Electricity is lower than oil VS oil is stronger than electricity? The price war in the automotive i

Mondo Cars Updated on 2024-02-21

In less than a day, five domestic car companies announced price cuts!

Just after the Spring Festival holiday, the first war in the automotive industry will start immediately.

On the morning of February 19, BYD officially announced that it would launch two models, Qin plus and destroyer 05 glory version, and what is more noteworthy is that the starting price of the new car is only 7980,000 yuan! Compared with the entry-level model launched at the beginning of 2023, BYD has reduced it by another 20,000 yuan all of a sudden; At the same time, while setting low prices, BYD also played the slogan that "electricity is lower than oil."

Obviously, in 2024, the first battle in the new energy vehicle industry will be ignited again!

Image source network. On the same day, the Wuling Starlight of the Qin PLUS also opened the price reduction mode - the Wuling Starlight 150km advanced version of the model** from the previous 10580,000 yuan to 9980,000 yuan! Changan Qiyuan's Changan Qiyuan Q05 and Changan Qiyuan A05 also announced follow-up price cuts, with the lowest being 7Starting from 390,000 yuan, and playing electricity is lower than oil! Low! Low! slogans; Nezha Automobile also announced price reductions for a number of main models, and launched a value-preserving exchange policy ......

The trend of calling for new energy vehicle companies has been very obvious.

At the same time, the "stepping" of oil and electricity will naturally spread the battle between new energy vehicles to the fuel vehicle market.

Beijing Hyundai, the representative of fuel vehicles, has taken the lead in joining the battlefield, and the price of their new Elantra models has been reduced to 7It started at 580,000 yuan, and shouted the slogan that "oil is stronger than electricity", and the smell of gunpowder was strong.

Image source network. Some netizens lamented that BYD, as a leading enterprise in the field of new energy vehicles, took the lead in "flipping the table" in the new year.

Looking back at the auto market in previous years, in fact, you will find that the trend of China's auto war in 2023 will be out of the norm.

However, this "abnormal" war seems to follow the normal state of reshaping the market structure.

Source: Cui Dongshu, Secretary-General of the Federation of Passenger Associations, personal***

Cui Dongshu, Secretary-General of the Passenger Association, issued an analysis on the evening of the 19th, "The fundamental reason for the recent battle in the passenger car market is that new technologies replace old technologies and new energy vehicles replace fuel vehicles. ”

In the early years, new energy vehicle companies were shouting the slogan of "oil and electricity at the same price" to fight for the market, and now, new energy vehicle companies have changed their words to say that "electricity is lower than oil" to show their advantages. The new energy vehicle market has gradually opened up, which has formed a sharp contradiction with the shrinking traditional fuel vehicle market, and the battle between the new forces and the old forces is inevitable.

With the continuous expansion of the new energy vehicle market, the competition for market share among new energy vehicle companies is becoming increasingly fierce. Scale determines the cost and the survival state of the enterprise, technology iteration and innovation, cost control, and production scale have gradually become the core force of competition, but the external manifestation of this competition to consumers is only the concrete function and the first performance. Cui Dongshu said that the competition of new energy vehicles is the embodiment of full market competition in the field of new technologies, the gospel of consumers, and the competitive weapon of China's electric vehicles to the world.

At present, lithium carbonate has recently reached less than 100,000 yuan, which has become the cost confidence of the new energy vehicle war, and has brought support for the cost control of new energy vehicles. Lithium carbonate, as the core and most valuable material of new energy vehicle batteries, accounts for nearly 40% of the vehicle cost, after 2022, lithium carbonate soared, with an average level of about 500,000 tons, and in November 2023, the highest level was close to 600,000 tons. The fall of lithium carbonate ** has a different meaning for the price reduction of new energy vehicles.

This battle is also a new round of challenges for the upstream industry chain of new energy vehicles. Battery, motor, automotive-grade chips, vehicle wiring harness connectors and other parts manufacturers must continue to refine product technology and quality, grasp the advantages of domestic parts, cooperate with car companies to reduce costs, expand profitability, and help the healthy development of the entire automotive industry chain.

Next, will more car companies follow up to reduce prices?We will stay tuned!

This article is the original article of Beego Beet Information, and it is not allowed to be **,

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