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With rising raw materials and rising battery prices, why are there still low-priced batteries?

by:Vglory      2021-05-03
Although the price of batteries has continued to rise in the past month, everyone has discovered that the price increase is not a monolithic one. In some places, not only does it not rise, but also falls! The overall price increase is the best opportunity to make money. Everyone wants to make money. Why do certain businesses abandon profits? One, the small battery factory has revived.   The increase in prices has increased the profit margin of the entire industry, but when the market is generally high in prices, the low prices are attractive, and it also makes room for small factories of small brands to survive. Although there have been four rounds of carpet-style environmental protection inspections this year, they are mainly concentrated in key cities, key industrial areas, and remote areas are not included in the inspections. Seeing business opportunities, some small-brand factories moved to the mountainous and hilly areas of Jiangxi, Hunan, Fujian, and Guangdong to secretly produce.   A reporter in a certain county in Hunan Province visited a factory secretly producing batteries on a flat land surrounded by mountains and rivers. The gate of this factory building is closed tightly. If you don't pay attention to observation, you won't know that there are people inside, and there is still a group of people engaged in production. Only those who receive the signal will open the closed door. The reporter finished the codewords and entered the factory. The plastic shell of lead-acid batteries and the pungent smell of sulfuric acid wafted all over the house. A dozen workers wearing masks, hats, aprons, sleeves, and rubber shoes were nervous and busy. With. There are no environmental protection facilities in the factory, and sewage and waste gas are discharged at will. Because the place is remote and there are no people living in the surrounding area, it is extremely difficult to be found. It is reported that this underground battery production plant belongs to an owner in Guangdong, and the annual rent is 150,000 yuan.   The world's hustle and bustle are all for profit. After the battery price rises, there will be more profits, similar to shifting positions, and there will only be more small factories with no-name brands resurgence. More and more low-quality and low-cost batteries will flow out on the market.   Second and second-tier brands have difficulty operating and are forced to sell them at low prices.   The general rise of batteries is not beneficial to all battery manufacturers. First-tier brands and small brands each have advantages in terms of quality and price, while second-tier brands are inadequate and do not have many advantages. The operating pressure is particularly high, the digestibility is weak, and the inventory is large. Price wars are one of the fastest ways to remove the effect.   Three, brand hype, seize the market.   Price wars, in addition to quick sales, are also a relatively simple and direct way to seize the market. In order to seize the market, some manufacturers do not hesitate to hit the bottom line of the industry's price, and are infamous by the whole industry, and they have to make a desperate price war. Before the industry leaders fought price wars with each other, this was the reason for selling at a long-term loss.   So the author here suggests that when choosing batteries for electric vehicles, you should not only be greedy for cheap, but should choose batteries with big brands and good quality. Prev: Riding an electric bike too fast is harmful to the battery?
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