GAC, BYD Announce No Price Rise

Finally came the "real hammer" of this year's recession in new energy subsidies. On March 26, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the "Notice on Further Improving the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles" (hereinafter referred to as the "Notice"), which sets out in detail the subsidy standards and technical requirements for new energy passenger vehicles, new energy buses, and new energy vehicles. According to the "Notice" analysis, the maximum subsidy gear of pure electric passenger vehicles is only 25,000 yuan after the downhill, a 50% decrease compared with 2018, while plug-in hybrid power is 10,000 yuan, down from 22,000 yuan in 2018. As subsidies recede, it seems logical that new-energy vehicles should "go up" in price. GAC New Energy has thrown out a "surprise"--full subsidies to consumers. Faced with this wave of Guangzhou Automobile "operation", the car companies have different views, it seems that there are few "Follow" under the blood. However, Yang Zhao, head of public relations at BYD, told First Electric that GAC was not "the only one" because "BYD did not raise prices either". Delayed rollback in 2019 is a huge incremental opportunity for companies. The rollout of the subsidy rollback is a "long-awaited first step". Last year, as early as February, the Treasury announced a 2018 subsidy policy and announced a transition period from February 12 to June 11, during which new energy vehicles will be licensed at 0.7 times the 2017 standard. By 2019, the online version of the downhill policy was "a wave of discounts", but the new rules were slow to emerge Taiwan. Cui Dongshu, secretary-general of the National Passenger Car Association, said that the design line of the new energy vehicle standard upgrade in 2019 was pragmatic and that the change to a three-month extension of the 18-year subsidy period from January to 3.25 and a three-month transition period from 3.26 to 6.25, compared with the four-month transition period from February to June of 18, was a good policy arrangement. The Notice sets a downhill transition period from 26 March 2019 to 25 June 2019. During the transition period, sales of licensed vehicles that meet the requirements of the 2018 Technical Indicators but do not meet the requirements of the 2019 Technical Indicators will be subsidized by 0.1 times the corresponding standard under the 2018 Subsidy Policy; Sales of licensed vehicles that meet the requirements of the 2019 Technical Indicators will be subsidized by 0.6 times the 2018 equivalent standard; Sales of licensed fuel cell vehicles are subsidized at 0.8 times the 2018 equivalent standard. Specific to the subsidy standards and technical requirements of new energy vehicles, the subsidy standards for new energy passenger vehicles set up two-gear subsidy, the subsidy was cancelled for vehicles with a duration of less than 250 km, the subsidy for vehicles with a duration of 250 ≤ R < 400 was 18,000 yuan, the subsidy decreased by 60%; the subsidy for vehicles with a duration of less than 250 km was reduced by 60%. The subsidy for R ≥ 400 vehicles is RMB 25,000 yuan, and the subsidy is reduced by 50%; Subsidy for plug-in hybrid models was 10,000 yuan, down 55 percent. Although the subsidy recession range is large, Cui Dongshu told First Electric, "the impact is not big, the technology is mainly aimed at the endurance and density two aspects, most car companies have alternative models." "Some people have said that the transitional period is uncertain, and I am also worried that if the implementation of the policy is not continuous, The first half of the stable growth of the car market and the structural growth of new energy has a lot of pressure. It is now clear that this is a major positive. " Cui Dongshu analysis, "The transitional period of policy settings, so that car companies have a reasonable layout and calibration of the new product time cycle, coupled with technical indicators to improve relatively in line with the expected faster upgrade, the enterprise corresponds better, the formation of subsidies during the transitional period and the year-end new subsidies for new energy vehicle sales have maintained a good growth characteristics." "The extension of 2019 by an additional month and a half is a huge incremental opportunity for companies, leading to higher forecasts for new energy sales in 2019, with sales of 100,000 units expected to rise." Cui Dongshu said. There are policies, there are countermeasures: Guangzhou Automobile New Energy, BYD does not increase prices as we all know, the subsidy for new energy vehicles recession, has long been a matter of certainty. Before the announcement came out, there was a lot of "anecdotal information", with some people in the industry saying that "the subsidy recession has already been decided, and there will be more announcements of price increases for new energy vehicles in the future, including Guangzhou Automobile, BYD, Beijing Automobile and Geely, which are inevitable." Now, the industry is about to be "smacked in the face." "Notice" issued the first time, individual manufacturers have announced their prices on the latest strategy. Among them, Guangzhou Automotive New Energy took the lead in sending out the poster, "strength commitment, price unchanged" several conspicuous green ring powder countless. Below the big print, there is a yellow title bar: "Guangzhou Automotive New Energy'full compensation '." More illustrations: GE3 subsidy of RMB 90,700 yuan/set; GS4 PHEV subsidy is RMB 33,000 yuan/set. In addition Weilai Automobile launched its last 4-hour insured price plan in Beijing: (as of 0:00 on the 27th) now pays a maximum of 50,000 cash savings! Enjoy the highest state subsidy of 45,000 and local subsidy of 22,500! More gasoline license plate purchase enjoy three months of free charging! Some users interpreted the plan as: 27, Weilai will increase prices by 50, 000. To this, Wei Lai expresses, rise in price is misread. "This is a humorous statement about the subsidy policy. Since the government subsidy is 50,000 less, car owners themselves will need to make up for the 50,000 after the new subsidy policy comes into effect. The car prices are 50,000 more than those set before the new subsidy policy came into effect. The official prices for the ES8 and ES6 are unchanged," said a Weilai insider. Previously, Weilai ES8 is applicable to the state compensation of 45,000 yuan, according to different local policies, the highest compensation for 22,500 yuan. "Notice" released the first time, the first electric line of Beijing Automotive, Jianghuai, Chery, BYD and other major mainframe plant responsible for trying to get some information on the price. BAIC said it had not yet been notified of the price adjustment. Lu Huaping, head of Chery's auto brands department, said there was a possibility of a price adjustment, but it was unclear. Wang Guangyu, deputy general manager of Jianghuai New Energy, said the company was still studying the latest prices. "Because of the large range of downhill, cost reduction and cost control need a cycle, it is inevitable for each brand of new energy passenger car to increase its price. The specific range depends on the technical standards of each product, the cost and profit and loss situation, market competitiveness and other factors to weigh." Wang Guangyu said Tribute to companies that have declared no growth. BYD may be able to accept this "tribute". "BYD's price remains unchanged." "After years of development, BYD will effectively dilute its R&D and production costs, with high economies of scale and risk tolerance through its core technology reserves throughout the industry chain, rich model series and model matrix (dynasty series, e-series), and the opening and sharing of e-platforms," said Yang. At the same time, the battery energy density and unit energy consumption of the vehicle are better than the latest national technical specifications. To this end, BYD has made full preparations for adapting to the new environment of new energy vehicles and realizing the development of high quality and popularization of new energy vehicles.