Kung Fu Auto | Drop or die? New energy price war again

Recently, Tesla has adjusted the prices of the Model 3 and Model Y models. An interesting story also broke out. A group owner asked Tesla owners to charge five yuan each for rights protection. As a result, after receiving 1,000 yuan, he quit the group and disappeared. Tesla owners yelled and were cut again.

Tesla’s price-cutting storm has not subsided, and there is also a news from Wenjie. Owners of the latest bookings of the Wenjie brand can enjoy a cash discount of 8,000 yuan when paying the final payment.

Did Wenjie also cut prices with Tesla? Is this a wave of price cuts for new energy? Let Kung Fu Auto take everyone to see it together.

1

Asking the world to reduce the price of “Rashomon”, there is a discount?

Kung Fu Auto consulted a salesman in the industry, and he said so. It is said that Wenjie is now considered to be three cars. In addition to the earliest Wenjie M5 range-extended version, there are also the recently released Wenjie M5 EV and Wenjie M7 range-extended version.

The policies of these three cars are different. Generally speaking, the earliest M5 range-extended version has the largest discount, and the other two cars have some discounts on the market.

Taking Wenjie M5 EV as an example, Kung Fu Motors visited the store before November 11, and the preferential policy it gave is as follows, providing a two-year interest-free, no-fee loan, and then sending a new Huawei watch, and the current rights and interests are It is an insurance subsidy worth 8,000 yuan.

Comparatively speaking, in fact, the discounts before and after are equivalent. A 300,000 car discount of 8,000 yuan is indeed not much. And the sales also said such a thing, the preferential measures of different stores in the world are actually different.

This estimate is beyond the cognition of many people, because in the minds of the big guys, it seems that the new power models are directly operated like Tesla, and they are all at the same price, but this is not the case.

Taking Wenjie as an example, although it is sold in Huawei Mall, it is still in the dealer cooperation model. Huawei Mall must first pay the full amount to get the car, and then sell it on its own. The biggest difference between this and the direct sales model is that the mall itself will also have competition, which is actually beneficial to consumers.

Even when the M5 was the most popular and the order was full, dealers would actually have certain discounts, and the service was indeed much better than Tesla. As for this “price reduction”, it’s actually just a different form of previous rights, but the cash discount looks more intuitive, which is different from Tesla’s unbearable price reduction.

After all, with the current sales volume of the world by leaps and bounds, it is really not necessary to take the initiative to make substantial profits.

2

Don’t learn “two barrels of oil”, new energy vehicles should drop as soon as they drop?

At the beginning of this year, domestic new energy vehicles experienced a wave of price increases. Not only have the two Tesla cars soared to sky-high prices, but the prices of BYD and Wei Xiaoli have also risen a lot. There are also those that do not go up. The most typical one is the Euler Black Cat, a good popular car that stops accepting orders directly.

At that time, the reasons given by everyone were very consistent. The price of core components of new energy vehicles rose too fast, especially the price of batteries soared, and car companies “couldn’t hold it.”

Although the price has risen, because the oil price has been rising, the cost of using new energy vehicles is indeed low, and the sales volume has not been affected too much. In September, the retail penetration rate of domestic new energy vehicles has reached 31.8%, an increase of 11 percentage points compared to the 21.1% penetration rate in the same period last year, but the price of raw materials has actually dropped a lot.

Taking power batteries as an example, from April to the present, almost only the price of lithium has remained at a high level, and the prices of other raw materials have fallen sharply, among which the price of cobalt is almost “collapsed”.

In addition to batteries, with the increase of players entering the game, the price of on-board chips has also dropped a lot. Including the Qualcomm 8155 smart cockpit chip that is currently on fire, the price has also dropped a lot compared to the previous one. Because Xinchi’s “cabin core” X9, Geely’s Longying No. 1 and other domestic smart cockpit chips have already come out, they may not be able to sell without price cuts.

The price of raw materials rises and the price of cars goes up, but the price of raw materials decreases but the price of cars does not drop. Isn’t this treating consumers as fools? PetroChina and Sinopec have always done this, but they have an absolute monopoly. New energy vehicles are different, they are in the consumer market. This one does not drop the other one, and everyone naturally knows how to choose.

Tesla was the vanguard when raising prices before, but now it is somewhat reluctant to cut prices, including first exploring the way with an insurance discount, and finding that there is no market feedback before starting to set prices, which is indeed a chicken thief.

3

Fall or die?

For the past six months, we have been accustomed to hearing about the various “losses” of the major new forces. It was obvious that a car sold for 300,000 to 400,000 yuan, but he complained that he lost tens of thousands of yuan for a car.

Everyone had to make fun of it, don’t buy it, don’t buy it, and buy these car companies again, but “can’t afford to lose”.

It sounds a bit magical realism, but it’s happening. The reason is not complicated. In order to impact the high-end market, the new forces have invested a lot of research and development funds, and then most of the core components are still externally supplied, which naturally pushes up the cost.

And now a new round of price cuts is coming, and the new forces will face the ultimate test of whether they can keep up with Tesla’s price cuts. If you follow, it is very likely that the loss will continue to widen. If you don’t follow, it will be difficult to make a profit at the current scale of 100,000 vehicles a year. After the key Teslas cut prices, the scale of 100,000 vehicles is also difficult to hold, and it is impossible to amortize the cost through small profits but quick turnover.

According to the current situation, the new forces may be very painful.

So how can it be broken? In fact, it is not complicated, it is nothing more than open source and throttling.

The so-called open source is to strive to achieve breakthroughs in market segments. When the Ideal ONE was born, it directly brought fire to the 6-seat SUV segment. Now the new Ideal L8 is also eating this market. From the perspective of product positioning, the Ideal has achieved great success. The emergence of Hongguang MINI EV has also reshaped the mobility car market.

But now and then, in today’s increasingly introverted new energy vehicles, it has become more and more difficult to recreate large items.

There is only one other way, and that is throttling. Qualcomm 8155 is too expensive, can it be replaced by domestic chips and achieve more than 95% of the effect at 50% of the price. Or go a step further, simply develop it by yourself. Why BYD can pull the price of A-class hybrid cars to the 100,000-level is not because its three-electric system is self-developed and produced.

Although this road is difficult, it seems that it is still a road of hope. After all, the current situation has become clear, either roll or die.

4

kung fu patting

The so-called price reduction in the world is not true. On the whole, it is similar to the previous rights and interests. The difference is that it has become a more straightforward cash discount.

However, with the decline in the prices of raw materials and core components, the price reduction of new energy vehicles should be an inevitable trend. After all, when the price of raw materials rose before, they followed the trend and increased their prices. Do you want to be two barrels of oil if you don’t cut prices this time?

For us ordinary consumers, wait a little longer. It’s almost the end of the year, and car companies are almost starting to rush. Otherwise, the fourth-quarter earnings report will be very ugly.

At least this wave of Tesla owners has waited?