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

Chapter 73 You see… and you’re in a hurry.

"Mr. Xu, sales of the Xingchen 01 and Xingchen 02 have declined over the past month, averaging a decrease of 8,000 units compared to the peak period. Current stable shipments are between 26,000 and 30,000 units..."

Overall, however, our profits have not decreased compared to before; in fact, they have remained the same.

The new factory's lead-acid battery production line has achieved complete self-sufficiency, significantly reducing costs. Combined with previous cost reductions from parts supplied by Shaanxi Automobile Group, total production costs have decreased by 22% compared to before.

Zheng Tie reported.

Originally, Xingchen Motors did not have any reserves of battery technology.

But now, things are very different from before.

Not only does it have a dedicated power battery R&D department, but through its partner Shandong Weineng, it has also gained access to more battery raw material suppliers and downstream manufacturers.

In addition, lead-acid batteries are a traditional type of battery, and their manufacturing process is relatively simple.

The manufacturing process of lead-acid batteries is divided into the following steps: charging, desulfurization, acid filling, liquid filling, molding, and load testing.

The entire production process requires relatively few equipment and materials.

Therefore, they simply expanded the new factory by adding a production line specifically for lead-acid batteries.

To know.

Battery packs already account for a large proportion of the total production cost. Now, with downstream raw material suppliers and its own technology, it is possible to achieve self-production, which greatly reduces this cost.

"However, other manufacturers of electric vehicles for the elderly are now engaging in fierce price reductions and competition. Apart from Leding, many other manufacturers have started to imitate us, directly targeting us in terms of configuration, size, and design..."

Their prices are probably two or three thousand yuan lower than ours.

Zheng Tie continued.

Xingchen Motors entered the market for electric vehicles for the elderly, creating a unique "high-imitation electric vehicle for the elderly" model, and went through several stages of expansion, growth, and explosive growth.

But after the explosive growth period, the growth rate becomes slower.

There are no waves that only rise and never fall.

Their Xingchen Laotoule channel franchisees have expanded significantly compared to before, and through logistics, they can deliver to more distant provinces.

The core issue is still competition.

Since the Ministry of Industry and Information Technology issued relevant policy guidelines, these competitors in the lower-tier markets have gone completely mad, constantly lowering prices and benchmarking configurations in an attempt to seize the remaining lower-tier markets and rural areas.

In such fierce competition, it's truly remarkable that Xingchen has been able to maintain these sales figures!
This is also because they were the first manufacturers to make "high-quality imitation old man's cars", and they still have brand influence and popularity in the lower-tier market.

but.

Judging from the current trend...

If competitors continue to engage in this kind of aggressive competition, their sales may well be affected.

Don't be fooled by the fact that almost all of our internal efforts are currently focused on the Star Mini. Without the strong cash flow from selling electric vehicles for the elderly, where would we get the funds to expand?

……

"Mr. Xu, do you think we should... consider lowering the price?"

Zheng Tie asked.

Their profit margins are much larger now than before, so even if they lower prices by one or two thousand yuan to boost sales, it won't have a significant impact.

But for our competitors, that's a fatal blow!!

Unexpectedly, Xu Yi rejected the suggestion outright.

……

"Look... you're in such a hurry again."

Xu Yi shook his head. "Our competitors have only brought in this much intensity, and they're already thinking about lowering prices. What if this price war continues? Will everyone lose money, or will we really drive down the profit margin to 5%, or even negative profit, until we kill off other manufacturers? And what if new manufacturers join the fray then?"

True.

This "trap strategy" has been very successful in the internet industry.

You can do this in food delivery, software promotion, bike sharing, or power bank businesses.

However, this is not possible in the real manufacturing industry!

"Our competitors lowered the price of electric vehicles for the elderly to 18,000 yuan, and we followed suit... A few months later, when our competitors lowered it to 16,000 yuan, we followed suit again."

What about those mid-range cars that originally cost 20,000 yuan?

"To reiterate, consumers essentially expect to buy a better car at a reasonable price, not just a cheap one."

Xu Yi shrugged. "I've designed several plans for Star 01 and Star 02. You can modify them accordingly."

First, all models will be equipped with a crystal gear shifter and a four-spoke steering wheel.

Secondly, ambient lighting strips should be added to the interior of the car. The lighting strips should be bright and dynamic!
Third, we offer more free paint colors as options, including but not limited to exclusive paint colors for luxury brands, such as Shadow Green, GT Silver, Sky Gray, Guardian Red, and Midnight Blue. Due to our large production volume, we can mass-produce each paint color at low cost.

Fourth, add an optional LCD instrument panel.

Fifth, add optional interior color changes, such as Bordeaux Red and Truffle Brown leather, and make me a low-cost, high-quality replica of each.

......"

"We will not lower prices; instead, we will focus on increasing features and offering better product capabilities to attract consumers."

to be frank.

Previously, in order to reduce costs, the interior of the "high-imitation old man's car" was made of the same mold, and even the paint color was only two colors.

Even so, this groundbreaking design shocked the market, causing competitors to frantically imitate and engage in fierce competition.

Seeing this, Xu Yi could only laugh.

Because these competitors completely failed to grasp the essence of "elderly recreational vehicles" in the lower-tier market!
Why were "high-quality imitation old man's cars" able to replace those outdated "minivans" so quickly?
To put it simply, it's all about that "unique" experience.

Drastic price cuts can attract a segment of the population.

But what people truly want deep down... is more!!
More needs are being met.

do not forget.

The current "high-imitation old man's car" is not yet the complete product design.

It is equipped with an interior exactly like that of luxury cars, including a crystal gear shifter, a four-spoke steering wheel, a more attractive interior, and a wider variety of paint options.

These detailed configurations will not increase costs significantly.

However, it can make up for the only shortcoming of "high-imitation old man's car".

Complete the final evolution.

In other words, it's called "Ghost Fire Old Man's Fun"!

……

"Wow... dynamic ambient lighting plus Bordeaux red interior?! And an exterior in Shadow Green or GT Silver??"

As soon as the words came out.

Everyone was stunned!

I can't even imagine how flashy the car's interior and exterior will look when the actual product is released.

This is fucking...ghost fire too.

But then another thing happened.

It seems like it would be quite exciting to actually produce one?
Think positively.

"A decisive blow... a true decisive blow!"

"The interior and gear shift are not expensive, and the ambient lighting strips are even cheaper. Overall, it's definitely more cost-effective than a price war!"

"Damn, if this is done, what old man could possibly walk after seeing this?"

……

Everyone exclaimed that it was absolutely amazing.

Just mentioning it makes people really curious.

"However... we still have a lot of spare parts in stock. Should we schedule the facelift plan after the inventory is almost used up?"

Zheng Tie couldn't help but speak up.

These configurations are perfectly capable of handling mold customization by downstream manufacturers; in fact, they can even do it themselves.

However, issues on the production side must also be considered.

With such a large production volume, they have to consider inventory and product replacement cycles.

……

(End of this chapter)