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On November 24, BYD's 6 millionth new energy vehicle went offline at the Zhengzhou plant, and the offline model was equation Leopard 5. It is understood that it took only more than three months for BYD to go from "5 million vehicles" to "6 million vehicles". However, the news failed to drive BYD's good trend in the capital markets, with its share price falling 5.24% to close at 216.85 yuan per share, with a total market capitalization of 631.3 billion yuan, the lowest in a year and a half.

On the face of the news, BYD expanded the end-market model discount. According to a number of media reports, BYD's Qin, Han, Tang, Song and other models have launched cash concessions ranging from 3000 yuan to 10000 yuan. This cash discount is a new sales policy for BYD to add some models in November, with a maximum discount of 15000 yuan under the new sales policy. as the main model sold by BYD, Qin PLUS offers a time-limited discount of 10,000 yuan, with a starting price of 89800 yuan. It is understood that the new sales policy will last until the end of November, and it is not clear whether it will continue in December.

On November 1, BYD launched the "million Ocean Thanksgiving courtesy" campaign. It is understood that consumers who buy BYD Ocean net-related models before November 1-November 30 can enjoy substantial discounts, including destroyer 07, frigate 05 champion version, dolphin, seal champion version, Song PLUS champion version. From the point of view of the preferential degree, the frigate 07 can enjoy 2000 yuan to 20000 yuan, equivalent to a discount of 18000 yuan, which is the largest of the five models, and this time it is mainly aimed at the Chaozhao.com model.

Industry insiders believe that BYD launched the discount car purchase policy in November, largely to drive sales growth. Official figures show that BYD's car sales in October 2023 were 301800 yuan, the first time it has exceeded 300000 vehicles since its inception, up 38.57 percent from a year earlier. By the end of October, BYD had sold 2.3815 million new energy vehicles, an increase of 70.36% over the same period last year. According to the annual sales target of 3 million vehicles, the current completion rate of BYD's sales target is 79.38%, which means that BYD needs to maintain an average sales rate of more than 300000 vehicles over the next two months in order to meet its sales target. November is the off-season for traditional car sales, during which BYD offers discounted sales of related models in order to drive sales growth, so as to achieve the sales target of 3 million vehicles as much as possible.

According to the third-quarter results, BYD's operating income was 162.151 billion yuan, up 38.49% over the same period last year; the net profit returned to its mother was 10.413 billion yuan, up 82.16% from the same period last year; and 9.654 billion yuan was deducted from non-net profit, an increase of 80.95% over the same period last year. In addition, BYD's gross profit margin reached 22.12% in the third quarter, exceeding 20% in a single quarter for the first time in nearly three years, an increase of 3.4 percentage points over the second quarter. While BYD's sales and performance are growing, BYD is being squeezed by other independent brands and lacks imagination in the smart area that the market is paying more attention to, which may be the reason why it is not favored by the market.

The fall in BYD's share price and the price cuts and promotions of many of its models reflect the challenges and pressures it faces. In the highly competitive automobile market, especially in the field of new energy vehicles, BYD needs to constantly strengthen its innovation and competitiveness in order to adapt to market changes and meet the needs of consumers. At the same time, enterprises should also use price reduction promotion strategy cautiously to avoid over-reliance on low-price sales, but should pay attention to the shaping of product quality and brand image. Only through continuous innovation and the promotion of comprehensive competitiveness, enterprises can achieve sustainable development in the field of new energy vehicles.

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