"Kechuangban Daily" August 13th news (Reporter Tang Zhixiao), recently, many car companies have launched new energy vehicles priced at 100,000 yuan.

The "Kechuangban Daily" reporter visited multiple offline stores of new energy vehicle brands. Currently, the brands within this price range include Nezha, BYD, Geely, GAC, Chery, etc., each with models such as Nezha X, BYD Yuan series, iCAR03, Geely Galaxy E5, GAC AION V, and more.

According to data released by the China Automobile Dealers Association's Joint Conference on Passenger Car Market Information on August 8, the penetration rate of new energy vehicles in domestic retail reached 51.1% in July, up 15 percentage points from the 36.1% penetration rate in the same period last year. At the same time, retail sales of new energy passenger vehicles in July, with 0.878 million units sold, exceeded the 0.84 million units sold for conventional fuel vehicles. Sales of new energy vehicles surpassed conventional fuel vehicles for the first time in a month, marking a historic moment for the auto market.

Obviously, new energy vehicles have gradually become the market mainstream, which is closely related to the price war in the first half of this year.

According to industry experts, the 100,000 yuan price range was not at the core of the mainstream new energy vehicle layout before the price war earlier this year. It had long been an important battlefield for fuel vehicles. However, with the increasingly intense competition among new energy vehicles, this range has become a focus for new energy brands to explore incremental sales.

The new car's configuration is rising

The 100,000 yuan new energy vehicle market has become a new focus for many brands to compete for.

Recently, Nezha Motors launched its compact SUV, the new Nezha X, priced at around 100,000 yuan, making it a rare pure electric vehicle in this price range.

Compact SUVs have a certain advantage in the market, they can meet the space needs of family users, so this type of vehicle is also the largest segmented market in China, with an average share of 28.9%, higher by 1.4 percentage points than the second-ranked compact sedan.

The reporter visited Nezha Motors stores located in Shenzhen, but the stores did not display the Nezha X series models. A salesperson at the store told the reporter: "The display car has not yet been set up, and we need to wait until mid-month to see the car."

During the conversation, the reporter learned that customers who visit have very clear purchase needs, coming to the store directly after having already evaluated the parameters, to discuss car price and financing options with the salesperson. The salesperson said that customers who purchase 100,000-yuan-level SUVs are basically first-time buyers who urgently need a car for commute or work.

Looking at past sales performance, Nezha U and Nezha V helped Nezha Motors win the sales crown for new forces in the auto industry in 2022, especially the Nezha V, which was priced below 100,000 yuan and delivered nearly 100,000 units in 2022, accounting for 65% of total sales. In other words, sales of the Nezha X are highly anticipated.

However, there are many competitors in the compact SUV market where the Nezha X resides, including brands such as BYD, Geely, GAC Aion and others.

The reporter visited a BYD Dynasty series store. Compared to the former, there were many more customers visiting the BYD store. The BYD store salesperson said that popular models, such as the Qin L series, basically do not require more introduction: "These popular models are not included in the performance appraisal, and the commission is not high. Because even if I don't say anything, customers will ask, these models are not difficult to sell."

Another salesperson at a Geely Galaxy store told the reporter, "Consumers with a budget of 100,000 yuan are more concerned about the price-to-performance ratio of the vehicle. The newly launched Geely Galaxy E5 is designed to offer exceptional value." The Geely Galaxy E5 is also a recently launched 100,000 yuan electric SUV and has an A-class position.

Not only the Geely Galaxy E5 series, but another Zero Run electric car salesperson emphasized that the new C16 achieved the largest space within the same price range: "The ideal L8 and Wanjie M7's starting prices are 321,800 yuan and 249,800 yuan, respectively, both are 6-seater large and medium-sized new energy SUVs, and the starting price of the C16 is almost half that."

A customer who had experienced the Zero Run C16 told the reporter: "Isn't this just an upgraded version of the Ideal L8? Families with many children really need a car with a large space and can carry multiple people."

After Tesla and BYD lowered their prices earlier this year, 2024 became an important turning point for the automotive industry's transition from electric to oil. Nezha, Geely, Changan Qiuyuan, Wuling, Beijing Hyundai, SAIC General Motors and other automakers quickly joined the fray: Wuling XingguangPLUS announced that it will be reduced to 0.0998 million yuan; Changan Qiuyuan A05 officially lowered its official guidance price from 0.0899 million yuan to 0.0789 million yuan; Nezha Motors has lowered the prices of various major models across the board, with the highest discount reaching 0.022 million yuan; Shenlan Motors has launched the SL03 and S7 Glory Edition, with a price reduction of 0.01 million yuan.

According to industry insiders, new energy vehicles in the 0.1 million yuan price range have a low penetration rate, making it an important area for many brands to compete for.

New energy vehicle companies have not yet bid farewell to the 'era of price for quantity.'

According to the latest retail sales data of passenger vehicles in 1-7 months released by the China Automobile Dealers Association, cumulative sales reached 11.567 million units, a year-on-year increase of 2.4%. At the same time, there were 136 models that reduced their prices only in the first five months of this year, and the scale of price reductions exceeded 90% of the total annual price reductions in 2023, surpassing the total price reduction scale for the whole year of 2022.

It can be seen that the price war between automakers in the first half of the year was intense. Although many brands achieved 'quantity for price,' the cost was not low.

According to incomplete statistics, in the first quarter of 2024, SAIC, BAIC and GAC among other automakers saw a year-on-year decline in revenue and net income; in addition, Changan Automobile, Li Auto and JAC Motors saw growth in revenue but a year-on-year decline in net income.

Take GAC Group as an example, according to publicly available data, GAC Group's net profit for the whole of 2023 was 4.2 billion yuan, a year-on-year decrease of 48.21%, and the per-car profit was 2322.36 yuan.

GAC Group Chairman Zheng Hongqing stated at the 2024 China Auto Chongqing Forum, 'Fighting a price war is not a solution. Companies cannot survive without making money and without benefits. It is acceptable to fight a price war among automakers to let profits go, but not to the extent of losses. Every company must ensure normal operation, fulfill corporate responsibility, and fulfill social responsibility.'

In the same forum, Geely Group Chairman Li Shufu expressed the same view. The degree of competition in China's automobile industry is the highest in the world, which is both good and bad. If the market is mature and competition is fair, the industry will of course advance; but a crude price war can only lead to reduced quality and fake sales, making the industry fall into disorderly competition.

Previously, both the China Passenger Car Association and the China Association of Automobile Manufacturers would release monthly sales rankings, but Li Auto was the first to launch the weekly sales ranking. Although it caused controversy and was terminated at one point, Li Auto persisted in releasing the ranking and led other car companies and industry media to follow suit, pushing the auto industry towards a weekly sales ranking.

This move also caused some competitors' dissatisfaction. NIO Founder, Chairman and CEO Li Bin said that monthly sales rankings are already hurtful for everyone.

NIO Co-Founder and President Qin Lihong also said that NIO never releases unaudited weekly rankings, nor has it authorized other institutions to release weekly rankings with the NIO name, and hopes that when other companies release weekly rankings, they do not include NIO. 'I hope relevant departments will regulate it.'

Similarly, Geely Holding Group Senior Vice President Yang Xueliang expressed opposition to weekly rankings on Weibo. Xiaopeng Motors Chairman He Xiaopeng posted on Weibo that while the US was developing technology, the domestic auto industry was still competing on weekly sales rankings, which included the topic tag 'Is the weekly auto sales ranking low-quality inbred?'

Some industry insiders told reporters that the credibility of car companies' sales rankings is inadequate, and the number of car companies covered by the rankings is limited. 'Seven days is too short, and there are too many factors that affect sales. Weekly sales can't really represent anything.'

Cui Dongshu, Secretary General of the China Passenger Car Association, also once wrote that the so-called 'inbreeding' in the auto industry is actually a manifestation of the transformation of old and new production kinetic energy, and is a necessary phase of the industry's major transformation, not a simple form of low-level competition. While adapting to industry competition, companies should reasonably protect the rights and interests of employees and avoid excessive inbreeding.

At present, the price reduction wave in 2024 will further accelerate the reshuffle of the automobile market. To firmly establish itself in the intense competition, ensure long-term development, and reach a foothold, the new energy vehicle industry still needs to rely on the continuous innovation and progress of key technologies.