In recent years, with the rapid development of the new energy vehicle industry, the market competition has become increasingly fierce. In order to seize market share, many car companies have joined the price war, resulting in a rapid decline in the price of new energy vehicles. However, this low-price competition has also brought some negative effects, such as the decline in product quality and safety, and the serious loss of enterprises.
Speaking of data, the average purchase price of the overall new energy vehicle market decreased from 191,000 yuan in March 2023 to 172,300 yuan in March 2024, and the price of new energy vehicles decreased by 9.8% year-on-year in one year. This downward trend in prices is largely due to price wars between car companies. In order to attract consumers, many car companies have launched low-cost models, even at the expense of product quality and safety.
In order to reduce costs, some car companies cut corners in materials and processes, resulting in a decline in product quality and even potential safety hazards. For example, last year, there were a number of media exposure of spontaneous combustion of new energy vehicles, which aroused widespread concern in the society.
At present, the cost of new energy vehicles is still high, and the price war has further compressed the profit margins of enterprises. The data shows that in 2023, in addition to BYD and Ideal, most new energy vehicle companies such as Weilai, Xiaopeng and Leap will still be in a state of substantial losses.
Huawei's Yu Chengdong publicly said that in the long run, it is difficult for car companies to survive by fighting price wars, and they have never seen car companies that go far by relying on low-price competition.
If the new energy vehicle industry wants to develop healthily, it must get rid of the strange circle of low-price competition and embark on the road of high-quality development. Car companies should focus on improving product quality and technical level to provide consumers with more cost-effective products. At the same time, the government should also strengthen supervision and prevent companies from competing at the expense of product quality and safety.
The new energy vehicle industry is a national strategic emerging industry with broad development prospects. However, if you blindly rely on low-price competition to gain market share, it will only harm the healthy development of the industry in the end. Car companies and the government should work together to promote the transformation and upgrading of the new energy vehicle industry and provide consumers with safe and high-quality products.