On August 14, Tesla announced that it would adjust the price of the long-endurance and high-performance versions of Tesla Model Y in mainland China.。

According to Tesla China's official Weibo news, Tesla has cut the starting price of the above two models by 14,000 yuan (RMB, the same below)。Model Y Long Endurance Edition Starting Price Is Now 29.990,000 yuan, the price reduction of 4..5%, Model Y High Performance Edition now starts at 34.990,000 yuan, down 3.8%。In addition, the $8,000 insurance subsidy for the purchase of the Model 3 rear-wheel drive version of the current car will be extended until the end of next month。

Tesla's price cut is not unrelated to its increasingly severe situation in China's new energy vehicle market.。

According to the July wholesale sales of new energy passenger cars by the Federation, Tesla's sales were 64,285, down 31% from the previous month.。According to the Federation's retail sales data, Tesla's retail sales in China in July were 31,423 vehicles, halving from 74,212 sales in June and falling to the lowest level since the year.。

By retail sales, Tesla's market share in China in July was only 4.9%, compared to 11 in June..2%, the downward trend is very obvious。Tesla's market share in China from January to July was about 8.7%, second only to BYD, but BYD's market share is as high as 37.2%。

Prior to this, Tesla has dropped a wave of prices in Hong Kong, China。According to China's Hong Kong Special Administrative Region Customs, Tesla's Model 3, Model Y and other models will be reduced in price on August 4, by 6% to 11.ranging from 9%。

Different from other car companies, while "rolling" prices, while "rolling" new models。Tesla has only four models on sale.。At present, Tesla has four models in China, including Model S, Model 3, Model X and Model Y, among which Model Y and Model 3 are Tesla's best-selling models in China.。

Recently, it was reported that Tesla is ready to start production of the revised Model 3 in China in a few weeks, and it may be launched in September。As a result, the promotion for the Model 3 is considered Tesla's move to clear inventory before the new version is launched.。

It is understood that the biggest change in the revision of the Model 3 will be the reduction of production costs。That could allow Tesla to boost margins at current prices, or it could revive sales with further price cuts while maintaining current margins.。

In the second quarter of this year, Tesla's gross margin increased from 19 in the first quarter..3% to 18.2%, down 682 basis points from the same period last year。Automotive gross margin down to 18.1%, compared to 18 in the first quarter.3%, compared to 23% in the fourth quarter of last year..8%。Tesla has said that the "lower limit" of the indicator in 2023 will be 20%。

Tesla's biggest competitor in China, BYD, has slightly better profit margins than Tesla.。Public data show that BYD's gross profit margin in the first quarter was 17.9%, down from about 19% in the previous two quarters。Its vehicle gross margin was 20 in the first quarter..7%, down from about 22% in the previous two quarters。

         

A new price war has arrived.

           

Not only Tesla, this year has been a number of car companies have shown signs of declining profit margins, which is closely related to the "price war" at the beginning of this year.。The last round of "price war" stopped for a while, but recently a number of car companies have opened a new round of "price war."。

Since August, a number of car companies have begun to "price for volume" strategy, opening a new round of price cuts。

One of the new car-building forces, Zero Run, fired the first shot of this round of price cuts.。On August 1, Zero Run announced that the price of two C11 models was reduced by 10,000 yuan, including the C11 650 Smart Edition and the C11 580 four-wheel drive performance edition。The three C01 models are reduced by 20,000 yuan, including the C01 606 Smart Edition, the C01 717 Smart Edition and the C01 630 Four-wheel Drive Performance Edition。It is worth noting that the zero run July delivery data performance is not inferior。Zero-run car sales reached 14,335 units in July, up 19% year-on-year。Among them, the price reduction of the C series in July delivery of more than 12,000 units, accounting for about 85%。

The intensity of competition in the market is evident in the announcement of price cuts when sales are still available.。

On the same day of the zero run price cut, Weilai launched an August limited-time offer。Including the period from August 1 to August 31 to buy a car free electricity exchange experience coupons; June 1 onwards on a variety of home pile prices to adjust, the price reduction range of 2,000 yuan to 2,700 yuan; and in August to buy a car users to introduce 15% down payment from the installment and 0 down payment of the car financial division.。

In the promotion of price cuts, joint ventures have also emerged。On August 5, SAIC-Volkswagen announced that its Tiguan L 2023 models were priced at 16.From 990,000 yuan, the activity is limited to August; its 300 TS Lavida Star Leading Edition also launched a limited-time activity in August, with a price cut of 30,000 yuan.。In addition, it is understood that in the period from August 1 to August 31, SAIC Volkswagen has nine SUV models will also reduce prices。It is worth noting that in July, SAIC Volkswagen has launched ID.3 July limited-time promotion, selling for only 12.590,000 yuan。

According to the Federation of Passengers, SAIC-Volkswagen's wholesale sales of new energy passenger cars in July were 13,378, breaking the 10,000 mark.。By comparison, wholesale sales in June were 9,003 units.。

On August 5, Nezha Automobile officials announced that from now on, a total of five of its Nezha S models to open the "Tanabata put price" activities, of which the 520Lite version of the price reduction of 30,000 yuan, adjusted guidance price of 15.980,000 yuan, 520 version price reduction 2.60,000 yuan to 17.380,000 yuan。However, 2022 715 medium edition, 715 large edition and 650 four-wheel drive large edition are all reduced by 4.90,000 yuan, the adjusted guidance price is 19..980,000 yuan, 22.380,000 yuan, 23.380,000 yuan。At the same time, car owners participating in this promotion will also enjoy a financial discount or replacement subsidy of $8,000.。

This is the second price cut in half a month.。On July 20, the company launched the 2024 Nezha S, which is nearly $30,000 lower than the previous 2023 Nezha S, with a price range of 15.980,000 - 26.980,000。

The price cut can be said to be traceable.。In July, 10,039 vehicles were delivered across the board, down 17% from the previous month.。This is already the second month in a row that Nezha has seen a decline in delivery data, and is one of the few new car-building forces that saw a month-on-month decline in sales in July.。Now Nezha has come to the dangerous "ten thousand vehicles" pass, price reduction has become the fastest way to save sales.。

Another "top student" with excellent sales also announced a price cut recently.。On August 11, Geely Automobile's high-end brand Pole Krypton announced a limited-time price cut.。According to the official public number, from August 11 to December 31, 2023, the YOU, ME and WE versions of polar krypton 001 were reduced by 30,000-3 respectively..$70,000。

Pole krypton deliveries in July were 12,039, up 139 from a year earlier..7%, up 13.4%, achieving six consecutive months of positive growth in both the same month-on-month.。At present, there are three models of polar krypton, including hunting coupe polar krypton 001, pure electric MPV polar krypton 009 and SUV polar krypton X。

         

The off-season is not light

            

July is the off-season for traditional cars, and China's new energy vehicle market as a whole slowed in July.。According to data from the Federation of Passenger Cars, retail sales in the domestic narrow passenger car market reached 177 in July..50,000 vehicles, down 2.3%, down 6.3%; cumulative January-July sales 1,129.90,000 vehicles, up 1.9%。

Although the overall market is slowing down, the competition in the new energy vehicle market is becoming more and more intense.。In addition to the simple and crude trick of price reduction, many car companies are focusing on launching new models, and some car companies are in the "roll" configuration. In short, in order to compete for more market share, the major car companies are showing their magic power, and this The original car off-season has become less bland。

On August 9, BYD held a press conference to announce the launch of the 5 million new energy vehicles.。At this new milestone, BYD shouted out the slogan "Together, it is the Chinese car," which attracted the "likes" of many car companies.。Including Chery, Dongfeng, Lantu Automobile and many other car companies have forwarded congratulations, "Wei Xiaoli" three founders are personally off the scene to pay tribute。

For BYD's big picture, there are also voices of doubt。"Old rival" Great Wall Motor CTO Wang Yuanli said on Weibo: "In such a severe moment, how can Chinese cars be together？"

He believes: "We must face the reality of competition, we do not want to be morally kidnapped together, we do not want to be held together, we do not want 'I talk to you about the law, you talk to me about feelings' together, business or to use the logic of business to solve, if only verbally stressed together, it is better to fight first and then together."。"

It is undeniable that the cruel market competition of Great Wall Motor is a fact.。China's auto market is now in a white-hot phase, some people cheer naturally some people worry。Although China is already the world's largest auto market, too many domestic automakers have already squeezed into the new energy runway.。When the increment is not large enough, the fight becomes inevitable.。In this case, BYD said hand in hand to create a Chinese car brand, to the world is the best way out。