2003: Starting with Foreign Trade

Chapter 771 Innovation at the Beijing Auto Show
"Uncle Wang, that's a ruthless move of yours, completely bypassing the privilege of the little life."

Haha, not bad, right?

The boatman said that, but he was actually quite pleased with himself. Bypassing patents had always been one of his specialties.

At the BYD booth at the Beijing Auto Show, Tan Jincheng appeared with a group of senior executives including Zhang Yong, Yu Liguo, and Chris Thomas. The booth was surrounded by a large number of reporters, whose flashes were constantly going off.

Influenced by Tan Jincheng, car company executives are now much more approachable. Several executives attended the Beijing Auto Show in person, whereas Brother Boatman had never appeared at a car show before.

He came this time too, but more than anything, he wanted to support Qin. The entire BYD team still has high hopes for Qin.

When a group of senior executives from Weilai Auto came to the BYD booth, Brother Boatman was quite happy. The young generation of entrepreneurs, who are highly respected by the public, still gave him face.

"It's really good, much better than the old F3DM."

One generation of DM, one generation of Qin. The so-called DM means dual-mode, which can be both gasoline and electric. By bypassing the Japanese gasoline hybrid patent, BYD brought the concept of plug-in hybrid to the mainstream market.

Since the F3DM was officially launched in 2008, BYD has been promoting the DM concept, but at the time it was of little use and consumers didn't care about its meaning.

Consumers see that the F3 is tens of thousands more expensive than the gasoline version, even with subsidies, it's still much more expensive, and there's nowhere to charge it. It's completely pointless, so it hasn't sold many units since it was launched.

Before the withdrawal from the grid incident, Dizi made a bold statement that they were the leaders in new energy technology, aiming to become number one in the country in 2015 and number one in the world in 2025, which seemed like a joke at the time.

However, Tan Jincheng knew that this was not a joke in his previous life, but a fact that had actually come true, which only shows that the boatman was truly amazing.

"The F3DM was misguided to some extent, focusing only on fuel efficiency while neglecting performance. So this time, we're pushing the Qin to 298 seconds and 0-100 km/h in 5.9 seconds. I'll send you one later, and you can drive it and compare it to your Aion S."

That's right. How could it possibly compete with Japanese cars in terms of fuel efficiency? But for a car under 20 yuan with a 5.9-second acceleration time, it's still quite flexible. They can just print the number on the back of the car.

"Haha, okay, I'll try it out and see how it compares."

Tan Jincheng laughed. Qin's direct competitor is the Aion S, which is priced between 13.96 and 17.26 yuan. This pricing alone puts a lot of pressure on Dizi.

Qin, on whom high hopes are placed, is, to some extent, seen by Boatman as the future of BYD.

Before last year's Guangzhou Auto Show, Brother Boatman still firmly believed that BYD was absolutely number one in the country in new energy technology, and he didn't pay much attention to the new energy vehicle development of other companies.

For example, at this year's Beijing Auto Show, a total of 88 new energy vehicles were showcased, and automakers of all sizes have invested in the development of new energy vehicles.

It's no exaggeration to say that in the boatman's eyes, everything else was nothing more than worthless dung.

Besides Weilai Automobile.

The appearance of the Aion S and the Weilai ES6 was a huge surprise to Boatman.

"To be honest, before last year, I didn't really take Weilai Auto's new energy vehicle technology seriously, but you really gave me a big surprise."

The ES6's technology is superior to that of the Qin, especially in terms of pure electric vehicles. Both the exterior and interior of the car are extremely refined.

This guy boasted that it was the best SUV under 100 million yuan, but to be honest, it wasn't that exaggerated.

It's much more reliable than their advertised fuel consumption of 1.6L per 100km for the Qin.

Everyone at Dizi, as well as colleagues in the automotive industry, knows that this kind of publicity is a joke.

Furthermore, it seems odd that your new energy vehicle is advertised as having low fuel consumption.

However, he had no choice. The pressure that the Aion S put on Qin was too great. The Aion S, priced between 13.96 yuan and 17.26 yuan, caught BYD completely off guard.

In terms of performance, the Aion S is not as good as the Qin, but it's cheaper.

Brother Boatman knows all too well the advantage of being cheaper when competing in the same class. Moreover, the ES6 demonstrates the technological reserves of Weilai Auto. The fact that the Aion S's performance is not as good as the Qin does not mean that they cannot do it, but that they do not need to.

"Haha, Uncle, do you still dare to say that BYD's technology is the best in the country?"

By never mentioning the ES6, Tan Jincheng could easily understand his thoughts.

The boatman was quite helpless. He couldn't get too familiar with this young man; he didn't give him any face at all. But he wasn't afraid.

"Hehe, why wouldn't we dare? The technological accumulation we've made in the past few years has indeed exceeded my expectations, but we're not afraid. When it comes to technology, we're still number one in the country. You still have a lot to learn."

In two years, BYD has experienced a lot, but its technological accumulation remains profound, and they still have the confidence to say such things.

In the early stages, BYD did underestimate Wei Lai, but BYD is not afraid of having such an opponent.

"Hehe, that's true. We are still very weak and there is a lot we need to learn. Uncle, please don't be stingy and give us more support."

Otherwise, I wouldn't have bought back BYD shares.

BYD's stock performance is still mediocre, but it has rebounded to around HK$20. Currently, Jinqing Investment's holdings of BYD shares are worth about HK$2.5 million, so they have made quite a bit of money.

"Sure, let's exchange ideas; let's go and take a look at your exhibition area."

Before Aion S appeared, there was no competition between Wei Lai and BYD. Wei Lai, including Tan Jincheng, always played the role of a junior and learned from BYD. In fact, there was a lot of communication between the two.

Under Tan Jincheng's management, BYD did indeed help Wei Lai quite a bit. Even though they poached most of their research institutes, Brother Boatman didn't care too much, partly because it was already a fact.

On the other hand, in Brother Boatman's mind, he really didn't take Weilai Automobile seriously. Large state-owned enterprises were all engaged in research, so it wasn't his place to pay special attention to a small car company that had only been established for a few years.

But now, it's time to take this rising star seriously.

Before the Aion S appeared, there was actually no competition between WooLong and BYD. WooLong, which rose to prominence by stepping on the two Japanese SUV giants, has stated in public more than once that the company has no intention of entering the sedan (gasoline car) market.

Although no one believed it, judging from the information released by Wei, the other party had indeed not developed any gasoline-powered cars.

However, no one expected that their first A-class sedan would be a new energy vehicle, and directly compete with the BYD Qin.

"Alright, let's go. Don't worry, Uncle, we'll compete fairly in the market from now on. I definitely won't poach your distributors."

"Can't you just stop making sarcastic remarks? Besides, does the current market environment even need competition?"

"Haha, that's true; Uncle Wang, please, I'll take you there to have a look."

The current market environment for new energy vehicles certainly requires competition.

However, it's fair to say that there's no need for competition. To put it bluntly, the current new energy vehicle market is essentially a B2B market, with sales to the C-end market, which is dominated by end customers, being negligible.

With only a few hundred cars sold a year, what's the point of competition?
In the B-end government procurement sector, competition is more about background. Just like in Ningbo, even if the Aion S is cheaper than the Qin, Ningbo still mainly chooses the Aion S.

Similarly, the same applies to BYD in Shenzhen.

There's no logic to this. You have to go during the bidding process, but you already know the outcome before the bidding even begins. The only competition you'll face is with neutral cities.

This is completely different from the competition in the consumer market. The cheaper Aion S naturally has a more obvious advantage, but in reality, it's not that different.

The competitive tactics used in the end-user market are simply ineffective in government procurement departments that primarily serve the B2B market.

The boatman was somewhat relieved, as this was an opportunity the market had given to BYD Qin.

If they were gasoline-powered cars, and comparable A-class sedans were launched at the same time, the BYD Qin would have absolutely no chance against the Aion S.

"Sigh, to be honest, I've had a run of bad luck these past two years. I originally thought our Qin was invincible among his peers."

"Isn't it better to have a competitor? Monopoly only makes a company lose its ambition."

Why did the CRV and RAV4 suddenly stop selling well this year? Besides the various problems that Japanese brands have encountered in recent years, the essence is that they have monopolized the market for too long and have enjoyed the good times for too long.

The CRV, in particular, has had no competitors in China for several generations, and no amount of negative reviews has affected its sales.

There's nothing consumers can do; they have no choice.

The situation has changed in the last two years. Not only has Yuechi A1 been relentlessly pursuing the market, but German joint ventures and other domestic brands have also emerged one after another, so the situation is naturally different.

The booth for Weilai Auto attracted even more people than that for BYD.

The biennial Beijing International Auto Show, the largest auto show in northern China, is themed "Innovation and Leap Forward" this year, featuring as many as 120 global debut models. BYD Qin had previously held a new car launch event, but this is its first appearance at an auto show.

There were no new car debuts at the Beijing Auto Show, but it's worth mentioning that the entire series showcased at the show can be ordered directly from dealerships.

"what is this?"

Just like when Tan Jincheng went to the BYD booth, the arrival of Boatman Brother also caused a commotion at the scene.

However, the boatman was clearly attracted by a QR code advertising board on site.

"Haha, this is the app we made for Wei Lai, want to try it out?"

Buying a car via an app is common in later generations, but in 2012, it was unprecedented. Even Tesla, which has always been known for its high technology, didn't have an app at that time.

High-end brands cannot rely on government procurement, and in an era when new energy vehicles are not yet widespread, their sales certainly cannot be increased.

Tan Jincheng expects the ES6 to sell around 300 units a year, but he also hopes that Weilai can sell more. He believes that in addition to traditional marketing methods, adding an app could increase ES6 sales.

The ES6, which targets a niche market, comes with its own dedicated app.

It offers features like vehicle display, test drive booking, customization, and ordering, and even provides a dedicated online consultant who can respond promptly during working hours. "Hmm? There's such a thing? I'll have to try it out."

The boatman keenly sensed something was different, and after speaking, he took out his phone to scan the QR code.

QR codes have been around for a long time, but their popularity has been limited. However, with the launch of the scan function by MiTalk and WeChat, the public's understanding of QR codes has become more and more widespread.

The application scenarios are becoming increasingly diverse, and the mobile internet is truly changing people's lifestyles.

Scan the QR code to download.

"Wow, that's pretty direct, they just want to call Lieutenant Li here."

The software, with a blue background and a white icon, was quickly downloaded onto Boatman's iPhone 4S.

"You can register and log in directly with your mobile phone number; of course, you can browse without registering, but some functions will not be available."

Tan Jincheng taught the boatman how to use it. This app was developed in sync with the Weilai ES6 car. From development to release, this small car app took several years.

It has undergone countless internal tests, simulating many scenarios, and has achieved excellent compatibility with mainstream mobile phones on the market today.

To put it bluntly, its functions even surpass many mainstream apps, basically matching Tan Jincheng's impression of a car-specific app.

It includes a built-in car owner community, car model introductions, car purchase information, related products and services, and other small sections. It has a very complete set of functions, and even online payment is available, although the payment methods are somewhat limited.

Currently, online car purchases only support payment methods including bank cards and Orange Pay; Alipay and similar services are not available.

"That's interesting. They even provide a financial solutions calculator."

The boatman was using guest mode. When entering the software in guest mode, the interface was frozen on the car purchase section of the APP page. The dynamic introduction of the ES6, as well as the interface for scheduling test drives and custom orders, occupied the entire phone screen.

It makes you unconsciously scroll down with the instructions, and currently there is only one model, the ES6, so there are no other models.

It may seem a bit monotonous, but isn't it also a form of focus?

"This software is not easy to make."

"It did take some effort. This software was developed in sync with ES6 and uses many advanced technologies in the Internet field."

Both Android and iOS versions are available. Features include test drive booking with stores in various locations, as well as navigation to stores. These utilize the latest map technology, and the financial solutions cover a wider range of areas.

The fan community is like a small internet community, providing a forum for car enthusiasts to communicate.

In addition, there are partnership programs and other sections that can provide channels for suppliers and job seekers.

The technical aspects involved here may not seem like much more than a decade later, but in 2012 or even earlier, they were considered quite advanced technologies, something that many established internet companies couldn't necessarily achieve.

If it weren't for the accumulation of experience in the internet industry chain over the past few years, even if Wei Lai wanted to make this app, he might not have been able to.

At least it cannot achieve the state that Tan Jincheng idealized.

Tan Jincheng aims to make the only car-related app on the market a benchmark, and he's not afraid of other car companies learning from it, because currently, no other car company has the same level of technological reserves as Weilai.

This is the result of the combined efforts of multiple teams, including Weilai, Orange Technology, and Dingding; it truly embodies the "Internet + physical business" operating model.

The boatman gave Tan Jincheng a deep look: "This software is quite amazing. You always manage to come up with something new. Young people are really quick-witted."

After trying it out for a while, the boatman really wanted to log in with his mobile phone number to try out some features that weren't available yet, but he managed to resist the urge. However, he had already decided that he would definitely try it out when he got back.

Especially the car accessories, they can do so many different things, all kinds of accessories, even customized mobile phones, it's really too much.

After just a short time using it, he felt compelled to register as a user, thinking it might actually increase sales significantly.

"Haha, I just thought mobile apps are pretty popular right now, so I thought I'd give it a try. Also, it can give car owners some more interactive space."

The boatman curled his lip, thinking to himself, "You're kidding. With such a smooth software and such complete functions, how could it be something you just casually thought of trying out? On another note, Qin, why don't you try this out too?"
Let's forget about it and talk about it in a few years. The target audience for Qin is different from that of ES6. Didn't you see that Aion S doesn't have one either?

Furthermore, BYD doesn't have much experience in developing internet apps yet.

"Let's go try out your ES6."

While browsing the app, he saw some car owners posting photos of their cars in the car owners' community. He also saw in the order section that he could get the car within two to three weeks after placing the order.

This shows that the technologies announced by Wei Lai on ES6 are quite mature, and he really wants to experience them for himself.

Two to three weeks to pick up the car is already considered very fast.

"Okay, let's give it a try."

The two lingered in the area with the QR code advertising board for a while, attracting a lot of attention, and more and more people were gathering there.

"Alright, everyone, please make way. If you're interested, scan the QR code to download our Weilai APP; of course, you're also welcome to visit our offline stores for a hands-on experience."

Gasoline vehicles and new energy vehicles are sold through two different channels. Gasoline vehicles are sold through dealerships and 4S stores, while new energy vehicles are sold directly, which is the direct sales store model that was established when we cooperated with Tesla.

Compared to the situation where dealers are scrambling to buy gasoline cars, there are very few dealers willing to sell new energy vehicles these days. They can't sell more than a few a year and don't make any money at all.

However, in the gasoline car dealership channel, there will still be some advertising for directly operated stores, such as a lot of APP ads at auto shows.

For Tan Jincheng, it's actually a good thing that distributors don't care, because it allows him to better control the distribution system and manage production through the app and offline appointment system.

Tan Jincheng is quite supportive of the direct-sales model. Although it increases costs, it keeps control over everything from the supply chain to the final distribution channels, allowing for more unified price control.

"You really know how to advertise, you don't even let such a short time pass by."

These days, the only people who can attend an auto show, besides LSPs with DSLR cameras, are pure car enthusiasts. Boatman and Tan Jincheng naturally know each other.

The boatman had downloaded the app out of curiosity, and then got so engrossed in using it for a while that he realized it was just a live car model advertisement.

"Haha, it's a win-win situation. I just went to your booth to help you attract customers."

"That's what you said."

In terms of popularity, Tan Jincheng is indeed much more popular than him. BYD seems to have had a run of bad luck in the past two years, but Wei Lai is thriving.

Tan Jincheng's personal image has become increasingly well-rounded, as evidenced by how many reporters were following him around at this auto show.

Tan Jincheng, who appeared at the BYD booth, was much more popular than when he appeared at the Weilai booth.

Zhang Yong is no longer the clueless tech guy he used to be. With his boss promoting things so enthusiastically lately, he's no exception. The company is taking this Beijing Auto Show very seriously, and several high-level executives have come to attend.

Over the next few days, they will take turns working in the exhibition area.

"Hello everyone, these two QR codes are apps that our company, Weilai Auto, specially developed for the Weilai ES6. The one on the left is the Android version, and the one on the right is the iOS version. You can download and try them out. Those who download the software can go to the service desk to receive a small gift."

"If you have any questions, you can ask our on-site staff."

Zhang Yong warmly greeted the exhibitors lingering at the advertising sign. In fact, many of the young people who came to the event were there specifically for the ES6. Judging from the comments on car communities such as Yiche and Autohome, many car enthusiasts are quite looking forward to the Weilai ES6.

On Baidu Tieba's car forum, the ES6 is still a hot topic of discussion. Although Weilai Auto deployed some online trolls to influence the discussion, there are still quite a few genuine posts discussing it.

Despite years of promotion, new energy vehicles are still not accepted by mainstream consumers, but there are always users who like to try new things in every era.

What Weilai Auto needs to do is to capture as many users as possible who like to try new things and have the purchasing power.

In 2012, those willing to spend 300,000 to 500,000 yuan to buy an electric car for the experience were definitely high-quality users. If you could win them over and provide them with good service, you wouldn't have to worry about not being able to open up the high-end market.

While Tan Jincheng was showing the boatman around, Zhang Yong was enthusiastically promoting the download and installation of the Weilai APP from the billboard.

Considering that data is expensive these days, and many users are reluctant to use data to download apps, the Weilai exhibition area even set up shared Wi-Fi, which shows great attention to detail.

There were just too many people at the event, and the internet speed was really slow. Many impatient exhibitors switched directly to mobile data mode.

The app's support team, located far away in Ningbo, was very excited to see a surge in app downloads today.

After being a standalone app for several years, it's finally a normal app.

On May 1, 2012, the bustling Beijing International Auto Show was coming to an end.

Tan Jincheng, who is currently abroad, received a call from the boatman today.

"Your control system is really well done. And I didn't expect that you even produce your own batteries. It's unbelievable how fast the company has developed."

"Yes, we produce all the batteries ourselves. The pure electric version uses ternary lithium batteries."

"It's only been a few years, I really can't believe it."

Boatman, who has a technical background, experienced the ES6 at the Beijing Auto Show and then got one from Tan Jincheng to take back to his company. After the company's technicians tested it, he learned about the whole car.

The conclusions drawn from this disassembly shocked him and the entire BYD New Energy Vehicle project team.

(End of this chapter)