AutoBeta(AutoBeta.net)11/23 Report--

On November 23rd, a notice of price increase from BYD immediately went viral on Weibo. BYD official announced: the official guidance prices of dynasty, ocean and momentum-related new energy models will be adjusted, ranging from 2000 yuan to 6000 yuan. Customers who pay deposits before January 1, 2023 will not be affected by this price adjustment. However, BYD did not announce a specific price adjustment for its models, which is expected to be announced in due course in December.

In response to the reasons for the price increase, BYD explained that the subsidy policy for the purchase of new energy vehicles will end on December 31, 2022. After that, the vehicle countries that are licensed will no longer give subsidies (the existing subsidy: 4800 yuan for plug-in hybrid vehicles and 12600 yuan per unit for pure electric vehicles). At the same time, since the second half of the year, the price of the main raw materials for batteries has risen sharply, which is affected by the above two main factors.

According to Interface News, BYD internally informed that due to the sharp rise in the price of raw materials and the decline of subsidies for new energy car purchases, BYD will adjust the official guidance prices of new energy models related to Daozhao.com and Ocean.com by 6000 yuan to 10000 yuan, with the EV model rising by 10000 yuan and the DM/DM model by 6000 yuan. Prior to this, customers who pay the deposit and sign the contract will not be affected by this price adjustment.

In response to the news, Li Yunfei, general manager of BYD's public relations department, posted a post on Weibo to refute the rumor: "it is false information that BYD is going to raise the price online!" We will pursue legal responsibility for the source of rumors! Please do not believe the rumor, do not spread the rumor! Thank you! " However, from the current point of view, although there has been a decline in the rate of price reduction compared to the previous online spread, but the rumors of price increases still get a real hammer.

According to the plan, the subsidy for new energy vehicles will be withdrawn after December 31, 2022, theoretically causing the price of bicycles to rise by 5000 to 13000 yuan. At the same time, the rise in the price of raw materials has also become a key factor in the price rise of new energy vehicles. It is understood that the price of battery-grade lithium carbonate fell by 5000 yuan per ton on November 23, but it is still at a high of 625000 yuan / ton. Under the superposition of double factors, the price increase of BYD official announcement seems reasonable.

Prior to this, Tesla, Mercedes-Benz have announced price reduction sales. On October 24th, Tesla China suddenly announced a price reduction, the first price cut by Tesla this year. Specifically, Model 3 dropped 1.4-18000 yuan and Model Y dropped 2.0-37000 yuan.

Tesla China released a poster saying that from November 8 to November 30, the final payment will be reduced by 8000 yuan if you buy the car insurance portfolio of existing cars and cooperative insurance institutions and complete the pick-up on schedule, and from December 1 to December 31, the final payment can be reduced by 4000 yuan. This move is interpreted by the industry as a disguised price reduction.

On November 15th, Mercedes-Benz officially announced that it would adjust the recommended retail prices of some Mercedes-EQ models, including pure electric EQE and EQS, from November 16, 2022. Among them, the adjusted manufacturer's suggested retail price of EQE model is 478000-534300 yuan, which is 50000-50700 yuan lower than the original 528000-585000 yuan; the EQS adjusted manufacturer's suggested retail price is 845000-1.314 million yuan, which is 204,600-234,600 yuan lower than the original 1,518,600-1,079,600 yuan. The adjusted manufacturer's suggested retail price of AMG EQS 53 is 1.486 million-1.547 million yuan, which is 198600 yuan lower than the original 1.6846 million-1.7456 million yuan.

When the industry speculates who will be the next car company to cut prices, BYD is doing the opposite. Cui Dongshu, secretary general of the Federation of passengers, said, "not only will there be no large-scale price reduction of new energy vehicles at the end of this year, but there may be a round of price increases." The state subsidy for new energy is about to withdraw next year, reducing prices first and then raising prices will put car companies in a passive position, which is not conducive to the development of sales. "

As for BYD's price increase, will it have a negative impact on sales? Chances are not! For BYD, 2022 was a year of take-off, with sales of new energy vehicles exceeding 200000 in September and October, of which October reached an all-time high, while listed companies such as Lai, Xiaopeng and ideal declined month-on-month. A few days ago, when BYD completed the off-line of its 3 million new energy vehicles, Chairman Wang Chuanfu said, "from 2 million to 3 million, it only took us half a year."

Although it is affected by the decline of new energy subsidies and the rise in raw material prices, it is precisely because strong sales give BYD more strength to raise prices. The Tramway report predicts that it will continue to sell well in BYD, coupled with the decline of new energy subsidies at the end of the year, the price increase is not expected to have a negative impact on BYD, but will prompt consumers to seize the time of the final subsidy, similar to the effect of forcing an order. it is intended to emphasize that consumers will set the subsidy as soon as possible before December 31. Relevant insurance data show that BYD insured 44874 vehicles in the third week of November, an increase of 10.2% over the previous month; a total of 122783 vehicles were insured in the first three weeks of November. According to this estimate, BYD's wholesale volume in November will remain above 200000 for three consecutive months.

Cui Dongshu, secretary general of the Federation of passengers, said that the state subsidy for new energy will be withdrawn next year, which in disguise will cause certain cost pressure on enterprises, and enterprises will generally have the possibility of raising prices, but combined with Tesla's price reduction, most car companies may maintain price stability and do not make price adjustments. For BYD's price increase, Zhao Yuhui, vice president of extreme krypton intelligent technology, responded that at present, extreme krypton will not follow the trend to make price adjustment.

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