The reason behind the "involution" of the price of the domestic automobile market is "different rights of oil and electricity"?

The car domain is boundless

2024-06-09 18:26Posted in Guangdong automotive creators

In 2024, the overall inventory pressure of the automotive industry will increase, a new round of "price war" will be set off, and the entire industry will fall into a state of "involution": volume price, volume configuration, volume speed, volume flow, and even volume boss. As we all know, domestic brands have the absolute right to speak on the track of new energy, so does involution help market growth? Will consumers benefit in the long run?

In response to this problem, at the 2024 China Chongqing Automobile Forum, the bigwigs in the automotive industry have given their own views.

Among them, Zhu Huarong, chairman of Changan Automobile, believes that "volume" is the process of expelling good money from bad money, and "volume" itself means the pursuit of excellence, which will roll out the new height of Chinese brands, will roll out the maximization of user interests, and truly create value for users. I believe that in the next ten years, more Chinese brands will become world-class brands.

Wang Chuanfu, chairman of BYD, also believes that the core of the market economy is competition, and the essence of "volume" is competition. It is a natural law that all entrepreneurs should embrace and participate in this kind of 'volume'. The giant enterprises in the domestic home appliance and mobile phone industries have also gone through the survival of the fittest and gradually developed into world-class brands, and the automobile industry also has to go through such a process.

Li Shufu, chairman of Geely, believes that the involution of the car market is both a good thing and a bad thing. If the level of marketization is high, the law is sound, the law is strict, and the competition is transparent and fair, this is a good thing; Otherwise, it's a bad thing. The healthy development of any industry must be manifested in the input-output ratio to achieve better economic returns, endless involution, simple and crude price wars, the result of which is cutting corners, counterfeiting and selling, and disorderly competition that does not comply with regulations.

Different from the above-mentioned head of the view, Zeng Qinghong, chairman of Guangzhou Automobile Group, proposed that "rolling" is not a way. He said that when the proportion of pure electric vehicles of new energy vehicles reaches 50%, it is recommended that relevant departments study the "same rights of oil and electricity". The purpose of the enterprise is to make profits, to contribute to the country, to contribute to society, to pay taxes, and to work. Without money and benefits, it is impossible for enterprises to survive.

I don't know if you have found it, the above four car company bosses are all from traditional car companies, and they have all experienced the era of making money by "lying down". Nowadays, the market environment has changed, and everyone has recognized the rationality of "involution", which used to be the first-mover advantage and capital advantage, but in the second half, it has to rely on the industrial chain system, rapid adaptability, and differentiated products/services to win.

The involution of the "price war" is actually a challenge from new energy to fuel vehicles. You must know that the upgrading of oil truck products is relatively slow, the degree of product intelligence is not high, and it relies more on price concessions to continue to attract customers. With the decline in lithium carbonate prices and the reduction of battery costs, the cost of new energy vehicles has decreased, and its terminal prices have further declined, which will deal a fatal blow to fuel vehicle manufacturers and accelerate the process of new energy.

But as we all know, those new energy vehicles with green cards do not need to pay vehicle purchase tax when they are bought. In some big cities, they can also enjoy the privilege of skipping the queue to buy a car and travel without having to look at the day. Moreover, gasoline contains a series of taxes and fees such as road maintenance, while electricity does not include these fees. Since it is a market economy, with the increase in the penetration rate of new energy, the same rights of oil and electricity should also be put on the agenda.

The domestic auto market has entered the second half, and the game of this breakthrough has become more and more intense, and many brands regard market share as more important than short-term profits. Only after such full and even somewhat cruel competition will the domestic automobile market complete the "reshuffle" and achieve the survival of the fittest. What do you think about this? Welcome to pay attention to "Boundless Car Domain" and leave a message in the comment area below to share your views.

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