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

Chapter 104 The Second Car from Starry Sky (Two-part chapter combined)

"We welcome everyone's opinions on the direction we should take for our next car."

Xu Yi did not make a decision immediately, but instead showed a very democratic attitude.

The senior executives present exchanged glances, their hearts filled with eagerness!
The car they... want to build?
That's too much!
Previously, due to limited resources, we could only afford to build electric vehicles for the elderly, such as mini-cars.

Given the opportunity, who wouldn't have a dream?

...

but.

Don't underestimate these small cars like the Mini Star Mini or the Mini Car for the Elderly.

If this were placed in a foreign country where the industrial chain and industry are underdeveloped, even elderly people's cars might not be able to be successfully operated.

The lithium iron phosphate battery packs and three-electric system architecture used in current new energy vehicles are beyond the capabilities of most countries' industries.

Xingchen Motors, on the other hand, takes the route of self-developed technology across all its domains.

The main idea is to build whatever you can yourself.

Minimize costs to the greatest extent possible.

Moreover, there's a reason behind this "fully self-developed" approach.

The core idea is to have control over the most essential technologies for car manufacturing.

When applied to gasoline-powered vehicles, the core technologies are the design and tuning of the engine, transmission, and chassis.

In the context of new energy vehicles, this translates to the design and tuning of the battery pack, electronic control system, motor, and chassis.

Taking it a step further, there are also advanced intelligent driving algorithms, control chips, and intelligent driving computing chips...

Most other items can be sourced through the supply chain.

Some relatively high-profit, high-cost companies are also worth considering as investments.

Given Xingchen Automotive's current size, it can start cultivating its own Tier 1 suppliers.

Tier 1 suppliers are those who directly supply and deliver goods to automakers.

Furthermore, Tier 1 suppliers need to directly connect with the automaker's R&D, procurement, and quality departments to participate in the early design of the vehicle.

Previously, Weineng Battery was a Tier 1 supplier for Xingchen Automotive.

……

As for the idea of ​​having to screw in even a single screw yourself, Xu Yi felt it was unnecessary.

The costs of lower-end supply chains are too meager.

If it really develops to this point, then it's no longer about cost reduction, but about "extended payment terms + banker's acceptance bills" and "corporate credit certificates that cannot be exchanged externally," squeezing supply chain manufacturers to the extreme, and then turning around to lend money to the supply chain. This already falls into the category of supply chain finance.

Instead, it will breed a lot of chaos and internal corruption.

Instead of wasting time on this, it would be better to push the technology to new heights.

The technology for core components always offers the highest profit margins.

Because I have what others don't, and I'm better at what others have!
If technologies such as battery packs and motors reach a first-class level or even a monopoly, they can be opened up to external suppliers, allowing other emerging car companies to work for them.

The reason for considering overseas lithium mining is that the soaring price of lithium will directly affect the cost of battery packs, a core component, making such investment unavoidable.

It also includes an intelligent layout—intelligent driving system and vehicle infotainment system, high-end sensors, and radar.

If they could all reach the top level in the industry, and then supply high-end cars to the entire industry, they would be like true uncrowned kings.

Whenever I think about these things.

Xu Yi could only sigh in despair—the road was too long and the waters too deep!
Even with cheats, speedrunning is difficult!
He was lost in thought for a few seconds.

……

The meeting room is in chaos.

Many of those present were technically skilled, while those from the marketing side had a deep understanding of the vehicle's positioning and sales volume.

Everyone thinks from a different perspective.

"An SUV—our first car…let's play it safe. The Chinese people's love for large SUVs is undeniable. If we control costs and price it at 150,000-200,000 yuan, focusing on family use, and sticking with our self-developed, low-price, high-spec lineup, it'll definitely take off!!"

"Sedans are fine too. We now have our own battery and motor technology, and the internal V4 motor solution is already under development. When it is installed in a car, its power and performance will be comparable to that of a performance car."

Importing a Tesla Model 3 will cost 450,000 yuan.

Let's build a 300,000 yuan sports sedan, and make it look really nice—let's call it the young man's first performance car!

“I think it would be better to focus on entry-level A-class new energy vehicles, which would be more stable. We could make a small car that is 4.4 or 4.5 meters long, which would be an upgraded version of the Star Mini. We could also expand the urban commuting route a bit, and the sales would still be very stable.”

"Do you even have a dream? Our self-developed V4 motor solution is already out... High power, big brick, flying high, do you understand??"

"To put it bluntly, it's all pointless... The sedan market is small, SUVs have big space, and for Chinese people, big is good, and good is big, so big is the only thing that matters!!"

"Sigh, I'm really impressed. I can't understand you guys who aren't tech-savvy."

"What's wrong with being a tech person? Finding your niche in the market is the most important thing..."

……

Several senior executives in the marketing department here are optimistic about SUVs.

There's no need to elaborate on the domestic family SUV market; no one would question this segment, as many automakers rely on it for their livelihood.

Sun Pengfei and others, who are working on the research and development of electric drive systems, are now trying to develop the V4 motor and install it in a sports car.

The internal V4 motor project was initiated after the development of the V2 motor. This time, the power output has been increased to 180kW, the maximum torque to 350N·m, and the horsepower to 241hp, thanks to the excellent self-developed architecture and curve control.

Even if the lithium iron phosphate battery pack is a bit heavier, with dual motors installed at the front and rear, it will reach a terrifying 480 horsepower. Even a two-ton sedan can be accelerated to 0-100 km/h in just over four seconds, and four-wheel drive will definitely take off!
...

"Okay, okay, let's stop arguing."

Xu Yi quickly raised his hand to stop the argument.

He could see that everyone had lofty dreams and a great passion for building cars!

Moreover, the routes provided are all excellent.

While either approach is viable, it clearly overlooks a crucial factor.

"Yes, they are all very energetic."

"I think everyone's points are excellent, but it seems you've overlooked a crucial issue..."

Xu Yi looked at him as if he were an idiot.

"We have the motor, we have the battery, and we can find suppliers for the chassis design and components..."

"Yes, we can build any kind of car."

"But we're in the new energy sector, so where's the electricity?"

"Where does the electricity come from? How many charging stations are there in China now? How many of them support high-power DC fast charging? Are you only selling to first, second and third-tier cities?"

"How can you turn it on if there's no power!"

"Make a doi!!"

……

When he finished speaking...

Wang Jingming from the R&D department lit up. As a former R&D engineer at a major fuel manufacturer, he still felt nostalgic.

"Mr. Xu, you understand me. In my opinion, we should go for hybrid and range-extended electric vehicles!"

"Pick up the engine!!"

……

See it.

The Range-Extending Cult has also arrived.

Xu Yi sighed inwardly, but then voiced his thoughts:
"Whether it's pure electric or range-extended electric vehicles, what do you think is the biggest problem currently hindering the development of the number of new energy vehicles?" Everyone looked at each other in bewilderment.

then.

Yu Nian thought for a moment and said, "It should be the range and charging stations. If we want to sell at a high price, the range must be long, at least 350 kilometers or more."

BYD, currently a leader in the new energy vehicle industry, sells 42 units annually. This is because its hybrid system can be used in both gasoline and electric vehicles, adapting to different markets. In first- and second-tier cities, due to policy support and the density of charging stations, BYD primarily focuses on capturing the pure electric vehicle market.

...

In the new energy vehicle sector, apart from Tesla overseas...

Currently, BYD serves as a benchmark for almost all emerging new energy vehicle companies in China.

By relying on new energy vehicles, both hybrid and pure electric EVs, they have managed to become a leader in the new energy vehicle market, which is truly inspiring.

The idea that everyone had just had was simple: either learn from Tesla and create a new energy sports sedan that no one in China had done before.

Or they could follow BYD's example and develop hybrid SUVs.

"That's right. So if we want to build large-sized new energy vehicles, the primary problems we need to solve are the insufficient range of the vehicles and the insufficient density of charging stations."

Therefore, I plan to build a new energy sedan positioned for comfortable family use.

After deducting national subsidies, the price should be anchored at around 15.

Equipped with our high-energy-density and absolutely safe Polestar batteries, it is currently the best-selling car with the largest market share in China.

Xu Yi pointed to the conference screen.

The issues of "range" and "recharge" are currently the pain points for all new energy vehicle manufacturers.

Whoever can solve these two problems will be able to expand the market at the fastest speed.

The reason their Starry Mini sells so well is actually because consumers at this price point don't really care about this.

Because microcars are mainly for short-distance travel, and are only used for short trips within the city, coupled with the special policies of cities with license plate restrictions.

The cases of people driving a pure electric mini car and taking road trips to Xinjiang and remote areas with a range of 100 to 200 kilometers only appeared a few years later after charging stations were deployed in highway service areas and remote areas.

"Mr. Xu, I have a question. Why must it be a pure electric family sedan?"
The market potential for hybrid SUVs or hybrid sedans for family use is quite substantial, isn't it?

Wang Jingming looked puzzled and confused.

Frankly speaking, there are still many choices in the current new energy market because it is still in the "early stage of pioneering".

Besides BYD, BAIC New Energy and several other companies also have relatively popular models.

They can refer to any model as a benchmark, and if the operation is proper, there is a high possibility that monthly sales can reach 10,000 units.

If that's the case—that would be a huge success!
The ability to achieve significant sales volume for new energy vehicles priced between 15 and 20 yuan is far superior to that of the currently available mini-mini models priced between 4 and 5 yuan.

Whether it's market share or the enhancement of their brand, it's on another level.

On the contrary, it's the pure electric family car segment.

Currently, sales performance is not particularly outstanding, even lagging behind hybrid sedans.

...

"No, you're wrong. The weak performance of the pure electric car market is just the current situation."

In fact, its market potential will soon be much greater than that of hybrid SUVs!

Xu Yi chuckled.

I tapped the conference screen, and the image started to change.

"These data are from policies that were piloted earlier this year—"

The screen suddenly changed, displaying a policy document explanation and a detailed data list compiled by Assistant Xiao Zhou.

The "13th Five-Year Plan for the Development of National Strategic Emerging Industries" states that the "public transportation sector (taxis and buses)" will serve as a "breakthrough point" for the large-scale implementation of new energy vehicles.

...

Kyoto: 1600 pure electric taxis will be deployed, bringing the total number of new energy taxis to 2100 for the year, accounting for 4% of the city's total taxi fleet.

Shanghai: 1200 new energy taxis will be put into service, bringing the total number of new energy taxis to 3200 for the year, accounting for 5% of the city's total taxi fleet.

Shenzhen: 800 new energy taxis were put into service, bringing the total number of pure electric taxis to 4265 throughout the year, accounting for 36% of the city's taxi fleet.

Lin'an: ...

……

"Currently, in addition to vigorously promoting the development of new energy vehicles, the country is also strongly promoting commercial new energy vehicles and new energy buses, etc..."

"I ask you, if in the next two years, the market share of new energy taxis in all first-, second-, and third-tier cities continues to increase, even exceeding 60%, what do you think will be the best-selling model next?"

Compare policy information with new energy pilot projects.

Xu Yi's casual remark struck a chord with everyone!
what? !

They were all dumbfounded.

Xu Yi pointed out a huge, hidden market that few people have noticed so far, amidst the chaotic market information!
The answer is revealed!

It's a "pure electric sedan"!
Why must it be pure electric, and not hybrid?

For commercial vehicles, only pure electric operation can maximize their economic value.

As for not choosing an SUV, that's even simpler.

Almost all established taxi companies, as well as individual taxi companies, do not choose SUVs.

Because SUVs have a larger air impact area and higher energy consumption, their driving range is reduced, which also indirectly reduces their economic value. Not to mention that in the current market environment, SUVs are usually more expensive than sedans of the same class.

"Mr. Xu, are you saying that the number of new energy taxis may see a leap in growth in the coming year?" Yu Nian asked, lost in thought.
If that's the case, then the number of units in circulation is simply too large!

Xu Yi shook his head: "It's not growth..."

"It's skyrocketing!!"

...

Without experiencing that stage, it's impossible to imagine how fast the number of new energy taxis surged at that point in time.

Because the current national standard for range is still based on the NEDC standard, the advertised range is 300 kilometers, but the actual range can only reach about 200 kilometers.

This range is insufficient to meet the operating mileage requirements of taxis. In addition, the energy replenishment system is not perfect, and 60kW DC fast charging equipment is not very common. New energy taxis spend almost half a day charging.

Only two events occurred during this period.

The first thing is that the State Grid Corporation of China has made great strides in building up the number of public charging piles in cities to 21.4, an increase of more than 60% compared to last year, while the number of private charging piles for residents has exceeded 23.

The second thing is that with the breakthrough in mainstream battery technology in the industry, the range of new energy vehicles priced around 20 yuan has been announced to have exceeded 400 kilometers.

Solving the two major challenges of "recharging" and "endurance".

This has thoroughly promoted the large-scale operation of new energy taxis.

During this period, BYD also launched the e6 400 extended range version and sold a large number of Qin EV300s.

Other models launched around the same time include BAIC New Energy Eh300, Geely Emgrand EV300, Roewe EV, etc., all equipped with 60kW DC fast charging.

The most important thing is to replenish energy.

When the charging time is less than one and a half hours, and the coverage of charging stations allows taxi drivers to charge their vehicles freely in the city.

Then the commercial value of new energy taxis will rise sharply.

Take a chestnut.

During this period, by taking advantage of national and local subsidies, ordinary people can spend 150,000 to 200,000 yuan to buy a new energy vehicle with a range of 300 kilometers and drive a taxi in big cities, guaranteeing an annual income of at least 100,000 yuan.

"As long as we can be the first to launch an affordable pure electric sedan with a range of 400 kilometers, and take advantage of the current growth rate of charging stations, we can definitely be the first to grab the biggest slice of the pie."

"In addition, we also need to keep up with the pace of the national energy replenishment construction. Next, I will introduce the latest achievements developed by our R&D colleagues in recent times..."

Xu Yi smiled.

This cutting-edge technology, in today's environment, whether for commercial or civilian use, would have an absolute destructive power akin to a nuclear bomb!
(End of this chapter)