Thanks to the large-scale launch of plug-in hybrid technology DM-i models, BYD has become the top company of Chinese automobiles "at the speed of light".
BYD sold only 420,000 units in 2020, but jumped to 730,000 units in 2021, an increase of more than 75% year-on-year.
Models such as Qin DM-i and Song Plus DM- can drive pure electric, enjoy green cards and purchase tax reduction policies, and are not much higher than the price of traditional fuel vehicles of the same level, so that BYD has won the "name" of the terminator of traditional fuel vehicles. Some people joke that in the first two years, the corolla of the online car hybrid Corolla appeared at a very high rate, and now there is a sense of "collective" change for Qin DM-i.
Qin Plus DM-i's entry-level model is priced at 111,800 yuan, landing within 120,000 yuan - but what needs to be known is that this is a compact sedan with a pure electric endurance of 51 kilometers, even if it is fed, the fuel consumption is less than 4L - taking a step back, it also takes 110,000 yuan to buy a medium and high-end Changan Yidong landing.
At present, BYD DM-i models are in short supply at the terminal; according to BYD's official information, there are a large number of orders in the "hand" to be produced. In the plug-in hybrid market, BYD has become a symbolic presence.
The consumer cognition of "BYD DM-i model = cost performance = market benchmark" has gradually formed, under such recognition and public opinion, BYD's sales in February really surpassed SAIC Volkswagen and rushed to the "hot search".
There are two sides to everything. While the cost-effective label has brought rapid sales growth to BYD, it has also had a certain adverse impact on the "premium ability" of BYD's DM-i model pricing.
On March 19, BYDHan DM-i and DM-p released pre-sales, with a pre-price of 216,800-236,800 yuan for pure electric endurance of 121 kilometers, a pre-price of 292,800 yuan for pure electric endurance of 242 kilometers, and a pre-price of 322,800 yuan for a pure electric endurance 202 kilometer four-wheel drive model.
As soon as the price came out, there was an uproar - pure electric endurance and technology have improved, but compared to the DM model rose by 100,000 yuan, many people directly called "BYD is no longer the original BYD", "so look at the Mocha DHT-PHEV pricing is a very conscience"...
In early March, after the 204-kilometer-long Mocha DHT-PHEV released prices of 295,000 yuan and 315,000 yuan, there was a lot of ridicule on the Internet, and all thought that the pricing was unexpected. And the price of BYDHan DM-i and DM-p, which is known as the benchmark of plug-in hybrid cost performance, is an indirect "justification" for the price of Mocha DHT-PHEV.
From another point of view, the controversy over the pre-sale price of Han DM-i/DM-p is the beginning of the "marketization" of BYD product pricing - not that the price of Han DM-i/DM-p is high, but that the pricing of Qin Plus DM-i and Song Plus DM-i is low regardless of cost.
The popularity of BYD's DM-i model is not how strong and advanced the DM-i technology is, but that BYD can make the price of the DM-i model "low enough". In other words, BYD's sales are hot, mainly DM-i models are cost-effective.
Previously, in response to THE "low pricing" strategy of BYD DM-i models, securities analysts believed that BYD's logic is not to rely on sales models to make money, but to win the favor of the capital market through short-term sales surges, and it is easier to make money from the capital market by issuing additional issues - after all, the capital market pays more attention to sales than profits.
Citing publicly reported data, in the first three quarters of 2021, BYD sold 450,000 vehicles, an increase of 68% year-on-year, and revenue of 145.1 billion yuan, an increase of 38% year-on-year; net profit of 2.44 billion yuan, down 28.4% year-on-year. In the third quarter in particular, sales grew from 140,000 units in the second quarter to nearly 210,000 units in the third quarter, but profits only increased from 930 million in the second quarter to 1.27 billion in the third quarter, lower than expected. Moreover, net profit in the third quarter fell 27.5% year-on-year. The sharp decline in profits behind BYD's sharp rise in sales is precisely BYD's strategy of "asking for money from the capital market".
At the beginning of November last year, BYD announced that it had completed the placement of 50 million new H shares after hours on October 29 at a price of HK$276 per share. The proceeds from the Placing are expected to total approximately HK$13.8 billion and are intended to be used to replenish working capital, repay interest-bearing debt, invest in research and development, etc. BYD easily got "real money" from the capital market.
The controversy caused by the pre-sale price of Han DM-i/DM-p is OSD's confidence in product pricing, and it is a "Wude" for the long-endurance plug-in hybrid market, but in fact, it is Mingzhe's "precautionary plan" to protect itself. The efforts of friends in plug-in hybrid technology and products, as well as the cost pressure brought about by the sharp rise in battery raw materials, have made BYD aware that its advantages are facing the risk of being rapidly weakened.
From Mocha DHT-PHEV to Han DM-p, although the price has become the focus of the spit, it also fully illustrates a problem, the technical level and cost control of long-endurance plug-in hybrid models, everyone is basically on the same level.
Whether it is Han DM-i/DM-p or Mocha DHT-PHEV, it is basically the parity of price and value. Pure electric mileage is only more than 50 kilometers, P2 hybrid architecture of Tiguan L can be sold to 260,000 yuan, then pure electric endurance is four times it, and is a more advanced hybrid system of the domestic model sold to 300,000 will be ridiculed? Obviously not.
Up to now, BYD, Great Wall and Chery have all put plug-in hybrid models with a pure electric endurance of more than 100 kilometers to the market, and this time Chinese brands have indeed seized the opportunity in technology. In addition, the continuous rise in oil prices is also a great positive for the plug-in hybrid model market.
In fact, in 2020, The new generation of hybrid technology of Chinese brands has only emerged sharply, and now it has evolved from a gasoline-electric hybrid to a "plug-in hybrid" track, which shows the fierce competition in the automobile market. In addition, it is foreseeable that the future market competition is not only the competition between technology and products, but also the competition of important "cost control".
The more fierce the competition, the more it can show the true strength of a company. The Hamm-i/DM-p pre-sale price is a real BYD.
Note: Images are from the Web