After the Spring Festival in 2024, there was a price war in China's new energy vehicle industry, and several automakers announced price cuts.。The issue has received widespread attention in the Chinese media。Some large media outlets are reporting on the industry's price recovery, according to the Financial Report, "Each participant has his or her own strategy and goals, which can be analyzed in multiple ways, such as the industry environment and real market competition.。"

It all started this week with BYD, a leader in China's new energy vehicle industry, announcing the launch of the Qin Plus Glory Edition and the Destroyer 05 Glory Edition, starting at a minimum of 79,800 yuan ($11,000).。In addition, BYD Dolphin is about to go public and cut prices。With BYD's announcement, Wuling also cut prices, with Wuling Bingo selling for about 10 percent.。In addition, Chang'an followed suit, reducing the price of Qiyuan A05 to 73,900 yuan ($10,300) from the previous 88,000 yuan ($12,300).。Weilai also joined the battle, the full line of products can enjoy up to 22,000 yuan discount.。Even Buick, the brand launched by SAIC-GM, announced certain special price cuts or offers of compensation from Feb. 19-29.。

"China Securities Journal" pointed out that the price war in the new energy vehicle market is mainly concentrated in the field of hybrid vehicles。BYD reduced its plug-in hybrid vehicles to a minimum of less than 70,000 yuan, which is lower than the price of equivalent fuel-fired vehicles, which has dealt a comprehensive blow to the first-class car market。

According to Ping An Securities, the rise of new energy vehicle companies ahead will come under pressure in 2024。Competition in the new energy vehicle industry has been fierce, and the current price war requires automakers not only to maintain their existing market share, but also to expand their market share as a result, and the price war led by these companies, especially in the mainstream price range of $100,000 to $200,000, is expected to continue to decline.。

It is worth noting that the price reduction may have various effects on the industry。On the one hand, they can stimulate consumer demand and boost sales, especially for price-sensitive customers who have been waiting.。In addition, lower prices will have an impact on the car to affect manufacturers to put a lot of pressure, severely reducing, sometimes already narrow profit margins。In a separate article published today, China News Network reported that "aggressive price adjustments may reduce profit margins for automakers and manufacturers."。"Dealer pressure" margins may affect their sustainability。In addition, relying solely on price to attract customers may not be a sustainable long-term strategy, and financial products play an important role in consumers' purchasing decisions because of other factors such as quality, brand consumption and after-sales service.。"

The ongoing price war in China's auto market has become a hot topic, attracting the attention of industry insiders, media and consumers。Due to increased competition and ongoing price wars, Hiphi may be just the first of some recent automakers to fall。