The beginning of the year is a wave of price cuts.
BYD's price cut at the beginning of the year has triggered the industry's best, especially the impact on the fuel joint venture car market. This move is seen as a direct challenge to fuel vehicles, and it is full of gunpowder. Other car companies cannot sit idly by, because the changes in the auto market are like a butterfly effect flapping its wings, and no one can stay out of it.
Flip the table before you even sit down.
Xiaomi cars have become the new "victims" of the wave of price cuts. Although Xiaomi has launched a strong marketing campaign on pricing, competition and market pressure from its competitors have put it in a difficult situation. The pricing of the Xiaomi Su7 does not match its advertisement, and its competitiveness in the first-class market is not satisfactory. This situation shows that the market competition is cruel, and no enterprise can escape the trouble of competitive pressure.
The wave of price reductions in 2024 is unstoppable.
In January 2023, Tesla took the lead in launching the first war, and soon the entire automotive industry followed. BYD also responded positively, launching the ** for 9980,000 yuan champion version of the Qin model. Subsequently, at the end of 2023, BYD Qin lowered the price again, and the price dropped to 8From 980,000 yuan.
The price reduction policy has stimulated sales, and the data shows that in the sales of compact cars in 2023, the performance of the BYD Qin PLUS DM-i is second only to Sylphy and Lavida, ranking third.
At the beginning of 2024, BYD launched the Qin plus Glory Edition and the Destroyer 05 Glory Edition, ** down to 7980,000 yuan. This move is regarded by the industry as a general attack on fuel joint venture car companies.
This sudden price reduction war has dealt a heavy blow to car companies, in addition to old car owners, friends have also been affected.
Shortly after BYD's price cut, the deputy general manager of the SAIC-GM-Wuling brand posted on Weibo: "One word, with. "Wuling Starlight PHEV 150 Advanced Edition** has also been adjusted accordingly to "Glory Price" 9980,000 yuan, 6,000 yuan lower than before.
Other car companies such as Nezha, Changan Qiyuan, Geely, and Beijing Hyundai also responded quickly, resulting in drastic changes in the 100,000-yuan A-class new energy market.
The car salesman said: "We all knew that the market would continue to be hot this year, but we didn't expect that there would be a 7With a low price of 980,000 yuan, other car companies can only passively follow up. Either the price is reduced, or the inventory is overstocked. ”
To reduce the price or not to reduce it? It seems to be a multiple-choice question, but in fact, there is no choice at all.
Car companies have reached a consensus that 2024 will be the first year for Chinese auto brands to enter the fierce competition, and it will also be the first year for the knockout round. Automakers expect 2024 to be the most intense year, with price cuts, products, services and market traffic all facing great challenges.
The 100,000 yuan A-grade market is just the beginning of the price reduction tide, and this trend will inevitably spread to other market ranges.
The pursuit of friendly merchants.
Xiaomi cars are facing unprecedented challenges. Lei Jun has repeatedly reminded consumers that the pricing of the Xiaomi Su7 may be higher than expected, which can be summed up in one word - expensive. In an interview with CCTV, Lei Jun made it clear that netizens shouted 19The $90,000 price is just a joke, and it won't be 990,000, 1490,000, or 1990 thousand. Therefore, the starting price of the Xiaomi Su7 is at least above 200,000.
However, 200,000 is not the upper limit. Appeared 36140,000 yuan of pricing** event. This incident triggered a real reflection on the value of Xiaomi cars by the public, exposing consumers' true perception of Xiaomi car pricing.
How does Xiaomi Auto end?
In the mobile phone market, Xiaomi has always taken competition as its main strategy, claiming to have lowered the entire industry. However, in the field of cross-border car manufacturing, ** has become the weakness of Xiaomi Auto. In this sensitive industry, Xiaomi Auto cannot compete with its competitors through stronger cost control.
At an investor communication meeting, Wang Chuanfu once bluntly said: "BYD has pricing power for products below 100,000 yuan, or even 100,000 yuan to 200,000 yuan." Behind this remark is BYD's strength in vehicle cost control. Unlike most car companies, almost all of BYD's parts are produced in-house, which allows them to reduce the cost of the whole vehicle and ensure profits.
In the automotive market, ** has always been one of the most concerned car buying factors for consumers. According to the "car fans" market research, consumers will pay attention to ** as much as 73% in 2023. In 2024, with the start of the most volatile war, consumers' sensitivity to the best will further increase, which will force more car companies to cut prices to meet market demand.
Xiaomi cars face huge challenges, especially when it comes to cost control. Due to its short three-year history, Xiaomi Auto has obvious shortcomings in terms of scale and industrial chain integration, which limits their room for operation in terms of price reduction. In fact, not only Xiaomi Automobile, but also other new power brands are also restricted by the ** chain. Previously, there have been several rounds of collective price increases in the new energy market, mainly due to the shortage of batteries and chips.
In this context, BYD took the lead in starting the price reduction war in 2024, which has brought a huge impact to the entire automotive industry. Xiaomi Auto is in a pricing dilemma, and when faced with a price reduction at the beginning of the year, Lei Jun's classic line "This is definitely here to make trouble" was quoted again. However, as a technology company that has been working for many years, this is not the first time Xiaomi has faced such a tricky situation. One of Lei Jun's classic skills, "convincing executives overnight", may be able to help Xiaomi cope with the current predicament.