Source: Broker China
Author: Zhou Le
During the May 1st holiday, the NEV market is booming.
First, the “price war” is once again in smoke. According to the latest news,$BYD COMPANY (01211.HK)$/$BYD Company Limited (002594.SZ)$Officials announced that it has introduced preferential car purchase policies for all models of its Dynasty Network. The bike replacement subsidy is as high as 18,000 yuan, including a state subsidy of up to 10,000 yuan and a BYD subsidy of up to 8,000 yuan.
Second, the latest sales figures released by major car companies during the May 1st holiday exceeded expectations. Among them, BYD sold more than 310,000 vehicles in April, up 49% year on year; NIO Auto delivered 15,620 vehicles in April, a sharp increase of 134.6% year on year; Hongmeng Zhixing delivered about 29,600 vehicles in April; and Xiaopeng Motor delivered 9393 vehicles in April, up 33% year on year.
A series of positive news has begun to be reflected on the market level. On May 2 and 3, Hong Kong's NEV stocks surged collectively. Among them, NIO's stock price surged 20%, Xiaopeng Motor's cumulative increase was over 13%, BYD's cumulative increase was over 5%, and Ideal Auto rose more than 3%.
Looking ahead to the automobile market in May, analysts pointed out that due to favorable policies and preferential promotion by car companies, the vitality of the automobile market will gradually increase in May, and demand for car purchases with coins will gradually be released in the early stages due to wait-and-see policies. It is likely that it will bring a certain increase to NEV companies, and the penetration of new energy vehicles will further accelerate.
BYD official announcement
During the May 1st holiday, the car market's “price war” suddenly began.
On the evening of May 3, BYD Auto officially announced that it will launch preferential car purchase policies for all models of its Dynasty Network. The bike replacement subsidy is as high as 18,000 yuan, including a state subsidy of up to 10,000 yuan and a maximum of 8,000 yuan for BYD.
At the same time, the BYD dynasty also introduced corresponding financial policies: minimum 0 down payment, any loan period of 12-60; 40% down payment starting at 24 installments with 0 interest; 50% down payment; 50% down payment; 50% final payment; 0 monthly payments with 0 interest per year. At the same time, users can choose one of the three financial plans: 0 down payment, 0 interest, and 0 month payment.
It is worth noting that the maximum bicycle subsidy is 8,000 yuan, which is the second time since 2024 that BYD has “reduced the price” for the Dynasty series. After construction began during the Spring Festival holiday in February this year, BYD took the lead in announcing the launch of the 79,800 yuan Qin Plus Honor Edition. Since then, various models such as Song, Tang, Han, Destroyer 05, Dolphin, and Seagull have all launched Honor Editions one after another, triggering a price war in the NEV market.
The reason behind the introduction of BYD's latest subsidy policy is that seven ministries and commissions, including the Ministry of Commerce and the Ministry of Finance, have jointly issued the “Automobile Trade-in Subsidy Implementation Rules”, which clearly state that users who use spent fuel or new energy passenger cars and buy new NEVs will be given a one-time replacement subsidy of 10,000 yuan.
CITIC Construction Investment believes that BYD will be one of the beneficiaries of the trade-in policy. The company's products are in line with the preferred direction of incremental demand driven by the policy. Through estimates, the policy is expected to bring about 24.5% sales flexibility.
After the favorable policy was implemented, other car companies also announced price reductions one after another. Among them,$Chongqing Changan Automobile (000625.SZ)$Officials announced that an exclusive “trade-in” promotion will be launched. The comprehensive subsidy can reach up to 57,000 yuan. Brands participating in the preferential policy include Changan Qiyuan, Avita, Deep Blue Auto, and Changan Automobile.
SAIC-GM Buick also introduced high subsidies from May 1 to May 31, covering models such as GL8 ES Luzun, GL8 Land and Field Business Class, Encore Plus, the new generation of Encore S, New Regal, Veron Pro, and Buick E5. The comprehensive discount for all models is as high as 65,000 yuan.
It's sold out
During the May 1st holiday, the “report cards” issued by major car companies exceeded market expectations.
On May 4, the latest sales data released by BYD's official WeChat shows that in April of this year, the BYD Qin family sold 51,170 vehicles, an increase of 26.13% over the previous month, and the cumulative sales volume exceeded 1.47 million units.
Song Pro DM-i Honor Edition sold 3,037 units in April, with cumulative sales exceeding 290,000 units; Song PLUS Honor Edition sold 4,3738 units in April, setting a new value benchmark for autonomous new energy SUVs.
The BYD Hantang family sold 35,685 vehicles in April, with cumulative sales exceeding 1.34 million units. Among them, the Han Family sold 21,509 vehicles in April, an increase of 50.1% over the previous year.
Furthermore, the new pure electric species “Dolphin” sold 1,067 units in April, and has sold more than 660,000 units since its launch. Dolphin Honor Edition officially launched the “0 down payment+free insurance for all car purchases” promotion in May.
Overall, BYD sold more than 310,000 vehicles in April, an increase of 49% over the previous year. From January to April this year, it sold more than 930,000 units.
At the same time, other NEV companies also recorded strong sales growth in April. Specifically:
The entire Hongmeng Zhixing series delivered about 29,600 vehicles in April, the Quanjie M9 delivered nearly 13,400 vehicles in the current period, and the Zhijie S7 delivered 4,546 vehicles;
$NIO Inc (NIO.US)$/$NIO-SW (09866.HK)$15,620 vehicles were delivered in April, a sharp increase of 134.6% year on year. A total of 45,673 vehicles were delivered from January to April, an increase of 21.2% year on year;
$XPeng (XPEV.US)$/$XPENG-W (09868.HK)$9393 vehicles were delivered in April, up 33% year on year. From January to April, a total of 31,214 vehicles were delivered, up 23% year on year;
$Li Auto (LI.US)$/$LI AUTO-W (02015.HK)$25,787 vehicles were delivered in April, an increase of 0.4% over the previous year; a total of 106,187 vehicles were delivered from January to April;
$ZEEKR (ZK.US)$16,089 vehicles were delivered in April, a year-on-year increase of 99% and a month-on-month increase of 24%, reaching another record high;
$XIAOMI-W (01810.HK)$In April, 7058 vehicles had been delivered. As of 24:00 on April 30, the number of Xiaomi SU7 locks had reached 8,8063 units.
During the May 1st period, the popularity of the car market still showed an upward trend.
According to the latest official poster released by Hongmeng Zhixing, on the first three days of the May Day holiday, the total number of Hongmeng Zhixing models will surpass 6,600 units, an average of 2,200 units per day, far surpassing domestic NEV companies of the same level.
On May 4, it was reported that the new Ideal L6 has been on the market for 16 days, and cumulative orders have exceeded 30,000 units. Ideal revealed that during the May 1st period, the delivery center will deliver normally, and the factory side will also quickly climb the decline in production capacity.
Analysts pointed out that due to favorable policies and discounts from car companies during the May 1st holiday, the vitality of the automobile market is gradually increasing, and the penetration of new energy vehicles is accelerating, which is likely to bring a certain increase to car companies.
Collective soaring
Hot sales and favorable policies have already begun to be reflected at the market level. On May 2 and 3, Hong Kong's NEV stocks surged collectively. Among them, NIO's stock price surged 20%, Xiaopeng Motor's cumulative increase was over 13%, BYD's cumulative increase was over 5%, and Ideal Auto rose more than 3%.
Regarding the outlook for the automobile market in May, Orient Securities pointed out that with the official introduction of the “Automobile Trade-in Subsidy Implementation Rules”, it is expected that demand for car purchases with coins to be purchased will gradually be released in the early stages. Demand in the passenger car market is expected to gradually pick up in the future, and demand for mid-range and low-end passenger cars is expected to take the lead in recovering.
Orient Securities further stated that under fierce price competition, leading NEV companies are expected to continue to expand their market share with their leading edge in new energy technology and the industrial chain, and that vehicle and parts companies with strong competitiveness in NEVs are worth paying attention to.
Cui Dongshu, Secretary General of the China Passenger Federation, also said that the implementation of the “Automobile Trade-In Subsidies Implementation Rules” is seen as a major benefit to the car market, and it is expected that the retail sales performance of the car market in May this year will be significantly better than in April.
Cui Dongshu predicts that the total amount of scrapping should reach a scale of nearly 10 million. Automobile trade-in subsidies will bring an increase of one million in the car market's private consumption of new cars, as well as an increase in annual consumption of more than 100 billion dollars. The car market is bound to grow relatively well in May.
Editor/Somer