It is not terrible that the opponent is strong, and those who are stronger than you are "rolled up" than you. This price reduction storm, BYD is destined to set off a thousand waves in the industry.
"The process of electrification is accelerating. At this time, it depends on who has more resources, a more complete supply chain and greater product advantages, and who can win a bigger market. Now it is not the big fish eat small fish, but the fast fish eat the slow fish, and only in the fast process can we overtake. "
The well-known theory of "fast fish eat slow fish" was put forward by Wang Chuanfu at the 202 1 BYD shareholders' meeting.
In 2022, BYD won the global new energy vehicle sales champion with 65,438+0,869,000 vehicles (passenger cars). It is estimated that the annual revenue will exceed 420 billion yuan, and the net profit after deduction will be1.51003 million yuan, a year-on-year increase of1.51003 million yuan.
Relying on the advantages of the whole industrial chain layout, multi-technology routes and strong competitive products, BYD has completed the phased overtaking, from a fast fish to a big fish.
Let time go back three years. BYD in 2020 is far less conspicuous than it is today, and it is far from the title of "Independent Brother". Among many independent brands, it is even a less optimistic one.
In that year, BYD sold a total of 410.6 million new cars, of which new energy vehicles sold10.79 million, accounting for 43.0% of the independent sales and 1.3+0% of the domestic new energy market. Whether it is total sales or new energy, the performance is average.
Adhering to the logic of Wang Chuanfu's "fast fish eat slow fish", since February 2020, BYD has successively released advanced technologies such as blade battery, DM-i super hybrid and E platform 3.0, and new models equipped with new technologies are also in full swing.
In 20021year, BYD's passenger car sales climbed to 730,000, including 594,000 new energy vehicles, accounting for 8 1.3%. In other words, BYD's fuel vehicles are shrinking, but the prosperity of new energy vehicles has driven the overall sales of the brand to rise.
In April 2022, BYD announced that it would stop production of fuel vehicles, becoming the first mainstream automobile manufacturer in the world to stop production of fuel vehicles. By the end of the year, the title of "global new energy sales crown" has been well known.
From179,000 to186,900, from "not optimistic" to "independent brother", BYD only took two years.
Reflected in the consumption level, BYD's popularity in the streets and lanes is getting higher and higher, and the mention rate in people's mouths is getting higher and higher. No matter you or people around you, there is a high probability that someone has bought BYD or is on the way to buy BYD.
Feedback from the market level, whether there is a discount or not is not important. It is most important to pick up the car quickly. On a complaint platform, the most complaints about BYD models are not because of the quality, but because the car is too slow.
The so-called "fast fish eat slow fish", the more you eat, the bigger the fish. Warm-hearted owners and flying orders have injected more confidence into BYD, which has grown into a big fish.
At the end of 2022, subsidies for new energy vehicles withdrew from the historical stage. In the call for price reduction or price protection, BYD firmly chose to raise the price because of the termination of subsidies and the rise in the price of main raw materials for batteries.
When the new energy market changes from policy-oriented to market-oriented, the subtext behind BYD's price increase is: strong brand and strong order.
BYD is a big fish and Tesla is a catfish. Unlike BYD's strategy, Tesla felt the chill of intensified competition in the domestic new energy market earlier.
In the fourth quarter of 2022, before the withdrawal of subsidies for new energy vehicles, Tesla made several price cuts such as insurance subsidies and official price cuts. Helpless, sales promotion has little effect.
Finally, after the opening of the year in 2023, Tess opened an exaggerated price reduction. The starting price of type 3 decreased by 36,000 yuan, and that of type Y decreased by 29,000 yuan. The shop was crowded with people and orders kept flowing.
Today, this chill has also been transmitted to BYD.
Recently, it was reported that BYD Dynasty series models in Beijing, Shanghai and other places began to cut prices, and the delivery cycle was shortened to varying degrees compared with last year.
After visiting several 4S stores in Shanghai on the spot, the reason given by the salesperson is: cleaning up the inventory car. BYD's response is that the company's operating conditions are stable, and the price reduction is an unofficial activity of dealers in some regions.
As an OEM, it is really inappropriate and even illegal to interfere with the pricing of dealers at will. However, inventory clearance and price reduction promotion also explain the current situation of the decline in competitiveness of related models to a certain extent.
In June 2023, BYD sold 15. 1 10,000 vehicles, up 58.6% year-on-year and down 35.8% month-on-month. The reduction of working days during the Spring Festival holiday is an objective reason, as is the more competitive market.
At the same time, after the price reduction, Tesla achieved 66,000 vehicles in the China market, up 10.4% year-on-year and 18% quarter-on-quarter.
As a car company, BYD will not be indifferent, and "curve price reduction" may be a feasible plan, such as whether to increase prices or not.
Typical representatives are Qin Jia DM-i 2023 Champion Edition.
From 99,800, you can buy BYD's famous DM-i hybrid system, which can satisfy both power and economy; Configuration level is not shabby, 6 airbags, 10. 1 inch central control panel, keyless entry/start, etc.
Once upon a time, BYD's label was "the same price of oil and electricity" and its slogan was "fuel subversion". When the champion version of Qin Jia DM-i 2023 went on the market, its slogan became "Qin unified the world and subverted fuel".
The slogan is heroic and the result is beautiful. After five days on the market, the model handed over 25,363 sets of order data, and the boosting effect was obvious.
Taking this as a mirror, the Qinjia DM-i 2023 Champion Edition, which started selling at 99,800, is more like a test and a symbol, and will play a leading role in the subsequent "price reduction" of other BYD models.
Compared with the increasingly fierce competition in the new energy vehicle market, BYD's own grand goal is one of the driving forces for its "price reduction".
In 2023, BYD's external sales target is 4 million vehicles (wholesale caliber) and its internal sales target is 4.86 million vehicles. Conservatively estimate 3.4 million vehicles, challenge 4 million vehicles and be optimistic 4.8 million vehicles.
Just Rainbow Chuanfu's argument that "fast fish eat slow fish", BYD still wants to be a fast fish, although it is already a big fish. The combination of the two is big and fast. How to achieve it? "Reducing the price" is a feasible policy.
In the process of fast fish eating slow fish, BYD, which has become a big fish, may also eat those small fish.
As a "fuel disruptor", BYD has been committed to eating the share of fuel vehicles. Wang Chuanfu once said: "Our opponent is a fuel vehicle, and we must make the cake of new energy vehicles bigger."
In view of BYD's full-link self-research and strong cost control ability, after the "price reduction", its product strength and cost performance will be by going up one flight of stairs, which will be more subversive and alternative to fuel vehicles and more competitive and advantageous to new energy vehicles.
Compared with the joint-venture fuel cars with poor experience such as Sylphy, LaVida and Corolla, and the more expensive self-plug-in models such as Emgrand L Hi-P, do you choose them? Or the champion version of Qin Jia DM-i 2023, starting from 99,800?
And when the "price reduction" extends from Qin PLUS to other models, how should those joint ventures and independent manufacturers deal with BYD's golden drum attack?
In other words, BYD "reduced the price" and sharpened the knife to its peers.
On the one hand, BYD is still planning a brand-new brand. In addition to the existing BYD Dynasty/Ocean, Tengshi and Want Want, a professional personalized brand will be released this year, with the internal code name "F brand", which is independent of the existing BYD brand.
It is reported that BYD's professional personalized brand system is between Tengshi and Want Want, focusing on multi-category and unique professional-grade new energy vehicles. The future product matrix will cover sports cars, cross-country and coupes. Its first model will focus on the off-road field, and its overall performance will be compared with Mercedes-Benz G. ..
BYD, Tengshi, F brand and Want Want, after the release of new brands, BYD's product matrix will be richer.
Nature has many benefits. Selling more expensive cars can make more money and the profit structure is more reasonable. Positioning the dynasty and ocean series that are close to the people also has more room for "price reduction" and can expand a broader market.
Conversely, a number of high-end brands with different positioning can also better undertake the huge user base harvested by the Dynasty and Ocean series, form a closed-loop user ecology, and build a powerful BYD auto kingdom.
As for those "small fish" that have been eaten, do you feel a little sorry for them at some time and place?
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