Tesla s price increase is a good signal which is conducive to improving the wait-and-see mentality of consumers

The Passenger Federation released today an analysis of the national passenger car market in April. The article mentioned that the revenue of the automobile industry from January to March 2023 will be 2.1412 billion yuan, a year-on-year increase of 1%; the cost will be 1.8723 billion yuan, an increase of 3%; 81.9 billion yuan, a year-on-year decrease of 24%. The profit rate of the automobile industry is 3.8%. Compared with the average profit rate of 4.9% for the entire industrial enterprise, the automobile industry is already at a low level.

The automobile industry is under relatively high operating pressure. From January to March 2023, the production of automobiles will be 6.26 million, a year-on-year decrease of 5%; the production of new energy vehicles will be 1.63 million, a year-on-year increase of 23%, and the penetration rate will be 26%. New energy vehicles are growing rapidly, but suffer large losses, and fuel vehicles are profitable, but shrinking rapidly. This is the current basic business model of the auto industry.

The passenger car industry has broken away from the original high-profit industry. Although car production and sales resumed in March, the profit margin of car sales in March was only 4.7%. Some car companies are vomiting blood and selling cars, and the pressure is too great. In particular, the imminent implementation of the world's most stringent National VI B standard will bring certain psychological pressure to the production of car companies, and the result of reducing production and inventory will bring about a large loss in profit.

Tesla’s price increase this time is a good signal, reflecting car companies’ concern for operating quality and helping to improve the wait-and-see mentality of consumers. Let consumers get out of the expectation of excessive price cuts and return to the normal buying rhythm.

Now that the auto industry has gone through a high-profit period, the profitability of auto companies is not as good as it was back then, and they cannot stand the toss. It is expected that the implementation of the world's most stringent country 6B standard will be postponed from July 1st to the end of December, and not to set up too many rules and regulations, so that the market consumption can be stabilized by stabilizing the mentality of enterprises and dealers.