# Price warfare By [Russell](https://paragraph.com/@russell-3) · 2023-05-26 --- In recent days, domestic marketed business has continued to issue quarterly performance reports in 2023. After a three-year outbreak, 2023 was considered the year in which the city was back on track. At the same time, this year’s market also experienced a number of shocks, such as the formal withdrawal of the 13-year new energy vehicle subsidy and the sustained “price fighting” from the beginning of the year. In the first quarter of 2023, concern was expressed about the performance sheets of the business industry, which were influenced by multiple factors. According to data from the reporters of the Economic Watch, 13 domestic marketed automobile companies that have published a quarterly financial statement, the performance of the business in one quarter is generally not expected. Of the 13 business enterprises, only two of the Biyadi, the Longer-Antile motor vehicles achieved profit growth, while six profits declined, while five were lost in the Saïs, the North Blue Valley, the Zero-run vehicle, the Catering and Seama vehicles. In other words, less than 15 per cent of cars have achieved a quarterly increase in profits. If the profits of the long-running vehicle are taken into account, mainly as a result of increased non-recurrent gains and losses, the profit performance of the marketed business in one quarter is even less pronounced. Despite the fact that, throughout the year, one quarter was a lunch in the town of the car owing to the inclusion of holidays such as spring, the performance of the marketed business remains below expectations. In the business of the bus, where profits have declined, the bus in the city has the largest decline, reaching 89.3 per cent, while the upper steam group has declined by 49.6 per cent and the Hiroshima group by 48.9 per cent. The reasons behind the decline in performance are to be explored. The “price war” was not effective In the first quarter of this year, the domestic market was mired in the continuing “price war”. According to incomplete statistics, more than 40 car brands have been rolled out this year, covering a 100-per-cost vehicle model with a maximum concession of over $90,000. While the “price war” was intended to achieve modest savings by allowing profits, it did not seem to be possible to achieve the goal of “price warfare” in terms of the quarterly performance of marketed cars. In the first quarter, seven of the 13 marketed businesses achieved growth in the camps. Of these, Biyadi recorded the highest increase, with a quarter of a battalion of $121.7 million, an increase of 79.8 per cent. However, with the exception of Biyadi, all of the vehicles are “increased”. This includes several reasons. First, in terms of sales, fuelled by the expiration of the policy of halving purchasing taxes at the end of last year, partial consumption in the city of vehicles was overtaken, while “price fighting” increased consumer prestige. The data from the meeting show that, during the first quarter of the year, a total of 426.1 million retailers were consumed domestically, a decline of 13.4 per cent. This indicates that the “price stream” does not bring a significant increase in the market. In particular, the upper steam group sold 89.1 million in the first quarter of 2023, a decline of 26.99 per cent; the combined size of the cylinders group was 53.9 million in the first quarter, a decline of 11.2 per cent; and the long-running vehicle was sold at 6.78 million in the first quarter of 2023, a decline of 6.71 per cent. It is even more critical that these business groups have experienced a significant contraction in the “profit milk”-joint venture under the previous flag. As in the upper jeal group, the media share of the upper mortality declined by 31.67 per cent a quarter; the upper cylinders declined by 32.26 per cent. In the Hiroshima Group, there was a quarterly decline of 29.63 per cent in the volume of Hiroshima and 10.93 per cent in the volume of Hiroshima. At the same time, the price reduction of many car-business products under the “price war” has further squeezed the profitability of the business and led to a downturn in profits. From the performance of the vehicle business, Biyadi undoubtedly became the largest winner in a quarter. While it was still not hostile to the launch group in a quarter, its profits amounted to $413 million, an increase of 41 per cent on the same date. This is due mainly to the continuing high sales performance, a quarterly accumulated sales of 552,000, an increase of 92.81 per cent. The momentum has been renewed since 2022. At present, Biyadi does not appear to be affected significantly by the withdrawal of new energy vehicle subsidies. The financial statements show that Biyadi still has a government subsidy of $670 million in the first quarter of this year, accounting for only 16 per cent of current profits. Over the years before, Biyadi has a higher dependence on government subsidies. The financial statements show that Biyadi’s new energy subsidies in 2022 totalled approximately $10.438 million, accounting for 63 per cent of the total annual profits. The Biyadi new energy subsidy income of $5,867 million in 2021 was higher than the net profit of $3,045 million for the whole year. In this context, the ability of Biyadi’s brand premium capacity and cost control capacity to resist the withdrawal of new energy subsidies will be a great test this year. The long-term security vehicle, which has been profitable for a quarter, has reached $6.97 billion, an increase of 53.6 per cent. However, the increase in the profits of the long-running vehicle is not attributable to the main business, but rather to non-recurrent gains and losses, which show a total gain of 54.89 million yuan, with the largest two non-recurrent gains and losses deriving from the gains from mergers of enterprises not under the same control ($5,021 million) and government subsidies ($437 million). If the two proceeds were to be removed, the non-net profits of the long-running vehicle were $148.1 million in the first quarter, a decline of 34.75 per cent. Long city vehicles have the largest profits in a quarter, at 89.3 per cent. In the financial statements, long-run cars explained that the sharp decline in profits was due mainly to the continued restructuring of products during the reporting period, resulting from the expansion of new energy branding and research and development inputs based on a new product market tempo in 2023. However, the financial statements show that the cost of R&D for long-run vehicles in the first quarter of this year has increased slightly to S$ 1534 million, but sales costs have risen from S$ 1051 million in the same period last year to S$ 14,54 million in the year to date, an increase of nearly four. The two “deficit large households” in the North Canal and Seiz continued to lose in the first quarter of this year. Of that amount, net profits in the North Pole amounted to $892 million and net profits in the Saïs amounted to $625 million. In addition, there was a net loss of $188 million for buses in the first quarter and a loss of $1.33 billion for zero vehicles in both cases. A quarterly loss of 5.2.1 million yuan renminbi was recorded in the car. Promotion of profits Not only is it a domestic car business, but the “price war” initiators, Tetrasla, also experienced a significant decline in profits in the first quarter of the year. According to a financial statement issued by Tesla, its net profits in the first quarter amounted to $2,513 million, a decline of 24 per cent. At the same time, Tetras’arity --- *Originally published on [Russell](https://paragraph.com/@russell-3/price-warfare)*