It may become more and more difficult to buy a cheap car in recent years.
On April 3, BYD took the lead in announcing that it had stopped producing fuel vehicles in March and focused on plug-in hybrid and pure electric models. This is undoubtedly an important step for BYD, and it has become one of the first car companies in the world to transform.
The image comes from BYD Auto's official WeChat
Transformation and electrification have become imperative, and many of the world's leading car companies such as Volkswagen Group, Toyota, and General Motors have formulated transformation plans in the next 5-10 years. However, there is a problem that may be overlooked, low-cost fuel vehicles take the lead in "leaving", and with the rush to increase prices encountered in the supply chain of electric vehicles, low-cost electric vehicles may be difficult to quickly make up. Low-cost models will encounter a situation of "green and yellow".
BYD's average price exceeds Volkswagen? There is no comparison between the two
In 2021, there have been reports that according to data provided by Wilson, BYD's average selling price has surpassed Volkswagen. Many people lament that domestic brands are gradually selling more and more expensive. But in fact, this is not the "price increase" of domestic brands, but the impact of transformation.
At present, the lowest price of fuel models that can be queried on BYD's official website is 2020 F3, with a starting price of 44,900 yuan. The most expensive model is the Song PLUS, which starts at 115,800 yuan.
The image comes from BYD's official website
In contrast, the price of new energy models is less than 100,000 yuan after subsidies for only the 2021 e2 and yuan Pro models, and the starting price of the remaining models is about 100,000-200,000 yuan. If you only look at the suggested retail price before the subsidy, BYD has no models below 100,000 yuan.
Combined with the news in 2021, the main reason why BYD's average price exceeds Volkswagen is actually that BYD's production focus has shifted to new energy, and Volkswagen is still dominated by fuel vehicles, and the two are not fundamentally comparable.
Generally speaking, the price of fuel vehicles is lower than that of new energy vehicles, and there are two main reasons for this. On the one hand, new energy vehicles have just started, and it takes time to gradually reduce production and manufacturing costs; on the other hand, the global demand for new energy vehicles has suddenly increased sharply in the past two years, and the supply of raw materials is in short supply, taking the lithium needed to manufacture batteries as an example, lithium ore prices have risen by about 10 times since the beginning of 2021. Therefore, the current price of some pure electric models is even more expensive than the hybrid models with "more engines", mainly in the cost of batteries.
After BYD stopped selling fuel vehicles, there was one less choice to buy low-cost fuel vehicles, but other car companies may also have to take low-cost fuel vehicles to "open the knife" first.
Under the double integral, the trend of low-cost fuel vehicles leaving the market
Since 2018, in order to promote the development of new energy vehicles, mainland China has launched a "double points" policy for car companies. This set of policies is gradually improving and strengthening, and the pressure on car companies that produce fuel vehicles is increasing.
Let's briefly explain the double credit policy. The production of pure fuel vehicles, except for a very few models with better fuel economy, will produce "negative fuel points", and hybrid models that cannot meet the fuel consumption standards will also obtain "negative fuel points". On the contrary, the production of new energy vehicles will not only obtain "positive fuel points", but also "new energy points".
After a year, car companies need to ensure that the sum of their points (that is, fuel points + new energy points) is positive, if it is a negative number, they must purchase "new energy points" from other companies to smooth out the deficiency.
This policy can allow car companies that only produce pure electric models to bring considerable "points revenue" every year, such as Weilai in the third quarter of last year, relying on points to obtain 517 million yuan in revenue. But for car companies that produce fuel vehicles, there are only two ways to choose from, either to transform as soon as possible, or to pay for points.
Under the pressure of transformation, car companies have to take low-cost models to "open the knife" first. The profit of the low-priced model itself is relatively low, and if the expenses brought by the points are deducted, it may even cause a situation of "selling one and losing one". For example, the first model to be "cut" is likely to be santana, which currently has the lowest starting price under its brand. News of Santana's suspension of production has been raging since the end of last year, but officials have not yet announced anything about the suspension.
SAIC Volkswagen Santana (Image from SAIC Volkswagen)
Low-cost fuel vehicles are discontinued, can low-cost electric vehicles really take over?
Low-cost electric vehicles need to be more practical
The popularity of low-cost electric vehicles is not low, and the most representative of them should be the Wuling Hongguang MINI EV. For many consecutive months, it has listed the sales list of new energy vehicles in China and even in the world. The starting price of more than 30,000 yuan is indeed cheap enough, but the practicality is far from enough. With an endurance of less than 200 kilometers, even in the warm south, it seems too stretched. The positioning of this car is more suitable for the second car at home. Wuling officials also released a set of statistics in April last year, saying that the "second car in the family" of Hongguang MINI EV accounted for 80%.
Recently, the new "Street Fighter" Wuling Hongguang MINIEV GAMEBOY was also officially listed. Compared with the current Hongguang MINI EV, the GAMEBOY version has been comprehensively improved in terms of personalization, configuration and power endurance, in short, the battery life has increased and the price has nearly doubled.
Due to cost constraints, the endurance of low-cost electric vehicles is usually difficult to break through 400 kilometers, and then consider the charging speed, endurance attenuation in cold environments, etc., it is basically difficult to cope with medium- and long-distance travel.
Think back to the former Chery QQ, Suzuki Alto and Changhebei Douxing, although they are also not large, but because there is no mileage and charging restrictions, they have no problem as the only car used by the family. But for cheap electric vehicles, there is no one on the market that can stand alone. Low-cost electric vehicles want to support the low-cost car market, endurance and charging are two major problems that have to be solved. This is not a task that can be completed in a few years.
Chery QQ (Picture from Quick Understanding Encyclopedia)
How to reduce the purchase price of new energy vehicles has become the key to solving this problem.
Vehicle-to-electricity separation mode makes the threshold for new energy vehicles lower
When it comes to the concept of separation of vehicle and electricity, it is easiest to think of Weilai. Because of its unique advantages of exchangeable electricity, NIO launched BaaS (Battery as a Service) - the concept of battery as a service, which can provide a sales solution for separation of vehicles and electricity, and car owners can reduce the price of the battery part when buying a car, but need to pay a monthly battery usage fee, which is equivalent to changing from a buyout system to a subscription system.
NIO Substation (Image from NIO Automobile)
And can not change the electricity model, can also achieve "car and electricity separation" sales, BAIC, Nezha, Volkswagen and other car companies have launched or plan to launch a car-to-electricity separation sales model, batteries can be loaned separately, reduce the purchase price of cars. Although in essence, this mode of operation is only equivalent to a part of the car loan, but thanks to the lower cost of the daily use of electric vehicles, this part can also be accepted if it is considered as the fuel cost of the fuel vehicle. In addition, some car companies that can provide vehicle-to-electricity separation sales solutions can also replace new batteries for car owners for free, which also solves users' concerns about battery attenuation.
At the 8th China Electric Vehicle 100 Forum held last month, Lin Nianxiu, deputy director of the National Development and Reform Commission, also said that it is necessary to actively explore new models such as vehicle-to-electricity separation, combination of charging and replacing electricity, and flexible battery configuration, to create an innovative ecology for industrial integration and development, and to continue to improve the level of industrial development with innovation as the driving force. The separation of vehicles and electricity will also receive more support and encouragement in terms of policy.
Although the sales model of separation of vehicle and electricity cannot fundamentally reduce the price and cost of electric vehicles, it can reduce the threshold of new energy vehicles. Let more people use and afford new energy vehicles. With the gradual maturity of technology and the stability of supply, the price of new energy vehicles can eventually decline. At present, how to let more people use cheap and practical cars has become a problem that needs to be considered and solved in advance, and it is expected that there will be better solutions.
*Head image from: Wuling
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