On International Women's Day on March 8, the Euler brand, which focuses on the female car consumer market, announced its February sales. Unlike the joyful holiday atmosphere, the sales volume of the Euler brand in February showed double-digit declines year-on-year and month-on-month, which surprised many people.
When the loss of the low-end product series exceeds the bottom line of the enterprise, then the fate can only be abandoned.
On March 8, great wall's Euler brand announced February sales data, Euler good cat, black cat, white cat three models, a total of 6261 vehicles sold in February.
Although there was a Spring Festival holiday in February this year, the author thought that Euler's sales would fall month-on-month, but I did not expect that the same period fell so badly. In January this year, the sales volume of the Euler brand was 13,229 vehicles, and as a result, the sales volume in February was only more than 6,000 vehicles, down 52.67% month-on-month, which can be described as "waist cut".
More importantly, Euler's year-on-year sales also fell by 15.09%, which is the first time in recent years that the Euler brand has seen a year-on-year decline in sales, and the decline has reached double digits.
Black cats, white cats say "goodbye"
Euler's sales contraction in February was so serious, was it just because of the Spring Festival holiday? Or is Euler hiding something "catty" in private?
On February 14, Euler auto dealers received a notice from the manufacturer that they would no longer accept orders from black and white cats from February 15, and Euler did not give a specific time to resume accepting orders, but said that "the follow-up situation depends on the company's specific arrangements." ”
For the reason why the black and white cat stopped receiving orders, Euler officially replied: Due to the shortage of chips, spare parts supply and many other reasons, the black and white cat model order backlog is more, and the manufacturer will coordinate internal resources to meet the existing order scheduling plan faster and ensure the speed of the order pick-up speed and the purchase interest of the order customers.
In this context of "core desolation", "lithium vastness", and "demon nickel", euler fell into such a dilemma, which seems reasonable. After all, everyone is similar.
But is Euler really just unable to produce?
In the view of Dong Yudong, CEO of the Euler brand, "this car still brings huge losses to the company." Taking black cat as an example, after the sharp rise in raw material prices in 2022, the single loss of black cat exceeded 10,000 yuan. In a letter, he gave the answer.
Indeed, compared with the new car-making forces, the stage in which the two are located is completely different from the logic of car-making, and Wei Jianjun obviously cannot allow Euler to become a bottomless pit that drags down the profit performance of Great Wall Motors.
In the case of a large backlog of black cat and white cat orders, but the manufacturer has to stop taking orders, the proportion of these two models in Euler's sales is greatly reduced because of losses. Judging from the production and sales report released by Great Wall Motors, the output of the Euler brand in February was only 6120 vehicles.
In 2021, black cats and white cats also accounted for 62.28% of Euler's total annual sales, while their sales in January and February 2022 accounted for only 31.82% and 35.06%.
In 2022, as a low-cost new energy product, Euler has been under great pressure in terms of cost, and in terms of national policies, this year's national new energy vehicle purchase subsidy will be reduced by 30% according to the plan. This means that the minimum endurance version of the black and white cats is each less than last year's subsidy of 3900 yuan; the longest endurance version of the black and white cats is each less than last year's subsidy of 5400 yuan (the national new energy vehicle subsidy is issued according to the mileage of electric vehicles).
At the same time, due to the rapid increase in the total number of new energy vehicles, the credits of new energy vehicles have become less sought-after than before. New energy credits, which were as high as 3,000 yuan at the end of 2020, have now dropped below 1,000 yuan. Therefore, even if the price rises, Euler's two cats will be difficult to sustain, but it is better to stop it.
Good cats are also "hiding cats"?
Euler's problems don't seem to be limited to black and white cats. In contrast, in January 2022, Euler good cats alone contributed 9,020 vehicles, and in February, Euler's total sales were only more than 6,000, of which good cat sales were "waist chopped" to 4,066.
How come even Euler's good cat learned black cats and white cats and played the game of "hidden cats and cats"?
The author believes that this may be related to Euler's brand exploration plan and the previous "chip gate" incident.
According to Euler Motors' plan, in 2022, the company will launch at least 4 models, including ballet cats, lightning cats, punk cats and cherry cats. The ballet cat priced at 150,000 to 200,000 yuan and the lightning cat priced at 200,000 yuan are expected to be launched in the first half of this year, respectively; coupled with the 2022 Euler good cat that began to accept orders on March 1, the Euler brand is also trying to reverse the current momentum through high-premium models, but its pressure in the coming months can be imagined.
Not surprisingly, 2022 is the last year of China's new energy vehicle purchase subsidies, which indicates that the "novice protection period" of China's new energy vehicles will expire. In the face of dwindling financial support, Euler's choice to transform and expand the high-end market upwards is indeed a wise move, accompanied by helplessness.
The author hopes that the plunge in sales in February this year is only a temporary pain on the road of transformation, and in the future, it can launch more good cars with high quality and more sales, and contribute to the development of China's new energy vehicle industry.
The text is the original [car K line], some of the pictures come from the Internet, and the copyright belongs to the original author. This article, without authorization, shall not be reproduced, violators will be investigated. At the same time, the content of the article does not constitute investment advice to anyone. The stock market is risky and investments need to be cautious.