Electric Vehicles Take Over the Market: Fuel-powered Cars in Danger at the 150,000 Yuan Price Point

Electric Vehicles Take Over the Market: Fuel-powered Cars in Danger at the 150,000 Yuan Price PointIn recent months, the domestic retail penetration rate of new energy vehicles (NEVs) has continuously exceeded 50%, reaching 53.3% in September

Electric Vehicles Take Over the Market: Fuel-powered Cars in Danger at the 150,000 Yuan Price Point

In recent months, the domestic retail penetration rate of new energy vehicles (NEVs) has continuously exceeded 50%, reaching 53.3% in September. This signifies that buying NEVs has become a mainstream trend, with fuel-powered vehicles gradually becoming the minority. This leap in growth demonstrates that NEVs have moved from the periphery to the center of the market.

The rapid rise of NEVs has presented the fuel-powered car market with unprecedented challenges. Data from the China Association of Automobile Manufacturers shows that in 2024, sales of traditional fuel vehicles have declined across various segments. For example, sales in the A-segment dropped by 12.2%, while the B-segment experienced a 4.2% decline.

The mainstream family car market, once a source of pride for fuel-powered car companies, has also suffered a major blow. Tesla CEO Elon Musk recently declared that a regular car priced at $25,000 (approximately 178,000 yuan) is "meaningless" and "foolish." He believes that driving a non-autonomous fuel-powered car in the future will be as "unusual" as riding a horse or using a flip phone.

Electric vehicles have fully penetrated the 150,000 yuan market, with numerous best-selling models emerging. Over the past two years, the 150,000 yuan segment has witnessed the emergence of a number of "best-selling models", including the AITO M7 and Xiaomi SU7. These vehicles no longer blindly pursue luxury but instead aim to capture the heartland of joint-venture fuel vehicles with their affordable prices.

Models like the XPeng MONAM03 and LeDao L60 have become representative of the 150,000 yuan market. The XPeng MONAM03 received over 30,000 pre-orders within 48 hours of its launch, and its first-month deliveries surpassed 10,000 units. XPeng Automotive has even begun stating that the M03's current order volume has reached 100,000. The LeDao L60 also garnered more than 30,000 pre-orders within 72 hours of its release.

In addition to XPeng and NIO, new players like Geely Galaxy E5 and Deep Blue S05 are making their mark. Geely Galaxy E5, with its starting price of 112,800 yuan, became the first A-segment pure electric SUV in history to achieve sales exceeding 10,000 units in the first month of its release.

Veteran player BYD is not lagging behind. Data from Donchedi shows that BYD's Qin L-DM, Seagull 06, Qin Plus-DM, Yuan Plus, and Song Pro-DM models have consistently topped the list of the top 20 mainstream car and SUV models in the 10-150,000 yuan segment.

The shrinking market share of fuel-powered vehicles has made the 10-150,000 yuan price range a major battleground for NEVs. From January to August 2024, traditional fuel-powered passenger vehicles in China experienced declines across various segments. This price range has always been the mainstream in the Chinese passenger car market, but sales have shown a significant decrease. In the first eight months of this year, cumulative sales of traditional fuel-powered passenger vehicles in this price range reached 3.193 million units, down 11.4% year-on-year.

In September 2024, passenger vehicle sales in the 10-150,000 yuan price range in China reached 1,020,871 units, accounting for 24.55% of the market share. Among the top ten best-selling models, only three were fuel-powered vehicles, while the remaining seven were NEVs.

Why are electric vehicles becoming a better choice? Consumers prefer electric vehicles mainly for the following reasons:

• Price advantage: Consumers in the 10-150,000 yuan price range prioritize value for money, and electric vehicles offer a distinct advantage in this regard.

• Driving experience and intelligent features: At the same price point, electric vehicles provide a superior driving experience and intelligent features, particularly in terms of intelligent cockpits and intelligent driver assistance.

• Range anxiety gradually fading: Improvements in battery technology and increased charging station availability have significantly enhanced electric vehicle range and charging speed, gradually alleviating consumer anxieties about charging and range.

As electric vehicles continue to improve, the advantages of fuel-powered vehicles are nearly extinct, and their replacement is imminent.

Strong government support has also accelerated the development of NEVs. For example, increased scrappage subsidies, exemption from purchase tax, and free license plates have effectively reduced the cost of purchasing for consumers, stimulating market demand for NEVs.

"New Energy Perspective" conducted a survey of nearly 100 consumers, revealing that approximately 70% mentioned that their next vehicle would be electric. Based on this, it is not difficult to predict that by 2027, the domestic NEV penetration rate is expected to reach 70%.

The NEV wave is sweeping across the entire automotive market, and the last line of defense for fuel-powered vehicles has fallen. In the future, NEVs will continue to maintain rapid growth, while the fuel-powered vehicle market will continue to shrink.

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