New Energy Vehicles (NEVs) in China

[tphuang]

BYD's bread and butter C/C+ segment PHEV (Qin Plus Dmi, Qin L Dmi, Seal 06 Dmi) is about to face its greatest challenger yet

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Geely Xingyao 6, supposedly will be priced around 70-80k, pure EV range of 125km

BYD's biggest problem is that they can't shake off the "didi driver" feel. While Geely feels more like a "normal family brand". Back when they were fighting everyone using price war that was fine, but now that they can't do that, Geely suddenly seems a lot more attractive.

that's not the biggest problem. The biggest problem is that Geely is just undercutting BYD in pricing. So for all the stuff about Involution, it's really Geely and Wuling that are leading the charge in that.

 

[Michael90]

that's not the biggest problem. The biggest problem is that Geely is just undercutting BYD in pricing. So for all the stuff about Involution, it's really Geely and Wuling that are leading the charge in that.

I thought the Chinese government stepped in to stop this issue. How come Geely and Wuling are still allowed to do that? In that case BYD should just cut it's prices again as well.

 

[ThatNiceType055]

Is panasonic not Japanese or korean? Thought they were japanese.

Wow...great come back. Im really impressed by Cherys prowess, especially outside China. They are probably the most sucessful chinese car company outside China only BYD comes close to matching or surpassing them overseas. Curiously people don't really talk about them much unlike they do with other chinese car companies like BYD, Xpeng, Xiaomi, leapmotor or even SAIC etc etc.

People here focus on EVs and hybrids, Chery sells a lot of ICEs.

 

[tphuang]

I thought the Chinese government stepped in to stop this issue. How come Geely and Wuling are still allowed to do that? In that case BYD should just cut it's prices again as well.

How does government prevent that? Do you propose that they tell private companies how much to sell their cars for?

 

[henrik]

How does government prevent that? Do you propose that they tell private companies how much to sell their cars for?

The government has asked all companies to pay their suppliers as soon as possible. How come Geely still has room to cut prices lower than that of BYD, which has the advantage of owning the whole supply chain? What type of people are still buying Wuling instead of BYD Seagull?

 

[SanWenYu]

Come on people, only in authoritarian regimes the governments dictate how private companies run.

 

[tamsen_ikard]

How does government prevent that? Do you propose that they tell private companies how much to sell their cars for?

I think the way forward is to encourage them to sell abroad and gain market share in foreign countries. Instead of fighting and dying in China they can put european and japanese car companies out of business.

Maybe one stipulation could be to prevent borrowing or subsidies for these companies domestically but allow borrowing for foreign expansion.

 

[sndef888]

The government has asked all companies to pay their suppliers as soon as possible. How come Geely still has room to cut prices lower than that of BYD, which has the advantage of owning the whole supply chain? What type of people are still buying Wuling instead of BYD Seagull?

Yeah, I feel like there's some sort of invisible force preventing BYD from fighting Geely in a price war. It definitely feels like BYD should be able to go down lower, but for some reason they're not.

It could be some sort of government directive, or political pressure, or a new internal strategy, or maybe it's really just cost issues, I have no idea.

 

[Overbom]

How does government prevent that? Do you propose that they tell private companies how much to sell their cars for?

How do they have cash flow? They probably have access to preferential treatment and rates from state banks, state investment funds, local governments etc for fund raising, tax breaks.

Criteria and preferential treatment should be immediately be stopped. Because no sane private investor would give them funds at this stage. I would bet that it's public money that's indirectly fueling this involution fight right now

 

[tphuang]

How do they have cash flow? They probably have access to preferential treatment and rates from state banks, state investment funds, local governments etc for fund raising, tax breaks.

Criteria and preferential treatment should be immediately be stopped. Because no sane private investor would give them funds at this stage. I would bet that it's public money that's indirectly fueling this involution fight right now

they are all profitable. What the heck are you talking about?

Have you been spending all your time just reading Western propaganda?

Yeah, I feel like there's some sort of invisible force preventing BYD from fighting Geely in a price war. It definitely feels like BYD should be able to go down lower, but for some reason they're not.

It could be some sort of government directive, or political pressure, or a new internal strategy, or maybe it's really just cost issues, I have no idea.

If BYD wants to have higher margin than Geely, why can't it do so? Why does every company need to chase rock bottom on every model?

Now that other automakers are also able to get their cost down, that's a good thing.