Rebirth 08: Rise from copycat phones

Chapter 614 The Low-End Hailan Cars That Can't Be Caught Up With Domestically

Shenzhen, seaside villa.

Xi Wanqing lay half-reclined on the sofa, holding her phone and looking at it repeatedly. She tapped on her mother's number several times, but ultimately didn't dial it.

She sat up and said to Xu Shenxue, "I've decided, I won't say anything now, I'll wait until the baby is born!"

Xu Shenxue stepped closer, reached out, and pulled her into his arms: "Perhaps it's not as complicated as you think. This is something we have to face eventually. Dragging it out is disrespectful to the elderly!"

"Sometimes, you should trust my abilities!"

Xi Wanqing shook her head: "No, you don't understand my parents. They... well, they're just a bit traditional."

"Once the baby is born, I'll take him back home. Even if they're unwilling, they'll have to accept him as their grandson!"

Xu Shenxue didn't say anything more. Xi Wanqing wasn't some naive little girl; she had her own ideas and ways of handling things. Since she thought this was better, Xu Shenxue didn't intend to interfere too much.

After all, this is a matter between her and her parents, and it's difficult for him to interfere.

He could only do other things...

"Liuhe Hospital will send a health care team over tomorrow. Don't think it's too much trouble. They'll just be making some daily dietary arrangements to keep you both healthy."

"Then I'll have the logistics department make some adjustments to the other support staff here at home!"

"Regarding work, should we take a break for a while?"

Upon hearing this, Xi Wanqing replied, "I don't need to rest for now. I've only been working at Xinyun for less than two months, and I've already sorted out the team and business in the past two months. It won't be too busy afterward, and I can handle it!"

Xu Shenxue said, "You still need to be careful in the early stages of pregnancy. Don't overexert yourself. It's better to be safe than sorry!"

Xi Wanqing laughed: "I have a group of people serving me every day, what kind of accident could happen!"

Xu Shenxue stopped insisting and said, "Okay!"

Continuing to work can also distract you from being bored and overthinking at home all day. As long as you're not too tired, it won't have any real impact.

However, he would also give Guan Anping from Xinyun a heads-up later, asking him to take care of Xu Shenxue at work and not let him be too overworked.

However, the next morning, when she was about to leave for the company, Xi Wanqing said to Xu Shenxue, "I've thought about it again, and I think it's better to work from home for a while. After all, it's my first pregnancy, so I have to be careful. It'll be more convenient to have a health care team at home!"

Xu Shenxue is now somewhat confused about Xi Wanqing's thoughts.

However, as I said before, he doesn't intend to interfere too much.

Xi Wanqing has always been a person with her own ideas, and he appreciates that about her. He also believes that if he interferes too much and causes her to lose her independent thinking, then Xi Wanqing wouldn't be Xi Wanqing anymore…

With only a pretty face left, Xi Wanqing was no different from the other beautiful women around him.

Two days later, Xu's mother, having learned the news, arrived at the seaside villa. She held Xi Wanqing's hand and talked for a long time. When she learned that Xi Wanqing's parents were still unaware of the situation, she couldn't help but scold her son in front of Xi Wanqing, saying that she had wronged her and that she could come to her anytime if there was anything, and that she would take care of it.

Xu's mother didn't know what to say about her son's behavior with women; to be honest, she didn't really think it was right either...

But to say it's bad... this is her own son. Her son is so outstanding, what's wrong with him having a few more women? As long as those women don't cause trouble, she thinks having a few more grandchildren is quite nice.

Of course, this is also because the women around Xu Shenxue would not cause trouble, let alone bring it to Xu's mother's attention.

Another day passed, and Lin Yaxian also asked Aunt Wang from her family to come and visit Xi Wanqing, bringing a bunch of various tonics. Lin Yaxian also called to invite her to come back to Zhihai Garden to live.

Xi Wanqing politely declined... After she started studying with Xu Shen, she only went there once during the Chinese New Year, and hadn't been back since. She also didn't like to contact the group of women at Zhihai Garden.

She followed Xu Shenxue, but that doesn't mean she had to integrate into Xu Shenxue's group of women...

She'd rather live outside, free and unrestrained. Only a madwoman would go to Zhihai Garden and live a life constantly watching Lin Yaxian's mood, and having to compete with other women for her affections!

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However, for some unknown reason, perhaps it was because working from home made her prone to overthinking, or perhaps the hormones secreted during her pregnancy made Xi Wanqing prone to wild thoughts.

That morning, after watching Xu Shenxue leave for work, she looked back at the empty villa and felt a sudden loneliness and inexplicable sadness. Suddenly, she missed her parents.

She then called her mother.

Her mother quickly sensed something was off about Xi Wanqing's tone on the phone; she seemed to be in a bad mood. After offering a few words of comfort, she subtly probed a bit more.

As a result, Xi Wanqing accidentally revealed that she was in a relationship and pregnant!
Mrs. Xi was taken aback at first, then hurriedly asked, "Really? What kind of person is the boy? What does he do for a living? What's his family like? Do his family know about the pregnancy? When do you plan to get married?"

By the time Xi Wanqing came to her senses, it was too late. In a moment of madness, she had blurted everything out. Now, she could only stammer, "He's a very nice person, he's my colleague... His family knows I'm pregnant, and his mother even came to see me the day before yesterday!"

Mrs. Xi: "This is wonderful news! Why didn't you say so sooner? You just wait!"

Before Xi Wanqing could react, she heard a voice from the other end of the phone: "Old man, buy plane tickets quickly, we're going to Shenzhen now, Qingqing is pregnant!"

Upon hearing this, Xi Wanqing felt like slapping herself... She had clearly planned to tell them after the baby was born, but now the whole plan was ruined.

What will happen if they come over?
After several attempts to persuade her, Xi's mother refused to listen, saying that there were no more tickets available for the morning, but there were tickets available for the afternoon, and she expected to arrive in Shenzhen by evening.

At this point, Xi Wanqing simply gave up and stopped trying to persuade her. She figured, so be it; at worst, she'd get a scolding that night.

When the time comes, I'll use the same tricks I used to use when I was little to coax my parents. I don't believe I can't win them over. After all, they only have me as their daughter, and they love me no matter what.

After hanging up the phone, she called Xu Shenxue again and told him about it. After listening, Xu Shenxue thought for a few seconds and said, "Don't worry, I'll leave work early today and go over there. I'll take care of everything."

Xu Shenxue then called Xiao Chen up: "Wanqing's parents will be returning to Shenzhen this evening. Their flight should arrive at 6:20. Please arrange a car to pick them up!"

Xiao Chen immediately replied, "Yes, Chairman Xu!"

It wouldn't be very convenient for Xu Shenxue to go alone. His travel plans are quite complicated, and he rarely decides to go somewhere on a whim. The main issue is the difficulty in ensuring his security...

But other things still need to be arranged!
Arranging for someone to pick them up is a small precaution... Even without him saying anything, Xiao Chen would take it very seriously and send a small convoy over.

After all, Xi Wanqing's parents didn't know about his relationship with her, and judging from Xi Wanqing's previous words, her parents were highly educated and had relatively traditional ideas. Xi Wanqing was always worried that her parents would have objections.

However, Xu Shenxue's ideas are somewhat different from Xi Wanqing's; different perspectives often lead to different opinions.

Since Xi Wanqing's parents held rather traditional views, then having multiple wives and concubines was also a tradition...

Since they are intellectuals, their minds should be quite sharp, and they should understand how the world actually works...

So he decided to gradually deepen his impression of his mother-in-law, whom he had never met before... and the first step was to start with the small convoy of cars picking her up at the airport.

This way, when Xi Wanqing formally meets her parents, there will be a buffer period, so that her parents will not start scolding or blaming her as soon as they arrive, but will have some reservations about her!
Having reservations makes them more rational and clear-headed, which helps to ease the tension in their family relationships. After instructing the driver, Xiao Chen, Xu Shenxue didn't concern himself with the matter further and continued to focus on his work.

At 11 a.m., Xu Shenxue appeared in the small conference room of Liuhe Investment and held a small meeting with Bao Yongyan and several other management members of Hailan Auto.

The main task is to finalize the annual new model launch event for Hailan Auto next month!
Bao Yongyan said, "At this year's press conference, our main focus was on the application of solid-state batteries in our existing models, especially the four core models: Hailan SLMC, Hailan MEV, Hailan YEV, and Hailan HEV!"

"Last year, due to the limited production capacity of solid-state batteries, we only applied solid-state batteries to the entire range of the Ocean Blue SLC and Ocean Blue SEV luxury models, as well as the Ocean Blue SEC coupe and Ocean Blue SR supercar series!"

"The above four models are all positioned as luxury models, and their production and sales volumes are relatively low, so there is not much pressure to apply solid-state batteries to the entire series!"

"For the four sedan and SUV models that are the best-selling models, we only equip them with solid-state batteries on the high-end models!"

"Last year, among the models equipped with solid-state batteries, the cheapest Hailan YEV sedan cost 400,000 yuan, the Hailan HEV SUV cost 420,000 yuan, the Hailan SLMC cost 560,000 yuan, and the Hailan MEV cost 600,000 yuan."

"This year, our solid-state battery production capacity has increased significantly, which is enough to allow us to use solid-state batteries in more models!"

"Therefore, as planned, we have decided to equip the entire Hailan SLMC mid-to-high-end sedan and Hailan MEV mid-to-high-end SUV series with solid-state batteries!"

"Taking the new entry-level version of the Aqua SLMC this year as an example, it comes standard with L3 level assisted driving, dual front-wheel drive, solid-state battery, and a combined range of 630 kilometers!"

"Although the cost of the battery has increased after equipping it with a solid-state battery, we have saved a lot of costs associated with preventing battery fires. All things considered, the cost of this entry-level model is the same as that of last year's entry-level model, and the overall range has been improved."

"Although the battery capacity remains the same, our solid-state battery is smaller and lighter, and it eliminates the need for the combustion safety protection system of traditional lithium batteries, thereby saving a lot of vehicle weight. The reduction in vehicle weight leads to a significant improvement in overall range!"

"Regarding pricing, the initial domestic price is set at 360,000 yuan. In addition, subsidies for electric vehicles have been significantly reduced, and subsidies in many places have also decreased or been canceled. We predict that the domestic price after subsidies will be around 340,000 yuan!"

"The overall price has increased compared to the post-subsidy prices of the previous two years, but this increase also helps us maintain our gross profit margin while avoiding direct competition with the Hailan YEV, our entry-level model!"

"The Hailan MEV mid-size SUV will also use solid-state batteries across the entire range. Its entry-level L3 assisted driving and front-wheel drive model will be priced at 380,000 yuan, with a combined range of 630 kilometers!"

"The pricing structure for the high-end and flagship models of the two aforementioned vehicles will remain unchanged!"

These two models also represent the widest price range among Hailan Auto's models... The entry-level model starts at 360,000 yuan, while the top-of-the-line model goes directly to 700,000 to 800,000 yuan.

The main difference is between the entry-level model and the top-of-the-line model!
The Hailan SLMC entry-level model features L3 assisted driving, front-wheel drive, and a solid-state battery with a range of 630 kilometers. However, some other functions are somewhat reduced. Moreover, Hailan's impressive 'intelligent active control technology' is not available in the entry-level model. This technology can adjust a series of vehicle controls such as chassis height, tire pressure, power distribution, and braking distribution in a timely manner based on the vehicle's own conditions and road conditions.

It can be simply understood as a vehicle artificial intelligence digital control system based on a large number of sensors.

The reason this system isn't included in entry-level models is because it's actually designed for Level 4 autonomous driving. Using it in regular models would be a waste... and it wouldn't be able to fully utilize the system's powerful digital control capabilities.

The Hailan SLMC flagship version features L4 autonomous driving, four-wheel drive, a large-capacity solid-state battery with a range of up to 1,300 kilometers, intelligent active control technology, and a variety of cutting-edge technology configurations, not to mention a color TV and a large refrigerator.

With such high specifications, the cost is naturally high as well. The cost of that huge solid-state battery alone is over two hundred thousand yuan... Solid-state batteries are very expensive.

In order to meet the requirements of Level 4 autonomous driving, in addition to the Level 4 autonomous driving system itself, an intelligent active control system is also required. Only when these two systems are combined can a complete Level 4 autonomous driving system be achieved. This requires a large number of high-precision and high-performance sensors and computing chips.

These two systems are not cheap either, costing at least tens of thousands of yuan.

Then add in the costs of other traditional hardware components for the vehicle, such as genuine leather seats, top-of-the-line audio systems, and first-class tires.

The cost of this car alone is over 500,000 yuan. Selling it for over 700,000 yuan is actually quite reasonable. The gross profit margin is not as high as outsiders imagine.

In the Aqua SLMC series, the models with the highest gross profit margins are actually the entry-level and mid-range models.

The same situation occurred with the mid-size SUV, the Lavida MEV...

Bao Yongyan continued, "In addition to using solid-state batteries on the top-of-the-line models of the two entry-level models, the Hailan YEV and Hailan HEV, we will also use them on the high-end models, with an estimated price of around 300,000 yuan."

"This year, our goal is to extend the application of solid-state batteries to the price range of over 300,000 yuan, further expand the coverage of solid-state batteries, and boost overall sales!"

"With solid-state batteries appearing in the Hailan YEV and Hailan HEV models priced around 300,000 yuan, we expect a significant increase in sales this year. Perhaps the Hailan brand can achieve global annual sales of 350 vehicles!"

"With the addition of the MITEK brand targeting the North American market and the ELA brand focusing on the mid-to-low-end market, our group's total vehicle sales this year are expected to reach 4.5 million units!"

"And both revenue and profit have reached new highs!"

Xu Shenxue then said, "That's good. This year and in the next few years, our core work at Hailan Auto will still be expanding the production capacity and application of solid-state batteries, and we will strive to achieve full coverage of solid-state batteries in Hailan brand models next year!"

"Starting the year after next, we will supply solid-state batteries to other manufacturers. Currently, major automakers have a very urgent need for solid-state batteries. Many people have already approached me about this, not only in China, but also overseas, especially in the European market, where the pressure is considerable!"

The reason why Hailan Auto was able to smoothly enter the European market was not because Hailan Auto was so great, but because Xu Shenxue made a deal with European conglomerates... But even if there was a deal, they can't just stand by and watch you dominate the market with solid-state batteries and take it all.

There's a limit to using new technologies to seize their market share... They can tolerate it for now, but if this continues for too long, they won't be able to stand it anymore: they can't just watch Hailan Autos take over the European market and then starve to death...

Therefore, the supply of solid-state batteries to European automakers cannot be delayed for too long.

This is also part of the exchange of interests between Xu Shenxue and the European consortium...

This is a special case in Europe, not to mention in China... No matter how amazing Hailan Auto is, it can't use its exclusive solid-state battery technology to snatch up the entire market... How are all the other car companies in China supposed to survive if that happens?
Then, and most importantly, the power battery is expensive, accounting for more than half of the cost of an electric vehicle, and the low-to-mid-range market is too competitive... In the low-end market, nobody cares about your cutting-edge technology; if it's expensive, it won't sell...

For a comprehensive intelligent mobility company like Hailan Auto, which focuses on technology and cutting-edge innovation, it would be more profitable to directly enter the low-end and mid-range markets than to simply sell solid-state batteries!
Moreover, Hailan Auto's ability to compete in the low-to-mid-end market is also lacking. Its sub-brand, Aila, which also targets the low-to-mid-end market, despite having the backing of the powerful Hailan Auto Group—a parent company with abundant talent, capital, technology, and global distribution channels—still can't outsell BYD…

The Ella brand will be lucky to sell 700,000 to 800,000 vehicles globally this year, which is less than half of BYD's sales.

Moreover, it is severely suppressed in China. In the global sales of the Ella brand, the domestic sales account for less than half... This seems abnormal for domestic car manufacturers.

Because it's not just BYD; other domestic electric vehicle manufacturers are also putting immense pressure on Aila Auto... These days, many domestic electric vehicle manufacturers are playing the price-performance ratio game too hard in the 100,000 to 150,000 yuan price range, each one more aggressive than the last.

As a result, Ella Motors couldn't compete... because Ella Motors was constrained by its parent company, and its costs had never actually been able to be reduced.

Mainly because of the reputation of their parent company, they cannot use second- or third-tier spare parts to reduce costs. They also have strict quality control and attach great importance to safety, which ultimately leads to higher overall costs.

It's difficult for Ella Motors to produce mid-to-low-end models if it needs to adhere to the quality and safety standards of its parent company, Hylan Automotive Group...

After all, you get what you pay for when it comes to many things; if you want to use high-quality products, the cost can't be reduced.

The situation with the Ella brand is actually similar to that of Zhiyun Group when it was developing the C series mobile phones. It had too many burdens and couldn't compete with other companies. In the end, Zhiyun Group simply turned the C series into the new Yun brand and operated it independently in order to get rid of the burden and influence of the parent company.

Of course, there are still significant differences between cars and mobile phones. Although the Ella brand is not cost-effective, a considerable number of consumers are still willing to pay tens of thousands of yuan more for Ella cars in exchange for quality and safety.

Regarding Ella's predicament in the low-end market, Xu Shenxue's opinion is: just continue doing it this way. If all else fails, we can stop doing the low-end market and focus on the mid-range market. If we can't compete in the core market of 100,000 to 150,000 yuan, then we can focus on the 150,000 to 200,000 yuan price range!
If you can't compete in the domestic market, go overseas! You have to make full use of your global distribution channels. Other domestic automakers are drooling over Hailan Auto Group's global distribution network...

Hailan Auto has well-established self-operated or cooperative sales channels in dozens of countries around the world. This doesn't even include ordinary car dealers in some small market countries who import cars and then sell them piecemeal.

Ella brand vehicles can also take advantage of this global car sales system to ride the wave and boost sales in overseas markets!

There's no need to fight tooth and nail with those top domestic players in the low-end market... we can't compete with them anyway!
(End of this chapter)