Recently, BYD announced the official launch of its Hantang Glory Edition model. This series of models includes two sub-models, the pure electric version and the hybrid version, both of which are priced lower than the previous version, especially for the pure electric model, which is 30,000 yuan lower than the previous Champion version. According to BYD, this is the company's fourth Glory Edition model launched after the Spring Festival this year, including Qin Plus Glory Edition, Destroyer 05 Glory Edition and Dolphin Glory Edition. Although this adjustment is undoubtedly a good thing for consumers, it also indicates that the entire automotive industry is about to face a fierce competition.
1. Changes in market supply and demand.
First of all, the important factors behind the war are the oversupply of the market and the trend of rational car buying in the context of consumption upgrades. In recent years, with the rapid expansion of the new energy vehicle market, various companies have been able to grow rapidly. However, in 2024, as the growth rate of major new energy vehicle companies may be limited, the ** war will continue in the short term, especially in the mainstream ** belt of 100,000 yuan and 200,000 yuan where overcapacity and consumers gradually return to rationality. In the face of this market situation, BYD should seize market share through an active strategy on the basis of ensuring quality and performance. For other car companies, they also need to formulate corresponding countermeasures according to their own market positioning and strategic planning.
Second, the cost of raw materials has dropped significantly.
Secondly, the significant reduction in the cost of raw materials is also a key factor in this war. From the perspective of lithium carbonate, the main raw material of power batteries, it has dropped from the peak in 2022 (up to 600,000 yuan per ton) to about 100,000 yuan per ton at the end of 2023, and has remained at about 90,000 yuan. In addition, the ex-factory price of BYD's lithium phosphate battery, a 100kwh battery, has been reduced to 360,000 yuan, especially the drastic changes in its **. Moreover, the sharp decline in the cost of pure electric vehicles is mainly reflected in the field of power batteries. This price reduction trend also reflects the rapid development momentum of China's new energy industry technology, and the trend is obvious.
Third, the first interval conflict and the expansion of model coverage.
Again, we must pay attention to the market layout behind the first war. In fact, the key location of the competition is not only limited to a certain model or range, but involves the optimization and improvement of the whole line of products. For enterprises, it is not only necessary to continue to dig into special services in existing areas, but also to continuously expand the scope of business in line with market trends. For example, the current market demand has produced varying degrees of dependence on hybrid and pure electric models, so in the first war, the difference between hybrid vehicle batteries and pure electric vehicle batteries has gradually emerged. However, for the new car-making forces, although they have not made much action in the first place, they have achieved a good response in the high-end market of new energy.
In general, in this market context, both BYD and other car companies need to take a strategic vision, comprehensively consider market conditions, product positioning, consumer demand and other factors, and formulate scientific and effective marketing plans. In short, through the above analysis, it can be seen that in the fierce competition in the post-epidemic era, for car companies, in order to maintain a leading position in the first battle and cope with the market turn, they must find accurate market DNA and precise positioning in order to be invincible in the competition.