On January 16, 10 days have passed since Tesla (TSLA.US) significantly lowered the price of domestic models. The domestic Tesla Model 3 dropped from 229,900 yuan, and the Model Y dropped to 259,900 yuan, the lowest price in history. This unprecedented price reduction has given Tesla's sales a shot in the arm and made other new energy vehicle companies "under pressure".
Red Star Capital Bureau visited a number of new energy vehicle stores and found that the number of Tesla customers entering the store has increased several times, the number of orders has surged, and there are few customers in stores of other brands. AITO and Xpeng Motors (09868.HK/XPEV.US), which were most affected by Tesla's price cuts, both followed suit, with the former dropping 30,000 yuan and the latter reducing prices by 2-36,000 yuan from 14:00 on January 17.
Tesla stores are full of people
Test drive service resumed 10 days after the price cut
On January 16, Red Star Capital visited a shopping mall in Chengdu, where Tesla, NIO (09866.HK/NIO.US), Xpeng Motors, Li Auto (02015.HK/LI.US), AITO, SAIC Feifan, Gaohe and other new energy vehicle stores are gathered, consumers can shop for cars in one stop.
At 6 p.m., during the peak period of dinner traffic, Red Star Capital noticed that Tesla stores were full of people, and customers continued to enter the store to inquire. The salesperson told the Red Star Capital Bureau that the number of people entering the store to inquire after the price reduction increased several times, and due to limited manpower, the store had to suspend the test drive service until the 16th. "The mall closed at 10 p.m., there were so many customers arriving on the day of the price cut, we didn't see off the last customers until 12:30 a.m., and everyone had to leave through the staff corridor." The salesperson said.
After the price cut, Tesla's orders increased significantly, the Model Y pick-up cycle was extended from 1-4 weeks to 2-5 weeks, and there were media reports that "Tesla China received 30,000 orders within 3 days after the price cut." Although Tesla officials "do not comment" on this, Tesla salespeople told Red Star Capital that "many orders have indeed been received after the price reduction, but the specific data cannot be disclosed." ”
↑ Tesla stores
It is understood that the store's current daily order number has not decreased significantly. "These orders do not all translate into sales," the salesperson explained, "Tesla's sales model is to pay 1,000 yuan in the first installment, this money will not be refunded equivalent to the deposit, customers can enjoy 60 days of price protection, during which if Tesla reduces prices or has other preferential activities, it also enjoys the same treatment." ”
Red Star Capital Bureau found that most of the customers entering the store were attracted by the news of the price reduction. Some customers feel very entangled: "My budget is below 250,000 yuan, I was looking at other brands before, and now Tesla's cost performance has suddenly come up." ”
Tesla salespeople urged customers to place orders as soon as possible: "Now that the price of lithium carbonate has rebounded, Tesla's low price may not be able to support it until after the Spring Festival, and it is not clear when it will rise back." He also said that at present, the Ministry of Industry and Information Technology does not have a record of Tesla's facelifted models, which can guarantee that there will be no facelifted models in the first half of 2023.
Qianjie and Xiaopeng were greatly affected
Successively followed up with price reductions
Among the other cold new energy vehicle stores, AITO and Xpeng Motors are the few brands that still have customers entering the store for consultation. Both of these models have models whose prices overlap with Tesla's, and they are also brands that are more affected by Tesla's price cuts.
On January 13, the company lowered the prices of a number of models, becoming the first new brand to follow suit. The adjusted price of the M5 EV starts from CNY 259,800, a price reduction of CNY 28,800, while the M7 starts at CNY 289,800 after adjustment, a price reduction of CNY 30,000, and will provide corresponding compensation to owners who have already picked up the car, including basic maintenance, points, and extended vehicle warranty.
After the price reduction, the M5 EV is the same price as the Tesla Model Y. The sales staff told Red Star Capital that because the store is facing Tesla, many customers will compare the two. The salesperson emphasized, "This price reduction is a permanent price reduction and will not rise back." ”
Red Star Capital Bureau noted that although the salesperson said that "the price of the extended range version of the M5 has also been reduced, starting from 259,800 yuan", the price reduction scope of the official notice does not include the extended range version. And it was previously reported that the M5 will usher in a facelift with lidar in April and May this year, coupled with the lack of customers' willingness to buy cars on the eve of the Spring Festival, the effect of the price reduction promotion is not satisfactory.
Xpeng Motors is the lowest average selling price among "Wei Xiaoli", and the only company that "collides" with Tesla's price, becoming the second new force to follow up on price reductions.
On January 1, Xpeng Motors officially announced that the sales prices of all its models in 2023 will remain consistent with the comprehensive subsidized prices at the end of 2022. Xpeng Motors also gave a series of Spring Festival discounts. Taking Xpeng P7 as an example, the Spring Festival discount of 23,000 yuan in cash + 5,000 yuan in optional fund, and 1,500 degrees of overcharging every year for four consecutive years.
However, the promotional effect of the above offers is not satisfactory. A number of customers told Red Star Capital that although Xpeng's discount is very large, they only learned after visiting the store for consultation, and did not know the price reduction news first like Tesla, and then took the initiative to go to the store for further consultation.
On January 17, Xpeng Motors also neatly reduced prices.
Xpeng Motors officially announced that from 14:00 on January 17, 2023, the price of G3i/P5/P7 will be reduced by 2-36,000 yuan, and the first owner within one year before the price adjustment will be given basic maintenance and extended vehicle warranty New Year feedback. The three models that have reduced the price this time are all priced below 250,000 yuan after adjustment, which is directly benchmarked against Tesla.
NIO, ideal positioning difference
Nezha and Zero Run are not obviously affected for the time being
Red Star Capital Bureau from NIO, Ideal, Nezha Auto, Leap Auto (09863. HK) stores understand that Tesla's price cuts have little impact on them, but for different reasons.
The salesperson of Li Auto is not worried about this "storm": "The positioning and price range of Li Auto and Tesla are too different. The ideal L9 and L8 are mainly for families with more than 5 people, and L7 is for families of three, which is relatively affected. At present, there are very few customers who unsubscribe, and the number of customers entering the store has declined, but it is more likely to be the reason for the Spring Festival. "The ideal L7 starts at 339,800 yuan, which is the lowest price model of the ideal car.
NIO's salespeople believe that the impact of Tesla's price cuts is temporary, "NIO and Tesla's target customer groups are not consistent." NIO is mainly targeting the high-end pure electric market, and the ET5 is currently the only model priced below 400,000 yuan. ”
Unlike Ideal and NIO, the flagship models of Nezha Auto and Leap Auto are in the range of 200,000-300,000 yuan, which coincides with Tesla, but they are not the brand's sales responsibility.
With annual sales of more than 150,000 units, Nezha Automobile has become the new force sales champion in 2022. However, among them, the sales of Nezha S, which is priced at 200,000-300,000 yuan, accounts for only 10%, and the sales volume of Nezha U and Nezha V are below 120,000 yuan.
Leapmotor delivered a total of 111,000 units in 2022, of which more than 100,000 units were delivered for the T03 model priced below CNY 100,000. In September 2022, the Zerorun C01 was launched with a price of 19.38-286,800 yuan, and the number of vehicles in the annual insurance was less than 5,000 according to the data of the Passenger Association.
On January 4, Nezha Automobile officially announced a price increase. Nezha S increased the price by 3,000 yuan; Nezha U-II increased its price by 6,000 yuan; Nezha V increased its price by 4,000 yuan.
At the beginning of the year, Leapmotor announced that the price of the C01 model will not increase, and before January 31, it will issue and lock the C01, which can enjoy a direct reduction of 10,000 yuan in cash for the whole series, a financial discount of up to 12,000 yuan / unit, the first owner of the three electric life warranty / lifetime free roadside assistance / lifetime free maintenance and delivery / lifetime basic traffic + 1 year entertainment traffic, free charging pile and charging gun / free electric tailgate, etc. On January 17, Zerorun C01 launched a limited-time discount for the Chinese New Year, and users who paid before 24 o'clock on February 28 and completed the pick-up before June 1 can enjoy a discount of 5,000 yuan to 30,000 yuan.
Red Star News reporter Wu Danruo
Edited by Yu Dongmei Xiao Ziqi
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