In 2024, will the ** war continue? This doesn't seem to be a problem, because the answer is yes. Just this past January, the Chinese auto market was still cutting prices, and it will continue to be in the future. 
In January 2024, Tesla announced two consecutive price cuts; Under the strong pressure of the world, Li Auto quickly launched a limited-time price reduction activity for all models, and the starting price of the Ideal L7 is 28680,000 yuan, down to 300,000 yuan for the first time; The starting price of the ideal L9 is less than 400,000 yuan after the discount; The official guide price of all Lynk & Co 09 models was lowered by 10,000 yuan; Buick E4 and E5 models will receive a subsidy of 10,000 yuan, an insurance subsidy (up to 10,000 yuan) and a financial gift (up to 10,000 yuan); In addition, Nezha, Baojun, and Haval Snapdragon MAX have all launched their own price reductions and car purchase subsidies. According to incomplete statistics, the number of car brands participating in price reductions in January has reached about 20, and the forms are also varied, including insurance subsidies, deposit cash, financial policies and replacement subsidies. According to the data of the Passenger Association, the overall discount rate of passenger cars is about 204%。However, overall sales did not continue to grow in January. According to data from the China Association of Automobile Manufacturers, vehicle production and sales in January reached 2.41 million units and 2.43 million units, respectively90,000 units, down 21. m/m7% and 227%。Specifically, the domestic sales of automobiles in January were 19960,000 units, down 249%。
This illustrates the fact that in January 2024, the price reduction did not allow the Chinese auto market to maintain sales growth. There are many reasons for this, such as the year-end sales sprint overdrawing the demand in January, and consumers' wait-and-see sentiment towards price cuts is even more serious. If this continues in February and March, will there be an even more violent wave of price cuts, as was the case in March last year? Now the question is, the market has already undergone a baptism, will everyone still buy it? A further question is, if sales can't be stimulated, will the price reductions stop? It should be said that brands should have expectations for January's performance. But the price reduction can still continue, is there such a possibility, the price reduction in 2024 may not be to impact sales, but to show muscles, through the price reduction to drag down the opponent, just like in a long-distance running race, when everyone's speed is relatively close, you must accelerate to get rid of some opponents, in order to consolidate your advantage, and then create conditions for the next to be able to win the game. Among the new forces facing operating pressure, in addition to the ideal has turned losses into profits, the vast majority of new forces are still difficult to make money, and frequent price cuts make profits far away. Even the ideal could not withstand the market pressure and began to reduce prices. It should be noted that the ideal price reduction came very quickly. After the sales volume of Wenjie exceeded Ideal in the first week of 2024, Li Auto immediately responded with a price cut, which was quite decisive. This also highlights the strong execution of Li Auto's organizational structure. 
The rest, like Weilai, announced a show car discount on January 17, with a discount of 2-30,000 yuan, and the sales volume of the month did not improve much, only 10,055 units; Xpeng Motors is even more bleak, with 8,250 deliveries, a significant decline compared with the delivery of 20,115 vehicles in December last year; Leapmotor delivered 12,277 vehicles in January, down month-on-month. NIO, Xpeng, and Leapmotor will lose more than 10 billion, 9 billion, and 3.3 billion respectively in the first three quarters of 2023. In the words of the Passenger Association, "in addition to the leading enterprises, new energy vehicles are still facing great loss pressure, and it is difficult to continue to expand the scale of selling cars at a loss." "The more price cuts, but the sales volume has not been greatly increased, the more serious losses and distant profits have become, which has become a nightmare for new power brands. In this case, no one knows how long they will be able to survive. 
Last year, WM Motor was involved in bankruptcy and reorganization, and this year it is the news that Gaohe Automobile has fallen into the "withdrawal". Recently, there has been news of the closure of a number of experience centers across the country. Gaohe's reply to this is: "In the near future, we will gradually close stores with poor user experience and poor store efficiency, and concentrate resources from all parties to create a user-centric experience closed loop." Gaohe emphasized that the optimization and adjustment of the store will be based on data analysis and user evaluation. But the actual reason is that everyone knows that there is not enough money, and it is necessary to save money. You must know that WM Motor once announced that its cumulative financing amount exceeded 35 billion yuan, and Gaohe is still a new power brand with "the first pure electric sales volume of more than 500,000 yuan". However, no matter how beautiful it is, it can't bear the practical dilemma of long-term unprofitability and tight capital chain. In 2024, the auto market will continue to reduce prices, which will inevitably intensify the operating pressure of non-leading brands. If it is said that before 2024, there have been new power brands disappearing, then the elimination will be accelerated in 2024. The real purpose of the **war**The author believes that the greater role of the **war in 2024 is to drag down non-head brands, and there is another factor, that is, BYD's actions in 2024. BYD completed sales of 3 million units in 2023, it achieved sales of 730,000 units in 2021, and exceeded 1.8 million units in 2022, so it can be said that BYD has achieved leapfrog growth in a very short period of time. 
Judging from multi-channel information, BYD's sales target in 2024 may not be as aggressive as before. Because of the sales scale of 3 million units of a car company, it is basically a ceiling performance under the current competitive pattern of hundreds of schools competing in the Chinese auto market. In other words, even if BYD fights every day in the future, there will be no better time for leapfrog growth. BYD's more important goal in the domestic market in 2024 is to maintain the existing sales scale until "hundreds of schools of thought" become "dozens or even dozens of companies", and at that time, BYD may put forward a higher target in the domestic market. You think, BYD has begun to be relatively conservative in 2024 after years of rapid sales growth, which has shown that the theme of the competition in the auto market in 2024 is not to win sales, but to focus on elimination, and there must be so many players at the table, and some players must be out. The core logic behind it is that the first is the excess number of brands, and the other is the competition for the scale effect of sales. 
Wang Jun, president of Changan Automobile, said that in the future, among the remaining 126 brands, the top 10 car companies will account for more than 85% of the share, and the remaining 116 brands will share the remaining 15% of the share. Wang Chuanfu also said before that the current is the era of fast fish eating slow fish, not the era of big fish eating small fish, if car companies do not rush up in the next 3-5 years, there will be no chance. The two bigwigs mean the same, that is, the deep reshuffle of the industry will intensify. Deep shuffling is not something that can be achieved by talking about red lips and white teeth, it needs to be drawn to see the blood. No one will leave the field without the final ammunition and food. The people's evaluation of the car war has always been the most unavoidable problem in the car market. Careful observation, the first war has always existed, but in the process of new energy transformation, our experience is more profound, so it seems so intense. Market competition is a process of survival of the fittest, and the best tool is the best tool, because not all car companies can afford to fight, and there will always be people left behind. From the first level to the technical level, and then to brand marketing, the competition is carried out in all dimensions. Now it's all about seeing who doesn't fall behind.