The era of "electricity is lower than oil" is coming, and the share of oil trucks is about to avalanche?
When it comes to new energy vehicles and fuel vehicles, many people still retain the impression that new energy vehicles are more expensive than fuel vehicles. Indeed, plug-in hybrid versions of the same car were often much more expensive than gasoline versions due to battery costs, and this is still the case with the current Honda CR-V and Honda CR-V e:PHEVs. In the long run, everyone will naturally leave the impression that new energy vehicles are more expensive than fuel vehicles. It is precisely because of the relatively high price that the popularity of new energy vehicles without paying purchase tax is far from as fast as imagined.
In order to accelerate the popularization of new energy vehicles, BYD will offer the big move of "the same price of oil and electricity" in 2023, squeezing the living space of traditional fuel vehicles through models such as Qin PLUS DM-i 2023 Champion Edition. With the joint efforts of independent brands such as BYD, Geely, and Changan, the proportion of new energy vehicle sales will increase significantly in 2023.
According to the statistics of the Passenger Association, the cumulative retail sales of domestic narrow passenger cars in 2023 will be 21.703 million units, of which the cumulative sales of new energy narrow passenger vehicles will be 7.740 million units, accounting for about 35.7%. In 2022, the cumulative retail sales of domestic narrow passenger vehicles will be 20.543 million units, of which 5.674 million will be new energy narrow passenger vehicles, accounting for about 27.6%.
The era of "electricity is lower than oil" has arrived
It can be seen from the statistics that the proportion of sales of new energy vehicles will indeed increase significantly in 2023, which shows that BYD's "oil and electricity at the same price" move is still quite effective. However, the proportion of 35.7% also shows that fuel vehicles on the market are still the mainstream, and new energy vehicles still have a lot of room for improvement. Based on this, BYD will continue to cut prices in 2024, which is bound to pull new energy vehicles into the era of "electricity is lower than oil".
On February 19, 2024, the BYD Qin PLUS Glory Edition and the Destroyer 05 Glory Edition will be launched together, among which the Qin PLUS
The DM-i Honor Edition is priced at 79,800-125,800 yuan, and the Destroyer 05 Honor Edition is priced at 79,800-128,800 yuan. Compared with the Champion Edition model, BYD's Glory Edition model is significantly more accessible to the people, and it truly achieves "lower electricity than oil". You must know that the starting price of the joint venture A-class cars Nissan Sylphy and Toyota Corolla is not lower than 100,000.
In order not to be opened up by BYD, many brands joined the new price war at the first time. The Wuling Starlight 150 advanced version launched a glory price of 99,800 yuan, which was 6,000 yuan lower than the original price. Changan Qiyuan A05 also played the slogan "electricity is lower than oil", and lowered the starting price to 78,900 yuan, which is lower than the Qin PLUS DM-i Glory Edition. In addition, the Geely Emgrand L HiP Longteng Edition was launched on February 20, with a price starting at 89,800 yuan, and the starting price was 20,000 yuan lower than the previous Champion Edition.
Whether it is active or forced, a new round of price war in the automobile market has officially begun, Qin PLUS Glory Edition, Destroyer 05 Glory Edition, Emgrand L HiP Longteng Edition and other new energy models have been released, which means that the era of "electricity is lower than oil" has officially arrived. In the new era of "electricity is lower than oil", what will be the fate of joint venture brands based on oil vehicles?
Is the market share of gasoline vehicles about to plummet?
In the past, the slow adoption of new energy vehicles was related to factors such as high prices and imperfect charging networks. Therefore, when BYD releases the "same price of oil and electricity" in 2023, so that the prices of new energy vehicles and fuel vehicles are at the same level, the retail sales of new energy vehicles will immediately increase significantly. In 2023, the cumulative sales of new energy narrow passenger vehicles will reach 7.74 million units, a year-on-year increase of 36.3%.
The price is at the same level as fuel vehicles, and new energy vehicles have been able to achieve rapid growth in sales, and the price is lower than that of fuel vehicles, and the growth rate of sales may only be greater, and the market share of fuel vehicles may further shrink. Obviously, joint venture fuel vehicles will be under greater competitive pressure in 2024. The answer is definitely to join the price war to see who has the better transfusion capacity.
BYD launched the Glory Edition model, and Buick released the first wave of benefits in the Year of the Dragon, including the Buick Envision Plus limited-time discount of up to 65,000 yuan, and the Buick Veran Pro limited-time discount of 55,000 yuan. It can be seen that BYD's actions will not only affect other independent brands, but also affect the hearts of joint venture brands. With the passage of time, more and more joint venture brands may join this price war. For consumers, the harder the manufacturers fight, the more they benefit.
Compared with 2022, the cumulative retail sales growth in 2023 is not much, indicating that the auto market is now a stock competition, so the competition between manufacturers is extremely fierce. In order to speed up the popularization of new energy vehicles, BYD released a big move of "electricity is lower than oil" in the new year, trying to further compress the living space of fuel vehicles. If fuel vehicles can't bear it, the process of replacing fuel vehicles with new energy vehicles will undoubtedly be further accelerated.