2003: Starting with Foreign Trade

Chapter 930 "The Real Ride-Hailing War"

Sales volume is not everything for a car company, but it is definitely the most direct data to demonstrate a car company's performance.

"You're really going to solidify your title as the king of ride-hailing services."

At the Guangzhou Auto Show, Boatman Brother circled the all-new Aion S several times and even took it for a test drive. He gritted his teeth and told Tan Jincheng that he was a professional and knew all too well the significance of this new generation model for ride-hailing companies and drivers.

At the same time, this car will also be the biggest competitor of the Qin EV.

If in the early years, when promotion was the main focus and the proportion of pure electric vehicles in commercial vehicles was not high, everyone could still carve out a share of the market by relying on their respective networks, then with the launch of the new generation Aion S, the future depends entirely on market-oriented operations.

No car company has the courage to refuse sales.

From its inception, the Aion series has targeted the B-end ride-hailing market. Unlike BYD's earlier approach of being secretive in order to cater to the C-end user market, Aion is aimed at ride-hailing companies and drivers in terms of design and after-sales service.

BYD initially placed great importance on the Qin series, hoping to develop it into a family sedan that primarily serves the consumer market. However, as more and more Qin series users began using their cars for ride-hailing services, BYD stopped offering it.

The two sides are locked in a fierce battle in the ride-hailing market, each vying for territory.

"Hehe, scared now? Don't try to smear us with your PR."

Since 2017, major cities have gradually begun to restrict the issuance of new license plates for fuel-powered ride-hailing vehicles. This year, the policy promotion efforts have been even stronger. Shenzhen has explicitly stipulated that it will no longer issue transport permits for fuel-powered ride-hailing vehicles, and that all fuel-powered ride-hailing vehicles will be phased out by 2020 at the latest.

Other major cities like Guangzhou, Beijing, and Hangzhou also have similar regulations. The regulations across the country are largely the same, basically requiring all fuel-powered ride-hailing vehicles to be replaced with new energy vehicles by 2020, with some cities even requiring them to be pure electric vehicles.

The ride-hailing war among internet e-commerce companies is long over, but for car manufacturers, the real "ride-hailing war" has just begun.

The Aion series, which has been dedicated to the ride-hailing business, launched its new generation model for this huge market. In fact, although BYD has not explicitly stated it, the launch of the Qin EV is also aimed at this market.

From a market share of less than 20% to 100% in the new energy vehicle market, these two companies, currently the most mature in China's new energy industry, are determined to seize this market. Despite their secretive approach, Dizi's brand image is linked to ride-hailing services, which is absolutely related to their focus on this market segment in their operations.

"You little brat, are you mocking me? Besides, who would dare to criticize you guys? You're always sending people to jail."

Traditional enterprises, even in 2023, still lacked experience in the face of the sudden surge in traffic and the impact of self-media, let alone in 2018, when senior executives and leaders often made quite a few embarrassing mistakes.

Unlike them, Tan Jincheng has an internet background and is more adept at handling such matters. Furthermore, the executives at Weilai regularly participate in training sessions on media relations.

To put it in the parlance of netizens, Boss Tan's executives are so active on the internet that they're like mannequins, some even more so than the "trolls."

Besides nicknames like "Nanshan Invincible" and "Longgang Unrivaled," Beicang Iron Wharf also receives a lot of teasing. Whether it's Weilai, Shanchi, or Chengzi, they all have strong legal capabilities because these companies have a professional and powerful legal team behind them.

To be honest, this isn't exactly a good reputation, but for a company that has grown to this size, neglecting legal matters is simply asking for trouble.

Tan Jincheng mocked Boatman Brother's advertising scandal, while Boatman Brother also subtly criticized Tan Jincheng for his ruthless methods.

Unintentionally, the banter between the two revealed a change in their specific identities. Back when Wei Lai was just starting out, the boatman would never have retorted to Tan Jincheng's teasing, because there was no need to.

Even a few years ago, they wouldn't have thought of talking back. Although both are mature companies in the new energy vehicle industry, there is no direct competition between BYD and WYD. From fuel vehicles to new energy vehicles, apart from the Aion series having some competition in the B-end market, there are not many direct models between the two companies that can form a competitive relationship.

BYD's competitors are Geely and Chery, while Weilai's competitors are Great Wall. The two can be said to be on different tracks. For example, when Weilai chose the location of its 4S store, it was built right next to Great Wall's 4S store.

Where there is the Great Wall, there will be Weilai. Weilai and BYD have been relatively uninvolved for many years. However, since the release of the ET5 and the upgrade of the Aion series, and with the full-scale expansion of the ride-hailing market, Weilai and BYD have become real competitors.

Boatman Brother came specifically to see the new generation Aion S at this Guangzhou Auto Show.

How powerful is the all-new Aion S for ride-hailing services?

Its debut at the Guangzhou Auto Show attracted great attention from ride-hailing companies and consumers engaged in the ride-hailing industry. Didi even considered using this model as the basis for their internal D1 project.

In less than a day, Aion S orders quickly exceeded 10,000. Ride-hailing platforms all valued the ride-hailing operation capabilities of this model. In the eyes of companies such as Didi, if the first two generations of Aion S still catered to the mentality of C-end users, then the new generation of Aion S was designed entirely for ride-hailing.

Stop pretending, show your cards.

Compared to models like the Qin EV and Geometry A, the Aion S, although a pure electric compact sedan, boasts a remarkably well-optimized interior space, designed with passengers in mind.

In addition, this model is the first model built by WILAY based on its own second-generation pure electric platform. This treatment is no less than that of the WILAY series. Because the target customer groups are different, WILAY just has a different angle of promotion, which does not mean that it does not value the Aion series.

In addition, the Aion S also excels in addressing the range issue that drivers care about most. The long-range version boasts a range of 510 kilometers, placing it among the top tier in China. It uses WIL's own ternary lithium battery, which has a density of 170Wh/kg.

In terms of fast charging, it only takes 30 minutes to charge from 30% to 80%. It also boasts many highlights in terms of intelligent features, including an L2 assisted driving system. In addition, the optional version is equipped with the world's first solar panoramic sunroof, which can provide power to the interior of the vehicle.

These three features alone solve all the pain points that ride-hailing drivers have regarding battery life. As a ride-hailing driver, no one wants to earn less money because of issues such as battery life and charging.

"We really should learn from you guys when it comes to understanding user pain points."

After circling the Aion S twice more, the boatman was quite impressed. In terms of L2 assisted driving, Weilai is currently leading the domestic industry. Anyone who has used it knows that Weilai's intelligent driving system is much better in terms of response in all aspects.

In addition, in terms of AI systems, WILAY is much more intelligent than other car companies. Some companies' intelligent voice systems demonstrated at their press conferences even failed completely. Although WILAY's intelligent voice system has flaws, the overall experience is better than that of other OEMs.

The new Aion S, with a pre-sale price of 14 to 16 yuan (after subsidies), caused a huge sensation during the Guangzhou Auto Show. Its excellent operational capabilities quickly gained market recognition.

The Aion S became a hit after receiving tens of thousands of pre-orders during the auto show, and subsequently entered the operation catalogs of ride-hailing services in many cities.

"We're overwhelmed, overwhelmed, orders are pouring in, but our C-end user orders are less than 30%."

Production manager Zhang Li has been looking radiant lately, and the reason behind that is something everyone knows.

After resigning from all her positions at Great Wall, Wang Fengying stayed in Baoding for a few days before packing her bags and quietly arriving in Ningbo. She has been keeping a low profile lately, while also helping Tan Jincheng with some matters related to Yuechi Company.

She's gradually getting into her role as Wei Lai; of course, there hasn't been an official announcement yet, and the official announcement is scheduled for January 1, 2019.

However, the news could no longer be suppressed. Wang Fengying appeared in Ningbo and was also spotted at the headquarters of Weilai by many employees. Tan Jincheng only issued a gag order to senior executives who knew the situation, but did not issue a gag order to all employees.

The frontline employees might not all know Wang Fengying, but Zhang Li and his group do. She's a woman of similar age who's always by Manager Zhang's side, and she acts quite intimately with him. Anyone with a little common sense can guess who she is.

The news initially circulated on the internal work software of Weilai, and was gradually carried by employees to social media such as Weibo. In the past few days, Weilai's external departments have received many inquiries from the media, but they have all been turned away on the grounds of ignorance.

In reality, these people were indeed unaware of the situation. Unlike the previous high-profile actions of the executives, Wei Lai chose to handle the matter discreetly this time. Wang Fengying only had a meal at Tan Jincheng's house on the day she arrived in Ningbo.

Aside from her husband Zhang Li, the only other people in the know who were staying in Ningbo attended the dinner; she was really keeping a low profile.

Wang Fengying had no complaints about the arrangement; in fact, she was quite satisfied. Neither she nor her husband were particularly high-profile people. Tan Jincheng noticed this after bringing Zhang Li to several events.

That's good too. A company can't be full of "show-offs" like him and Li Xiang. There always needs to be some low-key and pragmatic executives.

"A surge in orders is a good thing, but we must also pay attention to quality and vehicle quality control. The safety of taxis should actually be more stringent than that of private cars. This is a public transportation tool, and I don't want, or rather, I should try to avoid, the kind of thing that happened to BYD back then."

When it comes to electric taxis, BYD can be considered a pioneer. Their E6 model was put into use in Shenzhen's taxi industry very early on. During BYD's most unlucky years, the E6 was involved in a very serious accident.

The collision between the two vehicles resulted in the deaths of the driver and two passengers in the E6 taxi, raising serious questions from the public about the safety performance of electric taxis. This is a classic case of misfortunes never coming singly.

During those years, BYD was experiencing a series of problems, including distributors leaving the network, frequent quality issues, a sharp decline in revenue for BYD's electronics division due to the failed transformation of traditional mobile phone manufacturers such as Nokia, and anti-dumping measures against photovoltaic products in Europe.

In other words, after a public investigation by all parties, that major accident was ultimately proven to be unrelated to BYD's batteries. Otherwise, the promotion of electric vehicles might have been delayed by several years, which would have been a fatal blow to BYD, which had been heavily investing in electrification while its traditional business was declining.

If battery safety issues had indeed been proven at the time, leading to a delay or reduction in the rollout of electric vehicles, it's uncertain whether Dizi could have survived. In truth, Dizi truly pulled through thanks to the sheer grit of Shenzhen authorities.

"President Tan is really quite clear-headed."

Wang Fengying smiled happily. Since arriving in Ningbo, she has smiled much more often. On the one hand, her work has become much easier for the time being, which is something she hasn't experienced in many years. On the other hand, being able to reunite with her family has also made her very happy.

"This is absolutely necessary. When it comes to public safety, there are no small matters. We can't sacrifice quality for the sake of sales."

Within Weilai, the Aion series may not use the most cutting-edge technology, but it is definitely Weilai's most mature technology. Weilai never skimps on the materials and safety performance testing, and will not neglect them just because this thing is used as a ride-hailing vehicle.

In reality, if consumers don't care too much about Aion's image as a ride-hailing vehicle, and instead buy a car with good space optimization, performance, and intelligent driving technology as a family car, it's actually very cost-effective.

"As for the fact that only 30% of C-end users are consumers, to be honest, I am already very satisfied with this. With such a ride-hailing image for the Aion series, it would be a bit greedy to expect C-end consumers to buy it without reservation."

Whether it's an electric car or a new energy vehicle, people consider appearances when buying a car. Few people choose a model solely based on practicality and their own and their family's needs, or at least not entirely.

Even if someone has achieved his social status, he will still consider these factors when actually buying something, not just a car.

"Yes, we really can't ask for more. We can offer some guidance, but whether consumers accept it is up to them."

"We can't force this; let's work with big companies first."

The Aion S, which focuses on long range and customized routes for ride-hailing services, targets large clients, and serving these clients is its primary goal. Currently, ride-hailing platforms such as Weiling Mobility and Didi have expressed interest in making large-scale purchases.

In addition, taxi companies in cities such as Hangzhou, Ningbo, Guangzhou, and Luzhou have begun negotiating purchase contracts with Weilai due to their need to replace their vehicles with fuel-powered ones.

In the process of replacing fuel-powered taxis with new energy taxis, taxi companies in major cities are the key targets for Weilai's efforts, and also the key to whether the sales of the Aion series can be improved.

"I'll leave the taxi company stuff to you, Mr. Zhang. You have a lot of work to do in 2019. How many cities you can conquer depends on your silver tongue."

CEO Zhang Yong, who has extensive experience in B2B sales, is the top person in charge of the Aion series. This alone shows how much importance Wei Lai attaches to the Aion series, as the company's second-in-command is responsible for a new energy brand.

"Haha, I hope I won't let the boss down."

Zhang Yong was also very happy with the surge in orders, as this would make his task much easier. Taking over the cities within Wei Lai's sphere of influence, such as Hangzhou, Ningbo, Luzhou, and Changzhou, would be a foregone conclusion.

Weiling Mobility is its own car rental company, while Didi is Weiling's strategic partner in the ride-hailing field. Weiling also helped them develop their internal D1 project. However, Didi is facing many troubles this year and does not have the energy to manufacture cars themselves for the time being.

2018 was a year of contrasting fortunes for Didi. It made great strides in internationalization and diversification, becoming a formidable competitor to Uber on the international stage. Meanwhile, it provoked Meituan through its food delivery service, causing Wang Xin (Didi's founder) considerable anxiety for a period of time.

However, in Tan Jincheng's view, Chen Wei's actions were more of a revenge against Wang Xin for taking his advice and then starting his own business without a word, and even launching a shared bicycle service, intending to truly solve the "last three kilometers" problem.

In terms of business segments, Didi has performed very well in both its main business and its side businesses. When facing the encirclement and suppression of traditional car companies, Didi also countered by reaching cooperation agreements with BAIC and Weilai.

The D1 project was created for this purpose, but Didi has fallen into a huge crisis in terms of social issues such as safety and public opinion. The Zhengzhou flight attendant incident in May and the Yueqing girl incident in August directly led to the suspension of Didi's hitchhiking service for rectification.

A series of safety incidents have embroiled Didi in a crisis, leading to the most concentrated period of app uninstallation and invoicing in its history. It has also faced a crackdown from regulators and the suspension of many of its businesses, leaving Didi overwhelmed and with no energy to pursue the D1 project.

In fact, Tan Jincheng had heard about these safety incidents in his previous life. He had reminded the two founders of Kuaiche at the time, and Chen Weixin and Lü Chuanwei also agreed with Tan Jincheng's suggestions regarding safety services.

When Tan Jincheng was the major shareholder, Didi Express did a good job in terms of safety. Some vehicles that did not meet the standards due to technical reasons were included in the subsequent update plan. Unfortunately, in the ride-hailing war, due to the game of interests among various parties, Didi's management ultimately prevailed.

These operational strategies from the former Didi Express executives have been shelved. If it weren't for the major public relations crisis this year, they probably wouldn't have been brought up again. Didi's losses are simply too great, and management and major investors are clearly unwilling to increase costs further.

According to its valuation, Didi is currently valued at $500 billion, but due to the suspension of its core business due to the public opinion crisis, Didi's daily order volume has decreased by 20%. It is estimated that Didi's losses this year should be more than 100 billion yuan.

If we calculate from 2012, when Didi was first established, Didi has now been around for six years. In those six years, it has burned through so much money, achieved absolute industry leadership, and its market position is unshakeable, yet it still manages to lose more than 100 billion yuan.

At this point, it would be a miracle if investors' confidence didn't waver. In fact, 2018 was a watershed year for Didi. The series of safety incidents not only made regulators pay more and more attention, but also damaged its brand reputation.

While traditional car rental companies, Gaode Taxi, and the T3 Alliance currently under construction may not directly impact Didi's industry position, these potential competitors have put considerable pressure on Didi.

Chen Weixin, who was already semi-retired, talked about this with Tan Jincheng when he passed through Ningbo one day. He expressed some regret that Didi's management did not pay attention to safety, and that such a good situation was ruined.

Tan Jincheng told him that even if their original team were to manage Didi's affairs, the final outcome would be the same. From 2012 to 2018, Didi's total financing amounted to approximately 1400 billion yuan!

1400 billion yuan! A ride-hailing platform has raised so much money but still hasn't turned a profit. Even Li Bing, who is known as a master of burning money, is a primary school student compared to Didi. After spending so much money from capitalists, they have to give them some explanation.

The company's current state of development was inevitable and cannot be changed by any single founder or management team. Even if it were someone as powerful as Chen Wei, or even someone like Da Ma, Xiao Ma, or Tan Jincheng, it would be difficult for them to completely control the company's direction based on their own will, given the large number of investors with strong backgrounds and resources.

Safety incidents are just the appetizer for Didi; the real trouble will come after the IPO.

"Since Mr. Tan attaches so much importance to safety, let me offer a few suggestions."

Wang Fengying has gradually integrated into the roles of Vice President of Weilai and General Manager of Yuechi. Recently, she has been working closely with Zhang Li to learn a lot about the entire Weilai system.

Even though Tan Jincheng had always controlled the company for ten years, there were still quite a few problems. She understood that Tan Jincheng had invited her to join the company to play the "bad guy." Of course, she didn't mind the role; on the contrary, she was full of fighting spirit for the challenges of working at Weilai.

"Please go ahead, Mr. Wang."

Tan Jincheng smiled and gestured, saying that he was most pleased to see Wang Fengying get into character so quickly, and he was even more satisfied with her attitude of daring to offer suggestions before taking office. This was the effect of bringing in fresh blood.

"First of all, we will follow BYD's example and establish a quality incident accountability system. We have this system ourselves, but it is not strong enough. If a quality incident is considered to be a quality incident, then from the general manager down to the specific person in charge, everyone who is responsible must take responsibility and be dismissed, demoted, or fired."

“If necessary, they can even be prosecuted.”

As expected of an iron lady, she immediately targeted the management. Tan Jincheng did not interrupt her and gestured for her to continue.

"The second point is to streamline the number of factories. If we do not have a competitive advantage in certain parts, we can close the factories and replace them with external parts suppliers. This will improve quality and reduce our operating costs at the same time."

This conclusion was drawn from her continuous analysis of the parts of various models of Weilai. At present, some of Weilai's self-produced parts do not have any technological advantages. Replacing them with parts from external suppliers can improve quality. Although the procurement cost increases, the overall cost is reduced from the perspective of factory operation.

Technically, the boss is only half-baked, but she doesn't believe the other managers didn't see it. They were probably just trying to please the boss, since closing the factory would require massive layoffs and have a significant social impact.

Weilai currently offers an extended warranty of four years or 10 kilometers. However, when the quality of certain parts fails to keep up, it can lead to increased maintenance costs, which can be a significant expense.

Cost reduction and efficiency improvement are problems faced by every company. Optimizing the supply chain to increase profit margins is also a problem faced by major automakers.

"That's good, please continue."

Tan Jincheng's expression remained unchanged, but inwardly he greatly admired Wang Fengying's style. The first blow was aimed at the management, and the second blow was aimed at the parts company. It should be noted that parts account for 50% to 70% of the output value of a complete car.

Competition in the manufacturing industry is essentially a competition of manufacturing capabilities and factories. The most difficult thing for Ford Motor Company to succeed back then was not designing the Model T, but the assembly line manufacturing method.

Wang Fengying's proposal is quite bold. It's not just a matter of shutting down a few factories; it's a transformation of the entire supply chain system.

Especially given the complex economic and political situation at the time, it was remarkable that he dared to make such a suggestion before even officially taking office.

Tan Jincheng was aware of some of the problems, but it was not appropriate for him to raise them directly. He was waiting for an opportunity, and Wang Fengying's bold suggestion was the source of that opportunity.

This money was well spent; I just wonder what other reform plans the Iron Lady has in store.

(End of this chapter)