From knock-off old-man's electric vehicles to industrial giant

Chapter 175: I don't understand, I'm using a range extender!

The conversation between the two emerging CEOs left the executive team standing nearby completely unable to get a word in edgewise.

Each person's expression was subtle.

This isn't the "you fool me, I fool you" kind of thing.

Rather, it was a clash of development philosophies between the two companies.

What's outrageous is that they actually found Xu Yi's words quite appealing.

Battery cost is a very real issue.

The crux of the matter for new energy vehicles lies here: no matter how many features you add, if the battery is subpar, it's all for nothing.

"If we were to deploy lithium iron phosphate batteries, we would definitely give priority to Polestar batteries."

Li Bin thought for a moment and then replied seriously.

NIO did have an internal plan that after the first batch of ternary lithium batteries were deployed, advanced lithium iron phosphate batteries would be used to supplement the 70 kWh batteries.

Since the battery swapping mode cannot use CTP battery-vehicle integration technology, it naturally requires higher energy density.

It now seems that CATL's lithium iron phosphate batteries are completely outmatched by Polestar batteries from Star Auto.

"Over there is our ES8 production concept car, which is scheduled to be launched at the end of December this year and deliveries will begin in 2018. If Mr. Xu is interested, he can attend our nioday then."

Compared to the EP9 supercar, the first-generation ES8 concept car, which made its debut today, is NIO's trump card to the media and the public.

Li Bin led Xu Yi and the group to another booth next to them, his smiles clearly more confident.

When it comes to high-end pure electric new energy vehicles, NIO is a brand that cannot be ignored.

The overall design is rugged, with signature squinting headlights... and features comparable to current luxury gasoline cars costing 600,000 to 700,000 yuan.

“I think we are still quite competitive. The ES8 will be the first mass-produced new energy vehicle in China to be equipped with air suspension. Other chassis configurations are also comparable to German luxury cars, but the price is lower… Mr. Xu, what do you think of high-end new energy vehicles?” After giving his introduction, Li Bin couldn’t help but ask.

Xu Yi's words were very constructive. He reflected on them and found them quite reasonable, but he hadn't yet come up with a way to improve the situation.

Judging from their sales volume, they can be considered one of the top new energy vehicle startups. He was also very interested to hear the founder of Xingchen Motors' views on high-end domestic new energy vehicles.

"The high-end new energy vehicle market has great potential. The industry and consumers need such vehicles, and the country also needs them," Xu Yi said directly.

The huge profit margins and brand premiums of gasoline-powered luxury cars are obvious to all. Models like those from top-tier luxury brands such as BMW, Mercedes-Benz, and Audi can achieve a gross profit margin of over 35% in the 400,000 to 500,000 yuan price range.

This doesn't even include the markups from offline 4S stores, which is already outrageous, representing a technological monopoly advantage for domestic cars.

Now let's look at new energy vehicles.

Even if they go for the high-end market, the huge cost of batteries, coupled with higher specifications, would make it impossible to achieve such high profits.

If all this money goes to foreign investors, not only will the entire domestic car manufacturing industry fail to develop, but the development of higher energy density power batteries and the energy sector will also be difficult to realize.

Even from the consumer's perspective alone.

Only when domestically produced cars rise to prominence will joint venture luxury cars be dethroned, allowing fans of joint venture brands to buy more affordable traditional gasoline-powered luxury cars.

Therefore, fans who like foreign brands should actually support the development of high-end domestic brands.

This is in my best interest.

“However, if high-end products rely solely on the supply chain, this kind of high-end is more like adopting existing products, and it will probably be difficult to achieve true high-end status,” Xu Yi added.

That's a bit harsh.

But Li Bin doesn't mind: "We bring the best parts from around the world to our consumers, and we also have a better localized service system. How can we not be competitive?"

He didn't think there was anything wrong with his thinking. In this era of global supply chains, it's always best to directly use top-tier technology; otherwise, how long would it take to develop it ourselves?
Of course.

It's not that they don't conduct research and development internally, but rather that they do so in a planned and targeted manner.

...

Xu Yi smiled, but didn't answer this time.

Some hardships you only learn from after you've experienced them.

Some necks only start to hurt after they've been trapped in a tight spot.

Let alone chips and such, even the seemingly "high-end" air suspension system from abroad has many hidden dangers when we bring it over.

"Mr. Xu... will Xingchen Motors' next car also be a high-end new energy vehicle?" Li Bin asked indirectly.

Xingchen Motors has repeatedly broken sales records for pure electric vehicles, attracting widespread attention.

There are rumors circulating that Xingchen Automotive's next model will be a high-end new energy vehicle.

From a business perspective, this is quite normal.

Many people are curious about what Xingchen Automotive's next car will look like.

This remains a huge mystery for the market, and even competitors are curious about it.

"Yes, our next car from Starcraft will also be a large SUV equipped with air suspension, and we plan to develop it in-house. If Mr. Li is interested, you can take a look at our air suspension. Like Polestar batteries, it can be supplied to external parties."

Xu Yi nodded; there was nothing to hide.

If it weren't for the tight development cycle, he would have liked to bring Xingchen's extended-range SUV concept car to the auto show to make an appearance.

Once the cost of mass production of air suspension comes down, large-scale shipments will definitely require a group of high-end customers, which is at least a market worth 10 to 20 billion yuan.

At that time, traditional domestic car manufacturers and emerging car manufacturers will be excellent partners.

“This…” Li Bin choked slightly.

He didn't believe that domestically developed air suspension could compare to high-end imported air suspension.

Besides, Xingchen Motors' so-called "domestic air suspension" is still under independent development, so how come they're already promoting it?

That sounds way too far-fetched!
But when he heard Xu Yi say that Xingchen Motors was going to make high-end new energy vehicles, his enthusiasm was rekindled.

"Mr. Xu, since you mentioned making high-end new energy SUVs, I'm actually quite curious about how Xingchen Motors solves the problem of charging and range?"

"Given the current energy density, dual-gun charging may not be convenient enough. For the 300,000 to 400,000 high-end users, without experiencing efficiency and convenience, and without the support of additional brand power, it may be difficult to impress the market."

Li Bin said.

It's as if they've finally found a "loophole" in Xingchen Motors!
Why, despite everyone making new energy vehicles, have we still not seen the emergence of high-end models?

The period from 13 to 15 saw a significant increase in national subsidies.

So many companies have tried, but why don't they dare to build a high-end car?

The reason is quite simple.

This problem is even more critical than the battery itself: the issue of recharging.

To get users to buy high-end new energy vehicles, you first need to solve the problem of energy replenishment.

(End of this chapter)