Chinese automakers start price war again at the end of the year BYD cuts prices of all Leap range models by up to RMB 18,000 | Anue Juheng

In the last two months of 2023, Chinese car manufacturers have entered the sprint stage to achieve their full-year targets. Four car manufacturers have already “shown their swords”. Among them, BYD (002594-CN) has reduced the highest RMB (the same below) by 18,000 yuan (the same below), and Leapmotor (09863-HK) has reduced all Series model discounts.

According to “The Paper”, Leappo issued an announcement on Thursday (2nd), announcing price reductions for all models, with subsidies of up to 10,000 yuan scheduled from November 1st to 30th. In addition, some models can also enjoy subsidies such as 5,000 yuan optional fund, 950 yuan compulsory traffic insurance, and home charging service package.

BYD also just announced price cuts on a number of its best-selling models on Wednesday. BYD said that it will launch a limited-time deposit promotion event from November 1st to 30th. Corvette 07 can enjoy 2,000 yuan worth 20,000 yuan; Dolphin and Seal Champion Edition can enjoy 2,000 yuan worth 9,000 yuan; Song PLUS Champion Edition and Destroyer 05 Champion Edition Enjoy NT$2,000 worth NT$7,000.

At the same time, BYD also launched discounts such as two years of zero interest for all models and a replacement subsidy of up to 8,000 yuan.

In fact, relatively speaking, BYD and Leapao “don’t worry about sales.” In October this year, BYD’s sales were 301,800 vehicles, an annual increase of 38.57%. Leapmotor delivered 18,200 vehicles in October, a surge of 159%.

BYD, which launched the first round of price cuts, can be said to be confident. In the first three quarters of this year, despite ongoing price wars, BYD’s operating income still reached 422.275 billion yuan, an annual increase of 57.75%; net profit attributable to the parent company was 21.367 billion yuan, a surge of 129.47%.

However, BYD is not without pressure. BYD has set an annual sales target of 3 million vehicles. To achieve this goal, it must sell more than 300,000 vehicles in both November and December. October this year was the first time that BYD’s sales exceeded 300,000 vehicles in a single month.

On November 1, two more car manufacturers issued price reduction notices.

Lynk & Co Automobile, a subsidiary of Geely (00175-HK), announced that after completing the lock-in order for the Lynk & Co 08 model in November, and completing the delivery of the car on December 31, you can enjoy a 6,000 yuan car purchase subsidy and a free Harman Kardon 23 speaker upgrade. Audio and other rights.

Euler Motors, a subsidiary of Great Wall (02333-HK), also launched a limited-time discount of NT$30,000 for its “Lightning Cat” model.

“There is less and less time left for car companies to achieve their full-year sales targets.” According to industry insiders, in order to achieve their full-year sales targets, OEMs and dealers may introduce profit-sharing policies more frequently and with greater force. will be bigger.

Lang Xuehong, deputy secretary-general of the China Automobile Dealers Association, said at a dealer communication meeting on Wednesday that in November, car manufacturers and dealers have entered the sprint stage for full-year targets, and market demand is expected to be better than in October.

She said that factors such as the automaker’s “Double 11” car purchase promotions, the launch of the Guangzhou International Auto Show, and the launch of new cars will help boost car sales. It is estimated that retail sales in November are expected to increase by about 10% compared with October, to about 2.1 million units.