BYD, as the light of domestic production, has always been loved by the people. Recently, BYD Qin cut the price to 7The 980,000 event has attracted widespread attention and discussion among the industry and consumers, and it can be said to be a historic moment in the automotive circle, especially for new energy vehicles. Some consumers shouted that BYD's price reduction is not as expensive as 6 Apple mobile phonesRelevant people in the industry said that BYD's price reduction may also have a certain impact on the entire new energy vehicle market.
At the beginning of the new year, BYD cut prices one after another. On February 28, BYD's all-new Han and Tang Glory Editions (including Han EV, Han DM-i, Han DM-P, Tang DM-i and other models) were announced. Among them, the official guide price of the Han DM-i Glory Edition 121km elite model came to 16980,000 yuan. On February 19, BYD announced the launch of the Qin Plus and Destroyer 05 Glory Edition. Qin plus glory version and destroyer 05 glory version are listed, with a starting price of 7From 980,000, the first week of listing orders 230,000 units.
Affected by the ** factor, the sales situation has improvedAccording to the ** report, within 48 hours of BYD's price cut, many car companies quickly "responded", and some store sales called "too busy", and even some store staff said that as soon as the news came out of the store, a customer ordered a car. Obviously, the benefits of price reduction directly trigger consumers' desire to buy. But at the same time, BYD's new energy vehicle sales have ushered in the first. On March 1, BYD released a February production and sales report, which showed that the brand sold 122311 cars in February, down 36% year-on-year84%。In addition, BYD's cumulative sales in January and February 2024 were 323804 units, down 6% year-on-year14%。In terms of production capacity, a total of 316062 vehicles were produced in January and February 2024, a year-on-year increase of **1156%。At the same time, the sales of many automakers in February showed a significant decline. In the case of increasingly fierce competition in the new energy vehicle market, price reduction is an effective means to attract more consumers to choose the BYD brand.
The decline in the cost of battery cells has prompted car companies to reduce prices. With the reduction of key raw materials such as battery-grade lithium carbonate**, the cost of power batteries is also declining rapidly. CATL is promoting 173AH VDA lithium iron phosphate cells to car companies, with 2 as standard2C rate fast charging, ** no more than 0$4 wh. This means that the cost of a 60-degree battery pack can be reduced by 2 compared to the same period last year40,000 yuan, and the 100-degree battery pack can save 40,000 yuan.
The industry is becoming increasingly competitive. With the continuous development of the new energy vehicle market, the competition is becoming more and more fierce. Other brands are also constantly launching new models, improving technology and reducing costs to compete for market share. Therefore, BYD needs to face competitive pressure from other brands and continuously improve its competitiveness.
Marketing strategy. To some extent, the price reduction may be a strategy adopted by BYD in order to expand its market share, improve its competitiveness, and promote the popularization of new energy vehicles. By moderately lowering the threshold for car purchases, BYD aims to attract more consumers, especially those who are sensitive to **, so as to further expand its market coverage. It is likely to attract consumers by cutting the price of some older models and launching ** models with higher configurations. Such a strategy can not only clear the inventory, but also enhance the brand image and competitiveness through the launch of the first model.
BYD's price reduction is like a "catfish", quickly prying various car companies to follow up, forming waves of price reductions. 2024 will be the year of the "most volume" of volumes, volume products, volume services, and volume traffic. This year's fierce competition in the auto market will be the first year of the knockout competition of Chinese auto brands, and we might as well wait and see what other good cars will appear.
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