Netizens shouted to BYD: Let you roll the price, but don't let you even roll the quality and materials

Car tea taste

2024-06-12 16:22Published in Henan

Why is there involution, involution is actually the inevitable result of economic development after overcapacity.

After 2017, China's passenger car market has changed from incremental to stock competition, which translates to the fact that the number of people buying cars is no longer blindly increasing, but has begun to gradually decrease.

The car companies cultivated during the crazy growth period and the huge production capacity cannot be utilized, either wasted, or given up profits for sales.

In essence, the volume of all car companies is passive, because the consumption power begins to weaken, whether it is domestic, joint venture, or import, giving up profits is an abnormal behavior that violates business logic.

So, don't talk about the volume so highly.

At the Chongqing forum, Yang Xueliang, vice president of Geely, said: "Endless involution, simple and crude price wars, in fact, are cutting corners, counterfeiting and selling, and non-compliant disorderly competition."

From the perspective of enterprises and business, the core meaning that Yang Xueliang wants to express is:

Any high-quality model needs cost support, especially the talent-intensive, resource-intensive, and technology-intensive automotive sector.

On the contrary, the cost of producing high-quality models will not be reduced, because of the high-speed laying of technology and industrial chain, if you want to make products have the core competitiveness of standing on the front line at all times, it is necessary to increase research and development, increase testing, and increase materials.

From the perspective of Yang Xueliang, the vice president of Geely, there is no problem at all.

Because Geely is good at producing high-end, high-quality, high-performance, and high-value models, in the eyes of Yang Xueliang, quality is always the first, and this quality is not the size, fuel consumption, motor power, etc. written in the cold parameter table.

Rather, it is the proportion of high-strength steel, durability testing, body-in-white design concept, chassis commissioning, pipeline materials, high-standard spare parts, etc., which are invisible to everyone.

In the past year, Geely Holdings' sales of high-end models have grown by leaps and bounds.

According to the data, the sales of high-end models such as ZEEKR, Lynk & Co, and Lotus have reached about 400,000 units.

Of course, there is another voice in the market, BYD Li Yunfei said at the forum: the price war is within its means, follow it if you can, don't be angry, and long-termism is the performance of being responsible for consumers.

The BYD car represented by Li Yunfei is actually another direction, representing a development thinking of lower average price and upward output.

In essence, there will be no inevitable conflict with Yang Xueliang's quality thinking. Because any market, any era, need high-end, low-end models to meet the consumption needs of different user groups.

Li Yunfei's thinking is a typical view of "success or failure based on sales".

There is a better living space, BYD will not price Qin L at 99,800, the price reduction is to form a siphon effect, from the perspective of commercial competition, it is used to squeeze out opponents.

We can't hastily say that "good money drives out bad money", but from a passenger car that is often 180,000 or even 200,000, the price of volume in a simple sense is an industry abnormality.

Only from the analysis of the configuration, materials and performance of the 99,800 Galaxy L6 and Qin L, there is a huge gap.

Qin L uses a 1.5L+eCVT power system, while Galaxy L6 uses a 1.5T+3DHT power system, and the cost of the latter is at least 50% higher than the former.

In terms of battery cooling, the Galaxy L6 is a higher-cost liquid cooling, and the Qin L is a lower-cost direct cooling.

Galaxy L6 supports fast charging, and the low-configuration Qin L also does not, including but not limited to 360 panoramic image, electric sunroof, R17-inch wheels and other configurations, Qin L does not have it.

So, what is the volume price?

From Yang Xueliang's point of view, let you roll the price, not let you even the configuration, materials, performance to the volume, Geely's perspective is the quality of the car thinking, you can roll, but there must be a bottom line, if a car to the end, is to use the configuration, materials, experience in exchange for results, then this volume, Geely would rather not.

Essentially, it's a collision between two operational mindsets.

The European market can accommodate both high-quality products such as B BA and ordinary brands such as Opel and Kia, and the price gap between them is not particularly large.

A qualified market is one that is extremely inclusive, and the same is true for the domestic market.

If BYD is better at rolling down the price, driving away the Tartars, and using the 100,000 yuan Qin L to overturn the Toyota and Volkswagen markets, then Geely is better at rolling up the quality, and using the pricing standards of Volkswagen and Toyota, so that you can choose the driving experience of B BA.

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