Source: Securities Times
Author: An Yufei

On the morning of June 1, the Shenzhen International Convention and Exhibition Center was already full of people. The 2024 Guangdong-Hong Kong-Macao Greater Bay Area Auto Show will open here. During the auto show, the 2024 (2nd) Future Automobile Pioneers Conference (hereinafter referred to as the “Conference”) was also held simultaneously. Lei Jun, founder, chairman and CEO of Xiaomi Group, and Yu Chengdong, executive director of Huawei and Chairman of Smart Car Solutions BU, and other industry leaders discussed future trends in the automotive industry.

What kind of car building experiences do these top car industry players share. In their eyes, what are the new trends in the future development of the automotive industry?

Lei Jun: Xiaomi SU7 will sprint to deliver 120,000 vehicles throughout the year

“In our first month (in the automobile industry), the number of (Xiaomi SU7) lock orders exceeded 88,000 vehicles. This number far exceeded my expectations and also exceeded the expectations of many of my peers. I think behind this number is proof that users care about and support for Xiaomi.” Lei Jun said at this conference.

There are many orders for cars, but the topic that more consumers are concerned about is when will Xiaomi be able to deliver cars? According to Lei Jun, the Xiaomi SU7 delivered more than 15,000 units in two months, of which 7058 units were delivered in April and 8,630 units were delivered in May. This fully reflects Xiaomi's execution and overall engineering capabilities.

Regarding future car delivery plans, Lei Jun was also clear at this conference: “Our factory began operating double shifts in June, and we need to ensure that 10,000 vehicles are delivered in a single month in June. We guarantee delivery of 100,000 vehicles throughout the year, and sprint to 120,000 vehicles. Many people may think this target is nothing, but to be honest, delivering 120,000 single models in 9 months is still an industry-wide goal.”

Why was the Xiaomi SU7 able to achieve excellent sales volume after launch? Lei Jun said, “I think (this is because) we are fully aware of the complexity of automobiles, and we have a strong sense of awe of the automobile industry. From the first day, our strategy was to 'invest 10 times and seriously focus on making a car', while locking in the core technology track and starting with the core technology. It was this series of core R&D breakthroughs that enabled us to have the success of today's Xiaomi SU7. I think this is the core reason the Xiaomi SU7 was made.”

At the same time, Lei Jun believes that smart electric vehicles have now achieved a high degree of integration between the automobile industry and consumer electronics. “Three years ago, we did a lot of research, why did we decide to make a car? I think the most important thing is that today's cars are completely different from the past. Most of today's cars are electronic, so Xiaomi has been doing consumer electronics for 14 years and has accumulated a certain amount of technology to make today's smart electric cars. This is also a very important reason why we can build cars within 3 years.” Lei Jun said.

After three years of building cars, how did Lei Jun feel? At this conference, Lei Jun said, “After three years (building cars), we are increasingly feeling the complexity of the automobile industry and the diversity of user needs, so how can we meet such complex needs? I think ecological expansion is the only path.”

Using the screen in the rear row of a car as an example, Lei Jun said that there are very few application scenarios for rear screens, but “people who like it will especially like it”. For example, it is particularly easy to use with children. It is an “artifact to coax a baby,” but the average person can't use it, and it will also increase costs.

“The solution is actually very simple, just plug in a tablet in the back row, and the problem is solved perfectly, and we only need to develop the system and plug in your tablet, just like a native screen.” Lei Jun said. However, to do this, all manufacturers need to unify the interface. After unification, you can buy a Xiaomi, Huawei, or Apple tablet. “In this way, everyone doesn't have to worry about these minor issues; it's worthless.” Lei Jun said.

“We have at least three or four interface standards in today's Xiaomi cars. If all of these (standards) are opened up, and everyone shares resources, the entire Chinese automobile will be easier and easier to use. It will benefit not only users, but also the development of the entire industry. Therefore, I once again proposed that our industry should join forces to encourage the whole industry to share and build the entire ecosystem together. Therefore, I think that if Xiaomi enters the automobile industry, it will definitely make its own contribution to the Chinese automobile industry.” Lei Jun said.

Yu Chengdong: Hongmeng Zhixing won the first place in sales by new forces

At the conference, Yu Chengdong also brought data that Huawei cars are “far ahead”. According to reports, from January 1 to May 19, 2024, Hongmeng Zhixing's total sales volume exceeded 134,000 units, making it the number one selling brand by new forces in the Chinese market.

“In the past May, our main products were being replaced, causing a short-term decline in sales, but starting in June, we returned to the path of rapid growth. The monthly delivery volume is expected to exceed 40,000 units in June. We're going to hit 50,000 units every month in the coming months.” Yu Chengdong said.

Earlier, on the evening of May 31, a press conference was held to launch the new Quanjie M7 Ultra. In terms of performance, the zero-100 acceleration of the new M7 Ultra four-wheel drive version is 4.8s, the extended range version has a pure electric battery life of 240 km, and a comprehensive battery life of 1,300 km. In terms of price, the starting price of the new M7 Ultra is 289,800 yuan. Yu Chengdong will “personally deliver it to the first batch of users” on June 2.

At this conference, Yu Chengdong said, “Ask the world that the new M7 will be the 'best choice for a family SUV' and is known as the 'national SUV'.” And there's no need to add “one” to this “best.”

In addition to asking about the new M7, Yu Chengdong also revealed the results of the new Quanjie M9. He said that the M9 now delivers more than 10,000 units a month, which is impacting its ability to deliver 20,000 units a month. It sold over 90,000 units in just 5 months after launch, taking the first place in the sales volume of high-end cars in China.

Yu Chengdong said that Huawei focuses on the “five intelligences,” of which intelligent driving is the biggest investment aspect, followed by smart cockpit, intelligent electronic control, intelligent vehicle control, and intelligent connectivity. “We mainly develop on this core technology, mainly making chips, algorithms, and software.” he said.

According to reports, at present, the cumulative autonomous driving range of Hongmeng Zhixing has reached 220 million kilometers, and is rapidly increasing at a speed of more than 20 million kilometers per month, with an average takeover mileage of 270 kilometers.

“Why did we also launch an ecological partner of Hongmeng Zhixing? The reason is that we have created the core technology, but users have to use our technology, and we can only commercially monetize it on a large scale, so we formed the Hongmeng Zhixing Ecological Alliance with 4 car companies. Our Huawei terminal team is here to check, empower car manufacturers with the TOC capabilities we have accumulated over ten years, and work together to create products with the best experience.” Yu Chengdong said.

In response to the price war currently breaking out in the automobile industry, Yu Chengdong believes that car brands should go for “roll value,” not just “roll price.” “In fact, now BYD is probably the world's 'number 1' leader in smart electric connected cars because it has ultra-low cost capabilities. But we're not good at ultra-low prices; we're good at roll value, roll intelligence, luxury, comfort, and safety.” Yu Chengdong said.

Yu Chengdong believes that there are car companies in the industry that are good at rolling prices, and that Hongmeng Zhixing will bring greater value to the industry through roll value and achieve a win-win situation with partners.

Li Bin: “There is no time to delay in solving the battery life problem”

“Today, everyone is talking about fast charging. No matter how fast the fast charge is, it's impossible for us to change the electricity quickly. But fast charging brings another thing, that is, we realise that the battery life matter really concerns the interests of users, so NIO made it very clear this year that there is no time to delay in solving the battery life problem.” Li Bin, founder, chairman and CEO of NIO Auto, said at this conference.

Li Bin believes that the population is aging, and batteries also have aging problems. If we don't pay attention to the aging of batteries today, it will become a huge pressure on society after 8 to 10 years, putting pressure on consumers' interests.

“Our goal is to make every electric vehicle user 15 years worry-free in terms of calendar life (time from date of manufacture to end of battery life) and cycle life through careful R&D and operational innovation. We have set a goal of 15 years, and no matter how long the cycle life is, 85% of the usable electricity will be achieved.” Li Bin said.

According to the Guoyuan Securities Research Report, compared to charging and charging, the power exchange and energy replenishment mode has advantages such as short recharge time, low battery life loss, and improved battery safety through continuous monitoring of battery usage. According to information, as of April 25, NIO had deployed 2,404 power exchange stations across the country, reaching 790 high-speed power exchange stations, and built 7 vertical, 6 horizontal high-speed power exchange networks in 11 major urban agglomerations. Currently, NIO has reached strategic charging and switching cooperation with 7 car companies including Changan Automobile, Geely Holding Group, Chery Automobile, Jiangqi Group, Lotus, Guangzhou Automobile Group, and China FAW.

Li Bin also believes that everyone has always had a misunderstanding about NIO. They always think that NIO exchanges electricity; “Actually, we also do the best charging job.” According to data, as of April 25, the number of self-built charging stations reached 3,776, and 21995 charging piles. It has built 364 overcharging stations and 1,422 overcharged piles on highways. Li Bin said, “So everyone must know that we are good at language, mathematics, and have good overall grades, regardless of subject matter.”

Editor/Jeffy