In the new era, people's living standards have improved significantly, and more and more people have bought cars at home. People's replacement speed of cars is also accelerating, usually after a few years of driving, they plan to change cars.
In 2021, China once again became the world's largest seller of new energy vehicles, ranking first in the world for the seventh consecutive year with a sales record of 3.521 million units, accounting for 13.4% of passenger car sales, and the number of new energy vehicles in the mainland further rose to 7.84 million.
At the same time, the state's new energy vehicle subsidies have further declined according to the plan, which has also led to a number of new energy vehicle companies announcing model price increases.
On January 21, BYD Automobile released the "Explanation on Model Price Adjustment" on its official Weibo, officially announcing the price increase of its new energy models, becoming another new energy vehicle company that has joined the "price increase army".
In the explanation, BYD said that the price increase is mainly affected by the sharp rise in raw material prices and the decline in new energy car purchase subsidies, while the affected models include many models of Dynasty Network and Ocean Network, and the price increase range is 1000-7000 yuan.
Under THE UMBRELLA OF BYD, Dynasty Network and Ocean Network are the two main sales networks, of which Dynasty Network includes new energy models such as Qin, Han, Tang, Song and Yuan, while Ocean Network mainly sells e-series, BYD Dolphin, Song PLUS, and newly listed warship series.
It is reported that the second round of price adjustment will officially take effect on February 1, and customers who have signed a deposit before this will not be affected by this price adjustment.
In fact, the sharp rise in raw material prices is already an indisputable fact, and factors such as the decline of new energy car purchase subsidies are the direct trigger for this price increase. On December 31, 2021, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the Notice on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles in 2022, proposing that the subsidy standard for new energy vehicles in 2022 should be reduced by 30% on the basis of 2021, and it was clear that the subsidy for new energy vehicles would be terminated on December 31, 2022, and the vehicles on the license plate would no longer be subsidized.
After the release of the policy, it immediately had a wide impact on the entire industry, and BYD is not the only new energy vehicle company that has raised the price of its products due to this factor.
According to statistics, in the past two months, including Tesla, Xiaopeng Automobile, Nezha Automobile, GAC Eian, Zero Run Automobile and many other new energy vehicle brands have officially announced the price of some of their models, and now BYD is just a new member of the "price increase army".
In the "army of price increases", the first to announce the price increase of products is the zero-run car. The price of its hot-selling model zero-run T03 rose from 59,800-76,800 yuan in 2021 to 68,900-84,900 yuan in 2022, taking the lowest-end model with similar configuration as an example, the price of the new model increased by about 9,000 yuan. On December 31, Tesla joined the "price increase army" and announced the price increase of the Model 3 and Model Y models, of which the price of the Model 3 rear-wheel drive version was raised by 10,000 yuan to 265,652 yuan; the price of the Model Y rear-wheel drive version was raised by 21,088 yuan, up to 301,840 yuan.
Entering 2022, manufacturers including Xiaopeng, Nezha, GAC Aean and other manufacturers have also raised product prices. Among them, the price increase of all models of Xiaopeng Automobile ranges from 4300 yuan to 5900 yuan, Nezha Automobile is raised by 2000-5000 yuan for some models, and GAC Aean is also a price increase of 4000-7000 yuan for some models.
In addition to the direct fuse of the decline of new energy car purchase subsidies, the rise in raw material prices is also one of the key incentives for new energy vehicle companies to generally raise prices.
Entering 2021, the price of a variety of metal raw materials and their compounds, including lithium, cobalt, nickel, and manganese, has risen all the way, resulting in a sharp rise in the production cost of lithium batteries, of which the price of lithium carbonate, one of the raw materials necessary for lithium battery production, has risen by 448% in one year, from 50,000 yuan per ton at the beginning of 2021 to 274,000 yuan per ton at the end of the year. Due to the tension between supply and demand, the price continues to rise, which in turn leads to the acceleration of stockpiling and hoarding of goods by enterprises in the industry, which further aggravates the contradiction between supply and demand. As of now, this tense supply and demand relationship shows no signs of improving.
For the new energy vehicle market, the price adjustment brought about by the subsidy decline may have a certain impact on sales in a short period of time, but in the future where the demand for car purchases is relatively rigid, the relatively limited terminal price increase will not have much impact on the overall market growth of new energy vehicles, and the overall new energy vehicles are expected to show a steady growth state in the future.
For ordinary consumers, the scope of impact of this rise is still relatively limited, although it is not ruled out that the price increase of the industry leader led by Tesla and BYD will drive the price increase of the entire industry, but with the listing of more new energy vehicles, the scale effect of new energy vehicles is gradually emerging, and the terminal price of new energy vehicles is expected to remain relatively stable.
However, for those car companies that have been listed, the announcement of price increases may not be a positive factor, Tesla, Xiaopeng Motors after the above announcement of price increases, the stock prices are now falling to varying degrees. Among them, the official announcement of Xiaopeng Automobile fell by 4.29% on the same day. Although BYD chose to announce the price increase after Friday's closing time, its stock price has fallen by 21% since its october high last year, and the news of the price increase is obviously not a positive factor.
Whether this price increase will affect BYD's sales target of 1.2 million new energy vehicles in 2022, and how it will affect other brands in the industry, is also a question worth discussing and observing.
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