AutoBeta(AutoBeta.net)11/24 Report--

On November 24th, a poster with instructions on Geely's price adjustment circulated online. According to the poster, the official guiding prices of Geely, Geometry and Ruilan brands of Geely have been adjusted by 2000 yuan to 6000 yuan, and customers who pay deposits before January 1, 2023 will not be affected by the price increase.

As for the reasons for the price increase, Geely said that according to the country's series of policies and plans for the development of the automobile industry, the car purchase tax subsidy policy will end on December 31, 2022. After that, the state of vehicles licensed will no longer give subsidies (the existing subsidy amount; 4800 yuan per plug-in hybrid vehicle, 12600 yuan per unit of pure electric vehicles, half-tax subsidy for fuel vehicles). At the same time, the prices of major raw materials for batteries have risen sharply since the second half of the year. The price increase is affected by the above two main factors. It is worth mentioning that the reason for the price increase of Geely is basically the same as that of BYD.

In response to the news, Geely responded to the media that the news was not officially released by Geely and was false. The withdrawal of state subsidies and the rise in raw material prices next year may have an impact on the sales of new energy vehicles. At present, Geely has not adjusted the price of new energy vehicle products, and we will repay users' trust and expectations with higher quality tea farmers and services.

Yang Xueliang, senior vice president of Geely Holdings Group, said on Weibo, "this is false news. Geely has no price adjustment plan for its electric car products at present." It seems that it is necessary to set up a news anti-counterfeiting office. "

Just the day before, BYD announced that it would adjust the official guidance prices of dynasty, ocean and momentum-related new energy models, ranging from 2000 yuan to 6000 yuan. Customers who pay deposits before January 1, 2023 will not be affected by the price increase. BYD said that there are two main reasons for the price increase: first, the price of the main raw materials for batteries has risen sharply; second, the subsidies for new energy vehicles have fallen back.

As Geely's high-end new energy brand, Zhao Yuhui, vice president of extreme krypton intelligent technology, responded that: in the face of complex market price system changes, extreme krypton will not make price adjustments. As a user-oriented enterprise, we always focus on product power and user value, and will continue to focus on improving product value and user experience.

According to the Circular on improving the Financial subsidy Policy for the Promotion and Application of New Energy vehicles issued by the Ministry of Finance and other four departments in April 2020, the implementation period of the financial subsidy policy for the promotion and application of new energy vehicles has been extended to the end of 2022. In principle, the subsidy standards from 2020 to 2022 have declined by 10%, 20% and 30% respectively on the basis of the previous year.

According to the subsidy program, pure electric passenger vehicles with mileage of 300-400km in 2022 will be subsidized by 9100 yuan and reduced by 3888 yuan; pure electric passenger vehicles with mileage not less than 400km will be subsidized by 12600 yuan and reduced by 5400 yuan; and plug-in hybrid (plus) passenger vehicles with mileage no less than 50km will be subsidized by 4800 yuan and reduced by 2040 yuan. Judging from the above data, consumers will have to pay more for new energy vehicles in 2022, and the longer the mileage of pure electric vehicles, the more they will be refunded in 2022. By 2023, all new energy vehicles will no longer enjoy subsidies, which means that the state subsidy for new energy, which has lasted for 13 years, will be completely retired from history.

In addition to the national level, enterprises and local governments will also give some support to the purchase of new energy vehicles, so consumers can enjoy more subsidies than expected, but with the large-scale decline of national new energy subsidies, it is also an inevitable result that consumers will have to bear more costs to buy new energy vehicles in the future.

BYD is the first car company to announce a price increase in response to the end of the decline of new energy subsidies, not only to give consumers a "shot" against price increases in advance, but also to stimulate consumption. As we all know, BYD has two series of products, dynasty and ocean, which mainly focus on the market of 10-250000 yuan, which is also the most mainstream automobile consumer market. Data show that from January to October 2022, BYD's total retail sales of new energy vehicles totaled 1.3586 million, an increase of 238.7 percent over the same period last year, ranking first in China, and even surpassing FAW-Volkswagen to become the top seller of domestic passenger cars. Therefore, BYD announced the price increase information in advance, one is to stabilize the morale and avoid unnecessary disputes caused by sudden price increases; the second is to stabilize the existing undelivered orders, after all, the time to buy cars and other cars is not short; the third is consumer stimulus, BYD will increase prices after 2023, which means that current bookings can be purchased at lower prices, and more orders can be stored.

The decline of subsidies for new energy vehicles will more or less affect the performance of the end market, and it will indeed reduce consumers' desire to buy new energy vehicles, but the impact of subsidy decline on the market of new energy vehicles is limited, and growth is still a major trend. According to historical data, sales of new energy vehicles fell slightly by 4% in 2019, 10% in 2020 and 169.1% in 2021. According to the latest data, retail sales of new energy passenger vehicles totaled 4.432 million from January to October 2022, an increase of 108 percent over the same period last year and another all-time high.

Of course, there are still some differences between different brands. BYD and Tesla have obvious advantages in the domestic market, so the impact of subsidy decline of new energy vehicles on the two major brands is relatively low. GAC, Geely, Chang'an, Great Wall, Chery and other traditional carmakers have relatively limited performance in the new energy vehicle market, but their own technology reserves, brand volume and capital scale are sufficient to support their elephant turnaround. As for the new power brands NIO, Xiaopeng, Nezha, Zero and so on, although they have formed a certain sales scale in the new energy vehicle market, they are still in a state of loss. 2023 will be a particularly difficult year for the new power of car building.

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