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At the beginning of 2024, BYD fired the "first shot" of the car market price, shouting the slogan "electricity is lower than oil", and launched the 79,800 yuan destroyer 05 and Qin PLUS DM-i Glory Edition. Subsequently, SAIC-GM-Wuling, Changan, Nezha Automobile and other brands have joined the price war. The price war opened this time is plug-in hybrid models, and the main position of car companies is the market below 100,000 yuan controlled by joint venture fuel car companies.
And this price war, one more than a "volume", really forced the traditional fuel car companies into a corner, some traditional fuel vehicle sales staff said that the intended customers in their stores have been snatched away by BYD Qin.
With the decline in sales of fuel car companies, traditional automobile 4S stores have prepared for war and opened the "self-help" mode. Not only will it focus on the shortcomings of BYD Qin, but also popularize the words such as fuel vehicles and plug-in hybrid vehicles to customers to maintain the value of fuel vehicles and plug-in hybrid vehicles. In addition to words, dealers would rather pay for their own car discounts and try to retain customers. At the same time, a large number of 4S stores have also broadened customer acquisition channels through online live broadcasts, but with little effect.
Although the price war has had an impact on fuel vehicles, the living space continues to compress, but the greatest pressure is still the 4S store sales staff, due to the inability to sell the car, the performance is not up to standard, the salary has been greatly reduced, many sales consultants choose to leave or even change careers, some people run Didi, and even sell lottery tickets.
Looking back at the development of the new energy vehicle industry from the "impact of the new energy vehicle price war":
-- China's new energy vehicle production
Benefiting from preferential policies, the mainland new energy vehicle market has developed rapidly since 2014, and the production and sales of new energy vehicles have increased significantly; Subsequently, in 2016 and 2017, affected by the subsidy fraud incident and the regression of subsidies, the growth rate of production and sales slowed down.
-- Sales of new energy vehicles in China
Driven by favorable factors such as policy-driven and improved consumer acceptance, the new energy market in mainland China has grown rapidly. According to the statistics of the China Association of Automobile Manufacturers, from 2012 to 2022, China's new energy vehicle sales have achieved leapfrog development from 12,800 in 2012 to 6.887 million in 2022. In 2022, China's new energy vehicle sales will be 6.887 million units, a year-on-year increase of 93.4%. From January to November 2023, China's new energy vehicle sales were 8.304 million units, a year-on-year increase of 36.7%, of which 1.026 million units were sold in November, a record high, a year-on-year increase of 30%
-- The market penetration rate of new energy vehicles
With the gradual development of the new energy vehicle industry, in November 2015, the proportion of China's new energy vehicle production and sales in the overall automotive industry exceeded 1% for the first time, and China also became the world's largest new energy vehicle market in this year. According to the latest data released by the China Association of Automobile Manufacturers, the market penetration rate of China's new energy vehicles (the proportion of national new energy vehicle sales in the country's total automobile sales) reached 27.6% in 2022, a significant increase from 2021. As of November 2023, the market penetration rate of new energy vehicles in China has exceeded 30%.
Some industry insiders expect that the penetration rate of new energy vehicles may exceed 50% in the next three months, or even higher, forming a dominant position of new energy vehicles in the market. Miao Wei, former minister of the Ministry of Industry and Information Technology, said that the target of a penetration rate of more than 50% of new energy vehicles may be achieved ten years ahead of schedule.
For the focus of future competition in the new energy vehicle market, experts generally believe that more attention needs to be paid to improving the level of product intelligence, and at the same time, overseas markets are also the direction of force.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "Analysis Report on Market Prospect and Investment Strategic Planning of China's New Energy Vehicle Industry" by Qianzhan Industry Research Institute.
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