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the two-year "price war" seems to be unfriendly to every brand. under the wave of new energy, although sales seem to have increased, profits have shrunk severely. judging from the financial reports for the first half of 2024 released by some car companies recently, some are happy while others are sad. only a few companies have achieved good revenue and net profit.

byd leads the pack with the highest revenue

as can be seen from the chart, byd unsurprisingly ranked first in the first half of the year in terms of operating income, with operating income of 301.127 billion yuan, a year-on-year increase of 15.76%; net profit of 13.631 billion yuan, a year-on-year increase of 24.44%.

as a leader in the new energy track, byd has enjoyed the dividends brought by new energy in recent years. according to the data, byd's new energy vehicle market share will further increase to 32.6% in the first half of 2024. especially at the beginning of the new year, byd launched a number of honor edition models, shouting the slogan "electricity is cheaper than oil", and reducing the starting price of the vehicle to 79,800 yuan, further seizing the traditional fuel vehicle market, which has played a role in fueling this year's "price war". therefore, byd's revenue and profit both increased in the first half of the year, which is natural.

looking at saic motor, saic motor achieved total operating revenue of 284.69 billion yuan in the first half of this year, but a year-on-year decrease of 12.8%, while its net profit was 6.63 billion yuan, a year-on-year decrease of 6.5%. this shows that in the face of the current involutionary auto market, saic motor as a whole is lacking stamina.

first, under the wave of new energy, saic lacks a flagship product, which prevents it from playing a greater role in the new energy market. second, with the ongoing price war, the advantages of joint venture brands are no longer there, and saic has many joint venture brands. under these two constraints, the setback in sales will naturally affect revenue and profits.

great wall and geely have the highest profits

following saic, geely, great wall, and changan all saw positive growth in operating income in the first half of the year. however, geely and great wall performed better in comparison, with geely's operating income reaching 107.3 billion yuan in the first half of the year, up 46.6% year-on-year; and its net profit reaching 10.6 billion yuan, up 574.7% year-on-year.

in the first half of the year, great wall motor achieved total operating revenue of 91.429 billion yuan, a year-on-year increase of 30.67%; net profit attributable to shareholders of the parent was 7.079 billion yuan, a year-on-year increase of 419.99%.

it has to be said that although byd had the highest sales volume and strong revenue in the first half of the year, its net profit was somewhat weaker than that of geely. so, where is the problem?

as a company with multiple automobile brands, geely, including geely auto, lynk & co, volvo cars, proton and lotus, is a company full of strong competitors. in the process of transforming from traditional automobiles to new energy vehicles, geely has always adhered to the strategy of walking on two legs: fuel + new energy. in the domestic new energy market, its zeekr and galaxy have become the sales leaders, establishing a high-end new energy image, while also being helped by brands such as geometry and ruilan, jointly promoting geely's comprehensive advancement in the new energy field.

in the field of fuel vehicles, the sales volume of the high-end series of "china star" reached 205,000 in the first half of this year, a year-on-year increase of 56%. in terms of creating high-end products, "china star" has become the "high-value benchmark" of chinese fuel products. therefore, it can be said that geely's rich product matrix not only allows geely's new energy vehicle market share to increase rapidly, but also geely is also conquering the fuel vehicle market and overseas markets to obtain greater profits.

looking at great wall motors, high profits come from the high-quality development of the company. as wei jianjun of great wall motors said, "great wall motors has its own way of doing things and its own way of not doing things. if the losses are particularly serious, it will moderately reduce sales. if the losses are not serious or the profits are relatively high, it will vigorously promote the products." in the face of the continuous "price war", great wall has taken a relatively steady approach, enriching its mid-to-high-end product lineup, and the continued growth in overseas sales have helped great wall motors create high-quality development and also won it more profit space.

ideal becomes the only profitable new force

after watching the performance of traditional car companies, the feeling of looking at new car companies is completely different. compared with the profit or less profit of traditional car companies, the new car companies are more likely to lose money. it can be said that although weilai, xiaopeng and leapmotor had good operating income in the first half of the year, they are still in net loss overall.

among them, in the first six months of this year, nio's revenue was 27.4 billion yuan, a year-on-year increase of 40.6%; its net loss was 10.2 billion yuan, a year-on-year narrowing of 5%; xpeng motors' revenue was 14.7 billion yuan, a year-on-year increase of 61.2%; its net loss was 2.7 billion yuan, nearly half of the loss of 5.1 billion yuan in the same period last year; leapmotor's operating income was 8.85 billion yuan, a year-on-year increase of 52.2%. although leapmotor's growth rate ranks among the top new forces, its net loss in the first half of the year was still 2.212 billion yuan.

among the new car-making forces, ideal is relatively bright. according to the data, in the first half of this year, ideal auto achieved revenue of 57.3 billion yuan, a year-on-year increase of 20.8%. the gross profit was 11.46 billion yuan, a year-on-year increase of 13.9%; the net profit was 1.69 billion yuan, which also means that among many new car-making forces, ideal has successfully landed and become one of the few profitable new car-making forces. although the data changes are simple, it is really difficult to implement them.

in the view of cheyiquan, the involution of the domestic auto market not only tests the sales and revenue of automakers, but also puts higher demands on their profitability. take byd as an example. although the sales volume of new energy vehicles is unmatched, its net profit is not much different from that of geely.

therefore, as a healthy automobile enterprise, it is necessary to develop in an all-round way. it is not enough to simply pursue sales in the market, but to base on long-term goals, to have a longer and broader vision, and to focus on products and users. it is not worth killing the goose that lays the golden eggs and rashly engaging in price wars. although it has face and the scene is lively, in the end it is only a hit but not a good one.