1. New energy market in 2023 sees significant price volatility with a downward trend.
With the decline in the price of raw materials for power batteries, the reduction in the manufacturing cost of the whole vehicle, and the slowdown in the growth rate of new energy vehicles, automakers have increased discounts to stimulate terminal consumption. The discount rate of new energy vehicles in 2023 has shown a continuous upward trend, and each month is higher than the same period in 2022. Although the price fluctuates, it still shows a downward trend overall (the price has continued to decline since the second quarter, and after a short rise in the middle of the year, the price continued to fall to October, reaching the lowest level of the year, and the price began to rise at the end of the year).
2. Sedans offer higher discounts and lower prices compared to SUVs and MPVs.
In 2023, the discount rates of sedans, SUVs, and MPVs continued to rise. Although the prices fluctuated, they showed an overall downward trend, but the trend characteristics of the three showed certain differences. Sedan and SUV prices are basically the same as the market, reaching the lowest level of the year in October, and prices rebounded at the end of the year, but prices in each month are generally lower than the same period in 2022; while MPV prices have continued to fall since the first quarter, reaching the lowest level of the year in December, but prices in each month are still higher than the same period in 2022.
Comparing the average discount rates and prices of sedans, SUVs, and MPVs, sedans have relatively high overall discounts, and their prices are also lower than SUVs and MPVs.
3. Secondary market segments
Compact car prices continue to fall, reaching the lowest level of the year in December l Micro-small market: The discount rate closely follows the industry market and continues to recover, rising from 3.1% in January to 9.2% in December, an increase of more than 6%, and the discount intensity reaches the highest level of the year at the end of the year; at the same time, prices have continued to fall since a brief rebound in March, and the price fluctuations have slowed down since August, fluctuating around 75,000, which is lower than the same period in 2022. l Compact market: The discount rate continued to rise following the industry market, rising from 1.9% in January to 11.4% in December, with the largest increase and higher discount strength than other market segments; at the same time, the price continued to fall until August, and the decline began to slow down (maintained at around 144,000 yuan for 4 consecutive months), and fell by 6,000 yuan again at the end of the year, reaching the lowest price of the year
Although the price of mid-sized cars fluctuated, it was generally on a downward trend
Medium-sized market segment: Although the discount rate fluctuated, it was generally on an upward trend (the discount strength in the fourth quarter reached the highest level of the year), and was higher than the same period in 2022; at the same time, the price also fluctuated, but the overall trend was downward, reaching the lowest price of the year in October, and lower than the lowest price in 2022.
Medium and large market segments and above: After the discount strength was briefly recovered in June, it continued to rise in the third and fourth quarters until the end of the year when the increase began to slow down (the discount strength in the fourth quarter reached the highest level of the year); at the same time, the price was on a downward trend until the end of the year when the decline slowed down, maintaining at around 330,000 yuan, reaching the lowest level of the year
4. Price hike in new micro-mini models leads to Dolphin's price increase.
The discounts of hot-selling car series have generally increased. The discount rate of Ora Good Cat and Leapmotor T03 has increased by more than 10%, and the price has dropped by nearly 10,000 yuan year-on-year, which is higher than other car series; the "price-for-volume" strategy of Hongguang MINI EV has not brought a significant increase in sales.
Affected by the increase in the overall guide price of new models, although the discount rate of Dolphin has increased, the overall price is still higher than the same period in 2022; the discounts of the newly launched car series Seagull and Wuling Bingo are relatively small, but
The market performance is still impressive
5. Compact cars like VW ID.3, VELITE 6 see a 20,000-30,000 yuan price drop.
The price competition in the subdivided market is fierce, and the main selling car series generally increase the discounts, lower prices, and narrow the price gap with competing products. Compared with the same price range, BYD's 4 models have relatively low discount rates, but the Song, Qin, and Destroyer 05 have increased their discounts, with prices falling by 11,000-15,000 yuan year-on-year.
The discount rate of Volkswagen ID3 increased by 21.8% year-on-year, with the largest discount among the hot-selling models, and the price dropped by nearly 30,000 yuan. VELITE 6 still maintains a high discount, with a price drop of 20,000 yuan. The strategy of price-for-volume exchange has achieved certain results, and their sales volume will be among the top 10 in 2023.
6. BMW i3 and Hongqi E-QM5 offer large discounts but lag in market performance.
In the mid-size car segment, the discounts of mainstream models are generally not large. The discount rates of NIO ET5, NIO ES6, Model Y, and Model 3 are less than 1%, and the range does not change much, but they continue to lower the guide price to seize market share.
The discount rate of BMW i3 and Hongqi E-QM5 increased by more than 10% year-on-year, and the discount strength was significantly higher than other competing products. The price dropped by 20,000-30,000 yuan year-on-year, but the market performance was still inferior to the competitors in the same price segment; on the contrary, the price of Haibao, Deep Blue SL03, and Leapmotor C11 dropped, all of which brought sales growth to varying degrees.
7. Wenjie M7 and Leapmotor C01 prices drop by 40,000-50,000 yuan, outdoing rivals.
Under the condition of general price decline in the industry, as a hot-selling model in the MPV market in 2023, the discount rate of Denza D9 rebounded slightly, and the price increased by about 7,000 yuan; Ideal increased the promotion of 3 models, among which the price of the old models Ideal L8 and L9 dropped by about 20,000 yuan, and the discount strength of the new model L7 was higher than the two old cars.
The price of Wenjie M7 and Leapmotor C01 dropped by 40,000-50,000 yuan, which was higher than the competitors in the same price segment. At the same time, the two car series ranked among the top 10 in sales for the first time, which shows that the price reduction also brought a certain effect to the growth of sales.
8. Manufacturers
- The prices of joint venture brands continue to fall, and the average price in the second half of the year is lower than that of domestic brands
Compared with joint venture non-luxury, the price fluctuation of domestic brands is relatively gentle, and the discount is not as strong as that of joint venture non-luxury, but it has not caused an impact on market share; in order to seize market share and stimulate terminal consumption,
the prices of joint venture non-luxury continue to fall, especially in the second half of the year, the average price is lower than that of domestic brands.
The prices of luxury brands are also constantly falling, among which it fell to 314,000 yuan in August, reaching the lowest level of the year. At the end of the year, the discount began to be recovered and the price rose.
- The discount rate of BMW Brilliance increased by 11.6% year-on-year, which is higher than other brands
Domestic manufacturers: The discount rate of mainstream manufacturers is generally not high, and the profit margin is limited, but they will increase promotion efforts in 2023. Among them, SAIC-GM-Wuling’s discount rate increased by 6.7%, and the discount rate was higher than other brands, but the price increased by 22.8% (the new car Wuling Bingo was launched).
Joint venture manufacturers: The discount rate of mainstream manufacturers is relatively high, and the promotion strength has increased significantly. Among them, the discount rate of Dongfeng Nissan, FAW-Volkswagen, and SAIC Volkswagen increased by more than 10% year-on-year, which is higher than other brands.
Luxury brands: Mainstream luxury brands generally raised their discount rates and lowered their prices. Among them, the discount rate of BMW Brilliance increased by 11.6% to 23.9%, higher than other brands.
