Today's market.
In late October, I posted.Tesla price reduction.Afterwards, $Tesla (TSLA.US)$ It has lowered the price twice in a row. To be honest, today's sudden price adjustment is somewhat beyond my expectations. However, the ability to adjust prices so casually and freely, while maintaining high upstream cost prices, reflects the company's strong competitiveness!
Next, the data from China Association of Automobile Manufacturers for October has been released, among which the monthly sales of gasoline vehicles began to decline... This is not surprising. The industry's "winter" started three to four years ago. Later, there was the "vehicle subsidy policy", then the transition from China V to China VI emission standards, and this year there were direct cash subsidies, half-price purchase tax, and a second round of "vehicle subsidy policy". After implementing the same policies, the marginal utility will decrease, and in addition, the improvement in demand for luxury vehicles, which is a durable good, has basically been exhausted (in October, luxury vehicles showed a significant month-on-month decline, and the demand for improvement from electric vehicle owners with parking spaces/garages is relatively saturated). Next year, it will definitely enter a more divided "battle" year, such as Tesla's price reduction/introduction of new models, which will become points of internal competition. The reduction of subsidies for new energy vehicles, coupled with the uncertainty of upstream lithium mines, as well as the cold weather issues in northern regions (power outage rates are 150%-200% higher than in summer) and the coverage of fast charging piles, will all affect the further penetration of new energy vehicles. The competition expectations for the more "stock" gasoline vehicle market will be extremely fierce.
Some "experts" always mention encouraging policies to stimulate the market when the industry is not doing well. However, for the existing market, increasing the number of policies will not increase total demand. It is better to use these resources in new energy, digitalization, or semiconductors.
Nowadays, domestic consumers have an increased recognition of domestic brands. As for which companies in the automotive industry will "survive", it is very certain that BYD Company (01211.HK) will. $GWMOTOR (02333.HK)$ Changan may be the other few!
Next, the data from China Association of Automobile Manufacturers for October has been released, among which the monthly sales of gasoline vehicles began to decline... This is not surprising. The industry's "winter" started three to four years ago. Later, there was the "vehicle subsidy policy", then the transition from China V to China VI emission standards, and this year there were direct cash subsidies, half-price purchase tax, and a second round of "vehicle subsidy policy". After implementing the same policies, the marginal utility will decrease, and in addition, the improvement in demand for luxury vehicles, which is a durable good, has basically been exhausted (in October, luxury vehicles showed a significant month-on-month decline, and the demand for improvement from electric vehicle owners with parking spaces/garages is relatively saturated). Next year, it will definitely enter a more divided "battle" year, such as Tesla's price reduction/introduction of new models, which will become points of internal competition. The reduction of subsidies for new energy vehicles, coupled with the uncertainty of upstream lithium mines, as well as the cold weather issues in northern regions (power outage rates are 150%-200% higher than in summer) and the coverage of fast charging piles, will all affect the further penetration of new energy vehicles. The competition expectations for the more "stock" gasoline vehicle market will be extremely fierce.
Some "experts" always mention encouraging policies to stimulate the market when the industry is not doing well. However, for the existing market, increasing the number of policies will not increase total demand. It is better to use these resources in new energy, digitalization, or semiconductors.
Nowadays, domestic consumers have an increased recognition of domestic brands. As for which companies in the automotive industry will "survive", it is very certain that BYD Company (01211.HK) will. $GWMOTOR (02333.HK)$ Changan may be the other few!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
