2003: Starting with Foreign Trade

Chapter 949 He's also an industry leader (Seeking monthly votes!)

"It seems like there's been more rain this year than in previous years."

For the past few days since returning from Shanghai, Ningbo has been experiencing light drizzle and occasional heavy rain. It seems that there isn't this much rain at this time of year.

"Yes, the weather this year does feel a bit different from usual."

The sweltering weather left Zhao Xinyi in no mood to pay attention to why her boss was making such a comment about the weather, so she just gave a perfunctory reply.

"Let's go, since we have some free time now, let's go check out the daycare center and see how the preparations are going."

Zhao Xinyi thought about it and realized that there was really nothing to do this year. Everything that needed to be arranged had been arranged. After returning from Shanghai, Wei Lai focused his publicity and marketing efforts on the three vehicles: ET5, ES3, and L1, with ET5 being the main focus of his marketing.

"Okay, it's good to go out for some fresh air."

Speaking of this nursery, Zhao Xinyi has a lot of feelings. Don't be fooled by its current large scale, complete qualifications, and high-end appearance. Back then, the nursery was just a way to solve the problem of employees in the Flash Factory not being able to take care of their children during the summer vacation.

The initial teachers were all introduced by acquaintances, and the children's play area was simply a designated area in the factory, which was not only rudimentary but also posed certain safety hazards.

However, the employees were already very grateful that this was done back then.

Public service organizations like those under Tan Jincheng's umbrella are generally under ByteDance's umbrella. This is because ByteDance is not a listed company and has ample cash flow, making it easier for them to provide funding approvals for these non-profit organizations.

On the other hand, it is also equivalent to adding a protective shield to itself. From nurseries to its own high schools, the ByteDance Group has invested in many things, and also cooperates with many universities. Mr. Tan, who always likes to talk about education at the Two Sessions, has truly put these into practice.

"By the way, boss, Mr. Chen wants you to help out at Meizu's new product launch on August 8th. I've already arranged the time for you, so please attend. They're under a lot of pressure."

The 5G licenses were officially issued this month, and the biggest feeling is that the 4G network speed is slow.

However, 5G is definitely a hot topic this year. New mobile phones without 5G will not sell well. Meizu usually releases mid-to-low-end phones in the spring to gain market share, and then releases flagship models in the summer to form a product matrix while taking into account the first launch of chips and market competition.

Meizu's Blue series sells quite well due to its cost-effectiveness. The fact that it uses the Qualcomm Snapdragon 730 series in a phone priced around 1000 yuan shows Meizu's sincerity, and consumers are quite receptive to it.

Meizu's Meilan brand series is relatively stable, but the pressure on the Meizu brand itself is indeed very high. In the 2019 mobile phone market, Huawei dominated and all other manufacturers were outmatched. Meizu relied on the Meilan series to maintain sales, but the main brand could not be completely inactive.

Tan Jincheng sighed and said, "Every industry is stressful, and our car industry is no exception. But since you've agreed, I'll attend."

The mobile phone market has entered a period of saturation, and the same is true for the automotive market.

The Tesla Model 3's domestic price of 32.8 yuan is generally considered by end consumers to be higher than expected. Some new energy vehicle founders, like He Xiaopeng, have even publicly stated that the Model 3's price is not competitive.

But what is the reality?
The Tesla Model 3 completed its first order within three minutes of officially opening for pre-orders. Tesla's official website was temporarily paralyzed due to the surge in traffic. Although Tesla did not disclose the specific number of pre-orders, the website crash and media reports of the product's popularity suggest strong market demand.

"Never underestimate Tesla's influence; all companies that underestimate it will ultimately suffer."

Tesla is currently the world's highest-selling new energy vehicle company, but when it comes to the sales champion of a single model, you have to look at Tesla. Some companies or models may not have an advantage in public opinion, but you can always see them on the sales charts.

Like Tesla, Weilai is also a high-end new energy brand, but compared to Tesla, it still lags behind in terms of brand awareness in the current environment. Even with the dramatic shift in public opinion today, Tesla remains a synonym for high-end and is loved by domestic consumers.

After all, when it comes to Tesla, there's Musk. This guy can also build rockets. Just a few days after the price of the domestically produced Model 3 was announced, he sent another rocket into space, creating quite a stir.

Compared to Tesla, Weilai has several other brands besides Weilai, such as Aion and Yuechi, and started with the Yuechi series. Currently, some consumers in the market can accept the high-end image of the Weilai brand because its product strength matches it.

However, for Weilai Auto, a car company that has just celebrated its tenth anniversary, its positioning is mainly in the mid-range market.

When it comes to Weilai Auto, some people still think of the wildly popular Yuechi series and the ubiquitous ride-hailing car Aion. This is indeed an insurmountable hurdle for Weilai.

Tan Jincheng rarely makes sharp comments about competitors or competing products in public. He usually expresses the idea of ​​making progress together. However, he can understand He Xiaopeng's public statement.

Tesla, especially the Model 3, targets a mid-to-high-end consumer group that values ​​technology and driving performance and has a certain level of purchasing power. This is the target group that the Woolai ES6 has just launched.

This user group also includes the higher-end ES8; however, with the launch of models including L1, ET5, ES3 and others, the user profile of Weilai has changed considerably.

That is, in addition to this user group, the Weilai New Energy Vehicle series has successfully entered the family user group, especially the range-extended L1, which has been criticized by various people in the industry. Its precise positioning for family users has made this car very good in terms of sales and reputation in the terminal market.

The early launch of L1 allowed Weilai to successfully enter the field of vision of family users, enriching the user base and giving Tan Jincheng confidence.

Xiaopeng Motors is different. Currently, Xiaopeng Motors only has one model on sale, and its user base largely overlaps with that of the Maodou 3. The localization of the Maodou 3 will have a significant impact on Xiaopeng Motors.

If the only version of Weilai available is from the ES6 and ES8 era, then Tan Jincheng would probably be worried.

"By leveraging the positive word-of-mouth from family users of the Weilai L1, we can further explore the potential of family users of the ET5 and ES3, creating a differentiated competitive advantage with the Maodou 3. In this way, our sales are less likely to be affected."

This is a marketing strategy devised by Wei Lai Shang Xia. It is already cheaper than Maodou 3, so further price reductions are meaningless. In many cases, some products cannot be sold well simply by lowering prices.

Kyoko truly deserves to be called an excellent product manager. The technology of range-extended electric vehicles has existed for a long time, and range-extended electric vehicles can also be described as a form of plug-in hybrid. However, he is the one who really thought of using this technology in new energy vehicles in China.

Despite constant criticism, it's truly a product that everyone who uses it appreciates. With its spacious interior, top-notch design, and standard features like L2 assisted driving across the entire range, the L1 system has truly captured the hearts of family users.

Currently, the Weilai L1 has no real competitors on the market, because it is the only proper range-extended electric vehicle. If we're talking about competitors, besides its own ES8 and Li Bing's M9, the only ones that might be comparable are traditional gasoline vehicles in the 60 RMB price range.

However, both the ES8 and M9 are pure electric vehicles, so strictly speaking, they are not direct competitors. The user groups who choose pure electric vehicles and those who choose range-extended electric vehicles are different.

It has to be said that the L1 has become the main model of WILAY's high-end new energy vehicles. With a starting price of more than 300,000 yuan, the L1 can sell more than 30,000 units every year. This single model can generate nearly 10 billion yuan in revenue for WILAY.

Who wouldn't be confused by these results?
Many of the new energy vehicles from domestic startups are priced quite high, including models from BYD, Geely, and Great Wall. There are actually quite a few new energy vehicles priced above 30 yuan, and they all promote them with great fanfare.

But to be honest, very few of them sold.

Before 2019, new energy vehicles were still in the exploratory stage. A domestic new energy vehicle priced between 300,000 and 500,000 yuan was considered a hit if it could sell 10,000 units a year.

If annual sales can be consistently maintained at over 5000 units, this model can be considered a basic success, allowing for the development of subsequent models. The three new energy vehicles priced above 30 yuan have all been considered very successful models.

The performance of the Weilai L1 since its launch is more than just a success; it's a blockbuster among blockbusters. Of course, Weilai's current annual sales of a single model are definitely not just 30,000 units, but much more.

The home user market segment, which is accessed through L1, is Weilai's biggest advantage in maintaining growth.

"In terms of user demographics, our new energy user demographics are undergoing significant changes, and this is something everyone must be aware of in future marketing and promotion."

Capturing the family user group is a crucial key to generating incremental growth in the new energy vehicle market.

Throughout 2019, Weilai had no plans to launch any new cars. This was mainly because the models available on various tracks were already relatively complete. In the sedan track, which they were not particularly good at before, they had made some progress after the Aion S and ET5 became relatively popular.

Weilai has its own product portfolio in the high-end pure electric, range-extended, and mid-to-low-end pure electric markets, with both sedan and SUV models available. Currently, the only weakness in its product matrix is ​​its MPVs.

Weilai also has its own plans for launching MPV models, but not now. For now, it's about digesting and stabilizing its market share.

Besides the pressure from Tesla's localization in China, Tan Jincheng subconsciously believes that Weilai has another major competitor: Huawei. Huawei's partnership with Xiaokang Motors is, in Tan Jincheng's opinion, the biggest threat to Weilai's sales, even surpassing the threat posed by Tesla. Xiaokang Motors is an automobile manufacturer located in Chongqing, producing the well-known Dongfeng Xiaokang minivan brand, which enjoys a certain level of brand recognition in the minivan market.

He wasn't worried about the cooperation between Chrysanthemum Factory and traditional state-owned enterprises. The internal environment of traditional state-owned enterprises was too complex, and their administrative efficiency was relatively low. At present, it would be difficult for Chrysanthemum Factory to achieve any significant breakthroughs in its cooperation with them.

Xiaokang Motors is different. Although it carries the name of Dongfeng, it is actually a private independent brand like Weilai, and its status in Chongqing is no less than that of Lifan Motors.

The collapse of Lifan, one of the two car brands in Chongqing, was mainly due to internal reasons, while Xiaokang is facing a different predicament. In terms of minivans, Xiaokang's product strength is actually quite good.

However, due to the shrinking market for traditional fuel vehicles and microvans, Xiaokang's minivan business declined rapidly, and both revenue and profit were greatly affected. The company's performance in transitioning to new energy vehicles was also mediocre.

Consumers' impression of Xiaokang Motors is limited to its minivans. In order to make a breakthrough, Xiaokang partnered with Cheung Kong last year to establish the Seres brand. Cheung Kong wanted to verify the feasibility of the smart selection model by cooperating with car manufacturers, while Xiaokang was also eager to obtain financial and technical support. Both parties had their own needs.

Seres is currently in the research and development stage, and the market has not yet seen its potential in the short term. Therefore, the decision by the Japanese automaker to cooperate with such a van company has been met with various doubts and even ridicule.

However, Tan Jincheng knew the potential of Seres, the golden brand of Chrysanthemum, and the marketing ability of Big Mouth. This car company sold hundreds of thousands of vehicles a year, which was priced at around 50 yuan. This single car company revived Xiaokang and achieved revenue of hundreds of billions.

Compared to Tesla, Seres' user base overlaps the most with that of Weilai.

"Currently, our performance across multiple models in the new energy vehicle sector is quite average, and we have a significant advantage. However, everyone should remember that competitors often lurk in the shadows, and they may emerge to challenge your market position when you are relaxed."

"Remember, never underestimate any opponent."

Tan Jincheng fully understands the cooperation model between Chrysanthemum and Xiaokang. Chrysanthemum has the technology but lacks experience in car manufacturing. Moreover, at this point in time, Chrysanthemum does not dare to directly enter the car manufacturing industry. Cooperation with Xiaokang is actually the best option.

On the one hand, Xiaokang Motors is eager to transform and reverse the current predicament of facing bankruptcy. On the other hand, a small car company is more conducive to their control. This is actually the same as when Tan Jincheng chose to start with Yangzi Motors, except that the two chose different cooperation models.

In fact, when Xiaokang encountered difficulties, Shancheng did approach Weilai. Through cooperation and acquisition, Weilai helped Lifan stay afloat for a few years. After a few good years, Lifan Motors allowed Weilai to successfully establish a foothold in the Shancheng area.

However, the various problems that Lifan itself faces are not something that Tan Jincheng, an outsider, can solve. If the car product is not good, it is not good. The brand is also ruined, and sales will only decline step by step, just like Zhongtai Auto.

In this year of overall decline in automobile production and sales, and a severe drop in the market share of domestic brands, brands without core competitiveness will only die faster. In the capital market, Lifan has been listed as a non-performing asset and will basically not be able to find financing again.

Bankruptcy and closure are only a matter of time.

In terms of cooperation style, Tan Jincheng's cooperation approach for near-bankrupt companies with certain assets and things that the government values ​​has always been acquisition-based. This is precisely where he has serious disagreements with the Chongqing government and Xiaokang Automobile.

They would not accept it if both of Shancheng's brand assets were acquired by Wei Lai.

Therefore, the cooperation with Xiaokang came to nothing. At present, the Chongqing government prefers that Weilai can take over and deal with the mess after Lifan officially goes bankrupt and is liquidated. Xiaokang can still be saved, while Lifan has been completely abandoned by the Chongqing government.

Tan Jincheng and his team were also clear about their attitude towards Lifan: to delay until it was truly unsustainable before intervening and taking control of Lifan Motors by avoiding bankruptcy liquidation through judicial reorganization.

Including his financing platform, he is still one of Lifan's major shareholders.

Compared to Xiaokang Motors, taking over Lifan's resources in new energy vehicles is more in line with Wei Lai's current strategy. Just like the negotiations with Li Bing when he was in Shanghai, whether the battery swapping model can succeed, how long it will take to succeed, and whether Wenjie will go bankrupt are all irrelevant to him.

Even if a legitimate car company goes bankrupt, it still has many valuable resources, such as land and car production licenses, which are non-renewable resources. It also has other resources such as online and offline channels and technology patents, which are also a good supplement to the company.

Tan Jincheng was interested in the possibility that if Li Bing could persuade the Luzhou government, Juliang would re-engage in the investment.

If Wenjie survives, Juliang will have added another impressive achievement to its portfolio in the investment field; if it fails, Weilai will have priority to intervene in the liquidation of these resources.

For large corporations, investment is no longer driven solely by personal preferences or even profit.

From a personal perspective, collaborating with a somewhat flamboyant entrepreneur like Li Bing wasn't Tan Jincheng's first choice. In the real economy, it's more about taking things one step at a time. However, from a profit and strategic standpoint, continuing to cooperate with Wenjie is a good option to enhance Weilai's influence in the new energy vehicle industry.

While it's impossible to achieve a monopoly in the automotive industry, by adopting a full-industry-chain model and holding a majority stake in several mainstream emerging companies, Weilai gains the power to influence these companies and establish its position within the industry.

Having absolute control over the discourse, Weilai has an inherent advantage in competing with companies like Tesla and Huawei. Unlike Tesla, Huawei's patriotic marketing is something that most companies can't handle.

All of this planning is simply to prepare for the fierce competition that will take place in the next few years.

"5G and intelligent assisted driving will be buzzwords in the future, but no matter what, these technology-oriented marketing campaigns are based on product strength. Huawei's entry will bring an uncertain market trend to the future."

"Just watch, it won't be long before Xiaomi also enters the car manufacturing industry, and the automotive industry will only become more and more complex."

It's quite interesting to talk about. With the rapid development of the new energy vehicle industry and the continuous advancement of intelligent driving technology, some models have already adopted L3-level intelligent driving assistance systems.

More and more companies joined in, and even belts started to get involved, announcing that they would invest hundreds of billions to manufacture cars, namely his Hengchi cars. This was his last moment of glory.

"However, there are various claims about the technology of intelligent assisted driving, and the product capabilities are very confusing. Many companies are promoting how excellent their intelligent assisted driving systems are, but in my opinion, there are only three companies in the world that are currently capable of developing intelligent assisted driving technology."

"Which three? Tesla, Huawei, and our company, Weilai!"

"I hope that our company, Weilai, will not fall behind in this first tier. That's why we haven't released any new cars this year. Our goal is to have a period of accumulation in terms of technology and make our technological reserves more profound."

To put it in the words of netizens, Boss Tan has recovered and is now a big shot in the industry.

During a CCTV-organized interview event this month with automotive industry leaders, the young Tan Jincheng sat alongside the heads of traditional giants such as FAW, SAIC, BAIC, and GAC.

They discussed the future of automobiles, including their product strengths, intelligent driving technology, and their views on the new energy vehicle market.

Besides these traditional giants, the industry gathering also included two independent brands, including Boatman Brother and Mr. Yin from Chery, as well as Tan Jincheng. All three private independent brands are from Anhui-based capital groups.

Tan Jincheng's remarks on intelligent driving were somewhat radical, drawing attention from many in the audience, but he accepted these glances with equanimity.

"Settling down is the theme for Wei Lai this year."

In terms of new energy vehicles, Weilai has performed quite evenly so far. It doesn't have a blockbuster like the Maodou 3, but its overall performance is very strong.

有年销三万辆以上的埃安系列以及尉来L1这样的小爆款，也有稳定输出的ES6以及ES8，还有在全球市场范围内销量正在不断跃升的ET5以及ES3。

There is still a lot of room for development in all three major sales segments, so Weilai is really not in a hurry to launch new models.

While the host's question about why Weilai didn't release a new model this year certainly had a hidden agenda, Tan Jincheng's confidence in saying this wasn't unfounded, because Weilai has some big plans for the remainder of the year.

"Tesla's intelligent driving assistance technology is indeed excellent, but why did you include Huawei in the list, Mr. Tan? Are there no other companies present here that you find suitable in terms of intelligent driving technology?"

The host was good at stirring things up. He keenly caught the meaning between Tan Jincheng's words: intelligent driving will be a selling point for new energy vehicles for a long time to come, but when talking about the first tier, he did not mention any of the industry giants present.

Among the bigwigs present, Boatman was probably the closest to Tan Jincheng. At this moment, he smiled and was eager to hear how Tan Jincheng would answer this question, which was clearly meant to stir up trouble.

He was well aware that BYD's intelligent driving performance was lackluster, but he was curious why he hadn't even mentioned Baidu, the company currently recognized as the leading intelligent driving provider in China.

(End of this chapter)