One sunny morning, the WeChat circle of friends was swiped by a message: "BYD has reduced the price!" "This news is like a bombshell, breaking the calm of the market.
On February 19, the BYD Qin PLUS and Destroyer 05 Glory Edition were launched, with a starting price of only 7980,000 yuan, shocking the market. Compared with the 2023 Champion Edition, the price of this facelifted model is directly reduced by 20,000 yuan, which is staggering.
There are deep reasons behind BYD's move. With vertical integration, the advantages of the whole industry chain and the scale effect, BYD has performed well in cost control. At the same time, the current lithium carbonate ** continues to decline, providing BYD with greater room for price reduction.
This price reduction storm has put pressure on joint venture brands and independent brands, and it also marks that the new energy vehicle market is undergoing unprecedented changes. BYD is leading the automotive industry to make a historic leap from "the same price of oil and electricity" to "electricity is lower than oil".
BYD's global sales reached a staggering 302 in 2023440,000 units, ranking first in the world's new energy vehicle sales. Despite this, BYD still chose to cut prices, and the reasons behind it are worth pondering. On the one hand, faced with competitive pressure from brands such as Geely, BYD had to take action. On the other hand, in order to achieve the sales target of 4.5 million to 5 million units in 2024, price reduction has become an effective strategy to attract consumers and expand market share.
Under the influence of BYD's price reduction storm, Wuling, Changan, Beijing Hyundai, SAIC-GM and many other car companies have followed up, and many models have announced price cuts. The entire auto market is caught in a fierce "** war".
In the face of the first offensive of new energy vehicles, fuel vehicle brands are not to be outdone. Beijing Hyundai shouted the slogan of "oil 'super' electric strength" to compete with BYD. SAIC-GM's Buick brand has also implemented a price reduction or subsidy strategy to respond to market pressures.
Cui Dongshu, Secretary-General of the Passenger Association, said that 2024 will be a critical year for new energy vehicle companies to stabilize their position, and the competition will be extremely fierce. He Xiaopeng, CEO of Xpeng Motors, believes that 2024 will be the first year for Chinese auto brands to enter the "bloody war" competition. Geely Automobile CEO Gan Jiayue also said that 2024 will be the most challenging year.
In this unprecedented storm of price reductions, the huge potential and fierce competition in the new energy vehicle market have been revealed. BYD's price reduction strategy has not only benefited consumers, but also promoted the progress of the industry. However, it remains to be seen who will have the last laugh in this "** battle".