Huawei official announcement! Electric car competition intensifies. The next trend is clear.

Tram promotion upgrade. Following the launch of interest-free purchase discounts by car companies such as Tesla, NIO, and Xiaopeng, Hongmeng Zhi Xing joins the battle. "Huawei Terminal" announced on Weibo on February 12th that Hongmeng Zhi Xing's Zhi Jie New S7 has introduced a 3-year 0 interest, 5-year low interest limited-time financial policy, with a starting down payment of only 79,800 yuan and a maximum savings of 17,000 yuan. (From Weibo screenshot) The price war has escalated to a "financial war". Many institutions believe that the "3-year 0 interest, 5-year low interest" policy introduced by Hongmeng Zhi Xing indicates that the competition in the new energy vehicle market has shifted from traditional direct price reductions to more complex financial instrument competition. Compared to the common cash subsidies in 2024, this financial scheme attracts consumers by lowering loan costs, easing the cash flow pressure on car companies, and increasing the flexibility of the purchase threshold. This financial policy is not only an attempt to boost sales but also a breakthrough in brand awareness for Huawei's collaboration with Chery in Hongmeng Zhi Xing. By lowering the purchase threshold, attracting consumers who were hesitant due to high prices, and leveraging Huawei's technological endorsement to strengthen the "smart driving" label. CITIC SEC pointed out that this policy may further intensify the price war in the new energy vehicle market, but also reflects Hongmeng Zhi Xing's confidence in the performance and market prospects of the Zhi Jie New S7. Increased sales pressure for electric car companies The rapid rollout of financial policies reflects the survival pressure faced by new energy vehicle companies amid subsidy cuts and intensified market competition. (From Weibo screenshot) Tesla, NIO, Xiaopeng, and other companies have recently introduced similar interest-free policies, with Tesla bundling insurance subsidies with interest-free loans for the first time, and Xiaopeng even launching a "5-year 0 down payment 0 interest" policy, forming an industry-wide trend of "financial war", reflecting the urgent need for sales growth in the market. Several new forces in the car industry have recently announced sales data for January 2025, showing that the overall performance of the automotive consumer market in January was lower than at the end of last year, with significant month-on-month declines in sales for many companies. (Charts from The Paper) According to data from the China Association of Automobile Manufacturers, in January 2025, the national retail sales of passenger cars reached 1.794 million, a year-on-year decrease of 12.1% and a month-on-month decrease of 31.9%. January retail was at a historical low, with a month-on-month growth rate of 31.9%, second only to the 41% decline in January 2023. (Charts from Wind Financial Terminal) "Smart driving equality" may become the next competitive key point With the overall market under pressure, car companies need to compete for limited market share through differentiated strategies. BYD recently announced that it will equip smart driving systems in cars priced below 100,000 yuan, significantly lowering the threshold for smart driving. For the next industry competition trend, CMSC believes that 2025 is the "iPhone 4 moment" for smart driving, akin to the rapid development of smartphones in 2010, and 2025 is expected to enter a period of rapid development of advanced smart driving. The introduction of financial policies for the Zhi Jie New S7 may also be aimed at enhancing competitiveness and gaining more market share under the background of accelerated penetration of smart driving, further intensifying the competition in the electric car market. Dongguan Securities analysis believes that in addition to BYD and Changan Automobile, more than a dozen brands, including GEELY AUTO, Guangqi Ean, Lantu Automobile, Ideal Automobile, Xiaopeng Automobile, and LEAPMOTOR, have recently announced "smart driving equality" plans, which will be the key to the next phase of competition in the auto market. The Zhi Jie New S7, through financial policies to lower the purchase threshold, allows more consumers to access models with advanced smart driving systems, making the market competition more intense and to a certain extent, driving the escalation of the electric car price war. This article is reprinted from the "Wind Wande" WeChat public account, GMTEight Editor: Liu Jiayin.