of the cost of lithium carbonate batteries, the cost of car manufacturing has decreased, and with the rapid development of the new energy market, the scale effect has been formed, and the products have more profit margins.
This price reduction can be said to be the first time that new energy vehicles have shown their production capacity and scale advantages to fuel vehicles. At the same time, under the influence of the rapid price reduction of low-end models, it also forces new car-making forces such as "Wei Xiaoli" and Huawei, Xiaomi, and Zeekrypton to not easily covet the low-end market with huge sales.
Typesetting Ji Jiaying.
* BYD Beijing Hyundai Weibo Oriental IC
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