Will million-dollar luxury cars drop below 500,000 in the future? Who is moving BBA's cake

Data map: Mercedes-Benz Auto Show booth.

Photo by Chen Wen

　　China News Service, July 9th:

　　Ge Cheng from China-Singapore Finance

　　"It is expected that by the end of next year at the earliest and no later than the end of 2024 at the latest, the sales price of the main models of medium and large SUVs made by BBA will be lower than 500,000 yuan." Li Xiang, CEO of Ideal Motors, publicly stated on social platforms earlier, After the price cut, consumers will be the biggest beneficiaries.

　　This remark immediately sparked heated discussions. Some netizens said that BBA has lost its "mythical status" visibly, and competition will bring more value to consumers.

Some netizens also said that they are very happy to see domestic brands cut the cake of traditional brands, and new energy vehicles to seize the fuel vehicle market.

　　A few years ago, when BBA's medium and large SUV models first entered the Chinese market, the price was around one million yuan.

And even after domestic production, according to the performance of previous models, the price reduction will not be so great.

So what is the strength of Li Xiang's remarks?

Seize the market!

Own brand share nearly half

　　Since entering 2022, the auto industry has been uncharacteristically, the market share of independent brands has nearly half, and the once strong German and Japanese brands have been flat.

At the same time, sales of new energy vehicles are also rising.

　　According to data from the China Passenger Transport Association, in May 2022, 620,000 self-owned brands will be retailed, a year-on-year increase of 5% and a month-on-month increase of 29%.

In May, the domestic retail share of independent brands was 46.3%, an increase of 9.8 percentage points year-on-year; the cumulative share from January to May was 46%, an increase of 8.6 percentage points compared to the same period in 2021.

Another agency predicts that the retail sales of new energy vehicles in June is nearly 500,000, which may hit a record high.

　　Since BYD surpassed the joint venture brand for the first time in April 2022 and reached the top of the domestic monthly car sales list, in May, among the top ten car companies in sales, more than half of the self-owned brands have been.

BYD, Geely, Changan, Chery, and SAIC Motor have become the leading passenger car companies of their own brands, and the dominant position of joint venture car companies in the front-line camp is being challenged by independent car companies.

　　In fact, the continuous development of independent brands has become a long-term trend.

According to the data of the China Passenger Transport Association, in 2021, the market share of self-owned brands has reached 44.4%, a year-on-year increase of 6%.

Why can't the joint venture brand be sold?

　　"Twenty years ago, buying a car was basically the third option. Jetta, Beverly, and Santana were the national cars of that era." Old Li, a senior car owner over 50 years old, told Zhongxin Finance, "Time to go The latter point is basically to buy from the owner for less than 100,000 yuan, to look at joint ventures for less than 200,000 yuan, and to choose imports for more than 300,000 yuan.”

　　But now, the situation has changed.

　　There are more and more models with independent brands of more than 150,000 yuan.

Lao Li added: "No one bought an autonomous model at this price before, and now there is still a queue to book a car, and it will take several months to pick up the car."

　　He also told China-Singapore Finance that recently he was helping the child who was getting married soon to choose a car.

"Now that the budget for buying a car is about 150,000 yuan, there are too many (models) to choose from. In the past, I could only choose a mid-to-low model of a joint venture brand, and it may not have a T (turbo), but now You can choose a plug-in hybrid model of its own brand, which not only saves fuel, but also has stronger power and cheaper maintenance.”

　　Zhongxin Finance noticed that at present, many independent brands including BYD, Great Wall, Geely and Changan have launched 150,000 yuan plug-in hybrid models. These models generally accelerate from 100 kilometers to 8 seconds, which is stronger than The fuel consumption of traditional fuel vehicles of the same level of joint venture brands is also much lower than that of fuel vehicles of the same price.

Moreover, the monthly sales of such models are generally around 10,000 units, which has had a considerable impact on the sales of joint venture models at the same price.

　　With the help of the new energy policy, independent brands have made rapid breakthroughs in the fields of pure electric and plug-in hybrid technology. Whether it is a German brand that pioneered the turbocharging technology route, or a Japanese brand that is known for its hybrid technology, it is at the same price point. In front of self-owned brand plug-in hybrid models, the technical advantages no longer exist.

　　"After years of R&D and accumulation, the autonomous hybrid system has blossomed, and the key technical indicators of technology and products have generally reached the international leading level." Director of the Academic Committee of the School of Transportation Science and Engineering, Beihang University, National Passenger Vehicle Automatic Transmission Engineering Technology Professor Xu Xiangyang, a member of the expert committee of the research center, said, "Autonomous plug-in hybrid has become a successful case of China's auto industry breaking through the bottleneck technology, from following to running and then to leading."

Self-owned brands impact the high-end automotive

　　In the field of new energy vehicle manufacturing, the emergence of three new car-making forces, "NIO, Ideal, and Xiaopeng", further proves that in the field of new energy vehicles, "Made in China" in the market of more than 300,000 yuan can also be recognized by consumers .

　　According to the financial report for the first quarter of 2022, in terms of delivery volume, Xiaopeng Motors was 34,561 units, a year-on-year increase of 159%; Li Auto was 31,716 units, a year-on-year increase of 152.1%; Weilai was 25,768 units, a year-on-year increase of 37.6%.

Xiaopeng and Ideal Monthly Sales also entered the "10,000-vehicle club".

　　The success of the new car-making forces has also made some independent brands turn their attention to the high-end market.

Li Yunfei, general manager of BYD's auto brand and public relations division, said that BYD's high-end brand will release its brand and logo in the third quarter of 2022, and its first model in the fourth quarter. The product price range is expected to be between 800,000 and 1.5 million yuan.

　　In the view of Zhu Huarong, chairman of Changan Automobile, high-end self-owned brands is not a new topic, but high-end is an inevitable choice for self-owned brands.

On June 26, Changan Automobile released the high-end brand Avita at the Chongqing Auto Show. It is reported that the price of the Avita 011 model under the brand may reach 600,000 yuan.

(Finish)