How can new energy vehicle enterprises solve the problem of "increasing revenue without increasing profits"?

Original title: Today's perspective: How can new energy vehicle enterprises solve the problem of "increasing revenue without increasing profits"?

Affected by the "price war" in the first half of 2023, the profit differentiation of auto enterprises has intensified, and the phenomenon of income increase without profit increase has spread. According to the latest data from the China Association of Automobile Manufacturers, the profit margin of China's automobile manufacturing industry in the first half of 2023 will be 4.8%, flat month on month and slightly lower year on year.

Of the 20 listed auto companies that have released their performance reports for the first half of 2023, 7 have suffered losses. In the statistical list of new car making forces, this proportion exceeds 90%; According to the data of the All China Federation of Industry and Commerce Auto Dealer Chamber of Commerce, 66% of new energy brand 4S stores are suffering losses.

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On the one hand, new energy vehicles are developing rapidly, and on the other hand, the vast majority of new energy vehicle enterprises are in a loss predicament. Up to now, this "sense of tear" continues - car companies have made big bets on the new energy circuit, but the "price war" is getting fiercer. When can they make money?

In fact, it is a common phenomenon in the industry that most of the domestic new energy vehicle enterprises are in a loss state, and the industry also has a consensus on this: the new energy vehicle industry is still in the early climbing stage, and the profitability of vehicle enterprises will inevitably bottom out.

As for the complete vehicle enterprises, except that BYD is the first to make profits and outshines others in terms of sales, most of the domestic automobile enterprises have just passed the threshold of 100000 annual sales, which is difficult to form economies of scale and is regarded as one of the reasons for long-term losses by many new energy automobile enterprises.

At the same time, high R&D costs are also leading to rapid "bleeding" of new energy vehicle enterprises. Take Weilai as an example. In the past three years, the company's R&D expenditure has increased from 2.488 billion yuan to 4.592 billion yuan and then to 10.836 billion yuan, almost increasing year by year. The "burn money" mode is a means to respond to the intensification of market competition and quickly establish differentiated advantages and technological moats, but it also greatly reduces the profits of vehicle enterprises.

In addition, the decline of subsidies led to the local "weaning" of new energy vehicle enterprises. Taking BYD as an example, the financial report shows that in 2022, the non net profit will be deducted by 15.638 billion yuan, of which the financial subsidy for new energy vehicles will be up to 10.438 billion yuan, which can be seen from the impact of subsidies.

The author believes that it is necessary to face up to the current situation of the new energy vehicle enterprises in the industry stage of "sales increase and performance loss", place the promotion of brand value and product value in a more important position for the development of vehicle enterprises, rely on the brand to break through, improve the brand premium ability, and turn losses into profits as soon as possible.

First of all, unblock financing channels and prepare for a protracted war. The development and growth of new energy vehicle enterprises are doomed to go through a long growth period. Those that are not listed should hurry to go public, and those that are listed should do a good job in market value management. As investors are attracted by the high growth rate, capital will flow into the leading enterprises of the industry in a circular way, making the weaker the weaker and the stronger the stronger. It should be noted that Toyota's net profit in the 2022 fiscal year dropped by 21%, and even so, there is still $18 billion in pocket - its long accumulated rich capital is the confidence to win the future.

Secondly, with the help of domestic supply chain advantages, expand market share. The domestic developed and complete new energy supply chain and ICT industry ecology have laid the foundation for the healthy development of China's new energy vehicle enterprises. Since losses are inevitable, market share has become the preferred target. Expanding market share can not only increase the operating income of enterprises, but also enhance the voice of enterprises in the supply chain in the long run.

Finally, there is no shortcut for the development of the enterprise, and the enterprise insists on long-term brand promotion. If the new energy vehicle industry wants to make profits, the premise is that the supply and demand are basically balanced, which means that most of the automobile enterprises will be eliminated. Before the arrival of this time node, adhere to the original intention of making cars for consumers, and maintain strategic focus on the marketing tactics that are not conducive to the health of the market, such as selling cars at a loss and selling cars at a low price. Enterprises should firmly believe that opportunities in the automobile industry, which has a long industrial cycle, are huge and equal.

(Editor in charge: Yang Xi, Chen Jian) Concerned public account: People's Daily Finance

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