China's electric car brand was approved by Wuhe's public price war against Tesla

Reuters recently wrote that in the eyes of many people in the industry, China's electric car brands are a group of Ukrainian people, their products have no bright spots, and can only rely on government subsidies. But in fact, these manufacturers' products fully meet the needs of most Chinese consumers. With the advantage of low prices, they can quickly occupy the market. Once they gain the scale advantage, these manufacturers can also attack the overseas market and complete the foreign brands. Counterattack.

China's electric car brand was approved by the Uight Price Wars against Tesla

Although Tesla and Nissan are recognized leaders in the field of electric vehicles, if they sell sales, they are far worse than China's local low-cost electric car brands. China's electric car sales are more than other countries in the world. .

Speaking of the rapid growth of China's electric vehicle market, it has to mention the huge subsidies of the government. The government's move is also to promote domestic companies to quickly seize the world's leading position in clean energy technology.

Under the promotion of the government, electric vehicles are already common on the streets of China. Private vehicles, buses, taxis and government vehicles have electric vehicles.

In terms of sales volume, sales of electric vehicles and plug-in hybrid vehicles in China increased by 60% from January to November last year, reaching 402,000 units. It is estimated that by 2020, the number of electric vehicles running on the roads in China will reach 5 million (excluding electric motorcycles).

In terms of parameters, Chinese local brand electric vehicles have a flat performance. They do not have Tesla's fast charge, long battery life and luxurious appearance, but they have great advantages in price.

After a subsidy for a good Chery electric car sold in Shanghai last year, the price was only RMB 60,000. Compared with this, the so-called cheap electric car Chevrolet Bolt exhibited at the Detroit Auto Show this year, the price is as high as 30,000 US dollars (about 207,000 yuan), to know that this is still enjoying $7,500 (about 52,000 yuan) minus The price after the tax policy.

Xie Chao, a Shanghai-based chemical company, said: "In China, electric cars are quite cheap and can be used as car owners with very little money. If you only use electric cars for daily commutes, then their cruising range is fine. (within 100 kilometers)."

Xie Chao said that he has bought three electric vehicles since 2015. They are Jianghuai, Beiqi and Geely Dorsett. Usually Xie Chao and his wife drive one each, and the remaining one is used for rent.

Most Chinese electric vehicles have similar configurations and performance, so the price is the deciding factor for consumer purchases. In recent months, Chery eQ has been able to sell in the market because of its relatively low price.

"Electric vehicles are a means of transportation. Buying such a car is not for showing off. If you want to meet the needs of the whole family, you can buy a big car." Electric car salesman Zhang Dawei said.

In addition, in big cities like Beijing and Shanghai, there is another reason consumers buy electric cars – making it easier to get license plates. Almost half of China's large central cities have car purchase restrictions, but electric cars are not in the limit.

The subsidy is falling, who is the most injured?

China's electric vehicle subsidy policy is a challenge for foreign manufacturers because they can only get subsidies if they are joint ventures with domestic manufacturers.

However, these joint venture brands are in a state of paralysis, and their mixed status is not only unacceptable to users, but the price is still quite expensive after subsidies.

“The market is very cruel, only the price is low enough to get the order, but the manufacturers are never satisfied, they still want to continue to push the price, so the supplier can only adopt the policy of short and short.” An unnamed Supplier executives said.

Nissan Leaf, which was popular in foreign countries, also adopted a joint venture production method after entering China. The car eventually belongs to the Qichen brand, but the Nissan CEO said that the car is not very good in China because its price is too expensive. It is.

After 2020, the subsidies for electric vehicles will be canceled. At that time, foreign brands may be completely driven out of the Chinese market because of the high price.

In fact, this year's subsidies have declined, resulting in a rise of Chery eQ price of 15,000 yuan. As for where the subsidy policy for 2017 will go, the government has not yet issued relevant policies.

Li Yunfei, deputy general manager of BYD's public management office, said that with the government's subsidy policy, Chinese local manufacturers have developed rapidly in recent years. Due to the large sales volume, manufacturers can reduce the cost of bicycles through mass production, while saving more money for research and development.

"The subsidy policy will come to an end in 2020, but the local manufacturers have already had sufficient scale and the cost has dropped sharply. Therefore, the price advantage is still our powerful weapon." Li Yunfei added.

Chinese manufacturers have already gained first-mover advantage. In the face of such a situation, foreign giants are also unable to sit still, and they have increased their investment in the Chinese market. For example, GM is preparing to invest 26.5 billion yuan in China to increase the research and development of electric vehicles, and strive to launch 10 new energy vehicles to the market by 2020.

It should be noted that after the Chinese brand develops and develops, it will also go abroad to seize the overseas market. Now, China's GAC and BYD have begun to work in the backyard of foreign giants.

At the Detroit Auto Show, GAC not only exhibited a new SUV with traditional power, but also brought a purely electric SUV. A spokesperson for the company said that Guangzhou Automobile plans to officially enter the US market in 2019.

BYD from Shenzhen has great advantages in the field of electric vehicles. Their electric vehicles have been sold to Africa, Europe and South America. The company even has its own factory in the United States.

"Because of the huge market in China, Chinese manufacturers can successfully promote their products to foreign countries once they have the advantage of scale. In recent years, we have become more and more aware of the needs of overseas consumers." Li Yunfei said. "In the future, Chinese manufacturers with great potential will definitely stand on the world stage."

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