Joint venture oil vehicles withdraw from China, starting from the price of new energy vehicles falling below 80,000

Under 100,000, there may be no foreign cars anymore.

Author | Zhou Yongliang

Editor | Jing Yu

2024 At the beginning of the Year of the Dragon, BYD launched a new A round of price wars, and the market was turbulent for a while.

Recently, BYD Qin PLUS Honor Edition and Destroyer 05 Honor Edition have been released, with official recommended selling prices starting from 79,800 yuan. Among them, the price of the DM-i model ranges from 79,800 to 125,800 yuan, while the price of the EV version ranges from 109,800 to 139,800 yuan.

Compared with the previous Champion Edition model, the price of the newly launched Honor Edition is directly reduced by 20,000 yuan. At the beginning of last year, BYD launched the championship version of the Qin DM-i with a price as low as 99,800 yuan, which caused a sensation. The slogan was "gasoline and electric power at the same price" and successfully lowered the price of hybrid models to less than 100,000 yuan.

BYD took the lead in launching a new car for the Year of the Dragon, followed closely by SAIC-GM-Wuling, Changan Qiyuan, Nezha Automobile, and even Beijing Hyundai also joined the competition.

Don't underestimate this "mere" 20,000 yuan drop. It may represent the end of joint venture fuel vehicles under 100,000 yuan withdrawing from the Chinese market.

The price war last year has been going on for the whole year. Now, BYD has once again launched a price war. What impact will this have on this year's auto market? How will the market structure be reshuffled?

01, From "oil and electricity are the same price", to "electricity is cheaper than oil"

BYD Qin PLUS The starting price of the Honor Edition of Destroyer 05 is a full 20,000 yuan cheaper than the previous championship version. Surprisingly, this time the strategy of "increasing quantity and reducing price" has been implemented.

The configuration of Qin PLUS Honor Edition is basically the same as that of the Champion Edition, but the price is 20,000 yuan lower | BYD

From now on Judging from the announced configurations, there are no changes in power and battery life between the Honor Edition and the Champion Edition, but some details have been fine-tuned. Taking Qin PLUS as an example, the Honor version introduces a new exterior color of white glazed green, and adds a smart voice continuous call function. At the same time, the entire car series is upgraded with smart power on and off. Generally speaking, the Honor versions of BYD Qin PLUS and Destroyer 05 have not only achieved increased volume, but also reduced prices.

BYD's price reduction strategy is not just a product price war, but a war of the industrial system. Li Yunfei, general manager of the Brand and Public Relations Department of BYD Group, said that thanks to the scale effect and the advantages of the entire industry chain, the price of BYD plug-in hybrids can be lower than that of fuel vehicles of the same class. This means that BYD has the ability to show sincerity in new car prices and provide consumers with more benefits through its huge sales volume, cost control and technical strength.

In other words, in the A-class car market with a price of around 100,000, Chinese manufacturers have completely controlled the pricing power.

Behind this price reduction, BYD hopes to once again trigger a change in the market and achieve a historic shift from "oil and electricity are the same price" to "electricity is cheaper than oil". Looking back at the launch of the Champion Edition in 2023, it will have a significant effect on BYD's sales. The launch of the Champion Edition model successfully lowered the price to less than 100,000 yuan, breaking the last line of defense for joint venture fuel vehicles. Monthly sales exceeded 40,000 units, ultimately changing the pattern of the A-class car market.

From the Champion Edition to the Honor Edition, it means that BYD’s other models will also see a wave of price cuts| BYD

at BYD In internal comparison, the current starting price of 79,800 yuan coincides with the A00-class pure electric car Seagull (73,800-89,800 yuan), which is lower than the A0-class pure electric car Dolphin (116,800-139,800 yuan). This also means that the Honor version of other models is expected to continue to be launched, starting a new round of volume increase without price increase.

This series of measures has allowed BYD to maintain its competitiveness in the new energy vehicle market, and has also triggered a rethinking of the entire new energy vehicle market structure in the industry.

Less than a day after BYD released the price reduction information, four car companies announced price cuts one after another, triggering a fierce price war.

The first person to react was SAIC-GM-Wuling. Zhou Ling, deputy general manager of its brand division, said on his personal Weibo, "One word, follow!". On February 19, Wuling Starlight 150 Advanced Edition Honor Price was officially unveiled. The price dropped from 105,800 yuan to 99,800 yuan, a direct drop of 6,000 yuan, opening the door for the price of ultra-long pure electric range plug-in hybrid models to enter the "90,000 level". "The beginning of the era.

On the same day, Changan Qiyuan and Nezha Auto also followed suit. The starting prices of the Changan Qiyuan Q05 and A05 models have both been reduced to 73,900 yuan; Nezha Automobile has also launched a price reduction activity. The price of the Nezha X model has been reduced by 22,000 yuan, and the price has dropped to 99,800 yuan. Within 100,000 yuan.

In this round of price war, Beijing Hyundai has also joined the competition, shouting the slogan "oil is stronger than electricity" and lowering the starting price of the new Elantra model to 75,800 yuan, with a discount Reaching 24,000 yuan.

02, The moment of decisive battle with fuel vehicles

BYD's cannon fire seemed to be the prelude to the decisive battle. But this is not an internal competition among independent brands, but a crazy "encirclement and suppression" of joint venture fuel vehicles. Li Yunfei said that BYD's move will completely kick off the decisive battle with fuel vehicles.

「Next, who will buy a fuel vehicle」.

Currently, the focus of this war is the A-class car market, which is the vane of the Chinese automobile market. In the Chinese automobile market, A-class sedans have always been considered the key to influencing the entire market. Whoever occupies a leading position in the A-class sedan market will be able to dominate the entire market.

According to the 2023 passenger car segment data released by the Passenger Car Association, the overall wholesale and retail data of the A-class sedan market reached 5.13 million units and 4.73 million units respectively, although they fell by 5% and 8% respectively year-on-year. , but the A-class car market is still the largest segment of the entire market.

The price of the Destroyer 05 Honor Edition has also been reduced to 79,800 yuan, another model competing in the A-class car market | BYD

For BYD, the A-class car market is the main focus, and it is also an important support for their sales of 3 million last year. In 2023, BYD has nearly 30 models on sale, of which 9 models have terminal sales of more than 100,000 units, including Dolphin, Yuan PLUS, Qin PLUS DM-i, Song PLUS DM-i and Seagull, which are known as super models. "Breaking hot item". Most of this series of popular models are A-class cars.

It is particularly noteworthy that In 2023, BYD Qin PLUS successfully surpassed Nissan Sylphy and became the best-selling A-class sedan in China. Last year, BYD Qin PLUS's cumulative sales reached 434,000 units, surpassing Sylphy and Lavida by about 100,000 units, and it won the annual sales championship in the A-class sedan market for the first time.

Although the A-class car market is a big pie, the penetration rate of new energy vehicles here is still a bit low, only 26.3%. Compared with the penetration rate of the entire industry (35.1%), the A-grade market is still a relatively blue ocean.

By launching the Honor Edition starting at 79,800 yuan, BYD is expected to further seize the market share of traditional joint venture A-class fuel vehicles. At present, the actual starting price of Sylphy, Lavida, Sagitar, etc. at the terminal is about 73,000 yuan to 100,000 yuan. By lowering prices and launching models such as Qin PLUS and Destroyer 05 Honor Edition, BYD is expected to launch a sustained impact on the joint venture oil vehicle market and further increase the penetration rate of new energy in this market segment.

2024 At the beginning of the Year of the Dragon, BYD launched a price war, which plunged the entire automobile market into a heated situation. Major brands are restless and are participating in this fierce price war, and the market situation has undergone earth-shaking changes.

However, this competition is not only a competition between independent brands, but also a profound challenge to traditional fuel vehicles. Independent brands such as BYD are leading the automobile market towards a complete transformation from traditional fuel to new energy. The automobile market is like a surging torrent, indicating that a decisive battle for a new pattern has quietly begun. This spark-filled war is not only exciting, but also a profound baptism for the entire industry.

This article comes from the WeChat public account: Geek Park (ID: geekpark), author: Geek Park Auto Group

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