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Recently, Renault CEO Luca de Mayo expressed his views on Tesla's pricing strategy, saying that Tesla's pricing strategy is likely to damage users' confidence in the value of electric vehicles. "in the long run, this is not a healthy approach," he said. With the development of electric vehicles in Europe, we need to have a healthy business. The last thing I want to do for Renault is to compromise on the profit margins of electric cars. I hope they will continue to fall to zero, but we will continue to protect the value of our electric cars. "

Relevant data show that: as a French brand, Renault signed a joint venture agreement with China Sanjiang Aerospace Group and established Sanjiang Renault Automobile Co., Ltd. to enter the Chinese market for the first time. Later, due to the disagreement between China and France in decision-making opinions, and the domestic Tafick model cost is too high, sales are not good. Sanjiang Aerospace Group announced its withdrawal after eight years of operation between the two sides. In 2013, Renault formed a joint venture with Dongfeng Automobile Group to enter the Chinese market again, but Renault launched a restructuring plan in April 2020 due to low brand awareness and poor sales in China. Among them, with regard to fuel vehicles, Renault plans to transfer 50% of its shares to Dongfeng Automobile Group, and Dongfeng Renault will stop the business activities related to the Renault brand.

However, Renault did not withdraw from the Chinese market, but only from the fuel passenger car market, and its new energy and light commercial vehicle sectors continue to operate. Among them, in the field of electric vehicles, Renault participated in Egett New Energy vehicle Co., Ltd. And Jiangling Group New Energy vehicle Co., Ltd. In 2021, the "Yi" jointly created by the two sides will be listed with a price range of 13.98-195800 yuan. However, sales of new cars have been in the doldrums since the launch, with figures showing that sales in November 2022 were 44, down 38.03% from a year earlier, and Yi's cumulative sales from November 2021 to November 2022 were 949.

If we rely solely on Jiangling New Energy, it will be difficult for Renault to "return to the Chinese market". Of course, China, as the world's largest car market, Renault is not going to give up. Sign a memorandum of understanding with Geely in 2021 to establish a long-term partnership. At one point, Renault stressed that it would not withdraw from the Chinese market as a whole, and its business in China would focus on light commercial vehicles and electric vehicles. It may not be difficult to understand Renault CEO's remarks on Tesla's price reduction.

On January 6, Tesla China suddenly announced a big price reduction for its two models, including the Model 3 by 2.0-36000 yuan, the Model 3 rear wheel drive board by 36000 yuan to 229900 yuan from the previous 265900 yuan, and the Model 3 high-performance version from 349900 yuan to 329900 yuan. The price of Model Y is reduced by 2.9-48000 yuan. Specifically, the price of the Model Y rear drive version is reduced by 29000 yuan to 288900 yuan, the long-lasting version by 48000 yuan to 309900 yuan, and the high-performance version by 38000 yuan to 359900 yuan.

In addition, in addition to the Chinese market, Tesla has also launched price cuts in the United States, Japan, South Korea, Australia, Duoduo, Norway, Spain, France, Portugal, the Netherlands and other countries. In the US market, for example, Model 3 is reduced by $3000 to $43990, and Model Y is reduced by $13000 to $52990. As for the reasons for Tesla's price reduction, Tesla Vice President of Foreign Affairs Tao Lin also responded: "behind Tesla's price adjustment, there are numerous engineering innovations." in essence, it is a unique excellent law of cost control: including not limited to vehicle integrated design, production line design, supply chain management, and even millisecond optimization of robotic arm coordination route … Proceed from the "first principle" and insist on pricing at cost. "

Tesla, as the leading car company in the new energy vehicle market, his every move also affects the whole market. In the face of such a sharp price reduction, many car companies are also forced to reduce the price of their models. After the price reduction of Tesla, AITO announced the price adjustment of its M5 EV and M7 models. Among them, the adjusted official guidance price of the two M5 EV models is 259800 yuan and 289800 yuan respectively, and the price is reduced by 28800 yuan and 30, 000 yuan respectively; the price of the M7 top model remains unchanged, and the adjusted official guidance prices of the other two models are 289800 yuan and 309800 yuan respectively, with a reduction of 30, 000 yuan.

In addition to the price reduction, there are Xiaopeng Automobile, Zero running Automobile, NIO Automobile and other car companies also reduce their models. Xiaopeng cut the price of its G3i, P5 and P7 models by 20, 000 yuan to 36000 yuan. Zero-running cars have introduced a time-limited subsidy policy for C01 models, with a payment of 5000 yuan up to 30000 yuan. NIO also offers price reduction promotions for 2022 ES6 and ES8 models.

As we all know, the reason why Tesla dares to cut prices comes from his high profit margin. Recently, the benchmark price of battery-grade lithium carbonate has continued to decline, from the highest 607000 yuan / ton to 515000 yuan / ton, while Tesla is mainly self-sales, the rise and fall of raw material prices directly affect Tesla's price, and the price reduction is also expected. The effect behind Tesla's big price reduction is also immediate. According to Tesla CEO Musk, Tesla's demand in January was about twice as much as output after the price cut. Without external interference, Tesla's sales could reach 2 million in 2023. For most of the new energy manufacturers that have not yet made a profit, it is undoubtedly worse to follow Tesla's price reduction.

At this stage, many new energy car companies have not followed Tesla's footsteps in reducing prices, but Cui Dongshu, secretary general of the passenger car Market Information Association, pointed out that from February to March 2023, the price of lithium carbonate may fall correspondingly. 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, it has a large-scale supply system and a high gross profit margin, which can sacrifice a little profit in exchange for market share, but not all car companies can follow suit.

Judging from the sales of domestic new energy car companies in January, Tesla's price reduction is undoubtedly a blow to new energy car companies, with sales plummeting in January. However, Tesla's price reduction policy has been recognized by many stock analysts, who believe that Tesla's price reduction strategy can generate new demand and bring economies of scale.

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