March was the off-season for sales, and car companies have usually increased their preferential promotions, but this year's new energy vehicles have risen unexpectedly.
According to incomplete statistics, since March, at least 17 new energy vehicle companies have announced price adjustments, involving nearly 50 models. Down to Wuling Hongguang MINI EV, up to Tesla Model Y, covering more than 30,000-300,000 mainstream car purchase range, the specific price increase range from 0.3 million yuan to 15,000 yuan.
Brands such as Tesla, BYD and Xiaopeng have even begun a second round of price increases. Tesla price adjustment is a common operation for many consumers, but in just 8 days, the Model 3 rear-drive version has increased its price 4 times, and the Model Y rear-drive version has increased its price 3 times, which is quite rare.
Ideal Car CEO Li wants to say bluntly: "The increase in battery costs in the second quarter is very outrageous, and most of the price increases have not been negotiated, and the price increase will generally increase immediately after waiting for the negotiation." "It is enough to see that the rise in the price of lithium, cobalt, nickel and other battery raw materials is the main reason for the collective price increase of electric vehicles."
In other words, there will be multiple rounds of price increases for new energy vehicles in the future. Is the price increase only related to the increase in the price of battery raw materials? When price increases become the norm, will consumers still pay?
With the blessing of multiple factors, car companies cannot resist
As we all know, power batteries account for the majority of the total cost of electric vehicles, accounting for about 30%-40% of the cost. The recent crazy rise in raw material prices is an important factor in the price increase of automotive products.
Important raw materials in the automotive industry chain include neon, palladium, nickel and aluminum, which are affected by the Conflict between Russia and Ukraine, and there are currently different degrees of fluctuations in prices. The average price of lithium carbonate in the battery market exceeded 500,000 yuan / ton, while in early 2021, the price of lithium carbonate was only 50,000 yuan / ton.
This is just the tip of the iceberg. The price increase of battery raw materials has quietly begun from the beginning of 2021, but the price increase is still within the acceptable range, and most of the pressure on the cost increase is silently borne by battery manufacturers. When the cost pressure is beyond the scope of what can be borne, the cost pressure will naturally pass on to the car manufacturer.
Guoxuan Hi-Tech's 2021 Q3 net profit was about 19.66 million yuan, down 59.98% year-on-year; Fu Neng Technology's Q3 net profit attributable to the mother was -194 million yuan, and the net profit attributable to the mother in Q4 was expanded to -380 million to -680 million yuan; Sunwoda Q3 revenue was 1 billion yuan, and the gross profit margin has fallen from 6% in the first half of the year to 1.3%. Even the Ningde era, which has the strongest scale, has increased prices for 2 rounds since the second half of 2021, with a price increase of 10,000 yuan per round.
The wave of new energy vehicle price increases began in early March, which also shows that the "price increase" behavior is the decision of car companies after many struggles. They not only have to face the pressure brought about by the rise in raw material prices, but also face the adverse effects of subsidies and the price reduction of new energy credits, which can only further pass on the cost pressure to consumers.
Production and marketing are booming, and the bottom line is tested
When the new energy vehicle market collectively increases prices, it will raise another question - are consumers willing to accept the rising costs and continue to support new energy vehicles?
I believe that before announcing the price increase, all car manufacturers will consider this issue. The size of the price increase will directly affect the performance of the product in the terminal market. Especially in the new energy vehicle market with internal volumes, the increase of tens of thousands of yuan is directly related to the competitiveness of the product, affecting the final choice of users.
Therefore, the collective price increase of new energy vehicles is also a "bottom-up examination" for automakers to consumers, and the edge of acceptance is crazy to test.
The market situation of "supply outstripping demand" gives them great confidence, and if sales are affected, it is a big deal to readjust prices. In 2021, the penetration rate of New Energy Vehicles in China will reach 13.4%, nearly 5% higher than the global new energy vehicle market. By February this year, the domestic retail penetration rate of new energy vehicles was 21.8%, reaching the standard line of 20% in 2025 set by the state in advance.
Not only is sales soaring, but the delivery cycle of some new energy vehicle products is generally lengthened. Like the fiery Extreme Kr 001, the delivery cycle has been more than half a year. Popular brands such as Tesla, BYD, Weilai, Xiaopeng, Ideal and Euler generally have a car pick-up cycle of more than 2 months.
Uncle Zhong has consulted friends who have just purchased new energy vehicles recently, and the price increase of the product does not seem to affect their purchase decision, but they are more concerned about the "increase in insurance prices and the cancellation of purchase tax subsidies next year". Advantages such as car costs and new energy licenses have made up for the adverse effects of price increases, and may not affect their purchase decisions in the short term.
Feed the upstream, increase prices downstream
Compared with the embarrassment of car companies, the suppliers of raw materials in the upper and middle reaches are well fed.
The net profit of CATL in 2021 was 19 billion yuan, a year-on-year surge of 190%, which shows that the profit margin of the midstream lithium battery manufacturing link is huge. At the same time, the Ningde era, with a market value of more than one trillion yuan, is also full of pots in the stock market.
Ganfeng Lithium, a supplier of raw materials, will achieve revenue of 11.162 billion yuan and net profit of 5.175 billion yuan in 2021, and the profits of upstream lithium processing enterprises are amazing.
The market demand for new energy vehicles is strong, resulting in an increase in the price of upstream raw materials, which is a normal market regulation behavior. But there are also people who hoard and speculate, which in turn leads to an imbalance between supply and demand caused by the scarcity of raw materials, and sells them for huge profits when the price is high. This is also the main reason why a number of automakers have invested in upper and midstream suppliers, hoping to reduce their supply chain risks by integrating the industrial chain.
Therefore, the competent government departments should strengthen the macro-control of the new energy industry chain, crack down on the occurrence of unfair competition, and return the market to rationality.
Bell description
The rapid development of the new energy vehicle market in recent years, to achieve the transition from policy-led to market-led, product innovation and advantages are naturally indispensable. At the same time, the influx of a large amount of capital has made its development speed and development quality out of proportion. Coupled with today's product collective price increases, the development of the new energy automobile industry has once again cast a shadow.
In terms of car companies, it is natural to consolidate the development of the upstream supply chain and strengthen the ability to resist risks; the relevant departments must also start to rectify the relevant hoarding behavior and create a good market competition environment. Perhaps, only by eliminating the bubble, moderate cooling, and returning to rationality can the new energy automobile industry develop healthily and sustainably, so that consumers can buy products that are worth the money.
The price of new energy vehicles has risen, do you think sales are bullish or bearish?