The 79,800 BYD Qin lifted the table, and the pressure on Japanese cars is high, and it is more difficult to make domestic cars
Text/Wang Xinxi
The first price war in 2024 will be even more cruel, with the BYD Qin PLUS DMI Glory Edition and the Destroyer 05 Glory Edition, the entry price is only 79,800 yuan, which has driven the price reduction tide of domestic car companies. Changan Qiyuan, Nezha Automobile, and SAIC-GM-Wuling officially announced price cuts on the same day.
In the eyes of the industry, BYD flipped the table this time, the fuel car panicked, and the Japanese car was in trouble. Some netizens said: "The nightmare of Japanese cars is not only in the Chinese market, but also in Japan, which has lost its auto industry, may not even be as good as Cambodia." ”
"The difference between the configuration of the 79,800 Qin and the 75,600 Sylphy is huge, which is simply an epoch-making difference between a smartphone and a button phone. ”
But in fact, Japanese cars are not afraid of BYD Qin lifting the table, but afraid of being a new domestic force.
Under the impact of new energy, why are Japanese car sales still strong?
The price reduction may also be BYD's own sales pressure, the target is very high, and the sales pressure is very high, but BYD's whole industry chain layout can reduce costs, coupled with the decline in battery costs, and has the ability to fight a price war.
Let's talk about the conclusion first, it has a certain impact on the third and fourth-tier new power car companies, and the price war cannot be beaten, and they may have to sell cars at a loss, but it is becoming more and more difficult to obtain financing. It is also a good time for consumers to buy gasoline cars, because it will definitely force the price of gasoline cars to drop. Especially Japanese cars.
Why?
Because the consumer groups of oil vehicles and new energy vehicles are two different groups, consumers who buy Sylphy Corolla are not obsessed with acceleration, power and configuration, but pay more attention to the durability, fuel economy, stability and economy of this car. Many consumers, buy a 100,000, 200,000 Japanese car for 7 or 8 years without any problems, the reputation of these cars is slowly done, in fact, this is a process of market verification.
The more typical is the Camry.
In the past, many netizens commented on the Camry: "the acceleration is soft and weak, the price is extremely strong, the interior is cheap, the space is average, the sound insulation is poor, and the paint is thin", but even in the past few years of rapid development of new energy vehicles, Camry has not lost sales of medium-sized cars of about 200,000 at the same level.
Camry entered the country in 93, BYD was established in 95, and Camry has entered the country longer than BYD's history. In 06, the sixth-generation Camry was localized, and it has continued until now, and its overall product cycle has not been interrupted.
After so many years, some people who have driven a Camry will have a perception that these cars seem to be mediocre in all aspects of acceleration performance and interior after they are bought. But after 5 or 6 years, other cars burned engine oil, engine oil leakage, cooling system leakage, electronic system failure and other small problems began to run to the car repair shop, but the Camry had no problem at all, the car repair shop basically could not see the car, at this time, its advantage came out -
The fuel-efficient, durable and easy to drive brought by the blessing of the three excellent parts, the chassis is solid and tough, and the stability is good, which brings consumers a favorability by relying on the advantage of time, and finally defeats the advantages of many cars in terms of initial configuration and performance.
In recent years, new energy vehicles have been beating oil vehicles in terms of intelligence and configuration, interior and appearance, but they have not yet experienced a long period of market verification, so that consumers have a more comprehensive evaluation and trust in its quality, durability, battery life, safety, stability and many other aspects.
Recently, after a series of word-of-mouth events of new energy vehicles, including the problem of endurance charging on snowy days and the dilemma of running at high speed, Hainan new energy can not get on the island, etc., the reputation of new energy vehicles is being affected, and the reputation of oil vehicles is pulling back a game.
Why are Japanese cars often in the acceleration performance, interior appearance, configuration, price and other conditions are not superior, but can still sell dynamic, the key is that the product has been verified for a long period of time, everyone has expectations for its service life and quality, do not have to worry about all kinds of problems, the establishment of this brand value and trust, the impact on consumers to buy a car is very large, not only the configuration.
Domestic cars still need a long period of time to verify, and BYD's price reduction may impact the second, third and fourth line new forces
To put it simply, in doing a good job, it is not convincing enough to use the configuration to hang and beat, and the comprehensive competitiveness of stability, durability, and quality itself is the key, which is exactly what domestic cars still need to improve.
If consumers buy your car, drive it for seven or eight years, have no problems at all, and the battery life is still online, then at this time, the brand trust value of the car company will be higher, and the sustainable growth of sales will be possible.
BYD Qin's wave of price cuts, Japanese cars will be affected to a certain extent, but the greater impact may be domestic cars, because BYD's low-end product line, now with a price of 70,000 can almost directly penetrate all domestic oil mixed opponents, limiting the ability of opponents to expand production capacity.
In addition, the same camp of domestic car brands lack the process of market product verification, there have been dozens of new forces that have fallen, many new forces financing is out of gear or this year, the Japanese top three in the Chinese market halved and the global market support, while other domestic cars only in the Chinese market.
The price war is beneficial to consumers, but from the perspective of car companies, it is likely to lead to the obstruction of the road to quality upgrading, car companies are calculating costs and prices under this pressure, which may lead to the use of auto parts materials, some parts can be saved, low cost and low quality, short-term volume is a good competitive strategy, but in the long run, everyone has no profit, and more car companies below the waist are swept to death.
In the price range of 100,000 yuan, car companies do not make money, and BYD is not one of the few exceptions, it can manufacture its own materials from battery raw materials, three-electric systems, vehicle design and manufacturing, to battery recycling and insurance services, and even interior materials, lubricants and other materials. Due to the large sales volume, some external procurement links such as ESP, airbags and other equipment can be purchased at a very low price.
Some industry insiders said: BYD's current production capacity and R&D investment status, Qin Xia to 59,800 can guarantee a small profit. As a result, we see Geely executives starting to come out and bombard BYD for price cuts.
For many of the second and third-tier new forces that also take the cost-effective route and focus on the 100,000 ~ 200,000 range, many consumers will give up these new forces and transfer to BYD based on cost considerations.
BYD Qin is rushing to the first place in China's car sales list. The original top three are Sylphy Corolla Volkswagen Lavida, the Japanese German system itself has profits, there is a global market to support, in order to protect the market, further price reductions or inevitable, for consumers who originally valued the stability of oil cars, this year may be a good time to buy oil cars.
Therefore, BYD Qin promotes the price reduction of Japanese cars, and the cost performance of Japanese cars is highlighted after the price reduction.
What we have to worry about is the sustainable competitiveness of our cars, and the words of Geely executives are still worth considering: if the development of new energy vehicles is only to make money at a loss, and most of the development of enterprises is not sustainable, we need to demand a market for high value and high experience.
The 79,800 Qin 55KM battery life is still an oil car in essence, and consumers will only rely more heavily on oil in the face of such a battery life. Is it really a good phenomenon for consumers to buy cars that rely too much on oil and give up electricity?
But the market is cruel, this wave of BYD Qin killed to 79,800, the Japanese and domestic new forces have been impacted, and the blow of second-hand cars will be greater.
Author: Wang Xinxi, Senior Reviewer of TMT This article is not reproduced without permission