Tagged: Tesla booked

Tesla slashes Chinese car market with price cuts

Tesla slashes Chinese car market with price cuts
Model Y: Cancelled?

For just experienced the capital market in 2020 crazy and hot new car companies, I am afraid who did not expect in the New Year, “chill” will come so fast.

On the New Year’s Day of 2021, after Tesla announced the price of domestic Model Y on its official website in China and started to pre-order it, the price cut was as high as 160,000 yuan compared with the previous imported version, which made it “break the market” quickly. Almost every Tesla store showed a “grand occasion” of people watching the car.

In contrast, Nio and other new car companies can only describe the situation with a small number of people. AI business club found in the field visits, on January 4, daxing will gather in Beijing shopping mall and even weekday tesla stores were still an endless stream, at the same time, in the same mall wei to in-store customers are numbered, ideal, rammasun stores is long time not to enter, sales have mostly sit lazily playing the mobile phone. More than a dozen kilometers away, the Xiaopeng Car Delivery Center near Chengshou Temple has also been snubbed, though salespeople say traffic is mainly affected by weekdays.

Water on one side, fire on the other. “The website went down three times and all three phones ran out of battery.” “We had so many people coming to see the car that we didn’t even get a chance to get in the car ourselves,” one Tesla salesman told AI, recalling the hot and busy New Year’s Day holiday.

 

Rumor has it that Tesla booked 100,000 orders in 10 hours during the New Year’s Day rush. On the other hand, there are rumors that NIO has a large number of unsubscribed users or even its official website crowded and exploded.

Although Qin Lihong, president of NIO, responded on January 3 that NIO’s orders are stable and still increasing, “Some people say that NIO’s official website has been blown up because of cancellations, but NIO’s official website has never had anything to do with NIO’s orders. I think those people who are making rumors still need to do some research.”

Not only that, Qin LiHong also insisted that “no price reduction”, “NIO has a lot of shortcomings, but NIO’s configuration level and service level are worthy of the price”. On the same day, NIO released a very competitive official second-hand car policy and the rights and interests of old users to re-purchase, to continue to enhance NIO’s high premium advantage.

However, the New Energy “Three”, which made a big splash in the US stock market a year ago, are indeed affected to some extent.

AI financial news agency learned that in NIO APP, major automobile forums and second-hand trading platform Xianyu, many users in the low transfer of the original 20,000 large deposit, some users even at the lowest price of 60% discount to sell, and said that it will cooperate with NIO official sales to complete the transfer, and the period of the car are in January this year. That is to say, after the domestic Tesla Model Y’s price was announced on January 1, some Nio users who had previously paid a deposit switched to the Model Y.

Several transfer the user tell AI wei to deposit business club, most of them under the New Year’s day shortly before the “big” and ordering of the normal process according to wei, will be completed within 7 days “lock list”, but the domestic Model Y to publish price later, they were asked to postpone the lock list, there are a few people have to tesla had to pay 1000 yuan gold “placeholder”, now only waiting for after the transfer of wei to deposit to transfer “tesla’s big”.

Although the subsidy standard for new energy vehicles this year will be reduced by 20% on the basis of 2020, NIO timely introduced that users who decide to buy a car before January 10 can still enjoy a subsidy of up to 22,500 yuan in 2020, but it still can not stop users from switching to the Model Y, which is “really sweet with a low price”. In the view of these users, “wallet is honest, buy when it’s worth it, turn when it’s not worth it.”

When talking about his reason for transferring Nio ES8, one user explained to AI Financial News Agency that he transferred the Model Y at a discount because it was “really attractive”. The user said that Nio and Tesla’s vehicles have their own strengths. Tesla pursues the vehicle’s own performance, while Nio emphasizes the vehicle interior and user service. However, he also emphasized the reason why he gave up Nio for Tesla, saying that “after all, the car is bought and driven”.

Nio was called “China’s Tesla” in the early stage, and successfully imitated Tesla’s technical route of “fighting high with low”, so it was regarded as the most direct competitor of Tesla in the Chinese market. However, the two companies did not directly match the target products on the price level for a long time.

Until NIO EC6 appeared, the situation changed. Qin Lihong once admitted that “Model Y and EC6 are a product that can be completely compared”. In 2019 NIO Day, EC6 was officially unveiled as the third production car of Nio, but the price was not announced on the spot. According to Li Bin, chairman of Nio, Nio wanted to wait for Tesla Model Y to be released first, so as to leave some market flexibility for the pricing of EC6.

In January 2020, Model Y announced the starting price of the two versions of the long range and high performance, respectively 488,000 yuan and 535,000 yuan. Thus, NIO’s EC6 pricing is “targeted”. At last year’s Chengdu Auto Show, the price of EC6 was officially announced: 368,000 to 526,000 yuan, which “accurately” avoided the pricing range of Model Y.

Li previously explained the EC6’s pricing strategy, saying that “EC6 is in direct competition with Model Y, and NIO takes long-term competitive strategy into consideration when pricing.” But I am afraid that Li did not think that the Chinese Model Y pricing and NIO ES6 and EC6 tit for tat, in fact, has introduced the war into NIO product pattern “hinterland”.

Rivals or teammates?

While public opinion is worried that Nio will be rubbed on the ground, Nio appears to be “unusually calm” and is at pains to emphasize the difference between itself and Tesla.

Li previously stressed that NIO’s user profile has been different from Tesla’s, and the unit price of its products is generally higher than Tesla’s. He also said in a recent interview, tesla would like to be the next Volkswagen, Toyota, and wei to target is the Mercedes, BMW and audi, “sell BBA fuel car how many money, wei to electric cars to sell the same price, better than their service, performance, intelligentize degree is high, the products more competitive, service competitive, this is wei to the overall strategy.”

This is not Bin Li’s “wishful thinking”. In fact, after several years of development, NIO has indeed shown a different development trend from Tesla in terms of both products and brand image.

One had a job at tesla wei to sell also expressed a similar meaning to AI business club, in his view, tesla is a very aggressive company, “do whatever it takes to, including the price and other means to seize market share”, by contrast, wei to is a company “flexible”, “focus on vehicle interiors and user experience”.

The sales acknowledge that Tesla is ahead of Nio in electric control and autonomous driving technology, but Nio’s strengths lie in “lifetime warranty for non-consumable parts,” “power-changing services” and “rich community activities. Buying a Nio means you’re part of a higher-level circle.”

AI Financial News found on various automobile forums that since last year, people have been comparing Nio’s EC6, ES6 and Tesla Model Y. Those who like Model Y mostly focus on the vehicle’s performance, while those who support Nio focus more on the added value of the vehicle’s craftsmanship, interior decoration and after-sales service.

A prospective owner of Nio EC6, after comparing the Model Y with the real car, still gave up the idea of cancelling his subscription because the Model Y’s workmanship, window sealing and other aspects were far below his expectations.

 

Photo /Model Y Source: Tesla website

In fact, consumer psychology has always been difficult to grasp. The Nio salesman told AI Financial News that Nio’s and Tesla’s products have their own strengths and choosing which one is “all based on personal preference.”

For the impact brought by Tesla, although various enterprises have different caliber, but most of the attitude is as “calm” and fearless competition as NIO. He Xiaopeng, chairman of Xiaopeng Automobile, said via his social media account that “this time we are confident that Youquan will cut prices on New Year’s Day. We didn’t even hold an internal phone meeting.” Zhao Changjiang, general manager of BYD Sales Co., said on his Weibo account that he had known Tesla would “play like this”…

Confidence at the top seems to be trickling down to front-line salespeople, too. A Xiaopeng sales staff told AI Financial News that the P7 Xiaopeng has already had a “fight” with Tesla. “Not only are we not killed, but we live better and better.” In his opinion, the domestic Model Y launched by Tesla is not competitive with Xiaopeng. “People who come to our store to see the car are comparing with the Model 3.”

A sales staff of Ideal Auto is outspoken that Ideal has never regarded Tesla as a rival. First of all, the two companies have completely different technical routes. Secondly, “the enemy of all new energy vehicles should be fuel vehicles”. In the new energy vehicle circle, the second point seems to be a common idea. A number of leaders of China’s local new energy vehicle companies have previously expressed a similar idea: they hope to join hands with Tesla to make the cake bigger.

On the same day Tesla Model Y announced its selling price, NIO said on Weibo that it is a rival and a teammate. 2021, together with the power forward “. Qin Lihong also said on Jan. 3, “I think any electric car in the world sells well, we are happy. “The next decade will be a decade in which electric cars continue to take over the share of fuel vehicles. It’s just a matter of who comes first.”

Yu Liguo, president of new energy brand Arcfox under BAIC Group, also said on social media that those who make smart electric cars should thank Tesla, as it is the creator of this species. “We are not enemies, but our common enemy is actually non-smart cars.”