Shulou(Shulou.com)11/24 Report--

Near the end of the year, there is a wind of price reduction in the new energy vehicle market.

(the following is for the reference of children's shoes that need wool)

On October 24, Tesla Guan Xuan lowered the starting prices of five versions of Tesla Model 3 and Model Y models in Chinese mainland area. After the price reduction, the starting prices of the two models reached 265900 yuan and 288900 yuan respectively, with a maximum reduction of 37000 yuan for the five versions.

Then, the news came out on the network that the M5 and M7 models of the AITO brand could be directly reduced by 8000 yuan when the final payment was made. Since then, Huawei responded to this false rumor: "since the early morning of October 24, services such as the original financial discount and differentiated gifts from various sales stores have been cancelled, and insurance worth 8,000 yuan has been given to some existing car buyers."

On October 31, Ford's China Electric vehicle Division officially announced that from that day on, the price of all domestic Ford Electric Horse Mustang Mach-E models will be adjusted by 20, 000 to 28000 yuan, with a price range of 249900 to 369900 yuan.

On November 15, Mercedes-Benz announced a reduction in the recommended retail price of some of its EQ pure electric models, including the price of three Mercedes-Benz EQE models by 50,000 to 50700 yuan, the adjusted price from 478000 to 534300 yuan, and the price of four EQS models by 204600 to 237600 yuan, with an adjusted price of 845000 to 131.4 yuan. Both AMG EQS 53 models offer a direct discount of 198600 yuan and are now priced from 1.486 million yuan to 1.547 million yuan. At the same time, Mercedes-Benz said it would provide an exclusive subsidy program for old car owners who bought the above-mentioned reduced-price models before November 16, 2022, based on the difference between the invoice value of the car purchase and the revised manufacturer's suggested retail price.

On the same day, it was revealed that a number of Xiaopeng models reduced prices, in addition to the latest G9, G3i, P5, P7 three rear models reduced by 1.4 to 20,000 yuan. Although Xiaopeng immediately responded that it had only adjusted the rights and interests structure, the market believed that this statement confirmed the truth of the price reduction from the side.

Still remember the wave of price increases in which almost all new energy car companies actively participated in the first quarter of this year? How only half a year later, the sales price system has been broken to catch up with the speed of idol house collapse? Is it really like what a domestic new energy car executive said in a media report: "if you don't sell your car at a loss this year, you won't even have a chance to sell it at a loss next year."

According to a report in China Business and Economics, deposits in China's residential sector increased significantly in the first three quarters of this year. In this regard, the report analyzes: while increasing precautionary savings, the resident sector has transferred more incremental assets from the real estate side to the time deposit side, which is the resident department taking the initiative to adjust the household asset structure.

In mid-September this year, six major state-owned banks (ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and Postal savings Bank), together with China Merchants Bank, collectively cut the listing rate of RMB deposits. Whether it is demand or lump sum withdrawal, the interest rate has been reduced, with the largest margin being the three-year lump sum withdrawal rate. As soon as the policy came out, a large number of professionals analyzed it. At the policy level, they wanted to further stimulate consumption and inject vitality into the economy.

However, it is bound to take a period of time from the introduction of the policy to the landing of the policy. To some extent, this transition period can be regarded as a vacuum period for residents' bulk consumption-including new energy vehicles.

In other words, under the background that the number of thousands of cars in our country is increasing year by year, and under the restriction of depressed consumption, for most new energy vehicle enterprises, the automobile stock market is still the stock market. it directly determines that if you want to strive for more sales, you still have to fight for it.

Putting aside the three electricity technology, the level of intelligence, which require the education cycle of marketing grasp, price reduction may be the only effective means.

Take Tesla as an example, the price of the Model Y rear wheel drive version has returned to less than 300000 yuan after a new round of price adjustment, which means that car owners who buy the model at this time can enjoy a national new energy vehicle subsidy of more than 11000 yuan in 2022, which can be 28000 yuan less than before the price reduction. The stimulus of the price reduction to the consumer market is straightforward. According to the Future Automobile Daily, just one morning after the news of Tesla's price reduction was issued, the number of orders in Beijing has exceeded 1,000 units, and the trend of bursting orders continues to rise.

Another reason leading to price cuts by new energy car companies has something to do with the inventory pressure brought about by overcapacity. According to the latest "inventory early warning Index Survey of China Automobile Dealers" released by the China Automobile Circulation Association, the inventory early warning index of Chinese car dealers was 59.0% in October, up 6.5 percentage points from a year earlier and 3.8 percentage points from a month earlier. It shows that the overall inventory of car dealers is under pressure in October, and the terminal sales are lower than expected.

But to be clear, the price reduction itself is not the original sin, the original sin is not to let users be respected, is that users feel the "cut leek" sense of concealment. After all, price stability is closely related to consumers' trust in brands, and no user wants to turn on his phone the next day full of news about the price reduction of new cars under the month they just mentioned.

That being the case, is it possible not to reduce the price? Yes, no.

The former is based on the fact that the manufacturing cost of new energy vehicles remains high. From the point of view of the manufacturing cost of power batteries alone, according to the business society, as of November 15, battery-grade lithium carbonate was 587000 yuan / ton, up 120% from the beginning of this year and 10 times higher than 53000 yuan / ton at the beginning of 2021.

The reason for the latter is that it will be more or less difficult to achieve the sales target set at the beginning of the year without achieving the "catch-up" of the brand through price cuts. Take Mercedes-Benz as an example, relevant data show that in October this year, the domestic sales of Mercedes-Benz EQE were only 678, while the cumulative sales of EQE, EQA, EQB and EQC in the first 10 months were less than 12000.

Between yes and no, there is nothing wrong with choosing the latter. Although it is obvious that taking the initiative to reduce prices is to do business at a loss, which runs counter to the original intention of business, not to cut prices also represents a loss of opportunity to fight for market share.

Why not just drop it, not to mention the fact that fuel car companies have been doing this for a day or two.

So, how to reduce the price scientifically?

At the very least, new energy car companies should give consumers a buffer period from a business point of view. This buffer period can be either the guarantee promise before the price reduction or the compensation policy after the price reduction given by Mercedes-Benz. On the other hand, in terms of sales training, enterprises should also standardize and realistically avoid promises such as "no new models will be launched this year". Even new energy car companies should make it clear that even in the current era of "software-defined cars", cars cannot fundamentally emulate the iterative speed of mobile phones. Otherwise, behind those red orders, they are full of sacrificed consumer loyalty.

In short, if you are honest with consumers, consumers will sing in return.

In fact, price reduction or price increase all follow the law of supply and demand in the market. For example, when we buy vegetables in the vegetable market, after bargaining, the stall owner will say, "if you really want it, I'll sell it to you cheaply."

If the car company offered to make it cheaper, would you really want to buy a new energy car?

Under the premise of the gradual improvement of brand awareness, the steady growth of user loyalty and the high willingness of potential customers to buy, there is a high probability-whether affected by the price reduction or not.

This article comes from the official account of Wechat: autocarweekly (ID:autocarweekly), article: Cao Jiangbei

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