Following Tesla's price reduction in the U.S. market, Tesla has also made a big move in the Chinese market, not only can it buy a car with "0 down payment", but the new Model 3 high-performance version has also officially landed on Tesla's official website in China.
The market expects that a "big war" is likely to break out at the Beijing International Auto Show.
Tesla China "0 Down Payment" to Buy a Car //
On April 24, the official Weibo of "Tesla" announced that Model 3 and Model Y launched a "0 down payment" campaign, and the current car of the designated version of the Model 3 can enjoy "0 down payment" + "preferential interest rate", and the current car of the designated version of the Model Y can enjoy the "0 down payment" or "0 interest for a limited time".
(Source: Tesla Weibo)
In addition, according to Tesla's official website in China, the new Model 3 high-performance version has officially landed, with a starting price of 335,900 yuan.
(Source: Tesla China official website)
A new round of domestic auto price war //
With the intensification of competition in the auto market, car companies have recently started a new round of price wars.
On April 22, Li Auto released the new prices of the 2024 Ideal L7, Ideal L8, Ideal L9, and Ideal MEGA. Among them, the price range of L7 is 301,800-359,800 yuan, the price range of L8 is 321,800-379,800 yuan, the price range of L9 is 409,800-439,800 yuan, and the price of MEGA is 529,800 yuan. Compared with the price before the adjustment, the price of all Li Auto models this time is between 18,000 and 30,000 yuan.
On April 20, Xpeng Motors also announced the launch of a time-limited car purchase subsidy of 500 million yuan, covering a total of four models of Xpeng G9, G6, P7i, and 2024 Xpeng P5.
In addition to price reductions, some car companies have attracted consumers through various methods such as increasing allocation and reducing prices, separating vehicles from electricity, and flexible financial solutions.
For example, FAW Toyota has launched a financial plan of "up to 8 years with zero down payment, 36 periods with 0 interest rate, and 505 flexibility", which is applicable to its Asian Dragon, new RAV4 Rongfang, Grevia and other models, and Dongfeng Honda's CR-V, Civic, and XR-V have launched a "trade-in with zero down payment" program.
FAW Auto Finance Co., Ltd. (FAW Auto Finance) officially announced the full launch of the "0 down payment" financial product, and at present, the 0 down payment product only supports the Hongqi HS7 model, and the subsidy policy for other FAW auto brand models will be launched in the future.
Fan Hongyin, general manager of Weilai Hangzhou Regional Company, said that the new battery leasing plan released not long ago will reduce the price of the car by 70,000 yuan or 128,000 yuan without buying a battery.
According to incomplete statistics from "Auto Vertical", more than 20 car companies have been involved in this round of price wars. In the future, it is expected that more car companies will participate in this round of price wars, and a "big war" is likely to break out at the Beijing International Auto Show.
The performance differentiation of car companies continues to intensify //
The data shows that in 2023, only BYD, Tesla and Ideal are three new energy vehicle companies that will be profitable.
Tesla's latest financial report shows that in the first quarter of 2024, Tesla achieved operating income of $21.3 billion, a year-on-year decrease of 9%, which is Tesla's first quarterly revenue decline in nearly four years, and Tesla's net profit in the first quarter was $1.129 billion, down 55% year-on-year.
In terms of car sales, Tesla delivered 386,800 new cars in the first quarter of 2024, a year-on-year decrease of 8.5%, including 370,000 Model 3 and Model Y, and 17,000 other products. From the perspective of the Chinese market, Tesla's sales in China in the first quarter of 2024 will drop to only 133,000 units, a year-on-year decline is also obvious.
In terms of domestic car companies, the first quarterly report disclosed by Great Wall Motor shows that in the first quarter of 2024, the operating income will be 42.86 billion yuan, a year-on-year increase of 47.6%, and the net profit will be 3.228 billion yuan, a year-on-year increase of 1752.55%. In this regard, Great Wall Motor said that the sales of complete vehicles and the increase in revenue of single vehicles in the reporting period.
In terms of brands, in the first quarter, all brands under Great Wall Motors ushered in growth. Among them, the Haval brand sold 54,055 vehicles in March, a year-on-year increase of 13.99%, and 157889 vehicles were sold from January to March, a year-on-year increase of 25.53%. WEY sold 3,608 vehicles in March, a year-on-year increase of 182.98%, and 9,608 vehicles were sold from January to March, a year-on-year increase of 182.34%. Tank SUV sales in March were 18,953, a year-on-year increase of 58.60%, and 49,184 units were sold from January to March, a year-on-year increase of 103.16%. The ORA brand sold 6,022 units in March and 15,029 units from January to March. Great Wall pickup trucks sold 17,569 units in March and 43,495 units from January to March. Among them, the Great Wall cannon sold 12,103 units in March, with a total of 42 months of monthly sales of more than 10,000 units.
Guotai Junan Research Report believes that driven by the three factors of overall sales, new energy vehicle penetration and profitability, the market of the passenger car sector opened in the second quarter. Driven by trade-in policies such as trade-in, passenger car sales will accelerate in the second quarter, the supply of joint venture fuel vehicles will shrink, and the introduction of self-owned brand new energy vehicle models will accelerate, and the penetration rate of new energy vehicles is expected to rise to a higher level.
(Wind Securities Times, Financial Circles)
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