The stock price is double diving! The Great Wall reported BYD, and there was another “fierce battle” in the car market

Wallstreet News ·  May 25, 2023 14:55

Source: Wall Street News
Author: Zhou Xiaowen

Domestic car companies' internal reports have gone from a price war to the reporting stage.

On the morning of May 25th,$GREATWALL MOTOR (02333.HK)$A statement was issued stating that reporting materials were submitted to the Ministry of Ecology and Environment, the China General Administration of Market Supervision and Administration, and the Ministry of Industry and Information Technology on April 11 to report on the alleged problem that BYD Qin PLUS DM-i (product model: BYD7152WT6HEVC2) and Song PLUS DM-i (product model BYD6470ST6HEV2) use normal pressure fuel tanks and are suspected of not meeting vehicle evaporation pollutant emissions standards.

After Great Wall Motor issued a statement, BYD's A shares,$BYD COMPANY (01211.HK)$Hong Kong stock prices fell sharply.

“Great Wall reports from BYD” also made it into the top ten popular searches on Weibo.

About an hour and a half later, BYD's response came.

BYD said that since the test vehicle was purchased, kept and arranged for inspection by the Great Wall, strictly speaking, it did not meet the requirements of national standards for inspection, so the inspection report could not be used as a basis:

According to information, according to the situation described by the Great Wall, the test vehicle was purchased, kept, and arranged for inspection by the Great Wall, and the China Automobile Center (Tianjin) carried out tests on related projects in accordance with the requirements of the Great Wall. Strictly speaking, if the test vehicle does not meet the requirements of the national standard, it should be sampled, stored and sent for inspection by a third party, and is required to complete the test after 3,000 kilometers of run-in. At the time of inspection, the vehicle sent to the Great Wall for inspection had a mileage of only 450-670 kilometers. In view of the above, we believe that its test report is not valid, and the Great Wall cannot be used as a basis for this! Our products and related tests meet national standards and have been certified by national authorities. We welcome relevant departments to investigate, collect evidence and test at any time.

In addition, BYD also stated in its statement that relevant departments are always welcome to investigate, obtain evidence, and test at any time. BYD has accumulated and iterated on mixing technology for more than 20 years. “It's not as simple as some peers think.”

In response, Great Wall Motor once again said, “Subject to the statement information, Great Wall Motor is closely monitoring the progress of the case filing and processing.”

Following BYD's response, Great Wall Motor's stock price also declined after the opening of the market. As of press release, Great Wall Motor's A-shares fell more than 6%, Hong Kong stocks fell nearly 7%, BYD's A-shares fell more than 2%, and Hong Kong stocks fell more than 4%.

According to public information, in 2022, BYD obtained revenue of 424.061 billion yuan and net profit of 16.622 billion yuan, an increase of 445.61% over the previous year; Great Wall Motor's revenue was 137.340 billion yuan and net profit was 8.266 billion yuan, an increase of 22.90% over the previous year.

In terms of sales, in 2022, BYD sold 1,802,500 units for the whole year, an increase of 149.88% over the previous year; Great Wall Motor sold 1,061,700 units, a decrease of 17.12% over the previous year. Among them, Great Wall Motor's new energy vehicles sold about 119,900 units, a decrease of 13.79% over the previous year.

BYD launches new car

It is worth noting that today was the launch date of the new BYD Song Pro DM-i Champion Edition.

According to BYD's promotional materials, the DM-i Champion version of the Song Pro is equipped with the DM-i super hybrid system developed by BYD. The maximum engine power is 81 kilowatts, and the acceleration is 7.9S for 100 kilometers. “Comparable to the power of a 2.0T fuel vehicle”, the comprehensive cruise with full fuel and electricity reached 1,090 km.

Meanwhile, the Qin PLUS DM-i and Song PLUS DM-i reported by Great Wall Motor this time are among BYD's best-selling models.

In April of this year, the BYD Qin PLUS DM-i model sold 31,734 units, accounting for three-quarters of the “Qin Family”'s total sales for that month. The Song PLUS DM-i sold 20,645 units, accounting for more than 60% of the “Song Family”'s sales that month.

After the incident occurred, an auto industry analyst pointed out to the Shanghai Securities News reporter,Currently, along with the rapid development of new energy and intelligence in automobiles, the industry is facing comprehensive competition and upgrading, and there is indeed a conflict between enterprises and enterprises.

Competition is intense, and everyone wants to get a ferry ticket.

Zhang Junyi, managing partner of Oliver Wai Consulting, told the Shanghai Securities News reporter that the competitive pressure in the automotive industry is very high. There are more opportunities for companies to compete as rivals than teammates, but it is important to note: on the one hand, leading companies should act in accordance with industry regulations; on the other hand, if the Chinese automobile industry needs to have an atmosphere of healthy development, they should help each other rather than break up with each other.

It is worth mentioning that in March of this year, at the “Great Wall Motor New Energy Dry Goods Conference”, Great Wall Motor announced the launch of a 10 million yuan reward plan to launch a special network clean-up campaign to crack down on cyber forces.

Fu Xiaokang, vice president of Great Wall Motor, said that it was supposed to be the heating stage for the newspaper team, but some people are using the banner of being spectacular and are eroding the hard-won fertile ground. In particular, there have been some bad trends for a long time on various social media platforms. Therefore, he called for automobile industry operators, automobile industry practitioners, and more peers to unite against online fraud.

Car companies' internal affairs have intensified

Due to various reasons such as fluctuations in the macro environment and cooling of market demand, China's automobile market started an “unprecedented” price war this spring.

On the fuel side, Dongfeng took the lead in price cuts in Hubei, while on the new energy side, the price reduction was led by Tesla.

Although the price war has had a certain impact on brands in the short term, there are still quite a few car companies that have joined this ranks.

Faced with the price war, BYD offered “the same price for oil and electricity” to give back to car owners by introducing new models at reduced prices and increased allocations. The Great Wall on the other side also unveiled the 2023 Euler Ballet at the Shanghai Auto Show. The starting price dropped straight from 193,000 to 149,800.

The Securities Times · e Company quoted industry insiders as saying that “the same price of oil and electricity” is an important reason why BYD's Qin and Song hybrid models are popular. Normally, among models of the same class, pure electric or hybrid versions are generally more expensive than fuel vehicles. BYD “knocks down” the price of hybrid cars, which can further expand its market share.


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