BYD released the Honor Edition Han Tang, and taught Xiaomi how to build cars. The industry officially entered the knockout round

Just after the Spring Festival, BYD dropped a bombshell in the automotive circle, announcing that it will release the Qin Plus Honor Edition and the Destroyer 05 Honor Edition. The starting price of both cars is 79,800 yuan.

As soon as this news came out, the automotive industry went crazy. Many people thought that BYD had completely overturned the table. While it cut its own prices, it also forced other competitors to follow suit. This move immediately triggered other automakers to follow suit, including Wuling, Changan, BAIC, SAIC-GM Buick and other automakers, which announced price cuts for many models.

However, BYD's appetite goes far beyond that. BYD's "Glory Edition" family is becoming fully equipped, and the flagship sedan Han and flagship SUV Tang have also launched Honor Editions.

The price of the Han Honor version has reached 169,800 yuan, while the price of the Tang Honor version starts at 179,800 yuan.

91che believes that BYD has lowered the starting price of Han and Tang to around 150,000 to 170,000 yuan, and has also lowered the price of high-end smart driving models to 200,000 yuan. In the new energy vehicle market, BYD is likely to usher in a moment of dominance that is hard to find a rival. Because when oil and electricity are the same price, or even electricity is more expensive than oil, end When the era of "new energy" really comes, the new energy vehicle market will officially enter the knockout stage, and the competition between car companies will become fierce.

Cui Dongshu, secretary general of the National Passenger Car Market Information Joint Conference, said not long ago: "The fundamental reason for the price war in the automobile market is that new technology replaces old technology and new energy vehicles replace fuel vehicles. As the penetration rate of new energy vehicles increases rapidly, the scale of the traditional fuel vehicle market gradually shrinks. The contradiction between the huge traditional production capacity and the gradually shrinking fuel vehicle market will lead to more intense price wars. Scale determines cost and the survival status of enterprises. Most manufacturers give priority to maintaining market share, which will inevitably further intensify price competition."

It can be seen that BYD has opened Pandora's box. Under the pressure of maintaining market share, all car companies will follow BYD's footsteps and start to reduce prices. Moreover, once the price drops, it is almost impossible to raise the price again in the short term. Once consumers get used to low prices, any company that dares to raise prices again will be swallowed up by public opinion.

During this process, car companies with strong capital and large scale can still support it, while Which Automakers that are smaller in scale and size will immediately enter a cold winter. These companies have relatively weak capital chains, and a sharp price reduction of their products will cause them to immediately fall into the quagmire of loss-making operations. After losing their own hematopoietic ability, these companies will most likely be abandoned by investors, eventually leading to a break in their capital chains.

Recently, HiPhi announced that it will suspend production for 6 months. In the view of many industry insiders, this means that the industry is undergoing a continuous reshuffle, the elimination round has begun, and any manufacturer may be abandoned by the times at any time.

In fact, before HiPhi, many new car brands had declared bankruptcy or were on the verge of bankruptcy, including Singularity, Reading, WM Motor and Byton, as well as Hengchi, which has a strong background.

After several years of rapid growth, new energy vehicles have turned from a blue ocean to a red ocean, and the once popular market has become a flaming mountain. At this time, Xiaomi, which has achieved great success in the smartphone market, has also officially entered the car manufacturing industry. However, just before their new car was about to be launched, BYD taught them a lesson.

Xiaomi has released its own new energy vehicle SU7, but has not yet announced the price. Before this, Xiaomi has been promoting that SU7 will be a high-end model and hinted that its price may be more than 300,000 yuan.

Recently, there is news that SU7 will have four versions priced between 230,000 and 360,000 yuan. Originally, in this price range, SU7 could compete with BYD's Han and Tang. However, BYD Sudden The announced price cut caught Xiaomi off guard. Now the tech giant is in a dilemma. If it doesn't cut prices, its products will not be competitive; and if it starts a price war with BYD, Xiaomi's car manufacturing business will be completely unprofitable for a long time.

I wonder if Xiaomi thought that Big Brother would welcome them in this way when it paid tribute to traditional car companies such as BYD at the press conference.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.