At the beginning of March, price cuts by some new energy and fuel vehicle companies attracted attention. The market is concerned about increased competition in the automotive industry. We believe that the price war reflects that in an era where the product power and brand power of independent car companies are constantly improving, joint venture car companies have been under pressure for a long time, and their brand power is constantly being weakened.In 2023, new energy entered a period of share grabbing, supply was introduced at an accelerated pace, models continued to “collapse” in terms of configuration and price, and joint venture car companies were slowly transforming and product competitiveness declined, putting further pressure on them.
Historically, price wars have mostly ended with a clear end and order re-established, and high-quality car companies often grew at an accelerated pace after weathering the storm.We believe that joint venture price cuts do not change the trend of accelerated penetration of new energy. Under this round of price reduction competition, the product power of autonomous car companies will be further highlighted, and we are firmly optimistic about the accelerated rise of autonomous car companies in the context of electric intelligence and reshaping order.Through an in-depth analysis of the following content, this report uses the price war as an introduction to the current passenger car cycle and changes in the competitive landscape:
1) How strong is this round of price cuts, and what are the main reasons?
2) What is the difference between fuel vehicles and new energy vehicle companies due to price cuts?
3) What are the structural changes and incremental opportunities in the passenger car market in the future? How will the competitive landscape be anticipated?
Key points of investment
1. Analysis of the strength of price reduction: the price of the main models of basic promotion methods is stable
There is no direct correlation between the price reduction of fuel vehicles and new energy sources. The main reason for the price reduction is weak demand.New energy sources took the lead in this round of price cuts, but not the direct transmission of new energy to fuel vehicles, conduction and...