what are the strategic considerations behind the loss-making sales of new energy vehicles?
2024-09-25
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text/photo by yangcheng evening news omnimedia reporter pan liang
at present, except for tesla, byd and ideal, new energy vehicle companies are generally not profitable, and even face huge losses. take weilai and xiaopeng as examples, their second quarter financial reports show that they have suffered serious losses. in the mid-year financial report season, xiaomi automobile became the focus because of its loss of more than 60,000 yuan per car, which triggered heated discussions in the industry and doubts from peers: "why sell it when it loses so much?"
the truth about the losses of new energy vehicle companies
according to the second quarter financial reports of nio, xiaopeng and li auto, nio lost 87,900 yuan for each car sold in the second quarter, while xpeng lost 42,300 yuan for each car sold, and li auto made a net profit of 10,100 yuan. why did the fledgling xiaomi lose more than 60,000 yuan for each car sold, attracting special attention from the outside world?
shi hongtao, general manager of the new energy vehicle brand yian auto, analyzed that this is inseparable from the strong traffic of xiaomi auto itself. unlike other new energy vehicle companies, xiaomi auto has turned car manufacturing and sales into a hot event that attracts great public attention thanks to its huge fan base and the personal charm of its founder lei jun. therefore, any movement of xiaomi auto will be scrutinized by the outside world.
shi hongtao believes that, in fact, the loss problem in the new energy vehicle industry is not an isolated case, but a common phenomenon in the entire industry. even luxury brands such as bmw and mercedes-benz have inevitably fallen into the quagmire of losses in pure electric models. the reason behind this, in addition to insufficient scale, is the huge investment caused by the short development cycle and fast technology iteration of new energy vehicles. in order to occupy a place in the fierce market competition, car companies have to speed up the pace of product updates, which undoubtedly increases the cost pressure of enterprises.
"for xiaomi auto, although it is currently facing the dilemma of losses, its strong brand influence and market potential provide strong support for its future development." industry insiders analyzed that as the market gradually matures and its scale continues to expand, xiaomi auto is expected to achieve its profit targets in the future.
who will have the last laugh after the price war?
in the fierce competition in the new energy vehicle industry, price wars and market competition have become the norm. whether the loss-making sales strategies of car companies such as huawei, xiaomi, weilai, and xiaopeng constitute dumping is controversial. however, in-depth analysis shows that the strategic thinking behind it is completely different between new car-making forces and traditional car companies.
in recent years, internet companies have often "burned money" in exchange for market share, pursuing a "winner takes all" situation, especially in the field of travel, where the competition for market share is particularly critical. therefore, for new energy vehicle brands, selling cars at a loss in the early stage has become a survival strategy, although this is not a long-term solution.
it is worth noting that in the face of the "involution" of the auto industry, there are differences in the industry on whether to continue low-price competition. opponents such as huawei's executive director yu chengdong are worried that low prices will erode profits and endanger the survival of the company; while byd chairman wang chuanfu and others advocate promoting innovation through competition and achieving industry prosperity. shi hongtao believes that the new energy vehicle industry is undergoing a reshuffle similar to the mobile phone industry, and only by improving efficiency and reducing costs through competition can it stand out.
"at present, the internal competition in the automobile industry has intensified, and the financial reports of many automakers show that their performance has been hit. the price war of new energy vehicles has squeezed profit margins," wei jianjun, chairman of great wall, recently warned of the health risks of the industry. with huge marketing investment, automakers have been burning money to survive, but only a few brands such as byd, tesla, and ideal have achieved profitability. in this money-burning war, who will stand out and become the next winner who sells cars without losing money? this suspense has undoubtedly become the focus of the industry.
