Source: Sina Technology
Author: Zhang Jun
100 hours after the release of the Xiaomi SU7, the Chinese auto industry began a double wave of “worship” and “encirclement.”
According to incomplete statistics from Sina Technology, at least 10 car companies or car company executives have made statements one after another. Of these, at least 7 have initiated price cuts to block price cuts, such as Qjie, Krypton, Xiaopeng, etc.; other car companies have chosen to gain popularity, such as Cadillac and Faraday Future (FF).
Today, Xiaomi will host the first SU7 delivery ceremony at the Xiaomi car factory in Yizhuang, Beijing. In the future, it will be under pressure from many sides: internally, whether delivery can fulfill contracts and whether services can be put in place; externally, how to deal with competition, how to handle public opinion...
Lei Jun's real test has only just begun.
Many car companies cut prices to “encircle” the Xiaomi SU7
On March 28, the Xiaomi SU7 was officially launched. A total of three configurations were launched for the new car, starting at 215,900 yuan. After the release of the Xiaomi SU7, it can be described as being at the top of the car industry, frequently trending on Weibo.
However, at this time, the NEV industry is in a price war. Just entering April, quite a few car companies started price reduction promotions, and the price range for some products also reached the Xiaomi SU7.
On April 1, the Hongmeng Zhixing App showed that the price of the M7 entry model M7 Plus and the five-seater rear-wheel drive version in the new world was reduced by 20,000 yuan to 229,800 yuan.
Although the Xiaomi SU7 is positioned as a pure electric sedan, while the Xinjie M7 is positioned as a medium to large SUV. Judging from the price, the M7 Plus 5-seater rear-drive version is only 13,900 yuan more expensive than the standard version of the Xiaomi SU7, which can be described as having a strong smell of gunpowder.
It is worth noting that there is another product owned by Huawei Hongmeng Zhixing that directly competes with the Xiaomi SU7: the Zhijie S7. This product was officially released in November 2023. It is also positioned as a pure electric sedan, and the price starts at 249,800 yuan.
However, Yu Chengdong revealed that due to chip shortages and factory relocation, listing and mass production have been delayed. Meanwhile, according to media reports, people familiar with the matter said that Huawei is planning to re-release the Intellect S7.
In addition to its old rival Huawei, many other car companies have made big moves.
For example, Extreme Krypton announced the release of a new enhanced rear drive version of the Extreme Krypton 007 on April 1. The price is 209,900 yuan. This price is also directly 6,000 yuan cheaper than the Xiaomi SU7. In addition, the new car also comes standard with a full technology package worth 12,000 yuan and a comfortable package worth 8,000 yuan, which can be described as a precise sniper on the Xiaomi SU7.
The Extreme Krypton 007 is positioned as a pure electric luxury sedan, which completely matches the positioning of the Xiaomi SU7. However, after the release of the Xiaomi SU7, many extreme Krypton sellers also aimed their guns at the Xiaomi SU7, pointing out that its standard equipment is only 400V charging, etc. Now the competition between the two sides has intensified even more.
In addition, on April 1, NIO Auto announced the launch of a fuel truck replacement subsidy of up to 1 billion yuan; Xiaopeng also announced the launch of the 2024 Xiaopeng G9 smart driving subsidy policy on April 1, with a limited-time discount of up to 20,000 yuan, with optional discounts of up to 8,000 yuan, starting at 243,900 yuan after the subsidy; on April 2, Jiyue also announced the launch of a car purchase discount of 10,000 yuan. You can also enjoy 12 months of free smart driving and free comfort packages.
Lei Jun also made new moves against the target Tesla.
On April 1, Tesla China's official website revealed that the price of the Model Y increased by 5,000 yuan. However, Tesla also announced that the Starry Sky Grey car paint, which originally cost 12,000 yuan, can be selected for free for Model 3/Y, which also means a price reduction in disguise.
However, in response to the price war, Lei Jun also previously responded in interviews with Sina Technology and others after the press conference. He said that the price war in the mobile phone industry itself is very intense. From small to large, Xiaomi is the champion, and Xiaomi cars are not afraid of falling. He also stressed that Xiaomi increased its cash reserves by 30 billion dollars after announcing car construction, and there are enough cash reserves to cope with any fierce competition in the next five years.
There is welcome, there is taunting, and there is anger
In fact, not only the price, but the launch of the Xiaomi SU7 is also stirring up public opinion in the industry.
On March 30, Cadillac's official account posted an article to warm up the new car “Proud Song” and posted a series of “Coconut Coconut Milk” style posters, which mentioned “Sorry Thor, we helped you make a great SUV under 500,000.” “I'm sorry, but I don't like studying anymore. We're neither Porsche nor Tesla; we just want to be beautiful.” It is alleged to be mocking the Xiaomi SU7.
Although Cadillac's move was accused of being too low and depreciating, it also successfully boosted the traffic of Xiaomi cars.
Even Jia Yueting, the pioneer of cross-border car builders and the founder of FF, couldn't sit still. He posted on Weibo on April 1 that the first launch of Xiaomi was very successful, reflecting the growing maturity of China's NEV industry chain in recent years and the huge advantage of the manufacturing price ratio in China. The execution and marketing capabilities of Xiaomi's car building are certainly commendable, but the copycat culture, shortcut model, and follower mentality are regarded by many as guidelines, which is worrying.
Jia Yueting said that values determine the ceiling, and benchmarking, plagiarism, and shallow innovation cannot bring about fundamental technological changes or transcendence in basic technology. Jia Yueting's remarks seem to suggest that the Xiaomi SU7 product is the benchmark for Tesla, and the appearance is similar to Porsche.
Of course, the Xiaomi SU7 also has no shortage of supporters.
Recently, 360 Group founder Zhou Hongyi posted a video praising the name Xiaomi SU7. SU represents Speed Uitra, and the number 7 is most often regarded as a symbol of Geely. He also publicly criticized Nacha Auto CEO Zhang Yong during the live broadcast of Nacha Auto, believing that Nacha Auto's marketing and naming should be learned from Xiaomi.
Luo Yonghao, founder of Hammer Technology, is also an iron fan of Xiaomi. He said bluntly, “I've received almost 200,000 in all kinds of subsidies, which is enough to eliminate most of the fuel trucks, miscellaneous trams, and trams that are not smart enough in this price range. Following the affordable mobile phone market, Xiaomi is likely to re-stage the epic scene of good money driving out bad money in the mass consumer car market.”
40% cancellation rate? Delivery is under pressure
According to data released by Xiaomi Auto, the Xiaomi SU7 broke 10,000 units in 4 minutes; the Dading broke 20,000 units in 7 minutes; in 27 minutes, the Dading was 50,000 units; in 24 hours, the Xiaomi SU7 surpassed 88,898 units.
This order data made Xiaomi happy and worried. Hu Zhengnan, investment partner of Shunwei Capital, who is deeply involved in the construction of Xiaomi cars, made a direct statement: “I can't drink Qinggong wine, I just went back to the factory, and I didn't sleep. We've run out of production capacity this year, so we've been meeting all night to find a way.”
Xiaomi has also experienced a deposit refund crisis.
On the second day after the release of the Xiaomi SU7, many netizens posted that they mistakenly “locked the configuration” when looking at the car, so they were unable to get back the 5,000 yuan deposit; others claimed to be students and planned to post screenshots after paying the deposit on social platforms, but it turned out that they were unable to get a refund.
In response, Xiaomi said that the deposit can be refunded without reason within 7 days. After more than 7 days, the vehicle configuration is automatically locked, and consumers can also actively lock the configuration in advance. Once the order is locked, the vehicle will enter the production stage, the configuration cannot be modified, and the deposit will not be refunded. Furthermore, the original version's current car configuration has been locked, and the consumer locked the order after paying a deposit of 20,000 yuan.
In addition, Sun Shaojun, founder of Car Fans, recently announced the 72-hour first-line report on the launch of the Xiaomi SU7 new car. According to the data released by him, the total number of Xiaomi SU7 stores is 1,800 to 2,000 units, of which the average number of new store entries per day: 700 to 1,000 batches; lock rate: 35% to 40%; cancellation rate: 40%.
4/2, #小米SU7退订率40% #也登上了微博热搜。 However, industry insiders believe that the 40% cancellation rate is much lower than the peer average, and the conversion rate has already exceeded expectations. Sun Shaojun also pointed out in the news report that the results of the launch exceeded expectations. The weekend saw a peak in store traffic. Most car customers confirmed their entry, locked orders, and unsubscribed at the same time; at the same time, because of the small number of stores, the number of store entries completely exceeded the store's carrying capacity, and some customers chose to unsubscribe due to poor reception and pick-up times, and waited for word of mouth.
Sina Technology saw on the Xiaomi Auto App that the standard version of the Xiaomi SU7 is expected to be delivered 21-24 weeks after the order is locked, the Pro version is expected to be delivered 20-23 weeks after the order is locked, and the Max version is expected to be delivered in 29-32 weeks after the order is locked, which means it will take up to 8 months to be delivered.
Fu Liang, an independent telecom analyst, believes that for Xiaomi, the launch of a new car is only the beginning of the Long March, and there are many other aspects that will face challenges: such as matching manufacturing capabilities. There is a process in which Xiaomi's ability to build its own factory production line is climbing. If the product sells well, factory manufacturing will become a bottleneck in expanding sales. Now that new cars are being released so frequently, how many people have the patience to wait for cars 6 or 8 months from now. However, if the product is slow to sell, it is also very expensive to maintain such a large manufacturing unit; there are also many variables, such as product quality, sales, and service system construction.
According to information released by Lei Jun, on April 3, Xiaomi will hold a delivery ceremony for the first batch of the Xiaomi SU7 at the Xiaomi car factory in Yizhuang, Beijing, and delivery centers in 28 cities across the country will also simultaneously begin delivery. As Hu Zhengnan said, the increase in orders will also present challenges to the production capacity and subsequent delivery of the Xiaomi car factory. This is something that Xiaomi will need to spend a great deal of effort to overcome in the future.
Editor/Jeffy