14 car companies announce price reductions! The "price reduction tide" of new energy vehicle companies is becoming more and more intense.

On March 3, Xiaopeng Motors (09868) announced that from now until March 31, 2024, all models of Xiaopeng G6 will be reduced by 20,000 yuan for a discounted price starting at 189,000 yuan. According to statistics, 14 car companies have already announced price reductions, including: BYD Company Limited, Geely, NIO, Shanghai Volkswagen, FAW Volkswagen, Changan, Chery, Leapmotor, Zhiji, Hyundai, Tesla, Lixiang, Xiaopeng, and Ai'an. In addition to Xiaopeng G6, other models of Xiaopeng Motors are also offered with different levels of discounts. On January 23, Xiaopeng Motors officially announced the latest price of the Xiaopeng P7i model, with the Performance Edition being offered at a discounted price of 289,000 yuan, which is 5,000 yuan lower than the previous price of 339,000 yuan. At the same time, the starting price of the Xiaopeng P7i model is also adjusted to 208,900 yuan, which is 15,000 yuan lower than the previous starting price of 223,900 yuan. After the Spring Festival holiday, car companies have started a "price war". On February 19, BYD Company Limited announced that the Honor Edition models of Qin PLUS and E-SEED 05 are priced from 79,800 yuan. The Qin PLUS DM-i Honor Edition series is 20,000 yuan cheaper than the previous Champion Edition. Subsequently, Wuling Motors, Changan Qiyuan, NIO, and other new energy car brands joined the price war. The price reductions range from 5% to 15%, with the prices decreasing by several thousand to tens of thousands of yuan. Entering March, the price war in the automobile market continued. On March 1, BYD Company Limited once again promoted the slogan "electricity cheaper than oil", launching the BYD Company Limited Song Pro DM-i Honor Edition with a starting price of 109,800 yuan. On the same day, Tesla officially announced on Weibo that the Model 3/Y rear-wheel drive version has a limited-time insurance subsidy of 8,000 yuan; the entire lineup of Model 3/Y has a limited-time specified car paint benefit, with a maximum savings of 10,000 yuan; the Model 3/Y rear-wheel drive version has a limited-time low-interest finance policy, with an annual fee as low as 1.99%, and the Model Y can save up to about 16,600 yuan. Until the end of March, purchasing a Model 3/Y can enjoy a maximum discount of 34,600 yuan. Li Yunfei, general manager of the brand and public relations department of BYD Company Limited, said that thanks to BYD Company Limited's economies of scale and advantages in the entire industrial chain, the prices of BYD Company Limited's plug-in hybrid models can be lower than those of similar fuel vehicles. Li Yunfei previously stated that the Qin PLUS and E-SEED 05 Honor Edition are the "double nuclear bombs" thrown into the fuel vehicle market, which will completely open up a decisive battle with fuel vehicles. He admitted that "the price of plug-in hybrids can be lower than similar fuel vehicles, not only lower in price but also able to use both electricity and fuel, with ultra-low fuel consumption! So, who will still buy fuel vehicles in the future?" Wang Du, assistant to the president of the China Automobile Dealers Association, believes that many new energy car companies are lowering prices and promoting the slogan "electric vehicles are cheaper than fuel vehicles" to continuously increase the market share of new energy vehicles. From the perspective of the overall development of the industry, the domestic automobile market has entered a stage where new energy vehicles are rapidly replacing traditional fuel vehicles. Several industry insiders believe that the competition in the car market in 2024 will be extremely fierce, and lowering prices to gain a larger market share is the inevitable choice for many car companies. Data shows that in February, Xiaopeng delivered a total of 4,545 new cars, a decrease of 24.4% year-on-year and a 44.9% month-on-month decrease. It is worth mentioning that Xiaopeng X9, as the company's flagship model, delivered 1,448 units in February, with a cumulative delivery of nearly four thousand units in two months since its launch. Xiaopeng officials stated that with the increase in production capacity after the Spring Festival and the resolution of individual supply chain bottlenecks, the production capacity of Xiaopeng X9 will be significantly increased starting from March, accelerating delivery. It can be foreseen that with the increase in production capacity, Xiaopeng Motors is expected to further increase its market share in the coming quarters.