Tesla lowered the cost of their electric vehicles in China to a greater extent than BYD did for their flagship Han sedan, according to research from the U.S. based firm JL Warren Capital. The Han falls within the same price bracket as Tesla's automobiles- in excess of 200,000 yuan ($28,000). Nonetheless, the majority of BYD's other automobiles are much less expensive.
Analysis from U.S-based firm JL Warren Capital on Wednesday revealed that Tesla decreased the prices for its electric cars in China more than BYD did for its flagship Han sedan. For the Model 3, Tesla cut the price by 6% compared to December of last year, and the Model Y experienced a 11% decrease during the same period. However, BYD's Han saw a price drop of just 5%. While the Han and Tesla's cars tend to be in the same price range, surpassing 200,000 yuan ($28,000), most of BYD's other cars are typically much cheaper. JL Warren Capital's report noted that BYD enhanced its sales promotions throughout the year, offering a 10% or 17% reduction with some of its mass market models. CEO and Head of Research Junheng Li commented that "Double-digit discounts are a common promotion by [original equipment manufacturers] to stimulate sell-through and meet the sales target."
This year, despite initially aiming to remain out of a prevailing industry pricing battle, high-end electric car startup Nio still ended up decreasing prices. According to an analysis from HSBC on December 4th, Chinese consumers do not seem to be closely considering residual value when they make vehicle purchases- which could be a factor leading to the more extreme competition in the Chinese car market as opposed to the EU or US. This competition is further supported by government backing, leading to over one-third of new passenger cars being of the new energy variety- battery or hybrid-powered. Li anticipates the percentage to reach around 40% in the upcoming year, with electric car sales increasing by approximately 20%, a slower rate than the 35% boost seen in 2023.
Discover additional information about electric vehicles, batteries, and chips on CNBC Pro. Three analysts believe a self-driving car technology stock may surge by over 400%. Rather than investing with car manufacturers, a fund manager opts for two alternate options for profiting from EVs. Nvidia and more may experience a major surge due to the impending $324 billion autonomous vehicle boom, according to analysts.
Three analysts are predicting that this stock related to self-driving car technology could skyrocket by over 400%. Rather than focusing on automotive companies, one fund manager has identified two investments with potential to profit from the electric vehicle market, worth a total of $324 billion. Additionally, analysts foresee strong growth for stocks such as Nvidia due to this autonomous vehicle boom.
Li announced that this year the largest automakers in the industry had a "very ambitious" goal of 93% sales growth. She mentioned that out of 13 main EV producers in China, only Tesla and Li Auto are on track to meet their respective revenue objectives for the year. This signals how the competition in the biggest car market in the world is expected to become more fierce, and likely bring about wasteful practices. Li mentioned that the introduction of new cars can lead to a raised demand for EVs, though this is oftentimes coupled with an intensified price war, as the market is filled with "outdated" models. She noted that the cycle of creating new vehicles has been shortened to one or two years, in comparison to the earlier period of three years.
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