Hu Xiu·2025-10-11 10:43Core Viewpoint - BYD's aggressive price cuts are losing effectiveness as competition intensifies, leading to a decline in sales and potential brand value erosion [3][14][25] Price Strategy - BYD has reduced the price of its Qin model by 10,000 yuan, bringing the starting price to 69,800 yuan, marking the first time a hybrid A-class car is priced below 70,000 yuan [2][5] - The price cuts have not yielded the expected results, with BYD's total sales in September dropping by 5.5% year-on-year to 396,300 units [3][14] - The price war has led to a vicious cycle, compressing profit margins and creating consumer hesitation regarding future price drops [4][25] Market Trends - The market is witnessing a shift towards pure electric vehicles, with sales of pure electric cars reaching 607,000 units in July, a 24.5% year-on-year increase, while plug-in hybrid sales fell by 0.2% [8] - BYD's reliance on plug-in hybrid models is evident, with plug-in hybrid sales in August 2024 being approximately 1.5 times that of pure electric models [9] Competitive Landscape - Competitors like Geely and Changan are also engaging in price wars, with Geely's sales in September reaching 273,000 units, a 35% increase year-on-year [11][19] - Geely's strategy of offering higher specifications at lower prices is undermining BYD's price-cutting efforts, leading to increased competition [20][21] Brand Perception - Frequent price cuts are damaging BYD's brand image, particularly for high-end models like the Han, which saw a 49.38% year-on-year decline in sales in August [22][25] - The cycle of price cuts leading to brand devaluation and declining sales of premium models is becoming evident [25] Technological Focus - As price competition intensifies, the industry is shifting focus towards smart driving technologies, an area where BYD has been relatively conservative [26][27] - Competitors like Huawei are launching advanced driving systems, posing a direct challenge to BYD's market position [29][31] - BYD's strategy of offering basic smart driving features at lower price points may not be sufficient to compete with higher-end offerings from rivals [31]