2003: Starting with Foreign Trade

Chapter 1068 Interaction with Big Mouth
"This time they're really far ahead, awesome."

On September 12th, at the invitation of Da Zui, Tan Jincheng attended the launch event for the new X7 product in Shanghai. To be honest, he was greatly impressed; Da Zui really has something to say.

"Haha, don't mind it, it's just a marketing term. We still have a lot of room for improvement."

As a corporate representative, Seres' biggest competitor and role model, Tan Jincheng was able to attend the launch event of the new X7 thanks to his personal relationship with Tan Jincheng.

This can also be seen as Tan Jincheng repaying the favor he received from attending the Weilai celebration last time.

"With this kind of product strength, the X7 should sell very well, and the Seres, or rather the Smart Selection mode, can be considered a revival."

This new X7 launch event is a milestone for the company, Seres, and the brand itself.

The internal power struggle within the automotive industry is essentially a power struggle. Lacking internal support, the company is facing a double whammy with the sharp drop in Seres sales. If it cannot achieve a breakthrough in the battle between HI mode and Smart Select mode, it may lose power.

Inviting Tan Jincheng over was also meant to provide support. For Seres, the new X7 is also a redemption project. All hopes are pinned on this new car to pull Seres out of the quagmire of huge losses.

However, Big Mouth did deliver a result that satisfied everyone, including himself.

The new X7 boasts an investment of 500 million yuan, a top-of-the-line intelligent driving system, an upgraded intelligent cockpit, and significant investments in safety and chassis structure. It's not just a simple upgrade; it's more like a completely new model.

Of course, the most important thing is the pricing of the new X7, at 24.98 yuan, a price that truly surprised everyone.

Compared to the old X7, the new model has added features and made up for all the shortcomings of the old model, while also significantly reducing the price by 40,000 yuan, which can be described as a great deal of sincerity. The entire launch event was also conducted online, which can be said to have shocked everyone.

"Sales must be great, congratulations Mr. Yu."

With its enhanced features and reduced price, the new X7 combines exceptional value and top-of-the-line technology to achieve a textbook-perfect product turnaround. Given Huawei's brand appeal, its explosive sales are already a certainty.

"Thank you, and please forgive me, Mr. Tan."

Throughout the entire press conference, Da Zui kept comparing the new X7 to Wei Lai's L1 and L6, using this comparison method to promote the new X7. The camera also frequently panned to Tan Jincheng, which maximized the entertainment value of the show.

"It's alright, it's our honor. Let's call it a day for today, and get together again when we have time."

Tan Jincheng doesn't find it offensive that car companies use Weilai's models as benchmarks; on the contrary, he sees it as proof of his efforts over the years, showing that Weilai is now capable of having domestic and foreign manufacturers benchmark their products against it.

"Alright, let's get together again sometime. I apologize for being rude today."

After the press conference, he was indeed very busy and didn't have much time to deal with other things. Next was the pre-sale of the new model, and he also had to deal with the impact on existing customers.

Compared to the new model, the old model, especially for customers who took delivery this year, is simply a huge loss. Even the most loyal fans of the old model find it hard to accept such a drastic change between two identical models.

The release of the new X7 was like dropping a nuclear bomb on a calm lake, triggering a chain reaction that was all-encompassing, much like the Wish Upon a Star. After the initial excitement of the Wish Upon a Star had subsided, the media once again went into a frenzy.

In August, Wish Star delivered a record 30,000 vehicles since its launch. Since its official launch in May, Wish Star has achieved a delivery volume of over 100,000 vehicles in four months.

Wei Lai completed the production ramp-up in just four months, maximizing Xingyuan's production capacity, which instilled fear in other companies.

Now another chrysanthemum has arrived. Although it is a range-extended product, no one dares to underestimate it. The sales of the Weilai L series this year have made BBA and other car companies dare not underestimate it at all, and no longer believe that range-extended vehicles cannot become a trend.

"It's not our fault for engaging in a price war; the tree may wish to remain still, but the wind will not cease."

Li Xiang, who is based at the headquarters in Ningbo, and the core members of the L series team watched the entire live broadcast. Everyone looked solemn. The configuration and price of the new X7 will definitely have a very serious impact on the L1.

The request Wei Lai received was to be more restrained, but even without such a request, they had no plans to engage in a price war. However, no one expected that Seres and Chrysanthemum would price the new X7 at 24.98 yuan and make so many upgrades.

“We need to develop new strategies to deal with this. Sales of L1 will definitely be greatly affected, and even sales of L6 will be affected.”

A direct price war is definitely not an option, as it would leave WILRA in a difficult position and risk collapsing its entire product line. As the current leader in the range-extended electric vehicle market, WILRA certainly cannot make such a decision.

"Regarding rights and interests, we must speed up the OTA updates. I will communicate with the intelligent driving department about this."

Li Xiang's expression was also much more serious than before. In his several clashes with Ju Hua and Yu Da Zui, he had long realized how troublesome Ju Hua and Yu Da Zui were. He had been keeping a close eye on the release of the new X7 and had never underestimated it.

The starting price of a major model is always a top secret for automakers. It's impossible for them to know this. For example, only three to five people knew the starting price of a major model before its release.

For some car models, even before they are released, only the owner and the two of them know the starting price.

I expected this model to be cheaper, but I didn't expect it to be this much cheaper, a full 40,000 yuan price reduction. That's really a huge cut, it seems like the government is under a lot of pressure.

The 3200 vehicles delivered in August represent the lowest point in Seres' sales this year, with a total annual delivery volume of only 4.25 vehicles. To turn the tide, the four best-selling months of the year could determine Seres' fate.

The L series is expected to deliver 300,000 vehicles this year. As of August, the total delivery volume has exceeded 200,000 vehicles, achieving 69.39% of the delivery target. The target of 300,000 vehicles is no longer a problem.

If the delivery is completed smoothly as expected, Weilai can be more composed in its response measures.

The X7 received over 20,000 orders in just four hours after the launch event, and the topic of its comprehensive comparison with other products also sparked a nationwide discussion.

Users who support Weilai believe that Weilai understands family users better, is unbeatable in terms of space, comfort and product definition, and is not inferior to Chrysanthemum in terms of intelligence and product quality.

Those who support Chrysanthemum believe that with Chrysanthemum's technology, they can do better in areas such as intelligent driving and cockpits, and that the improved mechanical quality makes their products more comprehensive. The two groups of fans are arguing endlessly on various platforms, generating a lot of traffic.

How Wei Lai should respond has also become a hot topic of discussion.

"You see, benchmarking doesn't affect us much; in fact, we've all benefited from it."

The chrysanthemum's immense appeal, along with the overall benchmarking, has brought Weilai a huge amount of traffic and buzz. Given Weilai's fan base and its massive sales this year, it is unlikely to have a significant impact on the Weilai brand.

"To compete with Chrysanthemum, besides maintaining our advantages, the only thing we need to do is prove that our intelligent driving capabilities are no weaker than theirs."

Tan Jincheng's call for legislation on intelligent driving in March has yet to see any action. Tan Jincheng can understand this to some extent, because once the legislation is formally enacted, most car companies will be out of business.

When faced with absolute interests, some things can be given up.

For real legislation to be enacted, either most companies' technologies must be mature, or a landmark event must occur that forces the legislative process to accelerate.

In response to the impact of the new X7, Weilai's measures were also very direct. Although there was no direct price reduction, terminal stores have launched cash discounts and insurance subsidies for car purchases. In different regions, the discounts can generally be maintained at 20,000 to 30,000 yuan.

In addition, offering limited-time free color upgrades, free charging stations, and bonus points enhances the overall cost-effectiveness of the models and attracts hesitant customers. For car buyers in the 30 yuan price range, the allure of price reductions is not significantly different from the improvement in quality.

In terms of marketing rhetoric, there have also been improvements on the sales side. In addition to strengthening the product advantages of the Weilai L series, the reliability of the Weilai brand has also been emphasized. Thanks to the huge success of Xingyuan, Weilai's brand awareness has been enhanced like never before.

In terms of brand power, even Chrysanthemum would need some time to directly compete with Weilai. Moreover, Chrysanthemum has explicitly prohibited mentioning the Chrysanthemum brand in its advertising. Compared to Weilai, Seres' brand power is simply not enough.

The decisive move in terms of pricing and rights has helped stabilize the company's core customer base. However, from a long-term strategic perspective, it is still necessary to adhere to the core strategy of serving family users.

"There's no need to panic; we just need to do our best."

Given Weilai's brand strength, it's only natural that its products are more expensive than those from Belis. Offering discounts is more about providing psychological comfort to consumers and letting them know that Weilai is sincere.

If other companies offer discounts and you don't, consumers will feel uneasy. But price wars are only temporary; product strength is the key.

"Accelerate OTA upgrades, deliver on our software promises, and don't let consumers feel that we're just making empty promises."

The early sales of the Chrysanthemum model were mediocre, and the Seres was popular for less than a year before it "cooled down." One of the reasons was that the promises made regarding software and hardware could not be fulfilled. It was impossible for consumers not to complain after repeatedly making empty promises.

Wei Lai must deliver on its initial promises regarding the speed and coverage of NOA (Noise, Arrival, and Autopilot) in the city as quickly as possible. When two companies are performing similarly in the field of intelligent assisted driving, the company with stronger strength, brand power, and product capabilities will have nothing to fear in market competition. Li Xiang nodded: "That's true. If you make too many promises, people won't believe you anymore. But we also need to release some information about new products to the market in advance."

"Is it the MPV you mentioned?"

The entry of models like the JK009, Voyah Dreamer, and Denza D9, along with the upcoming Xiaopeng X9, has gradually transformed the pure electric MPV market, which was originally a niche market, into one of the mainstream markets.

These models are selling very well, and the Xiaopeng X9 is also attracting a lot of attention. When will Weilai launch a pure electric MPV? This is also a question that is frequently asked.

"Yes, MPVs, are they going to be released ahead of schedule?"

In fact, there have always been MPV design plans in Weilai's product portfolio. Weilai has plans for niche models such as MPVs and station wagons. As for when they will be released, it depends on the specific market changes.

The MPV market has long been defined by models such as the Buick GL8 and Toyota Alphard, with its core application being business reception. However, with the emergence of pure electric MPVs, there has been a trend of shifting from business and luxury attributes to technology and family use.

In Tan Jincheng's opinion, this thing is really ugly. He originally didn't want to launch it, but since the market has been cultivated, he might as well launch it.

"Alright, let's release it ahead of schedule. This thing is really ugly in my opinion. You guys need to be careful when you're marketing it."

The MPVs from Weilai are also named starting with E, but unlike other models, they can't be made into a complete system, so there's only one model, serving as a supplement to the main model.

Therefore, in terms of internal naming, it should also lean towards EM9, as an electric MPV priced at over 30 yuan is considered high-end.

"It is indeed a bit ugly, it looks a bit like a coffin, but it is actually quite practical for home use. The main reason it was difficult to sell in the past was that it was too expensive."

"Well, so we need to try to avoid associating the color with coffins, otherwise it will be a laughing stock."

The lessons learned from Iveco's experience are something that must be considered in the marketing process. In traditional Chinese culture, people are still quite averse to this idea; a poorly designed MPV can easily be associated with coffins.

"Okay, I'll be extra careful."

Even before the new X7 was officially delivered, it boosted Seres' sales. In September, Seres achieved its highest delivery volume of the year, 9000 vehicles, and the cumulative orders for the new X7 exceeded 60,000 vehicles.

This is an absolute bestseller!
"Old Yu has finally gotten his revenge."

During the press conference, the X7 sold very well, and Tan Jincheng and Li Xiang both forwarded the official announcement of the results on Weibo to congratulate the company. Based on the increase in Seres' sales, the sales of the Weilai L series were also boosted.

In September, the Weilai L series achieved a record-breaking 36,000 deliveries, bringing it closer to becoming the first luxury brand in China to deliver more than 40,000 vehicles in a single month.

"October should be around, and our orders and production capacity are currently maintaining a good upward trend."

The peak season for deliveries is September and October, but the real deliveries happen in October, with October's delivery volume often exceeding that of September. When Da Zui called to express his gratitude, he also inquired about the performance of the L series.

"That's good, this is a win-win situation for us."

When two directly competing companies both experience growth, other automakers will naturally be affected. The pricing of the new X7 directly encroaches on the core territory of traditional joint venture gasoline SUVs, such as the Volkswagen Tiguan L and Toyota Highlander.

In the era of rapid development of new energy vehicles, it is always the traditional fuel vehicle manufacturers that suffer, and the helplessness of traditional giants in the transformation to electrification is becoming more and more prominent.

Dubbed by netizens as the ultimate showdown between Wei Lai and Chrysanthemum, the interaction between the two companies resulted in both benefiting, greatly easing the tension between their fans.

"It's a win-win situation, but you've won the most. Let's make it clear that from now on, we can benchmark against each other, but please don't slander us."

The success of the new X7 can be considered Yu Dazui's "vindication work". Yu Dazui, who has been questioned both inside and outside, has proved the correctness of his strategic vision and decision-making, and quelled all controversies with the results.

It remains to be seen whether the HI mode or the Smart Selection mode will ultimately prevail, but at least Yu Dazui's prestige and influence within the company have reached their peak, and his personal brand has also reached its zenith.

Yu Dazui does love to brag, but if he can actually deliver on his boasts every time, then you have to admire him.

"Sure, sure, sure."

Tan Jincheng personally supported this interaction with Weilai, and the comprehensive benchmarking was all based on one premise: that one could not promote one's own company by discrediting competitors. This applies to both Seres and Weilai.

Both parties must agree on marketing terminology, at least in official settings. This is Tan Jincheng's bottom line; otherwise, he will not cooperate.

He's had enough of the endless flame wars and fan rivalries in the mobile phone industry. In today's online environment, such rivalry is actually consuming a lot of a company's marketing budget.

Because they are direct competitors, and given their previous clashes, the antagonism between Seres fans and Chrysanthemum fans is quite severe. This year, with Seres' sales being poor and the L series making rapid progress, this antagonism has become even more intense.

In some situations, Tan Jincheng was unwilling to see this confrontational sentiment. He just wanted to quietly sell cars, reduce unnecessary public relations expenses, improve the product's reputation, and sell it all over the world.

This collaboration is an experiment for both parties. Seres and Big Mouth urgently need sales to improve their current predicament. They are also afraid that Wei Lai will try his best to block them. If Wei Lai really does block them at all costs, they will be in big trouble.

Just look at Nezha. Zhou Hongyi originally wanted to ride on Wei Lai's popularity, but without prior communication, Tan Jincheng didn't give her any face and directly rejected her, causing their company's stock price to fall for six consecutive months.

In September, 360's decline continued to widen, and news of Nezha's layoffs spread wider and wider, and was confirmed in some regions. According to industry sources, Nezha really couldn't hold on this time, and large-scale layoffs were indeed happening.

Tan Jincheng's ruthless public denial and his use of Star Wish to block BYD made everyone realize that this young man was not as easy to talk to as he seemed. It's not that you can't try to ride on their coattails, but you have to communicate with him properly, otherwise you never know what he might do.

As for Weilai, its major moves this year have thoroughly crushed a host of traditional fuel vehicle companies and emerging small and medium-sized enterprises, putting both the car companies themselves and the local governments behind them under considerable pressure.

When this feedback reaches Wei Lai, although it is a normal market behavior, it is also very stressful, so he also needs friends, and Da Zui, or the chrysanthemum he represents, is a good match.

As long as the two fan groups are not at odds, Weilai and Juhua can actually become good partners. Apart from direct competition in range-extended electric vehicles, the two companies do not have much overlap in their businesses.

Whether it's the HI mode or the Smart Selection mode, Chrysanthemum mainly chooses state-owned enterprises as its partners. Although Weilai has made some attempts in this regard, it mainly chooses to cooperate with private enterprises.

It remains to be seen how the Geely Galaxy E8, this collaborative model, will perform after its launch. If it doesn't perform well, then there's no point in going through all this trouble.

Both parties have opportunities for in-depth cooperation in fields such as chips, data, and electric power technologies. They can act as suppliers to each other. As long as the opposing sentiments among fans are eased, they can definitely grow stronger together.

In the current situation where Wei Lai has "offended" a large number of companies, forming alliances and strategic alliances with Chrysanthemum and Big Mouth, which can attract a lot of firepower, is a good choice.

"For Mr. Yu, in the current situation, he doesn't really have many options."

The usually outspoken and outspoken man was surprisingly restrained when comparing Weilai's products, which inevitably drew ridicule from onlookers. However, those in the know understood that this choice was the best for him.

Chrysanthemum is very strong, but in the automotive field, the terrifying pressure that Wei Lai has shown this year is something no company dares to underestimate, let alone a company like Da Zui that doesn't have full support internally.

If the US were to implement a comprehensive price reduction on its high-end models as it did last year, even if the new X7 series demonstrates excellent product capabilities, it would still be severely impacted.

In 2023, range-extended electric vehicles are all the rage, and users only trust Weilai.

"That's right. Besides product strategy, President Tan has been openly and subtly indicating that Weilai is willing to lower the price of cars. Price wars are their specialty."

It was indeed Wei Lai's forte. Right now, it's the peak season for the car market, and almost all car companies are keeping an eye on Wei Lai's promotional policies, fearing that they might launch a surprise attack like Xingyuan did last time, catching everyone off guard.

During this peak promotional season, Weilai has indeed offered a lot of discounts, including the Exeed S01 series. The Exeed S01, which has entered a stable period, is a phenomenal model with monthly sales stabilizing at around 01 units, greatly squeezing the market share of the BYD Qin series.

With 40 units sold on Exeed, 30 units sold on Wish, and several best-selling models ranging from 10 to 20 units, the entire Weilai system is now in demand. Everyone wants to see where Weilai's limits are this year.

Other automakers may have a slow season this year, but Weilai has no such thing as a slow season all year round. As of September this year, the total sales of Weilai's new energy vehicles have exceeded 200 million units, with overseas sales accounting for 10% of the total sales. This achievement is truly terrifying.

(End of this chapter)