“Euler black cat and white cat just stop receiving orders, not stopping production. We are actively seeking solutions”. Recently, in an interview with the reporter of the securities times · e company, Dong Yudong, CEO of Euler brand, revealed the reasons behind the suspension of orders for two popular models of Euler
Dong yudongtou said that taking black cat as an example, after the sharp rise in raw material prices in 2022, the average loss of a car has exceeded 10000 yuan. This has posed great pressure on enterprises.
Recently, the reporter of securities times · e company visited the Euler new energy 4S store in Chaoyang District of Beijing and found that all the publicity materials related to Euler white and black cats in the store had been removed. The salesperson told reporters that the store has not been notified when the two cars can resume receiving orders.
The suspension of orders from Euler white cat and black cat reflects the survival dilemma of small electric vehicles against the background of rising raw material prices. On the other hand, the decline in subsidies for new energy vehicles and the decline in the trading price of new energy vehicles have further pushed up the cost of electric vehicles.
“according to the current cost, basically one car is sold and one car is lost” an insider of a car company who asked not to be named revealed that although the rise in raw material prices and the decline in subsidies for new energy vehicles are common challenges facing the whole industry, in contrast, the plight of small electric vehicles is more prominent. When the original cost advantage no longer exists, where should small electric vehicles go? It is perplexing the operators of enterprises.
The decline in subsidies is superimposed on the rise in the price of raw materials, and the collective price rise of new energy vehicles is now surging
On March 17, Tesla China’s official website showed that the price of rear wheel drive model y increased to 316900 yuan, with a price increase of 15000 yuan. It is noteworthy that this is the third round of price increases for Tesla China’s products in just seven days.
Up to now, the price of Tesla Model 3 high-performance version has increased by 28000 yuan, and the current price is 367900 yuan; The price of model y high-performance version has been raised by 30000 yuan twice, and the current price is 417900 yuan.
For the reasons for frequent price increases, Tesla said that it was mainly affected by factors such as rising raw material prices. Elon Musk, CEO of Tesla, also wrote on social media that Tesla and its rocket company SpaceX are facing huge inflationary pressure in terms of raw materials and logistics.
On March 18, Xiaopeng automobile announced that affected by the continuous sharp rise in the price of upstream raw materials, Xiaopeng automobile will adjust the price of car models sold, and the increase range of the price before the subsidy is 1010020000 yuan. The price adjustment will take effect from 0:00 on March 21.
On March 16, Chery new energy also raised the price of its small ant and QQ ice cream models, ranging from 3000 yuan to 6000 yuan. It is reported that before the price adjustment, the price range of the two small electric vehicles was 29900 yuan – 81900 yuan. After adjustment, the price of Chery ant 408km full sugar version has risen to 89000 yuan.
Chery new energy said that the cost of many Chery new energy models continued to rise due to the national policy adjustment and the continuous sharp rise in the prices of battery and chip raw materials. In order to continuously provide products to users, the company raised the price of some models.
“the price of raw materials for power batteries has been rising for a year, and this rising trend is still intensifying in 2022”, Dong Yudong told the reporter of securities times · e company that the pressure from the upstream is being transmitted to the downstream car enterprises step by step
Public data show that in 2022, the price of lithium carbonate started the jump mode after it reached 300000 yuan / ton at the new year’s Day station, hit 400000 yuan / ton in mid February and exceeded 500000 yuan / ton at the beginning of March, up nearly 70% from the beginning of the year.
Recently, under the long short game, the price of LME nickel once rose to $100000 / ton, which once again pushed up the price of raw materials for power batteries. In the past week, the price of battery grade nickel sulfate rose sharply, with an increase of 30.6% in the week.
China International Capital Corporation Limited(601995) disclosed that according to the feedback from car companies, the current cost increase of new energy vehicles is 10-20%, and the single vehicle is about 10000 yuan.
“At present, the cost and price of some new energy models have been upside down,” Zhang Junyi, director partner of Aowei consulting and head of automobile and private equity fund business in Greater China, told the reporter of securities times · e company. In this case, the price rise is an inevitable trend.
According to incomplete statistics by the reporter of securities times · e company, since the beginning of this year, Weilai, Xiaopeng automobile, Nezha automobile, Zero run automobile, Weima automobile, gac-e’an, Feifan automobile, Byd Company Limited(002594) , Euler, SAIC-GM Wuling, Volkswagen, polar krypton, geometry automobile and Ford have all raised the prices of their new energy vehicle products, ranging from several thousand yuan to ten thousand yuan, It almost covers nearly 40 mainstream models in the current electric vehicle market.
SAIC GM Wuling insiders told the securities times · e company reporter that the sharp rise in the cost of raw materials for power batteries is an objective difficulty for every new energy vehicle enterprise.
since March, many new energy vehicle enterprises have started the second round of price adjustment for their models, which is suspected to set off another wave of “price rise”
At the same time of the price rise, some auto enterprises have to suspend the order receiving of their best-selling models to deal with the crisis caused by the rising cost.
A few days ago, Euler Motors announced that its white cat and black cat models had suspended orders. Previously, these two cars were the main selling force of Euler cars. After suspending the orders of these two models, the sales volume of Euler cars also fluctuated slightly in February this year. In February this year, the sales volume of Euler cars was 6261, down 15.09% year-on-year and 52.68% month on month.
Dong Yudong told the reporter of securities times · e company that the suspension of order receiving is a measure of last resort. At present, the average loss range for each black cat and white cat sold is about 10000 yuan. At the same time, affected by the shortage of chips, the delivery cycle of vehicles has been lengthening. In the long run, it is unfavorable to consumers and enterprises themselves. At present, Euler is actively seeking solutions.
Recently, the reporter of securities times · e company visited the Euler new energy 4S store in Chaoyang District, Beijing. The salesperson told reporters that at present, the only models sold in the store are good cat and good cat GT. When the order receiving of Euler white cat and black cat will resume has not been notified yet.
” at present, the good cat is available in stock, and the good cat GT needs to wait about two months to collect the car after booking “, the above salesperson suggested that if you consider buying, you need to buy it as soon as possible.
The manufacturer has informed him of a new round of price increase, but he has not been informed of the specific adjustment time for the time being.
It is understood that on March 1 this year, Euler automobile announced on the official app that the price of the new Euler good cat was adjusted from 103900143900 yuan to 121900151900 yuan, an increase of 800018000 yuan.
In fact, behind the price rise tide set off by the new energy vehicle enterprises collectively, it is not only related to the rise in the price of raw materials, but also closely related to the recent adjustment of the state’s subsidy policy for new energy vehicles and the decline in the integral price of new energy vehicles.
According to the 2022 financial subsidy policy for the promotion and application of new energy vehicles jointly issued by the Ministry of Finance and other four ministries and commissions; In 2022, the subsidy standard for new energy vehicles will decline by 30% on the basis of 2021. At the same time, 2022 is also the last year of the implementation of the national subsidy policy.
according to the latest subsidy scheme, from January 1, 2022, the subsidy for pure electric vehicles with a range of 300 km (inclusive) to 400 km will be 9100 yuan, a decrease of 3900 yuan compared with 2021; The subsidy for pure electric vehicles with a range greater than or equal to 400 kilometers is 12600 yuan, a decrease of 5400 yuan compared with 202 7
At the same time, the trading price of new energy vehicle points (nev points) is also declining. Long Yunzhou, founder and director of Nezha automobile, disclosed to the reporter of securities times · e company that in 2021, the average price of nev points was 2000 yuan / minute, but by the beginning of 2022, the price of nev points had dropped to about 1000 yuan / minute, with a large fluctuation range.
“Previously, the maximum score of nev can soar to 2500 yuan / minute. At present, the latest score price may be only 500 yuan / minute – 800 yuan / minute,” Dong Yudong said. The decline of score price, the decline of subsidies and the rise of raw material prices have made the loss of small electric vehicles inevitable.
Rising costs and chaotic delivery order have exposed the survival dilemma of small electric vehicles
In recent years, new energy vehicles are undoubtedly the hottest sector in the market. Even under the multiple pressures of the epidemic and chip shortage, the new energy vehicle market still maintained a trend of contrarian growth.
According to the latest data released by China Automobile Industry Association, in February this year, the production and sales of new energy vehicles reached 368000 and 334000 respectively, with a year-on-year increase of 2.0 times and 1.8 times. From January to February 2022, the production and sales of new energy vehicles were 820000 and 765000, with a year-on-year increase of 1.6 times and 1.5 times.
From the perspective of product structure, A00 and A0 small electric vehicles undoubtedly account for half of the new energy vehicle market. Relevant data show that in the past two years, the average market share of small pure electric passenger vehicles has exceeded 40%. After the rural activities of new energy vehicles, its market share is still further rising.
Cui Dongshu, Secretary General of the national passenger car market information joint committee, told the reporter of the securities times · e company that small electric vehicles have small bodies and affordable prices. For many consumers, they are just needed products and are also very suitable for being the “second car” in the family.
In 2020, with a Wuling Hongguang Mini EV, SAIC GM Wuling became a “net red” in the new energy vehicle market, which also further heated up the small electric vehicle market.
“At present, the new energy vehicle market has shown a dumbbell shape, and high-end models and low-end small cars occupy more market share.” A securities analyst told the securities times · e company that the development trend of small electric vehicles has been favored by the industry, which is also conducive to the further promotion and popularization of new energy vehicles.
However, under the collective action of covid-19 epidemic, rising raw material prices, chip shortage and other factors, small electric vehicles are also facing a certain survival dilemma.
A few days ago, a reporter from the securities times · e company visited a 4S store of SAIC GM Wuling in Chaoyang District, Beijing. In such a large store, rows of exhibition cars are displayed. Among them, Wuling Hongguang Mini EV, which is the most concerned and popular in the market, can only be placed outside the store.
“There are too many exhibition cars to be opened in the store, and there are no existing cars for these models outside the store, so we only need to make a reservation,” the salesperson told the reporter of securities times · e company. It is expected to wait about a month to pick up the car from now on.
When asked why the car could not be picked up immediately, the other party said that it was mainly affected by the epidemic and the supply chain.
The reporter of securities times · e company noted that due to the delivery pressure generally faced by new energy vehicle enterprises, a resale order business has gradually emerged on the Internet.
The reporter landed on second-hand trading platforms such as salted fish, randomly entered several popular new energy brands such as krypton, tank, Euler and Wuling, and added “order” as the keyword. Multiple transfer orders will pop up immediately. At the same time, some users noted the demand for high price orders.
According to a salted fish seller, at present, this transfer is basically based on local transfer and does not accept cross provincial transfer. Many sellers will keep an eye on the most popular models for booking, especially those that can be ordered online. After successfully grabbing the order, it will resell it to consumers who need to buy cars at a certain premium. For some consumers, it can save the time of waiting in line.
Zhang Junyi told the reporter of securities times · e company that the hot transfer of salted fish reflects the chaos of the current production order and delivery order in the new energy vehicle market. This phenomenon will gradually subside after the problems in the supply chain are improved, the prices of raw materials fall, and the production of automobile enterprises returns to stability.
“At present, some car companies default on this behavior, but in the long run, it is also a kind of harm to the brand”. Some insiders analyzed that the failure of timely and stable supply will reduce consumers’ sense of brand identity to a certain extent.
Previously, the suspension of receiving orders from Euler’s white cat and black cat has caused great waves in the market.
These people said that compared with other levels of models, A00 small electric vehicles have limited profit space, mainly relying on the benefits brought by scale. When the cost rises sharply, its profits will be further squeezed, and its survival crisis will be exposed first.
“at present, the market demand for small electric vehicles is very strong. If we follow the current sales rhythm, the loss of single vehicles may increase to 17000 yuan next year,” Dong Yudong told the reporter of securities times · e company that if we continue to receive orders, the loss will expand and the delivery cycle will be longer and longer. The current small electric vehicle enterprises must make certain adjustments
Cost reduction or brand upgrading, where are small cars and electric vehicles?
How on earth should the small electric vehicle, which was very popular for a time, get out of the current dilemma? For many car companies, this is undoubtedly a difficult problem.
Zhang Junyi told the reporter of securities times · e company that some parts used in A00 small electric vehicle are not at the vehicle specification level, but at the consumption level. Car enterprises further optimize at the part level, and the cost of the whole vehicle is expected to be further controlled. However, in the long run, upgrading products and brands will bring higher profit margins and gross profits to enterprises.
In fact, upgrading products has been the generally recognized route of small electric vehicle enterprises.
” for small electric vehicles, it is obviously unrealistic not to continue to raise prices, suspend orders or even stop production “, Fang Yunzhou believes that for automobile enterprises, the scale strategy of products should be firm enough and cannot be easily transferred by cost price fluctuations or other factors.
At the same time, in the case of rising costs, car companies should think about how to build high price products.
Fang Yunzhou believes that high cost performance is not only the advantage of small electric vehicles, but also their unique competitiveness. In order to maintain this high cost performance, enterprises must rely on technological upgrading to reduce R & D costs, universal functions and so on.
Dong Yudong also said that simply raising the price of products may not be paid by consumers, or even disgust. Therefore, he believes that the rise in the price of small electric vehicles must be accompanied by the increase in configuration and the improvement of the sense of science and technology.
The reporter of securities times · e company noted that when Euler announced the increase of product prices on March 1 this year, it did also announce the description of additional configuration at the same time.
Dong Yudong said that in the early stage of industrial development, A00 pure electric vehicles are very good products, driving the increase of the penetration rate of new energy vehicles. However, with the rise of raw material prices and the decline of subsidies, the trend of loss is becoming more and more obvious. At the same time, we are aware that our existing brands and products need to be upgraded, and the “waist market”, including A0, a and b new energy products, will usher in a round of collective rise sooner or later.
“With the development of the industry, we have fully realized that only more than 150000 products have profit space. Therefore, the current Euler must go up.” Dong Yudong judged that in the future, China’s new energy vehicle market may gradually form a “football like” market pattern with the upgrading of various products.
Coincidentally, SAIC GM Wuling, the current sales king in the small electric vehicle market, has also recently improved and upgraded its products.
An insider of SAIC GM Wuling told the securities times · e company reporter that since the launch of Wuling silver standard, SAIC GM Wuling has started the first step of transformation and upgrading, and the upgrading of Wuling products and brands will be carried out according to the consumption upgrading needs of users.
Zhang Junyi analyzed that although SAIC GM Wuling has fully enjoyed the market dividend of small electric vehicles in the early stage, the company has a very sense of urgency. If there is no epidemic and supply chain pressure, the company’s upgrading pace may be faster.
In the face of the collective upgrading of small electric vehicle enterprises, some people in the industry have put forward another voice: who will maintain the existing low-end market when the enterprises making small cars are collectively upward? Will the popularity rate of new energy vehicle products be reduced?
In this regard, Zhang Junyi believes that with the general trend of consumption upgrading, the product and brand upgrading of automobile enterprises is the general trend. The existing small electric vehicle market needs the upgrading and entry of enterprises engaged in the R & D and production of low-speed electric vehicle products. In his view, let the low-speed electric vehicle enterprises upgrade and build A00 and A0 electric vehicle products, which is more conducive to manufacturing upgrading and high-quality development of the industry.
“If we rely on traditional car companies to ‘reduce the dimension’ to build low-end products for a long time, it is not conducive to manufacturing upgrading and the continuous improvement of the industry.” Zhang Junyi believes that from this perspective, small electric vehicle enterprises will face certain challenges when they impact on a higher-level market, but it is the road they must take and the “optimal solution” to deal with various current challenges.
The price rise of raw materials is unsustainable, and the enthusiasm for end consumption remains unchanged
Although the “price rise tide” of new energy vehicles has been higher and higher, the demand in the terminal market has not been reduced.
The salesperson of SAIC GM Wuling 4S store told reporters that the Wuling macro Mini EV in the store had been ordered early, and the last batch of orders had just been delivered. In his opinion, due to the low price of small electric vehicles, consumers are basically in the rigid demand of taking the place of transportation, so the fine-tuning of prices will not affect their purchase intention.
Cui Dongshu also believes that the leading new energy vehicle enterprises have mastered a certain pricing power, and their price adjustment will not affect the demand of the terminal market. Therefore, the passenger Union Association has not adjusted the expected sales target of this year’s new energy vehicle market.
At the same time, Cui Dongshu also pointed out that the current rise in raw material prices is unsustainable and will eventually return to rational market pricing.
the Research Report released by Soochow Securities Co.Ltd(601555) shows that the price of lithium carbonate has accelerated since the beginning of 2022 due to the strong demand for downstream power batteries and energy storage batteries, the limited short-term new supply of lithium carbonate and the impact of hoarding by some manufacturers. However, recently, the price increase of battery grade lithium carbonate has gradually slowed down. At the same time, in the long run, the global nickel production capacity is gradually released, the supply tension will be alleviated, and most of the new production capacity is integrated, which can effectively reduce the cost of the lithium battery industry chain. The current nickel price rise has a relatively limited impact on the industrial chain.
China International Capital Corporation Limited(601995) analysis said that at present, the impact of battery price rise has been implemented, and car enterprises follow up the price adjustment to form a preliminary negative situation. It is expected that the continued high prospect of follow-up new energy will further alleviate market concerns and maintain the sales judgment of more than 5 million new energy passenger vehicles throughout the year.
“according to the law of the market, the raw material price of power battery will not always be at a high level, and it is bound to return to rationality”. Fang Yunzhou believes that for small electric vehicle enterprises, they should learn to balance well in the case of drastic changes in cost and price, and adhere to their own strategy and determination. In his opinion, cost-effective products that meet the needs of the public still have broad market space
Xu Haidong, deputy chief engineer of China Automobile Association, told the reporter of securities times · e company that the market demand for small electric vehicles exists for a long time. Especially with the promotion of new energy vehicles to the countryside, the penetration rate of electric vehicles in towns and villages has increased significantly, and this trend will continue for some time in the future.
