Just after the Spring Festival, BYD began a new round of price cuts, from Qin plus glory version to dolphin glory version to Hantang glory version, and Song glory version, it can be said that BYD has lowered all its popular models at this stage, and then Hyundai and Changan Qiyuan have announced to follow BYD's price reduction strategy.
Why is BYD in such a hurry to cut prices at the beginning of the year?
The huge pressure brought by sales, BYD's sales in January was 2010,000 units, successively by Geely's 2130,000 units, which exceeded Changan's 300,000 units, and did not exceed Volkswagen's 210,000 units. BYD, as the first brother of China's car sales, has been surpassed by other companies one after another, and the pressure on sales is huge, in order to maintain its dominance in the domestic market, BYD has opened a big price cut.
BYD's sales volume in 2023 will be 3.02 million, entering the top ten of the world's car companies, which is also the first time that a Chinese car company has entered the world's top ten, and BYD can be said to have created a new historical record. BYD's sales of 3.02 million last year were actually a bit reluctant. This year, BYD did not announce its sales target for 2024, but according to BYD's current actions, BYD's sales in 2024 will be at least 4 million, otherwise there is no need to reduce prices so much, it will only reduce its profit margins.
The annual sales volume of 4 million means that at least about 600,000 foreign sales and about 3.4 million domestic sales. Last year, BYD's domestic sales were about 2.75 million, which means that the domestic sales will increase by 650,000 units and exports will increase by 350,000 units. I think this goal is relatively easy to achieve, although other new energy models from other competitors are also keeping up, including Geely's Galaxy and Zeekr, and Changan's Qiyuan and Deep Blue.
In 2024, BYD is the market, all sales will be wanted, the Chinese market is a stock car market, and BYD's growth will inevitably seize the market share of other car companies, so it depends on BYD's performance in 2024 to grab the market from those car companies.