Not long ago, an article titled "China's Car Market, Only Recognizing Prices" sparked a heated discussion. In the content, in addition to pointing directly towards entering 2025, the trend of "price only" in the Chinese car market is becoming increasingly apparent, and it also points out that the "price war" that many automakers deeply abhor cannot stop.

The fiercer the price war, the more profitable the top car companies become

Behind this, the first question to clarify is: "Why did this fight without gunpowder come to an end

As the wave of electrification transformation intensifies, the pricing system of the traditional fuel vehicle era is being overthrown, and a new order needs to be established in the era of new energy vehicles. The reshaping of the pattern will inevitably trigger fierce gunfire

On a micro level, some people are naturally good at selling electric cars, while others turn around slowly. Faced with an increasingly tempting but limited share of the cake, the former definitely wants to snatch all the few pieces from the latter's mouth. Price war is the sharpest dagger

Based on this background, as long as the ranking of sitting positions in the Chinese car market is not finalized, the competition will inevitably become more intense.

In the past quarter, there was a feeling that the leaders of the top tier were still probing the other side. Nevertheless, it has already left many disadvantaged brands feeling suffocated. Looking at the ongoing second quarter, boldly predicting that another round of bloody storm is about to come.

So, why make the above judgment? Mainly related to the three 'giants'.

The fiercer the price war, the more profitable the top car companies become

One of them is BYD, which is currently the absolute barometer of the entire market. In February, after playing the strong card of national intelligent driving, what actually started was a disguised price war. But rationally and objectively speaking, combined with the just released March report card, end consumers are not too convinced.

The sales of 370000 new cars, although in line with expectations, cannot be considered a surprise. Especially considering that the annual target is aimed at 5.5 million vehicles, with only 1 million vehicles completed in the first quarter, there will be significant pressure in the following 9 months.

Perhaps, precisely based on this background, BYD chose to start directly. At the beginning of the month, it was suddenly announced that a limited time fixed price promotion would be launched for non smart driving models under Wangchao and Haiyang.com.

Among them, the starting price of Qin L DM-i has been reduced by 10000 yuan to 89800 yuan, and Song L DM-i has been reduced by 16000 yuan to 119800 yuan. On the other hand, the latest starting price for the 2025 Tang DM-i is 169800 yuan, while the Han DM-i is 155800 yuan.

The Song PLUS DM-i has been reduced by 16000 yuan to 119800 yuan, the Seal 06 DM-i by 10000 yuan to 89800 yuan, and the Seal 07 DM-i by 10000 yuan to 129800 yuan.

With a set of 'combination punches', it seems that the fierce competition in the Chinese car market has been further intensified. In my eyes, this operation is more like clearing inventory as an appetizer.

The fiercer the price war, the more profitable the top car companies become

In contrast, the all-new MPV Xia, which has been on the market for less than three months, offers a manufacturer replacement subsidy of up to 22000 yuan, and can also be supplemented with a national trade in subsidy of 20000 yuan, resulting in a comprehensive subsidy of up to 42000 yuan, which is a more terrifying signal.

Does it mean BYD is going to take action against the real main force

After all, based on the current gross profit margin of this giant's bicycles, there is ample room and confidence to embark on a new round of "trading price for quantity".

And after talking about BYD, the second one is Tesla.

Due to various unfavorable factors, this American new energy vehicle company faced a "black door" in the first quarter. A total of 370000 new cars were delivered globally, a year-on-year decrease of 13%, which has actually sounded the alarm for it.

Taking advantage of the situation and further focusing on the wind and rain in the US and European car markets, Tesla's reliance on the Chinese car market has further increased.

The fiercer the price war, the more profitable the top car companies become

From the impatient launch of the "5-year zero interest" policy for the entire refreshed Model 3 series, to the unprecedented launch of the "3-year zero interest" and "5-year low interest" policy for the recently released refreshed Model Y series, one can fully sense a hint of "it's urgent".

However, the fierce competition in this segmented sector beneath our feet is far beyond imagination. In order to maintain orders, maintain market share, and solidify the foundation, it is not ruled out that this American new energy vehicle company may once again participate in a price war.

Uncertain, Tesla in the second quarter suddenly released a killing tactic.

As for the third place, it is Wanjie, which has Huawei endorsement.

It must be acknowledged that the overall performance of the first quarter was somewhat disappointing, with a significant decline due to factors such as limited intergenerational switching.

But as an observer, it is clear that the decline is destined to be temporary. With the emergence of many new products, they will eventually return to the right track. For example, the launch of the 2025 Wanjie M9 for large-scale delivery has largely helped Wanjie regain its footing.

And it holds the true ace in its hand, which is the M8 with a minimum pre-sale price of 368000 yuan. In terms of body size and parameter configuration, it can be regarded as a "youthful version" of M9.

The fiercer the price war, the more profitable the top car companies become

Currently, according to official disclosed data, 100000 "Xiaoding" vehicles have been easily acquired.

After its official launch this month, M8 is sure to further decline. To some extent, Wenjie undoubtedly hopes to harvest as many potential customers as possible at a price that everyone cannot refuse.

Coincidentally, the Xiangjie S9 Extended Range Edition, which has a pre-sale price as low as 318000 yuan, actually tends to have a similar strategy, and it is not ruled out that it may even reach within 300000 yuan after its launch.

In 2025, in order to pursue extremely high sales targets, HarmonyOS Zhixing will directly show its most ambitious side, with the implicit message: "I won't hide it anymore

The two products that are about to enter the second quarter have opened the prelude to their "price war".

The matter has come to this point, and the emotions and situations of the three 'giants' have been explained separately. May I ask what you have gained from them? As for me personally, as the saying goes, 'Another round of bloody storm is about to come.'

At the time of writing this article, BYD released its first quarter performance guidance.

Based on key information, the net profit attributable to shareholders of the listed company may reach 8.5 billion to 10 billion yuan, a year-on-year increase of 86.04% to 118.88%.

The fiercer the price war, the more profitable the top car companies become

In the first quarter of 2025, the new energy vehicle industry continued to maintain strong growth momentum, and the company's new energy vehicle sales reached a new historical high during the same period. As a leading global new energy vehicle sales company, its market share continues to expand, especially in overseas markets, where sales have achieved leapfrog growth

And it was added that "relying on the continuous expansion of scale effects and vertical integration strategic layout, production costs have been effectively reduced, operational efficiency has been improved, and the group's business profitability has been significantly increased. This model not only enhances BYD's competitiveness in the industry chain, but also lays a solid foundation for its future sustainable development

May I ask, has it broken your perception that the more you engage in price wars, the less money anyone can make?

The leader led by BYD is making a fortune thanks to the combination of advantages in supply chain, cost control, and economies of scale.

Whether accepted or not, the title of today's article is the most heart wrenching fact.

This battle without gunpowder is indeed the sharpest dagger for the top tier, gradually achieving both sales and profits.

And their active playing will inevitably trigger a chain reaction in the waist and tail echelons. Although most pursuers hate "price wars" on the surface, they are like a mirror in their hearts, "If you are not forced to participate, there is only one dead end left

Even though it is known to be a 'chronic poison'.