Index of the Week
News of the Week
300,000 RMB Becomes the New Subsidy Threshold
Last week, the 2020 new energy vehicle subsidy policy officially landed, and the key information was simply sorted out:
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The most significant change is the newly added price threshold. The pre-subsidy price of new energy passenger cars must be below RMB 300,000 (including RMB 300,000). In order to encourage the development of the “battery swapping” new business model and accelerate the promotion of new energy vehicles, vehicles in the “battery swapping mode” are not subject to this regulation.
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The energy density technology indicator of the battery is not adjusted, and the subsidy for endurance is still divided into two levels. The threshold for the first level has been raised from 250 km in the working conditions in 2019 to 300 km, and the second level remains at 400 km. At the same time, the subsidy amount has slightly decreased.
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The subsidy deadline has been extended to 2022. In principle, from 2020 to 2022, the subsidies will be reduced by 10%, 20%, and 30% respectively based on the previous year. The annual subsidy scale limit is about 2 million vehicles per year.
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From April 23, 2020 to July 22, 2020, it is a transition period. Vehicles that meet the 2019 technical requirements but not the 2020 technical requirements for sales and registration will be subsidized at 50%. The vehicles that meet the 2020 technical requirements will be subsidized according to the 2020 standards.
Brief comment:
As soon as the new subsidy policy was issued, automobile manufacturers at all levels also launched corresponding countermeasures. Setting the subsidy threshold at RMB 300,000 and below, theoretically, the most affected is NIO. The selling price of NIO’s current three models is all above RMB 300,000, and NIO’s current gross profit margin is already negative, with no room for price reduction. However, fortunately, the subsidy policy states: In order to encourage the development of the “battery swapping” new business model and accelerate the promotion of new energy vehicles, vehicles in the “battery swapping mode” are not subject to this regulation. From NIO’s official website, the subsidy has slightly retreated, and the company promised to deliver the vehicles before May 31st, and NIO will bear the difference in the subsidy.For the ideal ONE with a price of 328,000 yuan, the CEO of Ideal Auto has already stated on Weibo after the new subsidy policy was launched: “Ideal Auto’s prospective consumers need not worry as we will bear the part of the subsidy reduction ourselves and the on-hand price for users will remain unchanged.“
Tesla’s short-term response strategy is for consumers to bear this part of the subsidy decline, so the official price of the domestically produced standard range Model 3 has increased by 4,500 yuan, and the long range has increased by 5,000 yuan. “In the long run, the selling price of the standard range entering 300,000 yuan is already a foregone conclusion.” The suspense is on the long range version of the Model 3, whether it will truly enter the price range of under 300,000 yuan by means of castration or genuine benefits.
When facing Tesla’s certain price reduction, XPeng P7, which has been benchmarking Model 3, the pricing strategy becomes particularly important. The pre-sale price was previously set at 240,000-370,000 yuan. The official price of XPeng P7 will also be released on the day of publication. Do you think this price is competitive?
Polestar 3 design rendering exposed
From the exposed images, Polestar 3 has absorbed the design elements of the recently released Polestar Precept. Design Director Max Missoni previously revealed that the Polestar Precept foreshadowed the upcoming product style, and the Polestar 3 was greatly inspired by it. Unlike the Polestar 2 based on CMA architecture, Polestar 3 will be built on the SPA2 platform.
Polestar 3 will be released simultaneously with the fully electric version of the Volvo XC90, which will also be launched in 2022 based on the same platform. These two cars will share the same chassis and battery technology. “It is rumored that the range of the Polestar 3 will reach 310 miles (approximately 499 km).“
Quick comment:
“From a positioning perspective, Polestar 3 will compete with Tesla Model X, Audi e-tron, Jaguar I-Pace, and other models.”
Polestar 1 was launched in 2017 and delivered in 2020. Currently, Polestar 2 has not started delivery yet. Does Polestar need to speed up in this aspect?
XPeng and Tesla’s subsequent lawsuit
The cause of the incident was that in March 2019, Tesla accused former Autopilot engineer Cao Guangzhi of uploading over 300,000 files and directories, as well as source code copies, to his personal iCloud account before leaving and joining XPeng. Tesla alleged that Cao committed trade secret theft from Tesla.
Recently, Tesla has made many unreasonable demands, such as granting full access to the XPeng’s autonomous driving source code. XPeng responded, “Throughout the year-long litigation, all efforts made by Tesla show that it has resorted to bullying tactics against a young competitor, rather than trying to solve Dr. Cao’s legal case on its merits, which is regrettable.”
Brief Comment:
After one year, Tesla claims that at least five former employees have quit their jobs at Tesla and joined XPeng. During this period, Tesla has been continuously searching for new evidence, and has even asked the judge to require XPeng to publicly disclose its autonomous driving source code and submit computer hard disk images.
XPeng’s response comes at the time of new energy subsidy reform, and the P7 is about to be launched with its price tag announced. It is evident that XPeng is under considerable pressure. Whether it can go further depends on the P7’s market performance after its launch.
Lexus’ first pure electric vehicle, the UX300e, is launched
Based on the TNGA GA-C platform, the Lexus UX300 e is positioned as a compact SUV. The front-wheel drive version has an NEDC range of 400 km and a battery capacity of 54.3 kWh. The single-motor peak power output is 150 kW.
The new car has two versions, with prices listed at 362,000 yuan for the pure delight edition and 385,000 yuan for the pure enjoyment edition. In terms of service, Lexus provides free whole-vehicle warranty and maintenance services for six years or 150,000 km, and free warranty service for the three-electric system for eight years or 200,000 km.
Brief Comment:# Lexus UX 300e Keeps the Grille Design
Lexus UX 300e still keeps the design of the air intake grille. The active front grille can automatically open or close based on the vehicle’s driving status and the temperature of the power battery, further reducing the air resistance and ensuring stability during high-speed driving.
On the other hand, considering the current range, body size, and platform of the Lexus UX 300e, the pricing is quite high. Would you consider buying this model without considering the brand factor?
Changan Oushang Introduces Pure Electric SUV
Oushang X7 EV pure electric SUV has a body size of 4705 / 1860 / 1720 mm, a wheelbase of 2780 mm, and is equipped with a maximum power of 150 kW drive motor. The vehicle adopts a lithium iron phosphate battery with NEDC range of 405km. The presale price is between RMB 16.99-18.99 million.
In terms of interior design, the pure electric version is the same as the gasoline version, and it adopts a 2-2-3 seven-seater layout. It is equipped with basic functions such as ABS, EBD, TCS, ESP, electronic handbrake, reversing radar, tire pressure monitoring, etc. Equipped with the open OnStyle2.0 Oushang intelligent network system, which supports the download of mainstream vehicle applications such as QQ Music, and the vehicle chip uses NXP IMX8 and supports 5G.
Quick review: The new car has an NEDC range of 405 km and uses a lithium iron phosphate battery. It is said that the battery supplier is Gotion High-tech. To be honest, this range can only rank in the middle stage at this stage, but it should be enough for operating vehicles in the future. As for the configuration, now many domestic brands have reached a relatively high level.
The “facial recognition” that the officials have been vigorously promoting is on the B-pillar on the driver’s seat. Based on the demonstration, you need to touch the door handle with your hand before performing facial recognition, and the response time is about 2 seconds. Wouldn’t it be better to have the door open automatically with induction? In addition, since the vehicle uses a lithium iron phosphate battery, the expected winter range is quite promising.
Author & Editor: Changhao Lewis
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This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.