The May Day holiday has passed, the first day of work first caught my eye is in the past few days, the major domestic new energy manufacturers have published their sales in April, overall showing a downward trend, but there are also some companies can withstand the interference pressure brought by the external environment, to the April sales performance to draw a perfect exclamation point.
"Wei Xiaoli" sales showed a downward trend in April
When it comes to the new energy market, the first thing that comes to mind must be the three giants in the new car-making force, "Wei Xiaoli", but in the overall sales in April, Weilai, Xiaopeng and Ideal have all experienced sales declines. According to sales data, NIO sold a total of 5,074 vehicles in April, compared with the sales performance of 9,985 units in March, a sales decline of 49.2%.
The sales volume of Xiaopeng in April was 9,002 vehicles, as the highest-selling company in "Wei Xiaoli", sales also showed a downward trend, compared with the sales performance of 15,414 vehicles in March, down 41.6%.
Finally, the ideal car, which was originally known as the ideal one that hit the world, did not have a satisfactory sales performance this month, and only 4167 units were sold in April, down 62.2% from 11034 units last month.
For the "Wei Xiaoli" collective sales fell sharply, first of all, considering the increase in the cost caused by the rise in the price of vehicle raw materials, it was helpless to increase the price, but in addition, the fluctuation of the parts supply chain due to the epidemic situation may also be a major factor. According to Shen Yanan, co-founder and president of Ideal Automobile, 80% of the supply chain of Ideal Automobile is distributed in the Yangtze River Delta region, and a large part of it is in Shanghai, Suzhou and other places, due to the impact of the epidemic, suppliers in the region can not supply or even stop work and stop operation, which has a great impact on the sales of Ideal Automobile in April.
Not only ideal, Weilai and Xiaopeng are affected by the unsmooth supply chain, resulting in the inability to continue to maintain production after the existing parts inventory is digested. Weilai Automobile also said that it is currently actively overcoming the supply chain pressure caused by the epidemic, and production is gradually recovering. The second production base in Hefei Xinqiao Intelligent Electric Vehicle Industrial Park is progressing smoothly and is expected to be officially put into operation in the third quarter.
Equally uncomfortable is the performance of the capital market: following the ideal, Weilai and Xiaopeng were recently included in the latest "pre-delisting" list by the US Securities and Exchange Commission (SEC). According to the list of companies in the Foreign Companies Accountability Act updated by the US Securities and Exchange Commission website on May 4, there are 88 Chinese companies included in the "pre-delisting" list, of which "new car-making forces" WEILAI Automobile and Xiaopeng Automobile are among them, and 105 Chinese companies have been included in the "pre-delisting" list so far.
The 88 companies are the sixth to be listed, and those on the "pre-delisted" list must provide evidence to the SEC by the filing date of May 25 that they do not meet the delisting criteria or they will be added to the final list. Companies on the final list will be required to provide the SEC with the documents they need within three years and, if failed, will be delisted in early 2024 after the disclosure of the 2023 annual report.
So after the general decline in U.S. stocks on May 5, Weilai's stock price fell by 15% on the same day, and it also fell by 12% in Hong Kong stocks, Xiaopeng fell 13.5% in U.S. stocks on May 5, Hong Kong stocks fell 9.3%, and ideally fell 8.1% in U.S. stocks on May 5.
BYD landed on the moon after March and sold 100,000 thrones
Just as the so-called some people are happy and some people are worried, when the new forces of car manufacturing are sad, BYD has achieved dazzling results of sales of more than 100,000 for two consecutive months with its excellent product strength, and completely consolidated the position of its own brand new energy leading enterprise. It can be said that BYD is currently ushering in the best stage of development, with sales of more than 100,000 vehicles in April, a total of 105475 units, an increase of 136.5% year-on-year, of which 57,430 pure electric models and 48,072 hybrid models were sold. As of April 2022, BYD New Energy has sold more than 1.9 million vehicles.
Cumulatively, from January to April this year, BYD's cumulative production of new energy vehicles was 395,000 units, compared with 82,700 units in the same period last year, an increase of 377% year-on-year. From January to April, the company sold 392,300 new energy vehicles, compared with 80,400 units in the same period last year, an increase of 387.9% year-on-year. Among them, plug-in hybrid vehicles sold 48,000 units in April, compared with 0.89 million units in the same period last year, an increase of 438.9% year-on-year. From January to April, the company sold 189,500 plug-in hybrid vehicles, an increase of 700% year-on-year.
Specific to the model, BYD's various series have achieved outstanding results, of which BYD Song series has the highest sales volume of 25428 units; BYD Han sold 13421 vehicles in April, and the Han EV series increased by 77.9% year-on-year. The BYD Tang family sold 10,131 vehicles in April, of which the Tang EV increased by 263.7% year-on-year, and the Tang family sold more than 330,000 vehicles. The Song family sold 25,108 units in April, and the Song DM series increased by 1299.5% year-on-year. The Song family has sold more than 1.15 million vehicles. The Qin family sold 23,520 units in April, and the Qin PLUS EV increased by 401.4% year-on-year. The Qin family has sold more than 600,000 vehicles. The Yuan family sold 15,168 units in April, and the Yuan family increased by 659.5% year-on-year. The Yuan family has sold more than 270,000 vehicles.
In addition, the Destroyer 05 sold 2,040 units at the beginning of its launch in April, up 38.2% month-on-month, and the Dolphin model sold 12,040 units in April, an increase of 14.7% month-on-month. At present, the Dolphin model has accumulated sales of more than 70,000 vehicles, and it can be said that BYD's entire car series has blossomed more.
New energy vehicles have undoubtedly become
A powerful engine supporting domestic sales growth
Terminal sales data show that in the first quarter of 2022, domestic new energy vehicle sales of nearly 1.257 million units, of which, Chinese brand new energy vehicle sales terminal sales reached 679,000 units, the market share of more than 50%. In the sales ranking of new energy manufacturers in the first quarter of this year, BYD surpassed Tesla, which ranked second with 108,300 sales, with sales of 282,000 units (including hybrid models).
Why is IT THAT IN THE ENVIRONMENT OF THE UNEVEN SUPPLY CHAIN UNDER THE IMPACT OF THE EPIDEMIC, BYD CAN STILL GIVE SUCH BRILLIANT SALES RESULTS?
I believe that this is inseparable from BYD's own relatively complete supply chain system, and the blade battery independently developed and produced is also indispensable. Secondly, bydir's factories in Shenzhen and Xi'an are less affected by the epidemic, so the overall production is relatively stable. And through the accumulation of the early stage, BYD has established an excellent reputation in the market, so it will have a stronger premium ability than other brands.
So what can make a brand have a strong premium ability, the primary factor supporting the price breakthrough of Chinese brands is the improvement of product strength. According to J.D. POWER China Vehicle Reliability Research, the quality gap between Chinese brands and mainstream foreign brands has narrowed from 9 PP100 (number of problems per 100 vehicles) in 2020 to 6 in 2021. PP100 Car companies with an average level or above in the mainstream car industry have increased from 6 Chinese car companies in 2020 to 10 in 2021.
While improving quality, Chinese car companies have expanded their territory in the high-end new energy vehicle market by virtue of their industrial advantages accumulated by electrification and intelligence. For example, BYD, which is "bottom-up", has launched corresponding high-end models Han and Tang while occupying the low-end market through cost-effective models to achieve full coverage of the high-end, high-end and low-price ranges. On the other hand, traditional OEMs such as BAIC, GAC, Changan and Huawei have carried out cooperation on intelligence and autonomous driving and launched high-end products.
According to the 2021 financial report data, BYD surpassed SAIC Volkswagen for the first time with an average bicycle price of 153,200 yuan. As a benchmark for Chinese joint venture car companies, SAIC Volkswagen has occupied the sales champion in the domestic market for many years. In the past year, BYD has surpassed Volkswagen in the average price of bicycles, and the meaning behind it is self-evident: the upward path of Chinese brands is clear and unstoppable.
Price is the cornerstone of supporting the upward movement of Chinese brands, as Chinese brands continue to march towards high-end, the luxury car market has gradually gained the presence of Chinese brands. Statistics from the Autohome Research Institute show that in 2021, the annual sales of more than 200,000 Vehicles of Chinese brands will exceed 900,000. Among them, Chinese brand new energy vehicles with more than 200,000 yuan accounted for 54%.
In general, electrification and intelligence are excellent tracks for Chinese brands to break through upwards, and this window period may only be 3 years and 5 years. In the first stage of electrification, the competition is sales, and there is no basis without sales. Wei Xiaoli, BYD, GAC E-An, Geely Lynk & Co and other car companies have "run out" at this stage, and I believe that with the understanding and careful study of Chinese users accumulated by Chinese brands in the past few decades, there will be more Chinese car companies that stand out.
Turbulent April and anticipatory May
For the new energy market, April was a turbulent month. Most car companies face the decline in sales under the dual influence of raw materials and the epidemic, but the worst period of the epidemic will eventually pass, and how to maintain the advantage of their own sales or reverse the decline of their own sales is the first thing for enterprises to consider. Now that the parts supply chain is gradually recovering, the next Five months will be a competitive month.
Five years have passed since the State Council and the Ministry of Industry and Information Technology set up the China Brand Day in 2017 and vigorously promoted and developed their own national brands, and whether Chinese auto brands have achieved a key leap forward in the brand, different people have different understandings. According to the terminal sales data from January to March this year, the market share of Chinese brands has expanded to 42.9%. Consumers' increasing recognition of Chinese auto brands has become an indisputable fact.
"The biggest challenge facing Chinese brands is still the joint venture car companies, and we have not yet reached the premium capacity of foreign brands. In the long run, brand transformation is a very difficult process." Zhu Huarong, chairman of Changan Automobile, has repeatedly said bluntly in public. It is foreseeable that when the Chinese auto market is bundled with "micro-growth", the long-term competition between Chinese brands and joint venture foreign brands will be a white-knife battle between narrow roads.
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