In the face of Tesla's successive continuous price reductions, the new domestic car-making forces finally can't help but follow suit.
On January 13, AITO announced price adjustments for a number of models. Among them, the M5 EV decreased by CNY 28,800 to CNY 30,000, with a starting price of CNY 2,598,000,000, and the M7 was sold from CNY 30,000 to CNY 289,800.
The details are as follows:
- M5 EV rear-drive standard version 259,800, down 28,800;
- M5 EV four-wheel drive performance version 289,800, down 30,000;
- M7 Comfort version 289,800, down 30,000;
- M7 Deluxe Edition 309,800, down 30,000.
The adjusted price will take effect at 8:30 on the same day.
While reducing the price, it also extends the warranty and points subsidies to the users who have already picked up the car, compensating the old users to a certain extent, compared with the previous suspension of some new forces and price reductions, the practice of asking the world is undoubtedly very humane - it is estimated that many friends will also learn from this practice in the future.
The important reason why the price reduction attracted market attention was that it was the first domestic brand to follow up after Tesla's price cut.
The price reduction is highly targeted
From the price after the price reduction, we can see that the price of the boundary is very targeted, just to benchmark Tesla.
After the price reduction, the price of the M5 EV rear-wheel drive version is 259,800, which is basically the same as the price of the Model Y rear-drive version of 259,900, and the price of the M7 luxury version is 309,800 and the Model Y long-life price of 309,900 is basically the same, and the meaning of fighting the ring is unabashed.
From the product quality level, the Qianjie series model can be said to be better than the Model Y.
First of all, let's look at the comparison between the M5 EV rear-drive version and the Model Y rear-drive version. The CLTC range of the M5 EV reaches 620km, while the Tesla Model Y has a maximum CLTC range of 545km. Obviously, the question boundary clearly has the advantage,
In terms of charging, the M5 EV fast charge takes only 30 minutes, the Model Y's overcharge solution can be charged in 48 minutes, and the fast charge takes an hour.
In terms of power performance, the M5 EV has a maximum output of 200kW and can land 360Nm of torque and accelerate in 7.1 seconds per 100km/h; Model Y has a maximum power of 194kW and a torque ceiling of 340Nm, with a zero acceleration of 6.9 seconds. In terms of braking, the M5 EV has a 100-zero braking distance of 36.9m and the Model Y has a braking distance of 37.9m.
As a range-extended model, the M7 has already outperformed its rivals in terms of cruising range.
As for the exterior and interior design, because the style of the two brands is too different, each has its own preferences, so I will not compare them here.
In terms of configuration, we compare the M5 EV rear-drive version and the Model Y rear-drive version, the 360 panoramic image, 5 driving modes, automatic parking, front seat heating and ventilation, and on-board intelligent system are all Tesla does not have.
The purpose of providing extended warranty services and point compensation to old car owners is more obvious. Obviously coming at Tesla.
For old users of the M5 EV and M7 who have previously picked up the M5 EV, Qianjie provides the first car owner with a total value of 3.3-35,000 yuan, including an extended vehicle warranty worth 2.1-23,000 yuan to 8 years/160,000 kilometers and 120,000 AITO points worth 12,000, which can be purchased in the AITO Mall with a wealth of Huawei products and peripheral products, and the M5 comes with 2 years of basic maintenance.
Tesla's price reduction has aroused the dissatisfaction of the majority of old car owners, and they have organized rights protests. In this comparison, the actual action of asking the world "real knife and real gun" is indeed more humane than Tesla, and at the same time pulls a wave of favorability - this is simply a god operation!
Qianjie first rigorously stuck Tesla in terms of price, and then deliberately made Tesla "embarrassed" in appeasing the old owner, this kind of short-term move is a bit of "street fighting", completely beyond the previous traditional car companies' moves, even Wei Xiaoli such a dare to be the first in the industry of enterprises have not played like this, it can be said that Qianjie has played peer competition out of a new realm.
Ask what is the strength of the boundary
From March to December, the series delivered a total of 76,180 new cars in 2022, exceeding everyone's expectations, not only achieving a monthly delivery volume of more than 10,000 in a very short period of time, but also launching a number of popular models in a row, making sales all the way up.
The M5 will sell 56,855 units in 2022, and at the same time enter the top 10 new energy SUV sales list in 2022, ranking 9th, surpassing popular models such as Nezha U, ID.4 CROZZ, Leading C11, NIO ES6, and Li L9, creating a record for the fastest growth of new brands on the smart electric vehicle track.
So far, Huawei has shown its dark horse nature at the sales level.
According to Yu Chengdong's vision, the brand should be able to achieve the level of annual delivery of 300,000 vehicles in 2022, and the current 76,000 vehicles is far from the target. Nevertheless, Qianjie has proved that it has gained a foothold in the market of more than 250,000 yuan.
There may be another reason why Qianjie dares to reduce prices, that is, the price of major raw materials such as lithium carbonate continues to fall. Taking the price of battery-grade lithium carbonate, the cathode raw material of lithium iron phosphate batteries, as an example, as of January 9, the price quotation of battery-grade lithium carbonate was about 492,000 yuan / ton, which has fallen below the 500,000 yuan / ton mark.
Zeng Qinghong, chairman of GAC Group, previously said that the cost of power batteries has accounted for 40%~50% of new energy vehicles, or even 60%.
Some market institutions pointed out that the price of battery raw materials will usher in an inflection point in the second quarter of 2023, when the cost of electric vehicles will be further reduced.
With the decline of subsidies for new energy vehicles, a new round of price war is coming. For an emerging brand like Qianjie, which Huawei relies on, what it needs to do is to grow rapidly, increase its market share at any cost, and eventually use its market scale to achieve brand growth. Previously, Huawei said that its goal is to build AITO into a global high-end smart electric brand within three years.
In terms of models, the model matrix composed of the M5 EV, M5, and M7 is much simpler than that of competitors. However, Huawei's smart car project with different brands such as Extreme Fox, JAC and Chery is further deepening, and it is currently reported that the above new cars will be hung on the logo of the world, and if this goal can be achieved, then the combat effectiveness of the brand will be significantly improved.
In addition, AITO's advantages in channels are also beyond the reach of rivals, not only covering more than 200 cities, but also more than 1,000 experience centers and user centers. Relying on these channels, coupled with the natural traffic of Yu Chengdong and Huawei, Qianjie's products will naturally get multiple market exposure.
Coupled with a highly targeted marketing method, it is difficult for brands to be popular.
People evaluate cars
It must be admitted that the world is very "windy and fiery" in many aspects, launching new cars in a frenzy, engaging in marketing in a fiery manner, and setting up a flag in a fiery manner. Especially in the face of Tesla, it is even more-for-tat and appears extremely violent.
But regenerative is also under pressure to make a profit. Yu Chengdong has previously said that cars are Huawei's only loss-making business. Yu Chengdong said that Huawei car BUs should be profitable by 2025. Faced with such pressure, we can understand that the world was crazy to benchmark Tesla at the beginning.
It's one thing to have the courage to benchmark against Tesla, and it's another thing how effective it is. We'll see!