2003: Starting with Foreign Trade

Chapter 989 "When Boss Tan gets ruthless, he'll even hit himself"

As Tan Jincheng got into the swing of things, he continued to explain the technical parameters of the Exeed S01 in detail on stage. From the car's appearance to its technical parameters, this A-class sedan was clearly positioned for young users.

Technology and fashion align with Xingtu's positioning, making its target audience of young people a natural fit.

"There's not much to say about the technical specifications. Weilai is really showing its sincerity. They've done an excellent job in terms of vehicle configuration. All that's left is the price."

This time, only the pure electric version was released, and there are only three versions, each with the mainstream configuration in the A-class sedan segment.

Whispers rippled through the room. There weren't many OEM owners present today; most were car reviewers, media representatives, leaders from relevant departments in Ningbo and Shanghai, and some supplier representatives. The only OEM owner attending the press conference was Li Bing and his co-founder Qin Lihong.

Li Bing usually lives in Shanghai. He happened to have time during the New Year's Day holiday. Li Bing's experiences throughout 2020 were quite remarkable on a global scale, and it wouldn't be an exaggeration to describe them as a rollercoaster of emotions.

However, Li Bing was still very successful in the second half of the year. His popularity in China was so high that at its peak it could even rival that of Elon Musk.

Having received financial assistance, Li Bing resolved a series of survival issues, including production capacity and policy. Although the gamble added to his burdens, he no longer had to worry about bankruptcy in the short term.

In terms of delivery, Wenjie delivered 4.37 vehicles in 2020, an increase of 112.6% compared to 2.05 vehicles in 2019, ranking first among new energy vehicle companies in terms of delivery volume, which is very impressive.

Li Bing, who topped the list of emerging electric vehicle manufacturers, deservedly led the pack, outselling Xiaopeng Motors by 1.11 vehicles—a difference equivalent to that of Leapmotor.

That said, Wenjie, Xiaopeng, and Leapmotor, these three new energy vehicle brands, are considered to be part of the "Weilai Group". In 2020, they delivered a total of 8.77 vehicles. Including Weilai itself, the total is close to 50.

This is remarkable on a global scale.

"Based on Mr. Tan's usual style of business, the price of this car should not be particularly high. It is competing with the BYD Qin, the Xiaopeng G3, and even their own Aion S."

Qin Lihong is the co-founder of Wenjie and currently serves as its president. He was speaking quietly with Li Bing through the greenery.

"If that's the case, then Mr. He should be worried."

In the 10 to 15 yuan price range of new energy vehicles, there are basically only a few competitive models on the market. Among them, the Qin EV and Aion S are the most competitive, but these two models are more geared towards the B-end market.

The Xiaopeng G3 is different. The Xingtu brand can be said to have a completely overlapping positioning with the Xiaopeng G3, and it targets the same user group.

"Yes, it all depends on the specific price. It's a good thing that Xiaopeng launched the P7, otherwise their stock price would have collapsed tomorrow."

Li Bing's words were rather tactful. The Xiaopeng G3 is currently priced between 14.98 and 20.39 yuan, targeting the 15 to 20 yuan market segment, and it is selling quite well.

However, if the Exeed S01 is priced lower than the G3, and the two cars are not significantly different in terms of configuration, then users will naturally choose the Exeed S01, which has a higher brand recognition, rather than the G3.

Although he didn't attend the event in person, Wei Lai, who hadn't held a press conference in a long time, did so on New Year's Day 2021. How could his fellow car companies not pay attention? There were quite a few company bosses or their assistants watching the live stream.

At this point, the debate in the live stream about Musk and Tan Jincheng had stopped, and the conversation had shifted to the car's features.

"On paper, this car is in the 20 yuan price range, and it's aiming to enter the market below 20 yuan."

In 2021, the prices of new energy vehicles were still somewhat inflated. The BYD Qin EV also had three versions, priced between 15.58 yuan and 16.98 yuan, while the Qin PLUS EV had four versions, priced between 12.98 yuan and 16.68 yuan.

A few years from now, this will be a car in the 100,000 yuan price range, with even higher configurations.

However, that's how electronic products are; prices change with each era. Back in the day, Nokia and Motorola could sell for seven or eight thousand yuan when the average income was only a thousand yuan.

He Xiaopeng, who is in Guangzhou, is also watching the live broadcast.

He noticed at Exeed's initial brand launch that its positioning overlapped with Xiaopeng's, which is why they quickly launched their second model. With Xiaopeng's current strength, it is still unable to compete head-on with Exeed.

Xiaopeng focuses on intelligent driving, while Weilai is equally good in this area and has a more comprehensive industrial chain. Although both companies previously targeted young users, their markets did not conflict due to differences in vehicle models.

However, after seeing the specifications of the Exeed S01, He Xiaopeng deeply felt the chill in the market.

"The competition is getting fiercer."

He Xiaopeng was not surprised that Weilai was entering the market below 20 yuan. The market below 20 yuan is the largest market for automobile consumption. If Weilai didn't do it, other companies would.

Moreover, more and more car companies will enter this market, and who knows, Tesla might do it one day too.

"Damn it, why aren't you announcing the price anymore? You're talking about other things again."

After introducing the Exeed S01, Tan Jincheng did not directly announce the price. Instead, he went on to introduce the restructured Zhidou and Zhidou's latest model, Rainbow. Like Exeed, Rainbow is also positioned for young users.

Tan Jincheng didn't go into much detail about the technical specifications of the Zhidou Rainbow. It's somewhat laughable to talk about technical specifications and boast about how amazing they are for an A00-class car.

However, within the limited space, the Zhidou Rainbow has made some optimizations in the vehicle design. With a wheelbase of 3000mm * 1510mm * 1630mm and 1953mm, it is slightly larger than the Hongguang MINI overall.

The Hongguang MINI EV has dimensions of 2920mm*1493mm*1621mm and a wheelbase of 1940mm. In terms of interior space, Rainbow Zhidou has also optimized it as much as possible to make the interior space as large as possible.

It also features a 7-inch LCD instrument panel, remote unlocking, rear parking radar, driver's side airbag, tire pressure monitoring, hill start assist, and other functions. The battery is a lithium iron phosphate battery from Jinshidai, with pure electric ranges of 122KM and 170KM under CLTC conditions.

This is similar to the Wuling Hongguang MINI EV; there's no way around it, as the most expensive part of a pure electric vehicle, Zhidou can't afford to be too extravagant with its batteries, after all, this is a model priced under 50,000 yuan.

Controlling costs is Zhidou's top priority. In addition, if the costs become uncontrollable, Zhidou is not concerned about using batteries from other suppliers, as long as the costs can be controlled.

When it comes to promoting Zhidou, Tan Jincheng mainly focuses his marketing efforts on the skin-changing aspect.

"Although Rainbow only offers three models, we provide a variety of options in terms of appearance, just like changing phone cases, giving everyone ample room for personalization. In addition, Zhidou will launch customized services in the future to make everyone's travel more personalized."

"In 2020, Wuling launched the Hongguang MINI EV, a national representative car that is very popular in the consumer market. Its price of less than 50,000 yuan further lowers the threshold for consumers to buy a car."

"A car is a major consumer good, and owning a car is a dream for many people. Wuling has set an example for the market. As a responsible company, Wuling has always been committed to making technology accessible to all."

"Besides supplementing Weilai's product line, the acquisition of Zhidou also reflects the desire to learn from Wuling."

After spouting high-sounding principles, Tan Jincheng couldn't resist a joke: "Of course, that's the high-EQ way of putting it. The low-EQ way of putting it is that Wei Lai also has his eye on the A00-class car market and wants to get a piece of the pie."

This joke drew laughter from the audience. In 2020, Weilai lost its title as the world's number one new energy vehicle company. It is indeed reasonable for them to enter the A00 and A-class sedan markets, boost sales, and regain the world's number one position.

The viewers in the live stream were amused by Tan Jincheng. This richest man was really straightforward. Even He Xiaopeng, who wasn't in a good mood, chuckled.

WIL's product launches have always been quite interesting, combining live events with live broadcasts, which increases interaction and promotes the product effectively. A single live broadcast is comparable to a product launch event.

Many consumers felt compelled to place an order after watching the press conference.

After making a joke, Tan Jincheng said seriously, "Say it or not, whether it's a car worth 5 yuan or 50 yuan, it's a big deal for consumers. Therefore, we attach great importance to safety issues as well."

“Automotive safety has always been Weilai’s core focus. Although Zhidou was acquired by Weilai, since Weilai is operating it, we will treat it as our own main brand and provide guarantees for everyone in terms of safety.”

This is an active endorsement for Zhidou. Zhidou is a regional brand with decent brand awareness in the Yangtze River Delta region, but it's not as well-known nationwide. It can't compete with Wuling, let alone rival brands like Chery and Great Wall.

For A00-class sedans, sales volume is key. There are currently dozens of A00-class sedans on the market, so one more Zhidou won't make a difference, and one less Zhidou won't make a difference either.

There are brands like Wuling that sell over 10 vehicles a year, as well as brands like Chery and Great Wall that sell tens of thousands a year, and even brands that sell a few thousand or a few hundred a year. In terms of price, they are all about the same, so why is there such a big difference?

Actually, it's because of the brand. Compared to other car models, A00-class cars are more brand-conscious.

For a car priced at 50,000 yuan, affordability is the first impression consumers have, and their first reaction is definitely how to ensure safety. The main reason why Wuling can stand out among these models is that its national brand is deeply rooted in people's hearts.

To stand out among dozens of models, relying solely on appearance and technical specifications is not enough, since they are all quite similar. Wei Lai's endorsement is essential for Zhidou to become a "big brand".

"Alright, after talking for so long, I'm sure everyone is a bit tired of listening. I believe that for any car, the price is probably the most important thing for everyone. Let's move on to that part."

After introducing the acquisition process of Zhidou and the launch of the new car, we moved on to the topic that consumers and even OEMs are most concerned about.

Zhidou needs no introduction. We already discussed its price when talking about the technical specifications: 2.79 to 3.99 yuan, three models, multiple skins, and customization services.

All of them are benchmarked against the Wuling Hongguang MINI EV. It seems that the Hongguang MINI EV in 2020 was just an appetizer, and the sales of nearly 13 units were insignificant in 2021.

It seems that Wuling Hongguang MINI EV sold more than 40 units in 2021. This is just one model. Even if each car only made a profit of 100 yuan, that would still be tens of millions of yuan in profit. Moreover, making a profit of only 100 yuan per car is just a marketing tactic.

A small profit is certain, but it's impossible to earn 100 yuan per car. With sales of over 40 vehicles, you could say you've made a fortune.

The surge in A00-class car sales in 2021 was actually predicted by Tan Jincheng before the acquisition of Zhidou, for reasons similar to the surge in two-wheeled electric vehicle sales. The special circumstances will continue for another two years, and the latter two years will be even more dramatic than 2020. Personal travel demand will only increase compared to 2020, with two-wheeled electric vehicles being one aspect of this demand.

Another travel need is for short to medium distances. For young users, A00-class cars under 50,000 yuan are the best choice.

"They're here. Let's see what kind of surprise President Tan has in store for us."

Li Bing straightened up. He wasn't very interested in the Zhidou Rainbow introduction. During that time, he had been chatting with Qin Lihong next to him about Xingtu S01. Wenjie actually also had plans for a sub-brand.

For emerging electric vehicle companies to survive, annual sales of 20 units are a must; this is the minimum standard. However, relying on the pricing of existing models, achieving this level is quite difficult.

Entering the 20 yuan market is something all car companies must do.

"The Exeed S01 515 long-range version has an official price of 12.58 yuan."

"The Exeed S01 620 long-range version is officially priced at 13.58 yuan."

"Extreme S01, 580km long-range Max version, official price 15.98 yuan."

After a brief silence fell over the flashing PowerPoint slides and Tan Jincheng's words, followed by an explosive round of applause, the audience was stunned. Meanwhile, the live stream of the press conference was filled with exclamations of "Holy crap!"

"Holy crap, it's even cheaper than the BYD Qin EV. This is going to be interesting."

"Xiaopeng G3 is finished."

"Haha, when Boss Tan gets ruthless, he'll even hit himself. At this price, the Aion S's title as the king of cost-effectiveness is in jeopardy."

The live stream was extremely active the moment the price was announced. Those who were able to watch the entire live stream of the car launch event included not only casual viewers, but also potential car buyers and knowledgeable individuals.

"Holy crap, this price is too tempting! When can I pre-order?"

Some of the car reviewers at the scene were basically shouting that President Tan was awesome. Li Bing and Qin Lihong exchanged a smile, but there were some indescribable emotions in their eyes. He Xiaopeng, on the other hand, looked a little pale.

It's clear that the Exeed S01 isn't targeting the Xiaopeng G3, but rather directly competing with the BYD Qin EV, currently one of BYD's best-selling pure electric models.

The three versions correspond to the standard version, travel version, and leading version of the Qin EV. In terms of price, the three versions of the Exeed S01 are 30,000 yuan and 10,000 yuan cheaper than the three versions of the BYD.

The first two versions were 30,000 yuan cheaper, while the highest-end version was 10,000 yuan cheaper.

"G3 has become cannon fodder."

"This is truly the king of cost-effectiveness! It's amazing! The key point is that Mr. Tan also revealed plans to launch extended-range versions later."

"If you ask me, we shouldn't bother with the range extender; at this price, it'll definitely sell like hotcakes."

Priced between 12.58 yuan and 15.98 yuan, the series offers a full range of L2 intelligent assisted driving systems in 2021. The basic version has a 51.8 kWh battery, fast charging, and a maximum load capacity of over 2000 kg.

Compared to the two basic versions, the Max version has four more cameras, one millimeter-wave radar, and two more driver assistance chips.

"Compared to the two basic models, the Max version offers the best value for money. Mr. Tan's pricing strategy is very clever; it's designed to drive users towards the Max version."

For car buyers with a budget of 10 yuan, they are likely to choose a BMW. The price difference of only 3.4 yuan is enough to steer the target user group towards the Max version.

Once the price is announced, it's practically an open secret; everyone can see it. That's indeed the pricing strategy. Although they make models in the 10 to 15 yuan price range, increasing the average selling price and boosting revenue is also the company's goal.

"We might really become cannon fodder."

He Xiaopeng watched as the G3 was repeatedly spammed in the live stream and became cannon fodder. He couldn't help but smile bitterly. The moment the price was announced, he knew that Wei Lai was targeting BYD, or rather, Wei Lai didn't take Xiaopeng seriously at all.

However, they are the ones who are most affected.

The G3 used to sell well largely because there were too many ride-hailing services available for similarly priced models like the BYD Qin EV and Aion S, which caused some individual users to have reservations.

Although there are quite a few individual users who buy the Qin EV, it doesn't actually compete much with the G3, and the same goes for the Aion S. The main reason is that the user groups of these two best-selling models are different from those of the G3.

"Your ambitions are far-reaching, Mr. Tan."

A successful entrepreneur has a certain strategic vision. G3 was the first victim, and it's impossible for He Xiaopeng not to feel resentful. The two companies had a good working relationship and were recently discussing joint procurement.

However, he could fully understand Tan Jincheng's intentions. Weilai is a full-stack self-developed industrial chain company that has been reducing its holdings of stocks including Xiaomi recently. According to Tan Jincheng's public statement, ByteDance's engine is expected to raise 500 billion yuan for the research and development of automotive-grade chips.

"Rather than saying Tesla is a competitor of Wynn, it is more accurate to say that BYD is Wynn's biggest competitor."

BYD, which also adopts a full-stack self-developed approach, may not be as popular as Weilai in terms of sales, but its overall technical strength is much stronger than Weilai's, especially in terms of chips. BYD is almost unaffected and can even make a profit.

BYD's total sales of new energy vehicles in 2020 approached 20 units, accounting for 42% of its total sales, making it the traditional automaker with the highest penetration rate of new energy vehicles worldwide.

In terms of transformation, BYD has been more thorough than Wei Lai. The Dynasty series is gradually taking shape, and there is also a new Ocean series. It's only a matter of time before it explodes.

Behind Weilai's seemingly glamorous facade lies a multitude of crises. Its high-end models must contend with the behemoth that is Tesla, while its mass-market models, which are crucial for increasing sales, have a weak foundation.

Currently, Weilai's sales of Volkswagen models still rely on Yuechi cars, mainly gasoline vehicles. In terms of new energy vehicles, its market share in the sub-20 yuan segment is extremely low, with the limited sales mainly coming from the B-end market.

In the high-end market, there's Tesla; in the mid-to-low-end market, there's BYD, as well as Chery, Geely, Great Wall, and others. Breaking through won't be easy.

"Both the Exeed S01 and the Zhidou Rainbow opened for pre-order on February 19th, which is the eighth day of the first lunar month. The delivery date for both is set for April 19th this year. As you can see from the prices, these two models are full of Weilai's sincerity."

"We hope everyone can give us their support. Exeed has already started to be launched in experience stores across the country. If you are interested, you can make an appointment for a test drive at the nearest store."

"Okay, thank you everyone, that concludes today's press conference."

During the two-hour press conference, Tan Jincheng didn't resort to any gimmicks. He explained the price, test drive, and customized services in detail, allowing consumers to understand the model better even without seeing the actual car.

Playing with gimmicks can indeed attract some impulsive consumers, but it also brings a lot of trouble. For newly launched brands, there's no need to rely on the old internet tactics.

After the press conference ended, Li Bing and Qin Lihong walked towards Tan Jincheng. Cai Haoyu had originally wanted to talk to Tan Jincheng again, but seeing this, he decided against it.

He doesn't know much about car culture, but with the large-scale promotion of new energy vehicles in recent years, he knows that Exeed's pricing strategy is indeed very attractive, and his willingness to cooperate with Exeed and Zhidou is growing stronger.

"Let's go back to the company for a meeting first, since President Tan will be staying in Shanghai for a few more days anyway."

Meanwhile, Li Bing and Qin Lihong met Tan Jincheng backstage.

"Thank you both for coming. Otherwise, today's press conference would have been missing something."

The two laughed heartily, and Li Bing said, "It's a good thing you didn't come. With the price of the Exeed S01 out, a lot of people are going to lose sleep. Wouldn't going to the event have just made things difficult for them?"

Everyone knows that the focus of today's press conference is the Exeed S01, not the Zhidou Rainbow.

Tan Jincheng waved his hand: "That's going too far. We don't know how the market will react yet."

In fact, the initial price of the S01 was originally planned to be 115,800 yuan for the basic model. The reason for changing it to 125,800 yuan was not only to compete with the existing BYD Qin EV models, but also to reserve a price reduction space of 10,000 yuan.

If necessary, it can engage in a price war with BYD Qin EV. As for whether this will affect Aion S...

That will definitely happen, but the impact won't be significant. Unlike the BYD Qin EV, the Aion S is a deeply customized ride-hailing vehicle, although it is known as the king of cost-effectiveness in terms of interior space, configuration, and so on.

However, given the current public opinion environment, very few individual consumers have the courage to buy a highly customized ride-hailing vehicle, unless they have a need to become a Didi driver.

On January 4th local time, when the US stock market opened, Xiaopeng Motors' stock price plummeted by 7.46% intraday.

Exeed has not yet gone public, but the first victim has already appeared. As the major shareholder with a 6.2% stake in Xiaopeng Motors, Mr. Tan truly lives up to the words of the onlookers in the live broadcast room.

Based on the current market value of Xiaopeng Motors, Mr. Tan lost 20 billion US dollars in a single day.

"When they get ruthless, they'll even hit themselves."

Exeed also received a lot of attention in the market due to a combination of factors, including the live broadcast of the press conference, netizens' amusement, and the sharp drop in Xiaopeng Motors' stock price.

(End of this chapter)