New energy vehicle prices are getting "heated," while domestic brands are gaining strong momentum.

my country has become the world's largest new energy vehicle market. With increasing penetration, the market is showing new consumer trends that are distinct from those of the fuel vehicle era. A reporter from the National Business Daily, through market visits, found that young people are emerging as new energy vehicle consumers, with the power of female consumers not to be underestimated. The direct sales model is more transparent and simple, offering consumers a better car-buying and driving experience, making it highly popular. The market is becoming increasingly competitive, with price wars intensifying. Domestic brands are dominant, and plug-in hybrid models are becoming increasingly popular. "There are many differences from buying a fuel vehicle before. Buying a new energy vehicle is worry-free. I don't have to go to so many 4S stores and haggle over prices. Prices are standardized and transparent, eliminating many steps. Plus, there are so many car brand stores in shopping malls now, so I can view cars and schedule test drives while shopping without having to travel far." A Shanghai new energy vehicle owner told the reporter that he could order online and pick up the car in person, with instant tracking of all process progress. Most importantly, there was no need for repeated haggling. This car-buying experience left a deep impression on him. The direct sales model currently popular in the new energy vehicle market was introduced by Tesla and has been emulated by numerous emerging brands like NIO and Li Auto, accelerating its adoption. Under this new model, users only need three steps to buy a car: visit the official website, test drive in a dealership, and place an order. In contrast, with the traditional model, consumers must inquire about prices and negotiate with various dealers, engaging in a series of back-and-forth transactions. Transparency extends beyond the purchase process; the maintenance process will also be more standardized and transparent, making it particularly attractive to young consumers.

As the new energy vehicle consumer base grows younger, their demand for smart technology is also growing. "I have a gasoline car that I've been driving for five years and am ready to replace it. The government is offering replacement subsidies, so I'm considering a new energy vehicle. We prioritize domestic brands and emerging brands because they have a strong sense of technology, with user-friendly assisted driving and in-car systems. I've also looked at joint venture pure electric models, but I'm not a big fan. They feel like modified gasoline-powered vehicles, lacking much of the technological appeal," a Shanghai consumer told reporters. Furthermore, the automotive industry, once primarily male-dominated, is quietly shifting gears. The "female power" of car consumption is becoming a significant growth driver, and many automakers are diligently developing products specifically for female consumers. For example, Great Wall Motors' ORA brand, positioned as a car brand more appealing to women, recently launched the 2023 ORA Good Cat (configuration | inquiry), priced between 129,800 and 165,800 yuan. Its exterior design and numerous smart technology upgrades are specifically targeted at the female market.

Since the beginning of this year, price cuts have become a dominant theme in the auto market. Earlier this year, Tesla announced price cuts for both the Model 3 and Model Y, with the largest reduction being 48,000 yuan. Following suit, brands like Xpeng and Wenjie also announced price cuts. While this "price reduction wave" has benefited consumers, it has also boosted automakers' sales. However, many consumers are holding back, hoping that more manufacturers will join the price reduction trend and further reduce prices. "The 2023 Zeekr 001 is currently offering significant discounts. Models equipped with the optional air suspension can enjoy a direct discount of over 11,000 yuan, bringing the price to just 316,800 yuan. This represents a disguised price reduction, as the 2023 model comes standard with features that would have cost 20,000 to 30,000 yuan last year, while the same configuration would have cost 347,000 yuan last year," a Zeekr sales representative told reporters.

In fact, the low value retention of electric vehicles is a common concern for many buyers, and some used car dealers even refuse to accept new energy vehicles. To address this, some car brands, such as NIO and Xpeng, have launched official used car services. Zeekr also recently officially launched its official used car sub-brand, Zeekr Certified. Each vehicle is identified by a unique QR code. This "one vehicle, one code" process generates a unique digital report, including a professional vehicle inspection report and the latest vehicle maintenance records, accurately documenting the vehicle's history. "It's true that many customers are concerned about rapid depreciation. After all, car replacement cycles are shorter now, and people worry about significant depreciation after driving for two or three years. However, with improved battery technology and overall vehicle quality across the industry, this problem will improve. We have our own official used car business, and the repurchase price is definitely higher than the market price," a NIO sales representative in Shanghai told reporters.

Unlike the era of gasoline-powered vehicles, domestic brands have established a dominant position in the new energy vehicle market. This is particularly true in the mid-to-high-end segment, where domestic brands are constantly pushing the boundaries. For example, NIO, Li Auto, and WNEX are aggressively attacking the mid-to-high-end market, even stealing some potential customers from BBA. "I was originally interested in the Volvo S90 (configuration | inquiry) and BMW 3 Series, but after test driving NIO and Li Auto, I immediately felt that electric vehicles were truly attractive. Considering the convenience of long-distance driving, I decided to order the Li Auto ONE (configuration | inquiry). I've been driving it for over a year now, and the experience is very positive," an Li Auto ONE owner told reporters.

Compared to domestic and luxury brands, joint venture automakers, which once dominated the Chinese auto market with gasoline-powered vehicles, have a relatively low presence in the domestic new energy vehicle market. Judging from the current state of development, a concentrated focus on new energy will become a common choice for the automotive industry in 2023, and major joint venture brands have also accelerated their deployment in the electric vehicle market. For example, Toyota, which is undergoing a transition to electrification, has launched the bZ3, the world's first pure electric sedan, following the launch of the bZ4X. Priced between 169,800 and 199,800 yuan, the new car is built on the eTNGA platform and utilizes BYD's Fudi motor and lithium iron phosphate batteries, with a CLTC range of 616 km.

While pure electric vehicles remain the mainstay of the new energy vehicle market, plug-in hybrid models have seen a strong rise since last year, resulting in a more diverse product range and intensified market competition. Data from the China Passenger Car Association shows that in 2022, the pure electric and plug-in hybrid markets will see year-on-year growth of 83.4% and 157.6%, respectively, with the plug-in hybrid market experiencing nearly double the growth rate of pure electric vehicles. In terms of sales volume, insurance data shows that in 2022, domestic plug-in hybrid vehicle sales exceeded one million units for the first time, a year-on-year increase of 136.8%, with penetration increasing from 2.6% the previous year to 6.2%.
Ping An Securities predicts that plug-in hybrid models will be the biggest driver of new energy vehicle growth in 2023. It is expected that sales of plug-in hybrid models priced between 100,000 and 200,000 yuan in 2023 will approach those of pure electric vehicles, with overall sales expected to reach 3.1 million units. In response to this consumer trend, major automakers have begun accelerating the launch of new products, particularly domestic brands, which are increasing their R&D efforts in plug-in hybrid systems, including the growing acceptance of extended-range technology. For example, Changan Shenlan recently launched its second product, the S7, in Shanghai. This mid-size SUV is available in both pure electric and extended-range hybrid powertrains. BYD's plug-in hybrid models saw a 247% year-on-year increase in 2022, with sales of approximately 946,000 DM models, making BYD the domestic sales champion.

From Sina Auto

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