AutoBeta(AutoBeta.net)03/05 Report--

On March 2, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology and the Development and Reform Commission jointly issued the "announcement on the final liquidation and examination of subsidy funds for the Promotion and Application of New Energy vehicles in 2019-2020 and the advance allocation of subsidy funds in 2019-2021". According to the announcement, a number of car companies have received advance funds, of which BYD received the most, BYD Automotive Industry and BYD Automotive received a total of 2.939 billion yuan in subsidies; Tesla (Shanghai) received 1.215 billion yuan in subsidies; GAC MOTOR received 838 million yuan; SAIC received 602 million yuan. According to relevant media statistics, preliminary statistics, by the end of 2021, the Ministry of Finance has announced the liquidation and audit of 19 batches of subsidy funds for the promotion and application of new energy vehicles, with a cumulative amount exceeding 140 billion yuan. However, this year is the last year of the new energy subsidy policy, that is, new energy vehicles licensed after December 31, 2022 will no longer enjoy the new energy subsidy policy.

On December 31 last year, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the Circular on the Financial subsidy Policy for the Popularization and Application of New Energy vehicles in 2022. The notice clearly stipulates that the subsidy standard for new energy vehicles in 2022 will decline by 30% on the basis of 2021, and the subsidy for pure electric passenger vehicles with a range of 300,400km (including 300km) will be 9100 yuan. The subsidy for pure electric passenger cars with a range of more than 400km (including 400km) is 12600 yuan. Plug-in hybrid (including add-on) passenger car subsidy of 4800 yuan. After the release of the policy, it immediately caused a wide impact in the industry, and then a number of car companies announced price increases for their models.

Affected by this, a number of car companies have announced price increases for their models. According to statistics, since December 2021, a number of new energy vehicle brands, such as Tesla, Xiaopeng Automobile, Nahan Automobile, Guangzhou Automobile Eian, Zero run, BYD, SAIC Roewe and other new energy vehicle brands have successively raised the prices of some of their models. So far, only a few days have passed in March, but many car companies have announced price increases. According to previous reports from the auto industry, more than three car companies announced price increases for some of their models in March. Another car company announced a price increase after Euler, Geometry, SAIC Roewe and Weimar announced price increases for some models in March.

On March 4, GAC Eian issued a price adjustment notice for its AION Y, AION S Plus, AION V Plus and other related models, which will take effect from the announcement on March 4. For the reasons for the price increase of some models, GAC EA pointed out in the announcement that the price increase is due to the impact of the current sharp rise in raw material prices and the decline of new energy subsidies.

According to the official website of Guangzhou Auto E'an, the price increases of many models under GAC E'an range from 4000 to 10000 yuan. specifically, AION Y of Guangzhou Auto E'an is the model with the highest increase, and AION Y is up 10, 000 yuan. at present, the price of the 2022 70 happy version is 129600 yuan, the 2022 70 smart collar version is 139600 yuan, and the 2022 80 smart driving version is 167600 yuan. AION V Plus rose 5, 000 yuan, with the exception of the 70 super-fast recharge version and 90 ultra-long-lasting version, the prices of the other models have been raised by 5000 yuan, and the current price of the 70 smart collar version is 177600 yuan. In addition, the AION S Plus rose by 4, 000 yuan, and the starting price of the model was 157800 yuan.

Data show that Guangzhou Automobile Group Co., Ltd. is the car brand of Guangzhou Automobile Group Co., Ltd., its predecessor is GAC NE, Guangzhou Motor Show in 2020, Guangzhou Auto Eian brand is officially independent, renamed by GAC NE to Guangzhou Automobile Eian. Data show that in the past 2021, the cumulative annual terminal sales of GAC-E Security was 123660 vehicles, an increase of 119% over the same period last year. In February, according to official figures released by GAC Ean, GAC sold a total of 8526 vehicles in February, up 163% from a year earlier, down from 16031 in January.

In fact, GAC Eian has announced an increase in model prices before, of which GAC EAN LX rose by 4000 yuan, and the new AION S Plus listed on the market rose by more than 7000 yuan compared with 2021 models.

Looking back on the entire automobile industry, the price increase of new energy models is no longer a rare phenomenon. According to the concerned statistics of the automobile industry, as of today, more than 10 new energy vehicle companies in the automobile industry have announced price adjustments, including Tesla, Xiaopeng Automobile, Nahan Automobile, Guangzhou Automobile Ean, Zero and other new energy vehicle brands, involving more than 30 models, with prices ranging from 100000 yuan to more than 300000 yuan. Among them, the increase of models under 100000 yuan is relatively high, with an average price increase of about 4800 yuan. The reasons for the price increases are all related to the decline of new energy subsidies. However, the decline of subsidies is not the only reason for the rise in the price of new energy vehicles. The automobile industry is concerned that the shortage of chips and the fluctuation of raw material prices are another important factor driving up the price of car models.

Battery system is the highest cost component in new energy vehicles, and its cost accounts for nearly 40%. In the past year, the cost of power batteries for new energy vehicles has been greatly affected by fluctuations in the price of metal raw materials in the upper reaches of the supply chain. including cobalt, nickel, manganese, lithium and other metal raw materials and their compounds, increased greatly, of which Tight supply and demand for lithium carbonate, one of the raw materials necessary for the production of lithium batteries, has also directly led to higher prices, according to a previous CCTV financial report. The price of battery-grade lithium carbonate, the main raw material for power batteries of new energy vehicles, staged a "triple jump" within a year. According to the concern of the automotive industry, the early price of lithium is only 30, 000 yuan / ton, but on February 28, 2022, the average price of battery-grade lithium carbonate has increased to 480000 yuan / ton, of which lithium metal rose 20, 000 yuan / ton, the average price was 2.67 million yuan / ton; lithium iron phosphate rose 5500 yuan / ton, in the environment of the sharp rise in raw material prices, the major car companies have to raise the price of vehicles. However, Cui Dongshu, secretary general of the Federation of passengers, pointed out that factors such as the rise in raw material prices are not accidental, but a normal phenomenon in the industry cycle. Lithium ore prices, an important raw material for new energy vehicle batteries, have risen and fallen many times since 2016.

As the auto industry has said before, under the influence of the decline of new energy subsidies and the sharp rise in raw material prices, it is expected that more new energy vehicles will be announced to raise vehicle prices in the future. It is worth mentioning that according to statistics, domestic production and sales of new energy vehicles in 2021 were 3.545 million and 3.521 million respectively, an increase of 159% and 157% respectively over the same period last year; and the market share of new energy vehicles for the whole year reached 13.4%, an increase of 8% over the same period last year. Xiao Yaqing, minister of industry and information technology, also said in an interview that domestic sales of new energy vehicles were very good in the first two months of this year, both of which more than doubled, and are expected to achieve the expected target this year, according to a report on the China Securities website on March 5. may well exceed the expected target.

In addition, in recent days, with regard to the subsidy policy for the purchase of new energy vehicles, NPC deputies, GAC GROUP Party Committee Secretary and Chairman Zeng Qinghong proposed to postpone the state subsidy for one to two years, simplify the procedures for receiving the previous subsidy, and ease the financial pressure on enterprises. In terms of raw materials, people in the industry have previously said that the lithium carbonate market will remain tight for some time in the future, and the growth rate of industry supply is far from being able to meet market demand, but as new production capacity is put into production, it is expected to ease in the second half of this year.

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