There are different opinions, why did the Euler black and white cat no longer accept new orders?

On February 15, ORA officially stated that due to the shortage of chips and the inability to guarantee the production of spare parts, there was a backlog of orders for the black and white cat models.

Later, an internal engineer of Great Wall Motors (601633.

"The sales volume of black cats is okay .

The Red Star Capital Bureau noticed that in 2022, the subsidies for new energy vehicles will drop by 30%

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Data map according to IC photo

Black and White Cat is no longer accepting new orders

Engineer: It is said that the decision to abandon the two cars

Recently, it was reported that the black cat and white cat models of Great Wall Motor's brand Ora have been discontinued

On February 15, ORA Auto’s official Weibo replied, “Due to the shortage of chips, the inability to guarantee production of spare parts and many other reasons, there has been a backlog of orders for black and white cat models, and the customer’s car purchase cycle is too long, which affects customer experience.

ORA officials also stated that the production of black cats and white cats has not been discontinued.

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On February 17, the Red Star Capital Bureau contacted ORA Automotive for the details, but no contact was made by the time of writing

According to public information, the ORA brand currently has four models including ORA IQ, Black Cat, White Cat, and Good Cat

The sales volume of Euler's black and white cats has long been lost to "the same door".

Data shows that in December last year, ORA’s total sales volume was 20,926 vehicles; of which Haomao sold 10,685 vehicles, accounting for 51%, and the other three models sold a total of 10,214 vehicles

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That is to say, the proportion of sales of good cats in the total sales of ORA cars is increasing, and accordingly, the proportion of sales of black and white cats is declining

The above- mentioned engineer also revealed that "the sales of black cats are okay, there are almost 4,000 units in January, and there are only a few hundred white cats, which is really not good

New energy subsidies decline

Each black and white cat earns about 4,000 yuan less

In addition to the decline in sales, some analysts believe that the suspension of production and sales of the Euler Black and White Cat may be related to the decline in subsidies for new energy vehicles

On January 1, 2022, the Ministry of Finance and other four departments jointly issued the "Notice on the Promotion and Application of Fiscal Subsidy Policies for New Energy Vehicles in 2022", which clarified that in principle, the annual subsidy scale should be capped at about 2 million vehicles, and the subsidy should be slowed down.

Specifically:

In 2021, pure electric vehicles with a range of 300km-400km can enjoy a subsidy of 13,000 yuan; in 2022, a 30% decline in the slope will reduce the subsidy by 3,900 yuan;

In 2021, pure electric vehicles with a battery life of more than 400km and a price of less than 300,000 yuan can enjoy a subsidy of 18,000 yuan; after the 30% decline in 2022, the subsidy will be reduced by 5,400 yuan;

Hybrid models with pure electric battery life of more than 50km under NEDC operating conditions, or 43 kilometers of battery life under WLTC operating conditions, and the price of less than 300,000 yuan, will enjoy a subsidy of 6,800 yuan in 2021; after a 30% decline in 2022, the subsidy will be reduced by 2,040 yuan

The starting price of the Euler black cat model is 69,800 yuan, with a range of 301-405km; the starting price of the white cat model is 69,800 yuan, with a range of 305-401km; and the price range of the good cat model is 103,900 yuan.
Yuan to 133,900 yuan, the battery life range is 400-500km
.

After the subsidy retreated, the subsidy for each of these two cars was reduced by 3900-5400 yuan
.

According to a Securities Times report, an ORA salesperson said: "Affected by factors such as the decline of the new energy subsidy policy and rising raw material prices in 2022, some of ORA's models may increase their prices in March 2022.
It went up by about 5,000 yuan
.
”

Previously, Tesla (TSLA.
US) NIO (NIO.
US), Xiaopeng Motors, GAC Aian, Volkswagen and other brands have announced that they have taken price increases for their products due to the decline of the new energy subsidy policy
.

The Great Wall engineer told the Red Star Capital Bureau, "Small cars like the Black and White Cat are low in price and not profitable
.
For manufacturers, it is better to do a good job of the good cat and the following cars
.

Countdown to the subsidy decline:

Some people transform, some people increase prices, some people lose money and make a profit

How much impact will the decline in new energy subsidies have on companies?

After checking the financial report of Great Wall Motors, the Red Star Capital Bureau found that in the first half of 2021, the subsidy income of new energy vehicles received by Great Wall Motors was 1.
6377 million yuan, a decrease of 52% compared with the income of 3.
38 million yuan in the same period in 2020
.

On the basis of the further decline in subsidies for new energy vehicles in 2022, it is foreseeable that the related income of car companies will inevitably decline more seriously
.

Time is pressing, and many car companies have chosen a way out before the new energy profit test
.

The simplest and crudest thing is to increase the price and transmit the pressure to the terminal
.

Tesla, the leader in new energy, has previously announced that due to the decline in subsidies for new energy vehicles, the prices of the rear-wheel-drive versions of the Model 3 and Model Y will be increased by 10,000 yuan and 21,000 yuan respectively
.
Subsequently, Volkswagen announced that the two pure electric models, ID.
6 CROZZ and ID.
4 CROZZ, will increase by 5,400 yuan as a whole from January 1, 2022; GAC Aian Aian LX will increase the price by 4,000 yuan from New Year's Day this year, and start selling The price reached 230,000 yuan
.
On the other hand, Weilai Automobile and Xiaopeng Automobile have launched a "limited time price protection strategy" with a certain delay.
Once the limited time has passed, the price will be increased immediately
.

In contrast, ORA chose another more euphemistic "transformation road" - the strong man broke his wrist and stopped the production of low-profit models to make way for the subsequent high-priced and high-interest models
.

According to the production and sales data released by Great Wall Motors, the cumulative sales volume of the ORA brand in 2021 is about 135,000 units, a year-on-year increase of 140%
.
Among them, the annual sales volume of ORA Hao Mao is about 50,900 units; the annual sales volume of Black Cat is about 63,500 units
.

In terms of sales, the black cat even surpassed the good cat by 10,000 units, but in terms of sales, the black cat is not as good as the good cat "good money"
.

Calculated based on the official price range of the two models, the sales of the Ora Hao cat in 2021 will be 528,900-681,600, while the sales of the black cat will be 455,900-563,900
.
After working hard to buy 10,000 more cars, the sales are still less than 100,000 yuan.
For Euler, the business of the black cat is obviously "thanksgiving"
.

It is reported that the price of several models that ORA will launch later will be around 150,000 for the big cat, while the price of the lightning cat and the ballet cat may reach 200,000
.
Compared with the good cat models currently on sale, this pricing means that ORA will focus on the mid-end market, and its market positioning will take a higher level
.

Similar to the positioning of the black cat and the white cat, the more representative low-end model Wuling Hongguang MINI EV fully interprets the strategy of "not making money, making money"
.

According to a research report by Caitong Securities, the gross profit margin of Wuling Hongguang MINI EV is likely to be 2% to 3% based on the estimated cost prices disclosed by various parts suppliers in the market
.
The automobile industry service platform NE Times estimates that the cost of known parts and components of Wuling Hongguang MINI EV is between 14,950 yuan and 23,000 yuan, plus other unknown parts costs, taxes, R&D allocation, management, labor, transportation and sales.
, the cost is higher
.

Although the gross profit margin is as low as the "floor price", Wuling Hongguang MINI EV has exceeded 310,000 units within a year of its launch in July last year, and its monthly sales list has repeatedly surpassed Tesla, becoming a well-deserved "magic car" last year, earning enough money brand goodwill
.

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Screenshot of the data of the passenger union

However, it is worth noting that the sales growth rate of Wuling Hongguang MINI EV has declined since the beginning of this year.

In January 2022, the sales volume of Wuling Hongguang MINI EV was 26,682 units, still topping the list, but the year-on-year growth rate was only 3.
5%.
Compared with the sales volume of 50,561 units in December last year, the decline was 51.
2%
.
In contrast, BYD Qin, which ranked second in sales in January, sold 26,541 vehicles in a month, a year-on-year growth rate of 1,323.
9% and a month-on-month increase of 2.
3%
.

The bifurcation is imminent, price increases, transformation, and profit, where do car companies go?