Editor-in-Chief | Zhang Kehuan
Edit | Zhang Li
Author | Fu Yu
Reports from The GreatAuto
From 2021 onwards, the new energy vehicle market began to grow at a rapid rate, and the monthly sales volume of the new high finally hit a global penetration rate of 10.2% at the end of the year. The thriving status quo makes everyone think that the spring of new energy has arrived, and emerging participants are increasing, but in fact, we all know that the emergence, development and rise of new species need a long process, and there is no overnight success, and constantly breaking the reorganization is the right way, and the current new energy vehicle market is the same.
Collective price increases, new energy or will open a battle royale
From the data point of view, the new energy vehicle field, whether it is buyers and sellers, or the number of transactions are rising, which are important factors that prove the positive development of the market, but in the first half of 2022, we witnessed the increase in the price of bicycles of many car companies.
Since the beginning of February, new energy brands have begun to have the momentum of price increases, and in March, price increases have sprung up like mushrooms. Tesla, BYD, Euler, Zero Run, Ideal, Weima, Nezha, etc. have announced price increases, the range is not equal, the highest increase reached 30,000 yuan, and some brands have opened the prelude to the second and third rounds of price increases.
The key reason for this wave of price increases is the rise in raw materials, of which batteries are the decisive reason for the concentrated price increase of new energy vehicles. The battery industry led by the Ningde era has actually begun to increase prices as early as 2021, as early as the second half of last year, the Ningde era has increased prices twice, and the amplitude of each round is about 10,000 yuan. In March, the Ningde era once again officially announced a price increase, which is also the direct reason for the recent collective price increase of new energy brands. The battery price increase is not only the Ningde era, including BYD, Guoxuan Hi-Tech, Fu Neng Technology and many other suppliers have carried out multiple rounds of price increases.
The rise of a number of raw materials such as batteries has only two results, either to let car companies or suppliers pay, it is clear that the new energy vehicle manufacturers who only began to raise prices collectively in March this year have already paid for the first round in the price increase wave that began in 2021.
And suppliers also silently endured a wave of price increases last year, according to its financial reports, including Guoxuan Hi-Tech, Fu Neng Technology, including a number of suppliers, in the second half of last year have different degrees of losses, of which Ewell Lithium Energy, gross profit margin fell from 32.36% in the third quarter of 2020 to 21.55% in the third quarter of last year, a drop of 33%; Guoxuan Hi-Tech fell from 25.88% to 15.71%, a drop of 39%, and net profit fell by 59.98% year-on-year. Fu Neng Technology changed from 10.93% to negative, and profit margins fell sharply.
When the first wave of price increases is still within the range that vehicle manufacturers and suppliers can bear, and the market has not yet exploded enough to support the arrogant price increases of its downstream industrial chain, the two pillars of the upstream have chosen to silently bear this wave. And when the time enters 2022, the rise in raw materials is still continuing, the upstream bearing has also reached the limit, at this time the rise in oil prices has given new energy brands an opportunity to increase prices, which is also the reason for this price increase, which is the second result, the price increase of raw materials is passed on to consumers.
When the rise in oil prices provided this opportunity, the demand for new energy models began to expand, which had a big confidence in the price increase of manufacturers. But in the eyes of consumers, whether this wave of price increases is worth it or not is still a question mark. But what we can be sure of is that the large-scale, crazy price increase is undoubtedly a cold water poured on the other side's rising new energy vehicle market, so that this crazy and high market calms down, and this is more like a new battle royale for car companies.
"Rise" is a piece, who will fall
Although the current market is hot, it is undeniable that new energy models are still far less acceptable than fuel vehicles. When the original consumer demand is still in a hesitating period, the price increase of the model will undoubtedly further reduce the desire of potential consumers to buy, which is actually not a good thing for the market, and the new energy that has just risen may also usher in a "cooling off period" of unknown time.
In addition to price increases, the most proud service aspect of the new energy market has also begun to be challenged by a new round. The price increase of raw materials is nothing more than the imbalance between supply and demand, and the first result caused by this imbalance is not actually a price increase, but the manufacturer's order cannot be realized. For now, most of the current purchases of new energy models need to wait, as little as a few weeks, more than a few months, and the original hesitation of consumers may be further deepened.
When sales are challenged, how should new energy that will open another era of qualitative change continue to move forward. The more comprehensive model library of traditional manufacturers may be relatively less impacted in the face of this type of blow, and the new forces that bet on the whole market may be the biggest bearer of this blow. At present, although most of the new forces car companies have achieved higher volume targets, whether it is monthly delivery that continues to exceed 10,000, or are moving towards this goal, sales have increased significantly, but in fact, none of the new forces have achieved profitability.
Including giants such as "Wei Xiaoli", they are still in a situation of loss, such as Weilai Automobile, which has just announced its financial report, in the case of 109.1% year-on-year delivery in 2021 and 122.3% year-on-year revenue, Weilai still has a loss of 4 billion. After the price rise, new energy models will undoubtedly face the possibility of sales decline, and for the new forces that have not yet formed a larger-scale delivery volume, are still in the loss status quo and more new energy vehicle companies, in this price increase tide and subsidy regression, the downhill road may also be inevitable.
The automobile market is a more complex industry in the manufacturing industry, and new energy vehicles are no exception, coupled with the high investment in research and development in emerging fields and the recent supply chain crisis and policy turmoil, the new forces that are still weak and several cross-industry players who are still in their infancy How to survive this crisis to survive this round of reshuffle is also a problem we should think about.
Write at the end:
The rise in oil prices makes us first think of the possibility that new energy is also about to rise, but with the regression of subsidies and the sharp rise in raw materials, the price increase of new energy models has become almost inevitable. The disadvantage brought by the price increase of models in the consumer market is also certain, which is undoubtedly a blow to the newly rising new energy market. In the new round of shuffling, who will fall and who will become the new "leader", we will wait and see.
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