A new round of price reductions for new energy vehicles has kicked off again. This time the lead is the top students Tesla and Ideal, Tesla hit the whole system to cut the price by 14,000 yuan, the ideal is the main L model to reduce the price by 14,000 yuan-20,000 yuan, and the unfavorable MEGA directly cut 30,000 yuan.
The starting price of the Tesla Model 3 is already lower than that of the Xiaomi SU7 Pro Tesla and Ideal, and the reasons behind the simultaneous price reduction are different. Tesla has stepped up its price reduction promotions after the decline in deliveries in the first quarter, especially after the Xiaomi SU7 entered the market, and the competition has become more intense. In the first quarter of this year, Tesla's global deliveries were 387,000 units, down 8.5% year-on-year and 20.2% quarter-on-quarter, and global production was 433,000 units, down 1.7% year-on-year and 12.4% quarter-on-quarter, which was the first time in Tesla's history that both year-on-year and quarter-on-quarter production and sales declined.
Tesla's price reduction strategy revealed that the previous price increase of 5,000 yuan in early April was only to stimulate customers to pick up cars in the first quarter, and the subsequent announcement of interest-free installment car purchases and 14,000 yuan price reduction is the real promotional strategy. As production is still higher than the order volume, Tesla may continue to reduce prices in the future to remain competitive in the market. The emergence of the Xiaomi SU7 has brought significant competitive pressure to Tesla. Orders for the SU7 have exceeded 100,000 in less than a week, and the number of locked orders has also exceeded 40,000, directly competing with the Tesla Model 3. The prices of the three versions of the Xiaomi SU7 are 215,900 yuan, 245,900 yuan, and 299,900 yuan, respectively, while the price of the rear-wheel drive version of the Tesla Model 3 after the price reduction is 231,900 yuan, which is not only the lowest price in history, but also lower than the price of the Xiaomi SU7 Pro. Other new energy vehicle companies have also been affected by the Xiaomi SU7 and have launched price reduction promotions in response. Xpeng launched a 500 million yuan car purchase subsidy on April 20, targeting its G9, G6, P7i and 2024 P5; Zeekr launched a rear-wheel drive version for the 007, with a starting price of 209,900 yuan and an optional package discount of 20,000 yuan; Geely's Ruilan Automobile reduced the price of Ruilan 9 by 20,000 yuan; and Weilai also announced the launch of a maximum of 1 billion yuan of fuel vehicle replacement subsidies.
Although the release of Xiaomi SU7 has brought an impact on the pure electric car market, it is not a big threat to the old players of the ideal range extender market and large models. The main reason for the price reduction is to respond to the price reduction of Wenjie, in order to increase sales and get rid of the sluggish sales in the first quarter. In the first quarter of 2023, the overall performance of the ideal was not as expected. As Ideal's first all-electric model, the MEGA failed to become a new engine for sales, resulting in Ideal relying only on the sales of L-series models. Ideal's total sales in the first quarter were 80,000 units, up 52% year-on-year, but this growth rate has lagged behind the question for three consecutive months, and the sales gap widened from 1,808 units in January to 2,743 units in March. As a result, Li Li lowered its full-year sales target by 20%-30% to 56-640,000 units. Even with a minimum target of 560,000 units, sales of 80,000 units in the first quarter were just passing. The M7 model launched a 20,000 yuan discount in early April, and the order volume of the M9 model has exceeded 60,000 units. In this context, on April 22, Ideal announced that it would reduce the price of all models other than L6 by 18,000 yuan to 30,000 yuan, especially the poor sales of MEGA by 30,000 yuan.
After the price reduction, the price disadvantage of the Ideal L series model is relatively small. The lowest prices of L6, L7, L8 and L9 were 249,800 yuan, 301,800 yuan, 321,800 yuan and 409,800 yuan respectively, while the lowest prices of M7, M5 and M9 were 229,800 yuan, 249,800 yuan and 469,800 yuan respectively. The competition in the large SUV market for range extender and plug-in hybrid SUVs is relatively small, but as the competition in the overall market intensifies, more new energy vehicle companies still choose to cut prices to cope with the competition. On April 1, after the announcement of the price reduction of the M7, competing car companies such as Great Wall Wei, VOYAH and FAW-Volkswagen also launched different degrees of price reductions and preferential activities. The price war in the new energy vehicle market is intensifying, which will accelerate the market reshuffle, and also provide opportunities for those car companies that can stand out and enhance product competitiveness and brand influence. ⭐ Star Wall Street news, good content do not miss ⭐ This article does not constitute personal investment advice, does not represent the views of the platform, the market is risky, investment needs to be cautious, please make independent judgment and decision-making.