2003: Starting with Foreign Trade

Chapter 1009 Boatman: It's not me you should be worried about.
Since the end of July, Douyin's information feed has adopted a targeted approach, pushing a large amount of information related to the Yuechi Xinghe P1 to users who follow car-related bloggers and BYD DM, as well as vertical media such as Yiche, Autohome, and Dongchedi.

Douyin's push notification method is very precise, and interested users have received relevant push notifications. Yuechi's KOCs have also shared a lot of test drive experiences of the Galaxy P1, ensuring that users can have a more comprehensive understanding of the Galaxy P1.

As Yuechi Auto's first truly new energy vehicle, the Galaxy P1 has garnered significant attention from a national-level SUV brand, especially given the substantial marketing investment involved.

The marketing team also bought the trending search terms "Yuech has finally launched a new energy vehicle" and "Yuech Galaxy P1", which grabbed some attention amidst the news of belt failures in August.

As domestic real estate giants, real estate companies that have long relied on high leverage have had a tough time in recent years, especially belt companies, whose liabilities reached 1.9 trillion yuan as of June this year, with a particularly high proportion of short-term debt.

Last year, it wasn't just internet companies that were punished; real estate companies were even more severely affected by the "three red lines" policy. All the companies involved in the real estate industry violated the "three red lines," with projects halting starting in March, news of overdue commercial bills emerging one after another, and assets being sold off starting in June.

By August, the company was facing a complete collapse, causing widespread panic.

"I don't know how many of our employees have bought houses with belts. We need to ask all our subsidiaries and offices to keep an eye on this and prevent employees from causing trouble. If they have any difficulties, we can also help them out."

Tan Jincheng, Zhao Xinyi, and others were also discussing this matter. This is a particularly big event this year. Compared to the collapses in the capital market, the collapses of real estate companies have a much greater impact on ordinary people. When and whether a house can be delivered directly affects the lives of ordinary people.

Weilai's sales are growing, and Shanchi, which also saw a surge in sales, hired a large number of employees last year. In addition, Guomin Technology has also expanded significantly. Currently, the total number of employees across all of Tan Jincheng's companies is close to 20.

BYD's employee recruitment plan this year may bring its workforce to 28 by the end of the year, ranking second after Beijing Winter Olympics' 38 employees.

If we include all the employees under Tan Jincheng, the total number of around 20 employees would rank fourth among private enterprises nationwide, comparable to the 19.5 employees of Juhua.

"There will definitely be buyers, and there will definitely be unlucky people. I will make sure that all the major companies pay attention."

With nearly 20 employees and significantly higher incomes than their peers, many are bound to buy homes. There's no need to worry about properties in Beicang without a housing belt, but it's hard to say for sure if some people who prefer to buy homes in their hometowns will.

However, Tan Jincheng was powerless to do anything about this. The problem of perception meant that even if some people made money, they couldn't keep it. There was nothing he could do about it. The only thing he could do now was to prevent these unlucky people from causing public opinion and dragging his companies down with them.

The belt incident generated a lot of buzz, but he is also an "internet celebrity." If employees of his company generate buzz on social media, it's not a good thing for him.

Returning to the Galaxy P1, this PHEV from Yuechi has generated considerable buzz online. Despite the negative press, life goes on. For those interested in buying a car, the Galaxy P1's configuration is almost identical to the BYD Song DM, making comparisons easy to make without any prompting.

Although both are hybrid vehicles based on PHEVs and share the same goal of fuel efficiency and smooth operation, there are still significant differences in their technical logic and user experience, leading to ongoing disputes between the two sides.

Since BYD has announced that it will completely abandon gasoline vehicles, even its hybrid technology route is mainly based on electric vehicles. In layman's terms, DM-i is more like an electric vehicle plus a gasoline power bank.

The engine's role is more like a range extender and high-speed direct drive, primarily for power generation. However, Yuechi Auto's business model differs from BYD's. Although the trend towards electrification remains unchanged, it has not abandoned its plans for gasoline-powered vehicles.

There is still a certain market for gasoline-powered vehicles in China, and the overseas market is also quite large, so there is absolutely no need to give up on this market.

Furthermore, while electrification is the current trend, Tan Jincheng knows that even in 2023, electric vehicles will not completely replace gasoline vehicles, and models such as the Nissan Sylphy will still have a large market space.

Yuechi, which follows the DHT route, takes the approach of coordinating the electric motor and engine. The engine participates in the drive throughout the process, using low-speed power generation and high-speed direct drive, and operates in a way that intelligently switches between oil and electric power.

The difference in user experience is that BYD cars have lower fuel consumption in urban commuting, but the Galaxy P1 has a faster acceleration response. In highway cruising, BYD's acceleration at higher speeds is weaker, or as users say, it feels sluggish.

The Galaxy P1 performs much better on highways, which is its advantage. The DM-i model is more advantageous for urban commuting, while the DHT model is more user-friendly for users who frequently drive on highways and long distances.

This is also determined by Yuechi Auto's user base. As a cost-effective national SUV, the Yuechi A1's gasoline version has a distinct user base, which is concentrated in third- and fourth-tier cities and rural areas.

In addition, there are some individual business owners and small business owners who, to some extent, use the Yuechi A1 as a work vehicle, similar to the Wuling Hongguang of the last century. It has the attributes of a production tool.

In his previous research, Tan Jincheng had seen many urban individuals, such as small contractors in the decoration industry and workers on construction sites, using the Yuechi A1 to carry tools. It is spacious, durable, and easy to repair, so they can even take their families on a trip.

Although it has quite a few minor flaws, consumers can completely tolerate the price.

The biggest praise from this user group for the Yuechi A1 is its durability, ability to carry heavy loads without worrying about damage, and its high quality even when driven around. In addition, the Yuechi A1 is also a common sight in rural areas, and the scene of migrant workers from the city driving home for the Spring Festival can also be seen on major highways.

The user base, mainly composed of individuals and small business owners from third- and fourth-tier cities and rural areas, accounts for nearly 75% of Yuechi A1 users and forms the core of Yuechi A1's user base.

Besides this user group, young first-time car buyers and government-purchased vehicles account for about 25% of Yuechi A1 users. Among the models in the government vehicle procurement catalog, Yuechi A1 is suitable for the image of government employees due to its policy compliance, low-key and practical features.

In terms of gender, over 75% of Yuechi A1 users are male, which is a remarkably high percentage.

Whether considering the user group or the gender group, Yuechi cannot afford to abandon them. These two types of driving habits are more in line with the characteristics of DHT, and serving the user group is only natural.

"In the field of hybrid power, BYD is our predecessor. In fact, I consulted with Mr. Wang many years ago and even considered adopting BYD's technology route. However, after extensive market research, we decided to adopt our self-developed DHT technology, which is more in line with the driving habits of Yuechi Auto users."

Sunday, May 8.

Weilai held a press conference at the Beicang Gymnasium. In addition to recommending the Yuechi Galaxy P1 to users, Weilai also needed to announce the model adjustment plan from the previous meeting.

This is a major adjustment to the product line, which needs to be announced to the outside world and also needs to generate buzz.

This press conference focused on the strategic adjustments made by Weilai and the launch of the Yuechi Galaxy P1. After the strategic adjustments were completed, the Galaxy P1, which has attracted much attention, finally made its debut today.

Tan Jincheng was still the main speaker, and as the chairman of Yuechi Automobile, he was there to support the company's first new energy vehicle.

"Yuech's commitment to electrification is beyond question. This is the future trend and our pursuit. Many users have some doubts about our electrification progress, which is normal. After all, other brands of our electric vehicles have already sold a lot, but the Yuech series does not have a single electric vehicle."

“We accept this criticism, but there is also a saying that slow and steady wins the race. The launch of the Galaxy P1 is the culmination of Yuechi’s hard work over the past three years, and we hope to satisfy Yuechi’s users.”

"Returning to the topic of technology roadmap, the driving habits of Yuechi users are more suited to the DHT route, so we decided to develop in this direction. We will also develop pure electric models in the future, but for now we will focus on gasoline vehicles and hybrid vehicles."

"Electrification is the future, but as of July this year, our gasoline vehicles, the Yuechi A1 alone, have accumulated a market share of 360 million units, and the entire Yuechi series of gasoline vehicles has accumulated a market share of nearly 700 million units."

"With such a large user base, we will continue to update our gasoline-powered vehicles and continue to serve gasoline-powered vehicle users before everyone completely changes their cars. As a gasoline-powered vehicle brand that is loved by everyone, we have this obligation to serve this 700 million user base."

The press conference was still conducted via live internet broadcast, and Tan Jincheng's statement reassured users of gasoline-powered vehicles watching on their phones.

"It's good that they haven't given up on gasoline-powered vehicles. I'm just afraid that Weilai will do the same as other companies and give up on gasoline-powered vehicles altogether. What will happen to our vehicles then?"

Progress often comes at the cost of some people's property, such as houses and cars. The trend of electrification is irreversible, but it has more or less deprived some users who prefer gasoline cars of their right to choose.

As car manufacturers fully transition to electrification, some small and medium-sized traditional manufacturers face operational difficulties and even bankruptcy during the transformation process. What will happen to the owners of these car brands?

This is a messy situation that can't be explained in detail, but in any case, with 700 million Yuechi users who haven't completed their car replacements, Yuechi is indeed not suitable for radical electrification.

Tan Jincheng can understand to some extent that Great Wall's electrification progress has been slow. With tens of millions of users and sales still going well, it's not something that can be easily abandoned.

The same applies to Yuechi.

If we serve these 700 million users well, even if only one-tenth of them choose the Yuechi brand again when they trade in their new cars, it would be enough to sustain the company.

"Of course, we still hope that our users will choose to trade in their old cars for new ones when conditions permit. Yuechi also offers subsidies for new car trade-ins. In addition, we hope that everyone can go to the offline test drive experience events for PHEV models held in various places."

"In terms of intelligent features, electric vehicles definitely offer a better experience than gasoline vehicles. So we hope everyone will try them out, even if they don't intend to trade in their old cars, to experience a different driving style." Besides pricing, Yuechi has also put a lot of effort into various subsidies to encourage existing customers to trade in their new cars. Regarding charging, Yuechi has launched a charging partner program, partnering with third-party charging operators to deploy fast-charging villages in 4S stores and popular scenic spots, offering owners two years of free charging.

In addition, Yuechi Auto has also connected to the home charging pile system launched by Jinshidai, and a 3.3KW home charging pile is given away with the purchase of the car. The first owner enjoys free door-to-door installation service.

Currently, Jinshidai offers three charging pile models for home users: a basic 3.3KW model priced at 2000 yuan, a 7KW wall-mounted charging pile priced at 2300 yuan, and a 40KW charging pile priced at 12500 yuan.

For plug-in hybrid vehicle users, the first owner will receive a free 3.3kW charging station, and pure electric users will receive a free 7kW charging station. This preferential policy applies to all brands under Weilai, including Zhidou.

A Zhidou car priced at just over 30,000 yuan comes with a free charging station worth 2300 yuan, which is nearly 8% cheaper than other A00-class cars. This discount does not include free on-site installation.

This alone is enough to attract a segment of users to Zhidou Auto. Currently, the sales volume of the Zhidou Rainbow series is also very good. With this model alone, Zhidou's sales this year can reach approximately 70,000 units or more.

There is still some gap between the sales target of 100,000 vehicles and the actual sales volume, but it is still quite good. For a company that was on the verge of bankruptcy, being able to revive itself is already a victory.

The core customer base of the Yuechi series is not new users, but existing users. Therefore, unlike other models that focus on developing new users, the Xinghe P1 offers significant discounts for existing users who trade in their old vehicles.

Owners of gasoline vehicles who trade in for a PHEV can enjoy a subsidy of 10,000 yuan plus a lifetime battery warranty. Combined with local government subsidies for new energy vehicles, the trade-in cost savings can reach between 15,000 and 20,000 yuan.

In addition to trade-in subsidies, Yuechi Auto has also partnered with used car platforms to promise that the residual value of used gasoline vehicles will not be less than 55% after three years, with the difference being compensated if it is lower. This provides a safety net policy, which is quite attractive.

In addition, the lifetime free benefits, financial interest subsidies, and community benefits for existing car owners are all very attractive in terms of car ownership costs.

These costs have all been calculated. According to the budget of Weilai's internal actuaries and big data, these subsidies can increase the conversion rate of old users to between 25% and 40%.

In reality, every dollar invested can generate a conversion benefit of 2.5 dollars, making the investment profitable.

"Okay, after saying so much, what everyone is most concerned about is the price."

After these preferential policies were introduced one by one, the atmosphere at the venue and in the live broadcast room was quite lively. Now, everyone's biggest concern is definitely the price.

“We’ve noticed that many users online are comparing the Galaxy P1 with the BYD Song, comparing aspects such as technical routes and specifications. So, in terms of price, we’ve also aligned ourselves with the BYD Song DM.”

"Starting price is 15.48 yuan! With additional subsidies, our lowest price will be between 12.5 and 13.5 yuan. Taking Shenzhen, the city with the largest subsidies in the country, as an example, existing users can get a deal for as low as 12 yuan."

"This price is 5000 yuan cheaper than the BYD Song DM. How about this price?"

It's worth mentioning that the comparison is with the BYD Song PLUS DM. PLUS is obviously a higher-end version, and considering the technical specifications of the Song PLUS in 2021, the price is indeed not expensive.

However, the Yuechi Xinghe P1, with the same configuration, is even cheaper than the Song PLUS in some regions.

"Haha, Mr. Tan is really a dog. Shenzhen is BYD's stronghold. This is definitely going to be a showdown with BYD."

Since the beginning of this year, BYD has used the Exeed S01 to defeat the Qin series, forcing them to cut prices urgently and severely impacting BYD's position in the mass market. The two companies have been engaged in a lot of competition and verbal sparring in the market.

At the press conference, Tan Jincheng, who had not responded to the competition with BYD, affirmed BYD's technology and publicly stated that the price would be the same as that of the Song PLUS, which can be regarded as a direct response to the competition between the two.

This can be seen as a direct response to Wei Lai's ambitions in the mass market.

Indeed, in the era of gasoline-powered cars, the Yuechi series has always held a very high position in the mass market, so how could it possibly give up this market in the field of new energy vehicles?

"Wow, Tan finally gave a direct response, but this price is indeed very tempting."

The all-new exterior design is more rounded compared to the gasoline-powered version. The newly added elements make the color scheme richer. While retaining the front face design of the Yuechi series, it adds a sense of fashion to the stable foundation.

This is the most eye-catching aspect of the Galaxy P1 since its debut. Wei Lai's aesthetic sense is still on point, and he can still bring surprises even in the case of the Yuechi series, which has been revised several times and has hardly changed.

1.5T涡轮增压发动机，40%的热效率，快充功率可以达到33KW，从30%到80%充电只需要30分钟。

On paper, the fast charging power alone is much faster than that of the BYD Song. The BYD Song's 18KW fast charging power takes about 40 minutes to charge to 80%.

In terms of core battery supply for new energy vehicles, Yuechi is also very generous, using Jinshidai's ternary lithium batteries. It has not reduced its configuration because it is a cost-effective model. It should be noted that the Exeed S01 uses a combination of ternary lithium and lithium iron phosphate batteries.

In terms of interior design, unlike the low-slung and sporty approach of the Song, the Galaxy P1 still prioritizes practicality. However, compared to the Song's optional L2 driver assistance system, the Galaxy P1's standard L2 driver assistance system is more appealing.

"Hehe, this kid, but it's not unusual for him to do that."

The launch event for the Galaxy P1 has generated a lot of buzz, and it's positioned to compete with the BYD Song series. Of course, Brother Chuanfu is paying attention to it, and since it's Sunday, he has some time to watch the live stream.

"The ones who should be worried now are not us, but Great Wall and Geely. With what this kid is doing, these two companies are having a bigger headache than us."

I don't find Tan Jincheng's direct comparison to the Song PLUS at the press conference offensive. A model that can be compared to by competitors is a successful model. Just look at how many competitors have compared to the Tesla Model 3.

Weilai's new energy vehicles have also been the subject of much competition. Currently, the models that have received the most attention from competitors are the Exeed S01 and ET5, both of which have been benchmarked and copied by competitors.

As a model representing Yuechi Auto's strategic transformation, it's easy to imagine that, given Tan Jincheng's consistent habit of piling on features, he would generously use the advantages of a captain in his first model.

Although ternary lithium batteries are criticized for their safety, their higher cost and superior battery life are also widely acknowledged. In a sense, ternary lithium batteries represent a more high-end product for some user groups.

Intelligent assisted driving is also one of Weilai's strengths, so it's perfectly normal for Weilai to use its strengths in this car.

"Yuechi Group has always followed a cost-effective approach, both in the field of gasoline vehicles and in the field of new energy vehicles."

"I don't know if everyone is satisfied with this price, or if it can attract existing customers to trade in their vehicles. Here, I would also like to appeal to existing customers: if you have the means or your vehicle is over six years old, you should trade it in."

Tan Jincheng, standing in the middle of the stage, spread his hands and joked, "If the sales of new energy vehicles are too poor, that would be bad, after all, we have already put a lot of sincerity into this model."

All models come standard with L2 intelligent assisted driving. The starting price of domestic models is over 15 yuan. Only Weilai has brought the price down to below 15 yuan. Currently, there are only two models: Exeed S01 and Exeed P1.

When it comes to making technology accessible to all, other companies are just bragging, but Tan Jincheng is genuinely doing it.

The boatman wasn't too worried, for a simple reason: although he saw the sincerity in the Galaxy P1, he also understood that the Galaxy P1 was still targeting the existing Yuechi series users.

Looking at it from a broader perspective, the Galaxy P1 targets the mid-to-low-end gasoline car user group, which doesn't overlap much with the Song series' user group. This put him at ease to some extent, as the lack of overlap in user groups means it won't have a significant impact on the Song.

And the boatman was right. After the announcement of the subsidy policy and price of the Galaxy P1, which is priced the same as the gasoline car (the actual selling price is even lower than the gasoline car), it still has a significant impact on the gasoline car market.

The trade-in discounts are substantial for existing Yuechi brand owners, but they're also significant for owners of other brands of gasoline vehicles.

"On the surface, they're targeting BYD, but in reality, they're trying to steal customers from gasoline-powered cars. Now things are even more difficult."

On Monday, the stock prices of Great Wall Motors, Changan Automobile, and Geely all declined to varying degrees in the capital market. These three domestic brands still rely heavily on the sales of gasoline-powered vehicles. Among them, Geely's stock price in Hong Kong reacted the most strongly.

With a pre-subsidy price of 15.48 yuan, the Geely Xingyue, which has a starting price of 23.97 yuan, has no advantage whatsoever.

(End of this chapter)