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HomeTechnology peripheralsIt IndustryNew energy vehicle market adjustment: traditional car companies and new forces compete
New energy vehicle market adjustment: traditional car companies and new forces competeMay 19, 2023 pm 09:38 PM
new energy vehiclesTraditional car companiesNew power companies

China's new energy vehicle market will face a series of challenges in 2023. The latest data shows that sales of new energy vehicle manufacturers fell sharply at the beginning of this year. Among them, the month-on-month decline rate of Leapo brand was as high as 86.59%.

After the price subsidy war in March, the sales of various car companies have improved slightly. Judging from the cumulative sales in 2023, in addition to BYD firmly ranking first with sales of more than 550,000 vehicles, the growth rates of new power brands such as Aian, Leapao, and Nezha are also relatively outstanding.

Since these three brands have all been selected for this year’s new energy vehicles going to the countryside, it is expected that their sales in May will not be too bad. According to a report released by the China Electric Vehicles Conference of 100, if the travel needs of low-tier cities can be met, there will be a car market worth 500 billion yuan waiting to be developed.

New energy vehicle market adjustment: traditional car companies and new forces compete

However, despite the market’s high expectations for the demand for cars in the vast third- and fourth-tier cities, new energy vehicles going to the countryside is also regarded as a new force for car companies to achieve a turn. opportunities for overtaking, but these companies face many challenges.

First of all, the price issue is an important factor restricting the development of new energy vehicles in the sinking market. Consumers are price-sensitive, especially in lower-tier cities with limited spending power. For new energy vehicle companies, the most critical challenge is to solve the price problem, not just the charging problem.

After joining the new energy vehicle rural areas plan, various car manufacturers have gradually launched more models. However, this also brings limitations in model selection. Some consumers believe that new energy vehicle companies have actually exhausted their inventory when selling models to rural areas, while sales in first- and second-tier cities have been sluggish.

Even so, the new energy vehicles going to the countryside plan is constantly expanding, and the number of car companies and models participating in the plan has increased this year. From a product perspective, the price limit has been raised to 150,000 yuan, making the choice of models more diverse. Some models that have performed well in first- and second-tier cities have also begun to participate, and there is an obvious trend of developing into the mid-to-high-end market.

Despite the spread of new energy vehicles going to rural areas, car companies are still facing cost challenges. In particular, micro and small electric models account for the majority of sales. The profit margins of car companies are still very limited. Although the price of lithium battery raw materials has dropped, it has not significantly reduced the production costs of models.

In addition to cost issues, the profitability of new energy vehicle brands also deserves attention. Some companies may suffer losses when participating in bringing new energy vehicles to rural areas, and some even believe that new energy vehicle brands mainly make money through subsidies rather than through selling cars.

No matter what, China's new energy vehicle market will gain growth opportunities in sinking markets and overseas markets. China's sinking market has huge potential, and there is also great demand in overseas markets. Although new automotive companies face greater challenges, traditional automobile manufacturers have a more obvious advantage in the field of new energy vehicles.

Overall, the new energy vehicle market prospects are still uncertain. Car companies need to face many challenges, including price, cost, profitability and other issues, despite the huge market potential. Against the backdrop of a ban on the sale of internal combustion engine vehicles in 2035, new energy vehicle companies need to accelerate development and seize opportunities to remain competitive and achieve long-term sustainable development.

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