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Price war "overdraft" fuel vehicles

Publish Date: 2023.03.13

No one would have thought that the price war in the automobile market would be so swift and fierce.


  There is a lot of buzz in the market. The price reduction of Hubei Dongfeng series of car models with fracture subsidies has put a heavy pressure on the entire car market. The emergence of this situation will form an irreversible market reshuffle, whether it is a price reduction of market behavior or a political task at the government level.


  "The C6 of 200000 is aging, and the C6 of 120000 is mature and stable". Now the fierce reaction of the market can first explain that there are no unsold cars, only the price is inappropriate.




  On the other side of the coin, once the car enterprise has opened the door of big price reduction, its future models of the same series, even the cars of the whole brand, will fall into a dead cycle of "not low price, not selling cars". In other words, how smart the price reduction is at this time, how embarrassed it will be in the future.


  In fact, no one is willing to participate in the price of "killing one thousand enemies and losing eight hundred". However, under the influence of the market trend and the overall environment, auto companies can not be alone. If you react slowly, you will only become more flustered and anxious, and finally lose.


  According to the anecdotal news, Northeast China, Central China and South China have joined the battle in succession. General Motors, Honda, and BBAs of luxury brands are also rubbing their hands to deal with the price war.


  Although Hubei and Dongfeng were the first to be pushed to the top of the wave at this time, it is certain that the next auto market will be even more chaotic than "Li Yunlong's fight against Ping'an County". And closely related to it, after this large-scale "kill the goose and lay the egg" overdraft of life, is there any chance for the fuel car to turn over?


  Reduce the price of oil vehicles to speed up the market elimination


  "The former C6 is full of shortcomings, and the current C6 enjoys French romance". Behind so many network blockbusters, it also explains the current market situation: China's auto market is the most lack of high-quality and low-cost products, and consumers also like cost-effective.


  The essence of this price war can be fully extended to the competition for market share.




  At the beginning of 2023, Tesla took the lead in opening the price war, and then BYD's Qin PLUS DM-i, which started at 9.98 million yuan, made a strong response, and then zero-run redefined the arrival of 150000 extended-range models. This spark from new energy vehicles quickly turned into the current prairie fire trend.


  It is the industry norm that the first two fight and the third suffer.


  The current development situation of the automobile market also shows that the once stable price system of fuel vehicles is gradually collapsing in the face of a series of "no morality" operations of new energy vehicles; The so-called era of the same price of oil and electricity is also going away.


  In fact, as Li Xiang, chairman of Ideal Auto, said, price reduction does not necessarily improve sales, but it can hit rivals. At this time, the psychology of the fuel car is easy to understand - mixing the water, breaking and then standing.




  According to the latest data of the Passenger Car Federation, although the sales of passenger cars in February have rebounded, since 2023, both retail and wholesale volumes have declined sharply year-on-year, with the highest falling by nearly 19%. The market demand is weak, but also to promote the recovery of consumption. The pressure is transmitted to every car company. Mayer's price reduction promotion is the most simple and effective method.


  According to the further analysis of the data of the Passenger Transport Association, the penetration and sales of new energy vehicles have unexpectedly risen against the trend under such a downward trend.


  Obviously, BYD has played a major role in this process. But at the same time, one thing can be determined - the development of the new energy vehicle market is faster than expected.


  Under this background, it will only be a matter of time before fuel vehicles are abandoned by the market and consumers, and that moment will not be too far away.




  There is no doubt that the wave of price reduction set off by fuel car companies today is tantamount to drinking poison to quench thirst. In particular, if the weak car companies enter the market alone, if they only see the excitement in front of them, then their subsequent brand strength decline, price positioning range decline, revenue profitability and other issues will become the "death curse" of the company.


  All kinds of voices in the market are continuous, and Shanghai, Guangzhou, Beijing, Anhui, Jilin and other provinces and cities have also responded. It's like red eyes. A peaceful ending is no longer possible, so all aspects can only help to make the storm stronger and faster.


  With regard to the price reduction promotion, the original intention of the automobile enterprises may be to recover the sales volume, but after the situation is uncontrollable, many automobile enterprises are forced to the edge of the cliff.


  New energy vehicles, take full advantage of counterattack


  We have to admit that the fuel vehicle market has entered the stock market stage relatively, and the new energy vehicles, especially the pure electric vehicles, are enough to be called the incremental market. And after such a big market fluctuation, a new pattern is bound to emerge.


  The scary thing is that there are still many new energy vehicles.




  On the recent Tesla Investor Day, more information about cost reduction was released. It is said that after the combination of many new concepts, new processes and new design ideas, the cost and energy consumption of the next generation of Tesla products will be reduced by 50% on the existing basis.


  "No car company can challenge it," Musk said.


  As another main force of alternative fuel vehicles, BYD, with its own supply chain layout, has become more competitive. Qin PLUS DM-i, starting from RMB 99000, is just asking for directions. The next move will be more open and open.


  For example, the spy photo of "SF", the first new car of BYD's "F brand", is said to be positioned between 400000 yuan and 600000 yuan. If the rumor is true, Brand F, together with Tengshi and Yangwang, will launch a fierce attack on the domestic high-end car market.




  Coincidentally, the new forces of car building can't hold back their temper and rush out.


  Xiaopeng can be said to be the most positive one. Influenced by the market strategy, since 2023, the most popular voice about Xiaopeng is "falling behind". Under the influence of various factors, Xiaopeng is not only following the price reduction of Tesla, but also "playing cards" one after another, including the change of top personnel, and accelerating the pace of product iteration and update.


  With the official launch of Xiaopeng P7i, Xiaopeng G6 has been listed in the Ministry of Industry and Information Technology. Xiaopeng's intention is obvious: to take advantage of the muddy water to fight a beautiful turnaround.


  Weilai is not idle either. The ET5 hunting version expected by all parties has also been officially put on the shelves of the Ministry of Industry and Information Technology. It will be released soon, and it is said that the pace is very fast, and the car will be delivered as soon as it goes on the market. More importantly, Weilai mobile phone has made its debut on the Internet, which has once again contributed to its brand strength.




  In this way, an interesting phenomenon appeared.


  Compared with all kinds of hidden worries faced by fuel vehicles, although the price of new energy vehicles is also being reduced, it has created a posture of brand leaping and full fire. What's more, today's government policies and consumer psychology are on the side of new energy vehicles.


  In fact, it is not difficult to find that the price reduction promotion is very provocative, like a snowball. Especially when the strong auto brands also set off a wave of price cuts, other brands will have to accept the price cuts that follow the trend if they cannot continue to add new orders.


  But the biggest problem is that when the new energy vehicles still have a lot of attack power, even if the fuel vehicles decide to put all their eggs in one basket, it is difficult to change the direction of the objective trend. In this way, when all forces are combined, there is only one result - accelerating the historical process and the elimination of fuel vehicles.


  Yes, the price war in the automobile market has just begun, but the battle for fuel vehicles seems to have ended.


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