Source: Financial Services Association Author: Tang Zhixiao

Recently, news of the intelligent world “cut off” the Xiaomi SU7 order hit the headlines. According to reports, car owners who have already paid a deposit to lock in the Xiaomi SU7 will receive a subsidy of 5,000 yuan if they place an order to buy the Zhijie S7 with any configuration.

Huawei Hongmeng Zhixing Store Sales confirmed the incident to the Financial Federation reporter and stated that they only needed to show the locked order page to enjoy the subsidy.

The Financial Services Association reporter also learned from the NIO store sales office that NIO will also provide a subsidy of 5,000 yuan for owners who order Xiaomi SU7 orders.

In addition to Hongmeng Zhixing, according to sales at stores such as Ideal and Xiaopeng, the prices of the models have been adjusted accordingly, and the discounts are already very strong.

The data shows that in the first half of April, the retail penetration rate of new energy passenger vehicles surpassed that of traditional fuel passenger cars for the first time. As the Beijing Auto Show begins soon, the price war between car companies will heat up.

Intellectual world and NIO subsidize, Xiaopeng follows suit

A CIFA reporter interviewed the Huawei Hongmeng Zhixing offline store. The sales claim that the subsidy for Xiaomi SU7 bike owners is true: “You only need to show us the (Xiaomi SU7) deposit payment page, then place an order for the Smart World S7. We can apply for a special subsidy for you.”

The sales person also said, “This subsidy policy can overlap with other promotions for the Intelligent S7. After that, regardless of whether consumers buy the Xiaomi SU7 or not, they will be given a 5,000 yuan reduction when paying the final payment for the Smart World S7.”

According to reports, since the launch of the Xiaomi SU7, all major Huawei stores have introduced this temporary policy, which will continue until the end of May.

Recently, Xiaomi Group Chairman Lei Jun posted a microblog saying that currently the production capacity and delivery speed of the Xiaomi SU7 is rapidly increasing. The standard version and Max have already been delivered ahead of schedule, and Xiaomi's production capacity and delivery plans will be detailed at the Beijing Auto Show.

Lei Jun also said, “If you are really in a hurry to buy a car, domestic NEVs are all good, such as the Zhijie S7, NIO ET5, and Xiaopeng P7 series, so you can also consider buying them.”

The official blog of Zhijie Auto published an article saying, “Thank you to Mr. Lei for recommending the Zhijie S7. Large-scale delivery has now started, so welcome to experience it.” Xiaopeng Motor's official blog also posted an article thanking Lei Jun for recommending the Xiaopeng P7i, a new benchmark for smart driving of pure electric Pengyi coupe, and to enjoy up to 65,000 yuan worth of car purchase benefits when ordering.

The Financial Services Association reporter also visited offline stores such as NIO and Xiaopeng mentioned by Lei Jun. Among them, NIO store sales said that the price of the NIO ET5/ET5T is similar to the top model of the Xiaomi SU7, and the two are rival models.

The sales person told the reporter, “We have also introduced a corresponding subsidy for car owners who have ordered the Xiaomi SU7. As long as you place an order, we will also subsidize 5,000 yuan.”

Xiaopeng Motor's offline store sales told the Financial Federation reporter: “Xiaopeng Motor has introduced corresponding subsidies, and the price reduction for each model has reached the level of 10,000 yuan.”

According to information, Xiaopeng Motor officially announced that until May 5, it will launch a total car purchase subsidy of 500 million yuan, involving the Xiaopeng G9, G6, P7i, and the 2024 Xiaopeng P5 models.

After this subsidy, the starting price of the Xiaopeng G9 was 243,900 yuan; all G6 models were reduced by 20,000 yuan for a limited time; the maximum discount of the P7i was 65,000 yuan, up to 50,000 yuan for a limited time, and the price was as low as 203,900 yuan; and the price of each P5 unit was reduced to 141,900 yuan.

Ideal Auto's offline store sales bluntly stated to the Financial Federation reporter: “We are not participating in this subsidy campaign. Most of the ideal models are household (SUV) models, which do not match the target users of the Xiaomi SU7; they mainly target models in the Qunjie series.”

Afterwards, he added that Ideal officially announced a price reduction just now (April 22). Ideal L7, Ideal L8, Ideal L9, and Ideal MEGA will adopt a new price system. Newly ordered users and users who have ordered and not delivered can enjoy the new prices. “Direct price reduction is ideal's greatest sincerity. Isn't this more affordable than the subsidy?”

Ideal Auto officially announced on April 22 that the 2024 Ideal L7, Ideal L8, Ideal L9, and Ideal MEGA will be discounted. The L7 series decreased by 18,000 yuan to 20,000 yuan, while MEGA dropped from 559,800 yuan to 529,800 yuan, a decrease of 30,000 yuan.

The Beijing Auto Show is imminent, and the “price war” for car companies is heating up

According to data recently released by the Automobile Market Research Branch of the China Automobile Dealers Association, in the first half of April, the retail penetration rate of new energy passenger vehicles was 50.39%, surpassing traditional fuel passenger cars for the first time.

Although the NEV penetration rate continues to increase, the price war between domestic NEV brands has been intensifying recently, and there is already an escalation trend.

On April 21, Tesla China announced that the prices of all Tesla Model 3, Y, S, and X products will be reduced by 14,000 yuan in mainland China. Among them, the starting price of the Model 3 dropped to 231,900 yuan, and the starting price of the Model Y dropped to 249,900 yuan. After this price reduction, the price difference between the starting price of the Tesla Model 3 and the standard version of the Xiaomi SU7 was further reduced to 16,000 yuan.

According to incomplete statistics, including brands such as Xiaopeng Motor and Ideal Auto mentioned earlier, since April, more than 38 car companies, with a total of 126 car models, have made price cuts or preferential adjustments, including 84 traditional fuel models and 42 new energy models.

The Beijing Auto Show is about to open, and there will be hundreds of new cars and facelift models on the market. Among them, BYD will unveil a number of new models, including 100,000-class family cars, as well as million-class luxury supercars.

On the eve of the Beijing Auto Show, HUAWEI Hongmeng Zhixing will launch the new Qunjie M5, the first model in collaboration between Huawei and BAIC. The Enjoy S9 is expected to debut at the Beijing Auto Show.

In addition, new power brands such as Zero Run, Nana, Extreme Krypton, Jieyue, and Rantu will also launch new models during the 2024 Beijing Auto Show. Xiaopeng will bring new brands, which will focus on the 100,000 to 150,000 yuan market.

Cui Dongshu, Secretary General of the China Passenger Federation, believes that this year is a critical year for NEV companies to gain a foothold, and competition is bound to be very intense. This year's price war is likely to unfold in a mix of multiple models, such as price reduction promotions and downward positioning, and NEV manufacturers will package more benefits to stabilize product prices.

edit/lambor