After the launch of a new car finance policy in China, Tesla's US stock rose 6.05% on July 1st, closing at $209.86 per share, reaching a new high in nearly three months. Its market value increased by $38.2 billion (approximately RMB 278.8 billion), with a total market value of $669.3 billion.
Hot search on topics related to "five-year interest free"
"Disguised price reduction" has become a new choice for car companies
On July 1st Beijing time, topics such as "Tesla Five Year Interest Free" surged on Weibo's hot search. Tesla China's new car purchase finance policy shows that purchasing the Model 3/Y standard range and long range all wheel drive models can enjoy discounts such as "5-year zero interest". According to calculations, this discount can save consumers over 20000 yuan in interest.
Unlike in the past, Tesla China's promotional campaign launched in July did not adopt a straightforward form of price reduction. Old car owners have explicitly stated that this "disguised price reduction" approach balances the valuation of vehicles in the second-hand market, allowing them to "buy early and enjoy early" without feeling like they are losing money; Some car buyers also expressed that the above form significantly reduces the threshold for purchasing a car, which is worth learning from.
Zhongxin Finance has noticed that, like Tesla, "disguised price reductions" have also become a new choice for some car companies. On June 30th, Huawei announced that the HUAWEI ADS (Qiankun Intelligent Driving) advanced feature pack will launch a limited time discount price. The price of the ADS advanced feature pack will be adjusted to 30000 yuan, a decrease of 6000 yuan compared to the original price. The discount will continue until the end of the year.
The intensity in the first half of the year far exceeded previous levels
The "price war" in the second half of the year has eased somewhat
With the arrival of the second half of the year, the above-mentioned "disguised price reduction" approach is also seen as a manifestation of easing the "price war" of automobiles. Previously, the topic of price reductions for luxury brands such as Porsche and BBA frequently appeared on Weibo hot searches, and the news of significant price reductions for Japanese cars has also received widespread attention.
In fact, since May this year, the phenomenon of "price war" in the automotive industry has somewhat subsided. According to Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, only 10 car models underwent price reductions in May 2024, with a smaller scale than the same period in 2023. As a comparison, there were 29 models with price reductions in February this year, 49 models with price reductions in March, and a total of 54 models with price reductions in April.
However, he also pointed out that the intensity of the "price war" in the automotive industry in the first half of this year is far greater than before. "The scale of price reductions from January to May 2024 has exceeded 90% of the full year of 2023, surpassing the total scale of price reductions in 2022. The short-term sales promotion effect of price wars is not actually significant."
Behind the frequent discounts of 60% or 70% are the shrinking profits of car companies. According to data from the National Bureau of Statistics, the automotive industry's revenue from January to May 2024 was 3896.6 billion yuan, a year-on-year increase of 7%; The industry profit margin is 5.3%, lower than the average profit margin of 6.1% for downstream industrial enterprises.
There are also opinions in the industry reflecting on what the "price war" of automobiles has brought. "If there is no money to make and no benefits, enterprises cannot survive. This is not the way to survive!" Zeng Qinghong, Chairman of GAC Group, recently stated that the purpose of enterprises is to make profits and contribute to the country and society.
In the view of Wang Chuanfu, Chairman and President of BYD, the automotive industry is a form of competition, the essence of a market economy, and competition is the key to prosperity. "All entrepreneurs in the automotive industry should embrace and participate in this' roll ', embrace this competition, contribute to the country in the competition, and build world-class brands."