Why did BYD's Seal 05 fail to boost sales despite a quick price cut after its launch?

11/26 2024 498

In the fiercely competitive automobile market, BYD has always occupied a place due to its technological strength and brand influence. However, BYD's recently launched Seal 05 DM-i has encountered unexpected difficulties, forcing it to reduce prices for promotion just one month after its launch. What issues lie behind this?

On September 23, BYD launched both the Seal 05 DM-i and the new Song Pro DM-i. Positioned as compact SUVs with similar price ranges, they became sister models. However, despite their similar configurations and powertrains, their market performances have been vastly different.

According to frontline sales feedback, the Seal 05 attracted many customers after its launch, but sales fell far short of expectations. In contrast, BYD's own Song Pro maintained a strong sales momentum. The latest October sales data shows that only 3,452 Seal 05s were delivered, while 22,615 Song Pros were delivered, highlighting the clear gap between the two models.

So, what caused the poor sales of the Seal 05? Firstly, as an established BYD model, the Song Pro has built a good reputation and popularity in the market, which the Seal 05 cannot match. Additionally, the Seal 05's design failed to win over consumers, with many netizens criticizing it as a "fattened destroyer."

More crucially, when implementing its dual-car strategy, BYD seemingly did not fully consider the market positioning and product differentiation between old and new models. With both old and new models on sale, the older Song Pro models easily stole orders that could have belonged to the Seal 05 through direct discounts. This internal competition undoubtedly exacerbated the Seal 05's market struggles.

Faced with poor sales, BYD chose a price reduction strategy. On November 1, BYD announced discounts for the Seal 07 and Seal 05, offering up to RMB 5,000 in vehicle insurance subsidies as a cash discount. However, this move sparked dissatisfaction and complaints from car owners who felt betrayed after purchasing their cars just to see a price drop. While BYD offered compensation such as vehicle insurance subsidies, this did not seem to appease the anger of car owners.

In summary, the lukewarm reception of BYD's Seal 05 upon its launch not only exposes BYD's mistakes in its dual-car strategy but also reflects the severe challenges it faces in market competition. In the future, BYD needs to delve deeper into market demands and consumer psychology to develop more reasonable and effective market strategies and product plans to avoid similar situations. At the same time, for existing car owners, BYD also needs to provide more care and support to maintain its brand image and consumer trust.

Solemnly declare: the copyright of this article belongs to the original author. The reprinted article is only for the purpose of spreading more information. If the author's information is marked incorrectly, please contact us immediately to modify or delete it. Thank you.