建议比亚迪发动高端车市价格战

Insights on Purchase Decision –Price & BYD Competitiveness (2025) TengYi Research InstituteYiche Research Institute Authors Lijun Zhou Director/Chief Analystzhoulijun1@yiche.com Ying Gao Industry Analystgaoying1@yiche.com Benya Shi Industry Analystshibenya@yiche.com Qiang Zhang Visual Designerzhangqiang9@yiche.com Desire for price: buyer preference on broad discount factorssuch as MSRP, trade-in, loan, insurance, optional packages,giveaways, benefits, points and government subsidies During the ICE Vehicle era, in order to attract and entice potential customers to make a purchase,OEMs and dealers often offered discounts to various degrees in the areas of trade-in, loan, insurance,optional packages and giveaways in addition to price. In recent years, carmakers that acceleratedrollout of EVs also incorporated owner benefits and points to help drive sales and increase customerstickiness. To stimulate consumption, various levels of government have also introduced preferentialpolicies such as purchase tax reduction or exemption, scrap subsidies and trade-in subsidies; This report defines desire for price as buyer preference on broad discount factors including MSRP,trade-in, loan, insurance, optional packages, giveaways, benefits, points and government subsidies; This report is mainly based on online research from TYRI (formerly YRI) with over 50,000 datasamples in the first three quarters of 2024, and also references TengYi Big Data and TYRI(YRI)offline research data. Definition of Desire for Price The desire for price from Chinese car buyers in 2024 reached66.56%, providing fertile soil for BYD’s breakthrough growthover the last four years through massive price cuts Over the past two decades or so, price had always remained as the top purchase factor among Chinesecar buyers, with desire for price remaining relatively high in 2024 at 66.56%. Chinese carmakers had alwaysplayed the price war card as a core breakthrough tactic to proactively challenge foreign carmakers’dominant position in China. But it wasn’t until 2021-2024 when BYD launched three rounds of life or deathprice wars that Chinese carmakers had truly achieved a breakthrough. BYD’s global sales skyrocketedfrom merely 400,000 units in 2020 to more than 4 million units in 2024, growing 10X and achieving growthunseen in the last 100 years of the global auto industry. Hand in hand, BYD and other Chinese carmakerslike Geely, Chery, Chang’an and Great Wall Motor rapidly disrupted the traditional landscape of China’scar market dominated by foreign carmakers: market share of Chinese carmakers nearly doubled from 33%in 2020 to 60% in 2024; The rapid rise of BYD can be mainly attributed to those three rounds of price wars centered more ontechnical content: the 2021 Kickoff (BYD did not have a uniform name for this price war， so we’ll justcall it “kickoff”), the 2023 Champion and the 2024 Honor, as well as its vertical integration modelindependent from the mainstream supply base model dominated by international supplier giants; An automotive supply base dominated by global supplier giants has long been a mature businessmodel in the auto industry, the more scale of economy a carmaker has, the more leverage it has oversuppliers when it comes to cost. Global mainstream carmakers and suppliers have tacitly maintainedtheir corporate interests in China and invisibly suppressed smaller carmakers including Chinesecarmakers that have tried in earnest to integrate themselves into this mature supply base model in thehopes of becoming bigger and stronger. Luckily, two carmakers finally broke through successfully overthe last five years: Tesla and BYD. The former rapidly reconfigured the traditional supply base modelinto a new one based on electrification and smartification, while the latter rapidly strengthened itsvertically integrated supply system through vertical integration and life or death price wars. Whetherit’s the differentiated approach from Tesla or the life or death tactic from BYD, the core reason whyboth were able to broke through the traditional mainstream supply mold was they both benefited fromthe Chinese supply chain; Over the last four years or so, the massive price wars launched by Chinese carmakers including BYDbased on vertical integration and domestic supply chain optimization effectively addressed Chinese carbuyers’strong desire for price. If that desire remains strong going forward, proactively launching pricewars remains a core tactic for carmakers and their battle for Chinese customers. BYD Global and China Sales2016-2024 �(10,000 units) From an income perspective, blue collar buyers have the highestdesire for price, hence BYD launched the price war on economybland models like the Qin and Song in 2021 The desire for price varies widely depending on segment. From an income perspective, the desire forprice from blue collar buyers in 2024 topped 70%, much higher than that from middle-class andwealthy buyers; This strong desire