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After Tesla announced a big price cut on January 6th, another new energy car company joined the price reduction camp. Yesterday, Zero cars also announced the introduction of a time-limited subsidy policy for C01 models.

According to the poster released by Zero car: for the introduction of time-limited subsidy policy for C01 models, a payment of 5000 yuan can be worth up to 30000 yuan, including a cash discount of 10000 yuan, a financial discount of up to 10000 yuan, and a price reduction of 5000 yuan for comfortable optional packages. This policy applies to C01 users who pay during February 28, 2023 and complete pick-up by May 31, 2023. In addition, the poster also indicates that the offer can be superimposed with major customer group buying, e-commerce rights and interests and 500 yuan of Spring Festival coupons, and can be superimposed with financial discounts. At the same time, for APP registered users to introduce the test drive C01 will get 200 yuan Jingdong card / person.

Relevant data show that Zero Automobile, founded in 2015, is a technology-based intelligent electric vehicle brand of Zhejiang Zero Technology Co., Ltd., jointly invested by Zhejiang Dahua Technology Co., Ltd and its main founders. At present, there are four models of zero-running cars on sale: zero-running S01, zero-running T03, zero-running C11 and zero-running C01. Zero run C01 went on sale in September 2022, the new car positioning medium and large pure electric sedan, a total of five models, the subsidized price range is 19.38-286800 yuan. Zero run C01 is the most expensive model among zero running models on sale, and it is a key product that undertakes to increase brand positioning and gross profit margin. However, the listing sales of Zero C01 are not ideal, according to relevant data: the cumulative number of Zero C01 in 2022 is less than 5000.

It is worth noting that after the price reduction, the price range of Tesla Model 3 has changed to 230000-330000 yuan, and this price has formed a direct competition with BYD Seal, Zero run C01 and Xiaopeng P7 models, which may be one of the reasons why Zero run C01 in this price range has to reduce its price.

Moreover, zero-running cars, like other new car-building forces, are still in a state of loss in recent years. The relevant data show that the operating losses of zero running cars from 2019 to 2021 are 730 million yuan, 869 million yuan and 2.868 billion yuan respectively, and the losses attributable to equity holders are about 901 million yuan, 1.1 billion yuan and 2.846 billion yuan respectively, with a cumulative loss of 4.374 billion yuan in three years. Gross profit margin: the gross profit margin of zero-running cars from 2019 to 2021 is-95.7%,-50.6% and-44.3%, respectively. As for the loss-making zero run, the company is expected to continue to incur a net loss in 2022 due to research and development of new models and smart electric vehicle technology, as well as the expansion of production facilities and sales network.

In order to renew its life, Zero was officially listed on the Hong Kong Stock Exchange on September 29 last year, and the IPO was eventually priced at HK $48 per share, but it was broken at the start of the session, opening 14.58 per cent lower, down more than 30 per cent at one point. By the close of trading on the day of the listing, Zero Motor had closed at HK $21.00 per share, with a total market capitalization of HK $23.997 billion, down 48.78 per cent from its peak.

The big price reduction of Tesla has also caused a certain impact on other new energy car companies. Huawei AITO and Xiaopeng Motor have also announced price cuts for their models after Tesla's price reduction. On January 13, AITO officially announced that the price of its M5 EV and M7 models will be adjusted and the price will be reduced by up to 30, 000 yuan. Among them, the adjusted official guidance prices of the two M5 EV models are 259800 yuan and 289800 yuan respectively, and the prices are reduced by 28800 yuan and 30, 000 yuan respectively. The price of the top model of the M7 remains unchanged, and the official guidance prices of the other two models are 289800 yuan and 309800 yuan respectively. On January 17, Xiaopeng also announced a price adjustment for some of its models, with a maximum reduction of 36000 yuan.

At the present stage, the competition in the new energy vehicle market is becoming increasingly fierce, as more and more car companies join the price reduction camp, or it represents that the price war of new energy vehicles in 2023 has begun. From the perspective of the development of the new power brand, the pattern of the new power brand has been changing since last year.

At present, most new energy car companies in terms of prices have not followed Tesla's footsteps to reduce the price. However, Cui Dongshu, secretary general of the Joint passenger car Market Information Association, pointed out that from February to March 2023, the price of lithium carbonate may fall accordingly, and car companies will also launch new products, new technologies, and may introduce corresponding price reduction measures. However, with reference to the background of Tesla's price reduction, his relatively flexible supply system and high gross profit margin allow Tesla to gain market share at the expense of a little profit, but not all car companies can follow suit.

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