Butterfly effect, BYD also increased the price
With the decline of new energy subsidies and the impact of the superimposed price rise of raw materials, the price rise of new energy vehicles in 2022 wind, following Tesla, Volkswagen ID series, Nezha, GaC Eon, Xiaopeng automobile, BYD automobile also finally rose in price, causing the butterfly effect.Byd, officials announced on January 21st, the price of raw materials rose sharply, as well as new energy subsidies TuiPo effects, such as network and ocean network related to dynasty official guidance price adjustment, new energy vehicles increase for 1000-7000 yuan, formally went into effect on February 1st, signing before the down payment, the customer is not affected by the pricing.It is understood that the subsidy standard for new energy vehicles in 2022 will be reduced by 30% on the basis of 2021. For pure electric vehicles, the car will have to pay 3900-5400 yuan more in 2022, and the plug-in hybrid model will pay 2100 yuan more. Such an income, auto manufacturers obviously do not want to pay out of their own pocket, and it is a common practice to pass it on to consumers.So it’s no surprise byd is raising prices.In line with other brands, BYD only adjusts the price, but the design, configuration and other aspects are unchanged.In other words, it’s just a price increase.It is easy to understand the price rise of raw materials. Since the beginning of this year, chip and battery costs have generally risen in price.Limited by higher costs, BYD’s financial results in the first three quarters showed that net profit attributable to shareholders of listed companies in the first three quarters was 2.443 billion yuan, down 28.43% year on year.Byd’s net profit decline is related to rising prices for raw materials such as power batteries.Since the beginning of this year, the price of upstream raw materials of power battery has maintained a rising trend, including LiCoO2 cathode material price increased by more than 200%, lithium iron phosphate electrolyte price increased by more than 150%.Byd, struggling with rising raw-material prices, is seeking to raise the price of its power batteries.In October, an online contact letter said BYD would seek a unit price increase of at least 20%.At the time, BYD replied that it had “no comment” on the matter.Now, there is no rule out byd is ready to raise prices, but it is just a point in time.The most immediate impact of the new car price hike is to boost corporate profits, which could significantly improve BYD’s current poor financial situation.According to the ratio of 80% of the target 1.2 million new energy models in 2022, it will bring a net profit of no less than 1 billion yuan.Of course, there is still some time before the official effective date of February 1, the terminal market may appear to buy up do not buy down phenomenon, in advance to lock the discount.Of course, will the price rise affect BYD’s sales?In the short term, it may not, because BYD has accumulated a lot of orders in hand at present, which is in a state of demand, which is also the bottom of the price, do not worry about short-term sales fault.At present, many manufacturers are waiting to see, after all, price increases will trigger consumers to hold on to buy, competitiveness will also be reduced.With BYD’s announcement, it is likely to resonate with traditional auto makers to follow suit.New energy subsidies are about to complete their historical mission and step by step withdraw from the historical stage.From policy-driven to market-driven, it is an established fact that the dividend of new energy vehicles disappears, and 2022 will be the last transitional period.With subsidies gone, automakers must either fix their supply chains, cut production costs and keep prices the same, or inevitably pass some of those costs on to consumers.At present, because the outbreak superposition iron core, power battery superposition of multiple factors such as higher prices, raw material, cause the auto industry a series of chain reaction, auto makers into passive temporarily, but in the long run, new energy automobile production costs continue to drop, believe the true core strength, has a complete industrial chain of car companies will occupy the initiative competition,Car companies living on subsidies will lose competitiveness.To stay competitive, BYD will launch several new models.Byd Ocean series in 2022 new car planning, will launch seal, Seagull (tentative name), sea lion (tentative name), destroyer 05, destroyer 07, cruiser 05, cruiser 07 and landing ship 07 and other new models, involving cars, SUV and MPV.In terms of BYD’s warship series, destroyer 05 will be launched in the first quarter of this year and is positioned as a pure electric compact sedan equipped with DM-I super hybrid system, with an estimated price of 120,000 to 150,000 yuan.In the fourth quarter, BYD will also release a sedan similar in size to the DM, which will be named destroyer 07.