In 2021, Chinese car companies produced 3.545 million new energy vehicles, an increase of 159.5% year-on-year, and sold 3.521 million new energy vehicles, an increase of 157.5% year-on-year. In December 2021, the market penetration rate of new energy vehicles has reached 19.1%. However, since the end of 2021, the following situations have occurred:
On December 28, 2021, Zero Run Auto announced that it will raise the price of zero run T03 by 8,000 yuan, and the adjusted starting price will be 68,900 yuan.
On December 31, 2021, Tesla announced that the price of the Model 3 rear-drive version was raised by 10,000 yuan, and the adjusted price was 265652 yuan; the price of the Model Y rear-wheel drive version was raised by 21,088 yuan, and the adjusted price was 301,840 yuan.
On January 1, 2022, FAW-Volkswagen announced that the price of ID.4 will increase by 5400 yuan.
On January 21, BYD announced that it will raise the price of new energy models related to the Dynasty and Ocean series by about 1,000 yuan to 7,000 yuan, effective February 1, 2022, and customers who have signed a deposit before this will not be affected by this price adjustment.
On January 27, Euler Automobile announced that Euler Electric Vehicle is brewing price adjustments, and it is reported that the official guidance price of electric vehicles may be increased by 5,000 yuan.
In addition to the above brands and models, Xiaopeng, GAC Aean and many other new energy vehicle companies have announced price increases, ranging from 1,000 yuan to 20,000 yuan. The general price increase of new energy vehicles has become the first change visible to the naked eye in the new energy vehicle market in 2022.
The reason for the general price increase of new energy vehicles
The decline of subsidies for new energy vehicles has become a direct trigger for the general price increase in the industry.
On December 31, 2021, the four departments jointly issued a document that the subsidy standard for new energy vehicles in China in 2022 will be reduced by 30% compared with 2021, and it will be clear that the subsidy for new energy vehicles will be terminated on December 31, 2022, and the vehicles licensed after December 31 will no longer be subsidized.
In terms of subsidy amount, pure electric passenger car driving range of 300km-400km (including 300 excluding 400) models will be subsidized by 9100 yuan, a decrease of 3900 yuan compared with 2021 Pure electric passenger car driving range greater than or equal to 400 km models will be subsidized by 12,600 yuan, the subsidy will be reduced by 5400 yuan; plug-in hybrid (including range extender) passenger car mileage greater than or equal to 50 km (NEDC working conditions) or greater than or equal to 43 kilometers (WLTC working conditions) models will be subsidized 4800 yuan, a reduction of 2040 yuan.
The decline of subsidies has made car companies invariably choose to increase prices, and the reason for the price increase is not only the decline of subsidies.
In addition to the decline in subsidies, the rise in raw materials is another important reason for the price increase of new energy vehicles, especially the price of power batteries, which are core components and account for nearly half of the cost of the vehicle.
At present, the cathode material of ternary lithium batteries has increased by an average of 108.9% compared with the price at the beginning of 2021, and the price of electrolyte has increased by an average of 146.2%; the price of cathode materials for lithium iron phosphate batteries has increased by an average of 182.5%, and the price of electrolyte has increased by an average of 190.2%. Subsidy decline + raw material price increase as a surface reason together contributed to the phenomenon of general price increases in the new energy automobile industry.
From another point of view, for the subsidy decline and the rise of raw materials, the solution of car companies is by no means only a price increase, but the price increase is undoubtedly the simplest and most rude method, and this simplest and most rude method is also the easiest way to affect vehicle sales and reduce consumers' desire to buy. Car companies invariably choose this method, the deep reason is that new energy vehicles have formed a certain scale after several years of development, and have been recognized by the market. With the rapid rise of sales and market penetration of new energy vehicles in China, the new energy vehicle market is no longer the buyer's market that urgently needs price reduction promotions. Energy vehicle companies have the courage to increase prices, which is not a bad sign for the market in the long run.
Another change in the new energy vehicle market in 2022 - the turmoil in new energy vehicle premiums.
As a new generation of products, new energy has formed a scale in the automobile market for only a few short years, and has not had its own exclusive insurance clauses in insurance, and there are disputes in the specific matters of insurance. On December 27, 2021, the adjusted new energy vehicle exclusive insurance product was officially launched, and a number of insurance companies have launched related products. But the advent of captive insurance is not a piece of peace, but a turmoil, which may trigger a new round of games for insurance companies, consumers and even manufacturers.
After the new energy exclusive insurance products were put into use, the insured prices of Tesla, Extreme Krypton, Weilai, Xiaopeng and GAC Aian all increased, and individual models of other brands were lowered. Some car owners said that their new energy vehicle premiums have "risen sharply". And there is a price of car insurance one day, and the price trend is like a roller coaster phenomenon. It is understood that the current change in the price of car insurance is mainly due to its adjustment period after the issuance of the new policy, and the models with increased prices are mainly models with high claim rates and claim amounts. It will be alleviated later.
Characteristics of new energy vehicle insurance
Compared with traditional fuel vehicles, the premium of new energy vehicles is generally high, first of all, because electric vehicles have the characteristics of quiet and fast speed, and the probability of accidents is also higher than that of fuel vehicles. Secondly, even if new energy vehicles already have a certain scale, they are still a minority compared to fuel vehicles, and the corresponding specialized repair agencies and spare parts are fewer, and the maintenance cost will be higher, which also leads to higher premiums. In addition, among the operating vehicles seen by insurance companies in the background, there are more electric vehicles, and their overall loss rates are generally higher than those of fuel vehicles. The proportion of operating vehicles is high, the insurance rate is high, and the premium is naturally high.
In contrast, new energy models produced by traditional OEMs such as BYD and GAC Aean are built based on traditional fuel vehicles, and many spare parts and maintenance have similarities with fuel vehicles, and the cooperative maintenance agencies of enterprises will be more, so the premium increase is not obvious, and even a decline. This has unearthed one of the few advantages of traditional car companies in the process of electrification transformation.
In this context, some experts said that car companies may be able to establish their own insurance varieties, expand the insurance business of vehicle companies, and establish their own low-premium insurance system supported by data.
At present, Tesla has built its own insurance system policy, Geely, FAW, Great Wall and other car brands have also begun to build their own insurance system road, and individual companies have begun to make profits. However, at present, under the guidance of policies, the insurance industry does not have much space for car companies to play on their own, so there are still certain restrictions on the development of car companies in the auto insurance industry. However, auto companies are expected to use their product data advantages in the future to create an insurance system that supports low premiums for their products.
The impact of industry changes such as price increases and new insurance regulations
Although the sales volume of new energy vehicles has become a scale, it is bound to be affected to a certain extent. For consumers, the party ushered in a temporary period of embarrassment, and the trend of continuous downward exploration of new energy vehicle prices has temporarily ended, and according to experts, it will continue to rise. Sooner or later, though, the party will still laugh, but the duration of the awkward period is unknown.
Such a process is also the only way for the development of the new energy automobile industry, just like a stage that has just left the swaddling and learning to walk, stumbling is inevitable, in the short term, it will affect some benefits, and in the long run, it can promote the further development of the new energy automobile industry.
After the clouds open, it will be sunny. After thousands of sails, China's new energy vehicles will enter a new stage of development.