Wang Chuanfu, chairman of BYD, once said: In the 10-200,000 yuan ** band of the Chinese market, BYD has the right to price products, but I don't want to make everyone uncomfortable, and no one else has a way to live. Now it seems that in the ** belt below 100,000, BYD decided not to leave too much life for its friends. As soon as it resumed work, BYD launched two hybrid models, the Qin plus Honor Edition and the Destroyer 05 Glory Edition, and their prices were reduced to 7From $980,000. 
In just one year, Qin Plus's ** has gone from 9980,000 to 7980,000 yuan, BYD's slogan has also evolved from "the same price of oil and electricity" to "electricity is lower than oil", behind the continuous escalation of the war, it is not only the enhancement of China's new energy manufacturers' control over market pricing, but also reflects the cruelty of market competition. #Why is BYD cutting prices? One word, with! 」
After BYD officially announced the release of two Glory editions, many independent brands and joint venture brands have also followed: 1SAIC-GM-Wuling: Wuling Starlight plug-in hybrid model 150km from 10580,000 adjusted to 9$980,000; 2.Chang'an Qiyuan: Chang'an Qiyuan A05 is limited to 7Starting from 890,000 yuan, the entry-level model 70lite official drop of 110,000 yuan; 3.Nezha Automobile: The price of all products is up to 220,000 yuan, the pure electric compact SUV Nezha X adds a 400AIR version, priced at 9From 980,000. ......
In each round of the first battle, electric vehicles are getting cheaper and cheaper, technology is getting smarter and smarter, and old car owners are getting more and more heartache. At the earliest, new energy vehicles were generally more expensive than fuel vehicles, and people needed subsidies to buy them. Take the Tesla Model 3 as an example, in 2019, the Tesla Model 3 was just launched in China with a price of 433-560,000 yuan, but it was an imported model at that time. As of now, the Tesla Model 3 is priced at $24 in China59-28.590,000 yuan, almost cut in half. Wei Xiaoli's pure electric car** has also dropped to about 200,000 at the lowest, and the price of a car with a 400km range has dropped to about 100,000. When BYD hit the plug-in hybrid A-class car to 7980,000 yuan is a microcosm of the cost decline and intensified competition in the entire new energy vehicle industry. 
On the one hand, electric vehicles have nearly 2 3 fewer parts than fuel vehicles, the structure is simpler, and the cost will naturally be reduced. On the other hand, batteries, which account for about 40% of the cost of electric vehicles, are also much cheaper, with lithium carbonate** falling from a maximum of 600,000 tonnes to 90,000 tonnes, a cost drop of 85%. If an electric car costs 90,000, the battery will cost 360,000, raw materials fell by 85% after 3The cost of a 60,000 battery is only 0540,000 up. Therefore, the price reduction is a price reduction, and the BYD Glory Edition not only did not cut any configuration, but also did not move the motor and battery life, which increased the function of intelligent power-on. BYD's main goal in this wave of price cuts and allocation is joint venture fuel vehicles. In the 2023 domestic car sales ranking, BYD Qin plus new energy surpassed the joint venture fuel vehicles Lavida and Sylphy, ranking first with 430,000 units. 
*Source: 315 cars In January of this year, the Lavida and Sylphy regained the top spot in the retail sales charts of segmented sedans.
One, two. 
*From: Understand Che Di.
In contrast, BYD sold 20 new energy passenger vehicles in January100,000 units, an increase of 3387%, but down 4092%。The basic disk of fuel vehicles is there, and stimulating the market with ** is undoubtedly the fastest way to achieve results. BYD also has the confidence to cut prices. In 2023, the company is expected to achieve a net profit attributable to the parent company of 29 billion to 31 billion yuan, earning an average of 80 million yuan per day, and an average net profit of more than 10,000 yuan per vehicle. Therefore, BYD still has a lot of room to continue to reduce prices - on February 23, BYD will launch the Dolphin Glory Edition, and the pure electric small car can be cheaper, but in fact, it is more suitable to say that BYD can and has to be reduced. #There is an ambush in front and a chasing soldier in the backThis first-class war, it seems that BYD uses its cost advantage to seize the market of traditional joint venture fuel vehicles, but in essence, it is also a game of praying mantis catching cicadas and yellow finches behind. BYD's main sales force is Qin Plus, Song family, Seagull, Dolphin, Yuan and other models, which have successfully squeezed the market share of traditional fuel vehicles, but judging from the rapid follow-up of independent brands to reduce pricesWhile BYD is staring at joint venture car companies, independent brands are also staring at BYD. For example, the Wuling Starlight plug-in hybrid version, which follows up with the fastest price reduction, is directly benchmarked against the Qin Plus DM-i. 
For consumer groups with a car purchase budget of less than 150,000 yuan, Wuling Xingguang plug-in mix** and fuel-efficient direct hard Qin Plus DM-i, this car sold 10,696 units in December last year and 10,005 units in January, ranking second in China's 150,000 plug-in hybrid sedan market. 
Although BYD is currently eating more cakes, we can see that those consumers who have jumped from joint venture brands to BYD have never formed an absolute brand preference for BYD. When other independent brands follow BYD's opening up and launch new energy vehicles that are more suitable for themselves and are equally cost-effective, consumers can still be convinced. In this situation of ambush in front and chasing soldiers behind, even if BYD has achieved an annual production and sales volume of 3 million vehicles, it still has a clear desire for scale. However, China has gradually entered the stock market, with 949 new energy vehicles sold last year50,000 units, with a penetration rate of 347%, BYD's 3 million units have almost accounted for 1 3. 
In other words, BYD cannot grow indefinitely here. BYD will inevitably look overseas, which is a more complex and changeable competitive field. But what is certain is that BYD's sales have increased in recent years, and it is also borrowing heavily to expand production capacity, once the business declines and profits decrease, BYD will face financial risks. This also means that BYD must maintain the leading position in products and technology, sell more cars, sell more cheap cars, try to sell expensive cars, sell cars to other countries, and expand production capacity must not be vacant. This is also why BYD began to massively increase talent recruitment, R&D and cooperation in intelligent driving in the second half of last year. 
A competitive ** can be regarded as one of BYD's product strengths, but this advantage will gradually fade over time, and Di Wang may fall off the altar at any time. #ConclusionWhen we look back at this node at the beginning of 2024, we see that BYD has achieved a rapid rise in the past three years and achieved the achievement of the global new energy sales champion. The ascension of a new king to the throne often means that there are more competitors in the open and in the dark. China's electric vehicle revolution is still underway, and BYD's sales crown position is not yet secure, so don't open champagne at half time.