New energy leader BYD has fired the first shot in the post Spring Festival car market price war.
On February 19th, BYD announced the launch of two plug-in hybrid models, the Qin PLUS Honor Edition and the Destroyer 05 Honor Edition, with a starting price of 79800 yuan. Compared to the previous version of the champion model, the price of the new version has decreased by 20000 yuan.
Li Yunfei, General Manager of Brand and Public Relations Department of BYD Group, said that thanks to BYD's economies of scale and advantages in the entire industry chain, the price of BYD plug-in hybrid cars can be lower than that of gasoline cars in the same class. At the same time, Li Yunfei also stated that this move will completely open up a big battle with gasoline cars, "who will buy gasoline cars next?".
After BYD released this heavyweight information, SAIC GM Wuling also announced that the price of the Wuling Starlight plug-in hybrid model 150km advanced version has been adjusted from 105800 yuan to 99800 yuan, and the price has been reduced to less than 100000 yuan.
Zhou Xian, Deputy General Manager of SAIC GM Wuling Brand Business Unit, also stated on his personal Weibo account, "One word, follow!"
Subsequently, Changan Qiyuan immediately followed suit, and the starting prices of both Q05 and A05 models were lowered to 73900 yuan; Nezha Motors has also launched a price reduction campaign, with the Nezha X model priced at 22000 yuan, dropping to 99800 yuan and a starting price below 100000 yuan.
Furthermore, it is worth noting that plug-in hybrid models have opened the price war this time, and the main target of car companies is the market controlled by joint venture fuel car companies with a price below 100000 yuan.
Many industry insiders have stated that plug-in hybrid models (including extended range models) will experience a surge in sales in 2024. In the just past January, the market share of plug-in hybrid and extended range models grew very strongly.
According to data from the China Association of Automobile Manufacturers, pure electric vehicles accounted for 59% of the wholesale sales structure of new energy in January, compared to 70% in the same period last year; Plug in hybrid models accounted for 28%, extended range models accounted for 13%, while in the same period last year, they were only 24% and 6%, respectively.
The plug-in hybrid model not only takes away the cake of pure electric models, but also the market share of traditional fuel vehicles. Prior to this, the main market segment for plug-in hybrid models was the mid size vehicle market. According to statistics from the China Association of Automobile Manufacturers, the core and main models of passenger cars in China are currently concentrated between 50000 and 150000 yuan, with traditional fuel vehicles accounting for the highest proportion in this major market.
Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, stated that the increase in plug-in hybrid models is mainly in the low price range. After the maturity of independent plug-in hybrid technology, it has already gained a large share in the mid to low price market.
According to data from the China Association of Automobile Manufacturers, in the market of 50000 to 100000 yuan in 2023, the market share of plug-in hybrid models is 0.6%; In January 2024, the share of plug-in hybrid models in the 50000 to 100000 yuan market increased to 2.4%.
In 2024, the gunpowder smell in the Chinese car market will undoubtedly become stronger. On the first day of construction on February 18th, CEO He Xiaopeng of Xiaopeng Automobile and CEO Gan Jiayue of Geely Automobile Group both sounded the alarm in their start letters, stating that this year will usher in more intense competition in the automotive market.
