Recently, BYD has frequently launched the Honor Edition model, which has further lowered the threshold for low-end electric vehicles and injected new vitality into China's new energy vehicle market.
As of February 29th, BYD has launched 6 new Glory Editions, including Qin Plus DM-i EV Glory Edition, Destroyer 05 Glory Edition, Dolphin Glory Edition, Song Plus DM-i EV Glory Edition, Seal DM-i Glory Edition, Han DM-i EV Glory Edition, Tang DM-i Glory Edition, these models have been lowered to varying degrees, providing consumers with more affordable choices.
- Qin PLUS DM-I EV Honor Edition, 798-12.580,000 yuan, the starting price dropped by 20,000 yuan;
- Destroyer 05 Glory Edition, 798-12.880,000 yuan, the starting price dropped by 220,000 yuan;
- Dolphin Glory Edition, 998-12.980,000 yuan, the starting price dropped by 170,000 yuan;
- Song PLUS DM-I EV Glory Edition, 1298-18.980,000 yuan, a decrease of 20,000 yuan;
- Seal DM-i Glory Edition, 1498-21.980,000 yuan, a decrease of 170,000 yuan;
- Han DM-i EV Honor Edition, 1698-25.980,000 yuan, a decrease of 20,000 yuan;
- Don DM-i Glory Edition, 1798-21.980,000 yuan, a decrease of 30,000 yuan;
After the launch of BYD's Glory Edition model, it quickly gained market recognition and popularity. Among them, the sales of Qin PLUS soared from the previous 1,200 to nearly 10,000 units, and the destroyer 05 also entered the TOP5 from outside the top 10 in sales, with a single weekly sales of up to 5,000 units. This series of measures enabled BYD's sales in February to surpass that of its previous competitors, showing strong competitiveness.
Not only that, BYD's price reduction strategy has also triggered other car companies to follow suit. Wuling, Changan, Nezha, Geely and other car companies have launched price reduction measures, and the market competition pattern has been further intensified. Even high-end brands, such as Cadillac, Mercedes-Benz, BMW, Audi, etc., have to adjust to adapt to the new changes in the market, with the downward adjustment, the popularity of the new energy vehicle market will be further accelerated, and consumers will be more receptive to electric vehicles.
However, this price reduction is not out of simple competition, but a squeeze on the market bubble, and it is also a strategic measure to reshape the market system. Similar to last year's price cut of DPCA, BYD began to cut prices sharply at the beginning of 2024, a move that actually changed the pattern of 100,000 to 150,000 fuel vehicles to a certain extent, weakening the competitiveness of some second-tier fuel vehicles.
In this price reduction action, the price reduction of Qin PLUS DM-i broke the ** system of 100,000-level family cars. However, the family car market at this price point is still mainly monopolized by joint venture brands, such as Lavida and Sylphy. Although the Qin PLUS DM-i has achieved a certain market share to some extent, it is still difficult to compete with Volkswagen and Nissan in terms of sales.
At the same time, the main models of Toyota, Honda and other brands are also difficult to be surpassed, although their sales have declined, but the price is still relatively high, such as the Honda Civic's naked car price is still maintained at about 110,000.
BYD's price reduction action can be seen as the first battle of the year, its purpose may be to destock, or it may be to make way for new products, but once the lead is ignited, the market will be completely ignited. And what really drives market change is not Qin PLUS DM-i, but the more fierce Emgrand L HIP and Qiyuan A05. Emgrand L HIP has a reasonable configuration and longer battery life, with an official guide price of less than 90,000 yuan, which is stronger than the Qin Plus DM-i, while the Qiyuan A05 with about 70,000 yuan is lower than the Qin Plus DM-i, which is the lowest configuration.
The entire market continues to be under high pressure, showing a tense atmosphere. In this case, Chinese companies are more electrified and move more quickly, so they can better occupy an advantage in the domestic market. Foreign brands, on the other hand, have been slower to respond, mainly because they are more focused on overseas markets, and it takes more time and caution to adjust the pricing system in the domestic market.
Overall, BYD's price reduction action aims to promote the development of the market, provide consumers with more affordable options, and also change the competitive landscape of the entire industry to a certain extent. While foreign brands may still have some advantages, the crisis will also spread to new areas. The market may have different views on BYD's price reduction action, but this disruptive effect is undoubtedly a challenge to the entire industry and an affirmation of its change.