This article was originally published by wumiancaijing.
Author: Chen Xinmiao
Editor: Chen Jian
Design: Lansheng
BYD, the king of domestic prices, made a fortune.
In 2022, the company’s revenue and profits rose sharply, including revenue of 424.061 billion yuan, a year-on-year increase of 96.2%; The net profit attributable to listed companies was 16.622 billion yuan, a year-on-year increase of 445.86%.
The increase is mainly attributed to the increase in sales of new energy vehicles. Last year, BYD sold 1,863,500 vehicles, making it the world’s top seller of new energy vehicles. This year, Chairman Wang Chuanfu’s goal is to become the largest automobile manufacturer in China.
This means higher sales. In today’s auto market scuffle, BYD continues to attack.
Most car companies "reduce the price and ensure the quantity", while a few protect the price against the price reduction storm. BYD is more of a "price reduction impulse".
In the best mass market,BYD still uses the method of "cost performance", and under the banner of "the same price for oil and electricity", it is crazy to roll up fuel vehicles..
From the champion version of Qin PLUS DM-i 2023 in February to the "increase in allocation and decrease in price" of Han EV champion version and Tang DM-i champion version in March, BYD accelerated to seize the joint venture A-class and B-class markets, which also seemed to indicate that "BYD will accept all the shares below 300,000".
The effect is immediate. In the car sales ranking in February, BYD Qin soared from the 10th place in January to the 1st place in February, with sales increasing by 24.6% year-on-year, while joint venture rivals Sylphy and Xinllavida dropped by 8.5% and 20.4% respectively.
On the other hand, the new forces that are still making huge losses, represented by Wei Xiaoli, focus on the middle and high end, and it is still difficult to reap the dividends of the mass market.
In this accelerated knockout, BYD is ahead again.
Price cuts across the board are all about sales.
After Tesla cut the first knife in the beginning of the year, BYD made moves one after another, and it was not soft at all:
The price of the main sales models has been reduced across the board, covering 100,000-300,000.
The latest is BYD Han EV Champion Edition and Tang DM-i Champion Edition which were listed in March.Both models are "increasing the allocation and reducing the price", and the cost performance is improved, with the price range of 200,000-300,000..
Simple contrast can be seen:
Han EV Champion Edition, the price is 209,800-299,800, and the old jia price is 219,800-290,800; Tang DM-i Champion Edition, the price is 209,800-233,800, and the old model is priced at 209,800-281,800.
“BYD’s price reduction is more’ chicken thief’. Unlike other car companies, the existing models follow the price reduction, but new configurations are introduced and new prices are set in the same model.. "An industry insider told ID：wumiancaijing, a researcher in finance and economics.
In terms of color, performance and configuration, Han EV Champion Edition and Tang DM-i Champion Edition have been upgraded.
Among them, the Han EV Champion Edition has added a premium version with a lower price, with a battery life of 506 km and 605 km respectively, and the price is 209,800 yuan and 229,800 yuan respectively.
In addition, the same model with a battery life of 715 kilometers, the price of the Han EV Champion Edition is lowered by 12,000 yuan compared with the 2022 model; The price of the flagship model of the Han EV Champion Edition is also 10,000 yuan cheaper than the old model.
The same technique appeared in the champion version of Qin PLUS DM-i 2023 launched in February, which also improved the configuration compared with the old model, but the average selling price dropped by 16,400 yuan; The price is 99,800-145,800, and the price has dropped to less than 100,000 yuan for the first time.
In addition, in March, BYD Seals and Song PLUS officially announced a discount of several thousand yuan each. In addition, BYD Han DM-i and Han DM-p models can enjoy a cash subsidy of 10,000 yuan before the end of April.
As a result, BYD’s Song, Qin, Han, Tang and Seal were all involved in the price war. The price of the main models in different price ranges has been lowered, and the company’s heart of capturing market share and rushing sales can be learned.
It is rumored in the industry that BYD will challenge the goal of 4 million vehicles this year.Last year, the company sold 1.87 million cars. According to this calculation, to achieve the goal, the sales volume will double..
According to the forecast of China Post Securities, in 2023, BYD’s annual car sales are expected to exceed 2.5 million.
From the sales data, BYD has a strong performance.
According to official information, the 2023 Qin PLUS DM-i Champion Edition received 32,000 orders in 7 days, and the Hantang Double Flagship Champion Edition received 8,196 orders on the same day.
According to the data of the Federation, in February, BYD sold about 177,000 vehicles, a year-on-year increase of 103.8%; The market share reached 39.8%, much higher than Tesla, which ranked second.
▲ Sales ranking of new energy brands in February, the picture comes from the Association.
According to the vehicle insurance data tracked by CMB International, from January 1 to March 19, in the mainstream market, BYD has surpassed Volkswagen brand in the same period, becoming the best-selling automobile brand in China.
Is the opponent going to be killed?
In contrast to BYD’s fierce offensive, the life of rivals is not easy.
Qin PLUS DM-i 2023 Champion Edition wants to seize the A-class car market of 100,000-150,000 yuan. This subdivision is mainly joint-venture fuel vehicles, and the representative models include Nissan Sylphy, Volkswagen LaVida and Toyota Corolla.
The Chinese EV Champion Edition is competing with Camry, Accord and other joint-venture B-class cars to seize market share and accelerate the seizure of the fuel vehicle market.
In this round of price war, these two segments are chilly.
According to the China Automobile Industry Association, in the first two months of this year, the traditional fuel A-class vehicles sold a total of 1.266 million vehicles, which was the highest in the oil vehicle market at all levels, but it fell by 25.7% year-on-year; B-class cars sold 549,000 vehicles, down 26.6% year-on-year.
By simply comparing the data in recent years, we can know how fierce BYD is and how much pressure its opponents are under.
BYD’s Qin model,Before 2021, it was not able to squeeze into the top 15 of the car retail list, and entered the list in 2021, ranking 12 th, and jumped to the fourth place in 2022..
In 2021 and 2022, BYD’s sales increased substantially, while Nissan Sylphy, Volkswagen LaVida and Toyota Corolla all declined year-on-year. Last year, the year-on-year decline was over 18%, and Corolla has fallen from the top 3 to the sixth.
▲ Comparison of sales of BYD Qin and Han models with similar models. The data source is the Association, and there is no financial chart.
Although Nissan Sylphy and Volkswagen LaVida are still entrenched in TOP3, after the Qin PLUS DM-i 2023 champion version with a starting price of less than 100,000 came out, the ranking began to have suspense.
In the past February, BYD Qin ranked first, while Sylphy and LaVida fell to third and fifth.
According to Cinda Securities Research Report, BYD Qin PLUS DM-i 2023 Champion Edition is expected to quickly seize the joint venture share of the domestic A-class car market, with an expected monthly contribution of 20,000 vehicles and a steady-state monthly sales of 40,000 vehicles.
BYD Qin’s sales volume last year was 342,000. According to the monthly contribution of the above-mentioned models of 20,000, the annual sales volume can reach 480,000.
Similarly, in the past two years, BYD Han rushed into the top 15 in car retail, ranking fifth last year, ahead of Camry and Accord.
Dongfeng group, which took the lead in "breaking a fracture" in this round of price stations, is a typical representative of the impact.
Dongfeng Group’s products are concentrated in the A-class car and B-class car markets. Last year, the Group’s sales volume dropped by 11.2% year-on-year. Nissan Sylphy and Toyota Corolla, corresponding to the two major joint ventures, Dongfeng Nissan and Dongfeng Honda, the main contributors to sales, all saw their sales drop by over 10% last year.
Besides,The new BYD Han EV is in direct competition with Tesla Model 3 (229,900-329,900 yuan), which has been repeatedly reduced in price, and Tucki P7I (249,900-339,900 yuan), which is also listed soon..
For Xpeng Motors in the trough, Tucki P7i is regarded as "the hope of the whole village", but it is still unknown whether it can shoulder the "explosion mission" of the old P71.
In terms of overall sales volume, in the third week of March, that is, the first week of P7i’s official launch, Xpeng Motors’s overall licensing volume decreased by about 21% compared with the second week.
The other two new car-making forces are great and ideal, and the models focus on the middle and high end. In the mass market that BYD specializes in, there are no products.
Although Weilai has plans to launch the "Alpine" brand covering 200,000-300,000 markets, the first product will not be available until next year at the earliest, and the products with an ideal value of less than 300,000 will not be launched until next year at the earliest.
BYD’s advantage is still great.
According to the data of the Federation, in the first two months of 2022, BYD’s share in the new energy vehicle market was 28.7%, and it increased to over 31% by the end of the year; In the first two months of this year, the share reached 40.8%.
