On November 23, BYD announced that it would adjust the official guide price of new energy vehicles related to Dynasty, Ocean and Tengshi , with an increase of between 2,000 yuan and 6,000 yuan. At present, BYD has not announced the price of the specific model and is expected to be announced in December.
Regarding the reasons for the price increase, BYD officially explained that the price increase is affected by two main factors. On the one hand, the subsidy policy for the purchase of new energy vehicles will be terminated on December 31, 2022, and the countries that have registered their vehicles will no longer provide subsidies.
The current subsidy policy, the new energy vehicle subsidy standard for in 2022 will be reduced by 30% on the basis of 2021. That is, pure electric cars with a range of more than 400km and a price of less than 300,000 yuan will be subsidized by 12,600 yuan /t. plug-in hybrid models will be subsidized by 14,800 yuan/table .
On the other hand, since the second half of the year, the prices of main raw materials of batteries have risen sharply. For example, the price of battery-grade lithium carbonate is still at a high level of 625,000 yuan/ton. You should know that the price of battery-grade lithium carbonate last year was about 50,000 yuan/ton.
Compared with the rapid development of the vehicle market, the construction of production capacity of in the raw materials industry is relatively lagging behind. According to experts, the expansion cycle of power battery will take 6-8 months, and the raw materials will generally take one and a half years, while the increase in mining capacity such as lithium ore will take two and a half years to three years. In other words, the rapid development of the new energy vehicle market is asymmetry with the information upstream of in the industry chain.
Under the superposition of dual factors, BYD's official price increase at this time seems reasonable.
However, just last month, , Tesla lowered the price of Model 3 and Model Y on sale in mainland China. The starting price of Model 3 has dropped by 14,000 yuan, and the starting price of Model Y has dropped by 28,000 yuan. Is BYD "wavering" in comparison with this? . Of course, the reason for Tesla's price cut is not because of conscience discovery. The most fundamental reason is that the recent decline in order volume in mainland China. In order to maintain sales, Tesla had to cut prices.
And judging from the recently exposed third quarter operating data, Tesla's bicycle profit is as high as 70,000 yuan, and the price reduction is still very large. In contrast, BYD's bicycle profit is only about 10,000 yuan, so it is more sensitive to factors such as policy subsidies and raw material prices.
However, BYD "disclosed" this news in advance, in addition to making consumers mentally prepared, there are actually other "intentions" for this price adjustment. In the announcement, BYD emphasized that customers who pay deposits before January 1, 2023 will not be affected by this price adjustment. This also means that BYD announced the price increase in advance this time, which is actually hoping to achieve the effect of "grab orders" at the end of the year.
In addition, compared with the official increase of BYD (2,000 yuan-6,000 yuan) and the subsidy reduction ( pure electric: 12,600 yuan /table ; plug-in hybrid: 4,800 yuan/table ), you will find that BYD has not transferred all the reduction amount to consumers. This actually shows that BYD has its own unique considerations for the balance of profit, sales, and reputation.
Since the beginning of this year, BYD's sales performance has been "crazy". The sales in October reached 1.2178 million html, and the cumulative sales this year were 1.3979 million, and the 3 millionth model was officially launched. Such sales performance is not only the most eye-catching among domestic brands, but also completely abandons a number of joint venture brands. has become the most dazzling new energy vehicle brand in the domestic market and even the global market.
Although there are many doubts on the Internet, BYD's persistence in self-developed technologies, control of costs, and not randomly increase prices after becoming popular are still worthy of praise. We will wait and see whether BYD can avoid arrogance and impetuousness in the future, stabilize product quality and user reputation, and build a global Chinese new energy brand!
