In the face of the explosion of Huawei, why are you most anxious about ideals？

Ideal has held many strategic meetings in recent years. At the strategic meeting in early 2021, Li Xiang specially invited Wang Xing and Wang Huiwen from the US delegation, and finally came to the conclusion that 2025 is the turning point of the new energy vehicle market in China, and the ideal must achieve an annual sales volume of 1.6 million units in order not to be eliminated.

From 2021 to now, car companies are indeed facing this increasingly fierce competition. On the one hand, the market share is further concentrated in Tesla and BYD. On the other hand, traditional car companies such as Volkswagen and General Motors have begun to launch key models. At the same time, there are also Huawei and Apple that are not moving for the time being. It can be called the hundred regiments battle of the electric car version.

In September of this year, Huawei released the new M7, which wrinkled a pool of spring water. According to 36Kr, the ideal is once again on the verge of an enemy, and another strategy meeting has been held in recent days. It is reported that the meeting has a huge agenda, lasting for four days, and intensively discussed the strategic direction and landing rhythm of LI in the next 5-10 years. Strategically, BYD, Huawei and Tesla were listed as strong rivals in Ideal Interior according to the market structure in 2025, and BYD ranked first. This year, the name has been changed to Huawei.

Facing Huawei, the ideal of top students has become the most anxious one.

Li Xiang’s attention and anxious attitude are somewhat surprising. After all, when it comes to anxiety, it’s definitely not ideal-horizontally comparing Tucki, Weilai, Zero Run and other peers, the ideal delivery volume, revenue and profit are all leading the way, and the position of the new power to build cars is secure.

In terms of delivery volume, a total of 36,060 new cars were delivered in September, a year-on-year surge of 212.7%, which also set a new high in a single month. Although the delivery volume of Tucki and Weilai has also improved, there are only 15,310 vehicles and 15,641 vehicles respectively, and the gap is visible to the naked eye. Judging from the growth rate, Ideal has been climbing steadily in the first three quarters of this year, with a year-on-year growth rate of 296.3% in the third quarter, which is not in an order of magnitude with the other two old enemies.

(Source: Ideal official Weibo)

Looking at the data on the financial side, the ideal advantage is more obvious. In the second quarter of this year, the ideal net profit of returning to the mother was as high as 2.31 billion yuan, and the profit in the first half of this year has almost filled the losses in the previous three fiscal years. Compared with bicycle profit and gross profit rate, ideal is more outstanding: in the second quarter, ideal bicycle income was 323,200, bicycle net profit was 26,700, gross profit rate of automobile sales reached 21%, and Tesla’s bicycle gross profit rate was 18.65% in the same period.

Since the situation is excellent, why does Huawei make its ideals so tense? First of all, ask the new M7, which can be said to be the direct competitor of the ideal L7.

It’s nothing new in the automobile circle in recent years to show the advantages of products by comparing competing data. There are also two such roles in the new M7 conference, one is BMW X5L and the other is ideal L7.

At present, these two models rank first and third respectively in the sales ranking of medium and large SUVs in China, among which the first and second are ideal L7 and L8 respectively.

BMW X5L, as a popular model in the era of fuel vehicles, can be seen as "compared" in many press conferences, but L7 seems to be difficult to understand. After all, the competing product of the new M7 should be L8 in time sequence. Why does the new M7 list L7 as a competing product?

This is because the new M7 is no longer just a 5-door and 6-seat model, but also redesigned the layout and added 5-door and 5-seat models. In terms of vehicle size, the boundary M7 is also closer to the ideal L7, the former is 5020*1945*1760mm, and the latter is 5050*1995*1750mm.

In terms of pricing, the 2024 model M7 has launched five models, with the price range of 249,800 yuan to 329,800 yuan, which is about 70,000 yuan lower than that of the 2022 model.

Compared with the three versions of the ideal L7, which cost RMB 31.98, RMB 33.98 and RMB 379,800, the new M7 has opened a sufficient price gap. In particular, the M7 Max five-seat intelligent driving version with high-order intelligent driving assistance and the ideal L7 Air without air suspension and laser radar have formed a strong dislocation competition situation, and the M7 Max six-seat intelligent driving version and the L8 Air will have the same high probability.

In addition to outstanding cost performance, Huawei Mate 60 series has driven Huawei’s popularity to an unprecedented level, and then the brand power has spilled over to the world. Some analysts believe that the determined price reduction of the new M7 is only the main reason for the sharp increase in sales in the world. The fundamental reason is the social sensation brought by Huawei Mate series, which brings huge passenger flow to stores. And Huawei has a huge user base in China, which overlaps with the potential users in LI.

According to the latest data, Huawei has ordered more than 60,000 new M7 vehicles in the market for about one month.

(Source: Wen Jie Guan Wei)

Huawei is different from its former rivals: it can make products and do marketing.

In addition to the direct competition of products, Huawei is very different from its former competitors.

LI creates a sense of luxury through the big sofa with refrigerator and color TV. Compared with the traditional BBA, it is very cost-effective in space and interior decoration. Coupled with excellent marketing, the sales volume keeps rising.

However, the ideal moat is too shallow, because it does not have its own core technology, and it has no outstanding advantages in three-electric system, energy efficiency, chassis, range extender, intelligence and other technologies. It is constantly reported that it is impossible to brake when encountering a large truck on a sunny day, and it is impossible to recognize the scratching accident of the ice cream cone at high speed. A series of negative news about intelligent driving such as "overturning" at the press conference site can be seen.

A good product is the perfect combination of technology and business, and the ideal meets the real opponent, because Huawei knows both technology and marketing.

What Li Xiang really fears is not a certain product in the world, but the powerful combat capability of Huawei Corps. Huawei’s "wolf nature" is well known in the industry, and its capital reserve, technical strength, channel resources and organizational ability are far from what ordinary startups can compare.

Huawei’s characteristic is that after finding the breakthrough, the relevant business groups devote themselves to it in a legion manner, relying on the staff size of 200,000 people and the bonus of engineers to achieve the ultimate efficiency and cost performance. Just like a dam break, we will turn our potential energy into market share.

In the past, Huawei has proved this in the communications and mobile phone markets. Even after being sanctioned by the United States, Huawei still eats more than half of the domestic high-end mobile phone market.

And the old question M7 once brought great shock to the ideal. "In the third quarter of 2022, the release and trading of M7 in the world directly crippled Li ONE. We have never met such a strong opponent. For a long time, we have no strength to fight back."

(Source: Li Xiang Weibo)

This is Li Xiang’s description of M7 in an essay in June this year.

Ideal is prepared to spend money to make up for the shortcomings of his own wisdom.

In the face of such competitors, it is not difficult to understand that Li wants to choose to temporarily avoid its edge when talking about Huawei.

According to the 36Kr report, a person familiar with the matter said that the ideal dialogue technique originally at the sales end has now been cancelled, and the M7 has not been mentioned on its own initiative. "If a car owner asks about it, say that the L6 that is ideal for next year is a price product with the M7."

However, as the saying goes, the brave will win in the narrow road. In the face of Huawei’s continuous invasion of its hinterland, the ideal will naturally not really be left unchecked. In this regard, the ideal choice is to save money and use it to make up for the shortcomings of your own wisdom.

According to 36Kr, how to "spend money well" has become an internal consensus of Ideal. The financial report shows that as of the end of the second quarter, the ideal cash on hand was 73.77 billion yuan, equivalent to the sum of Weilai and Tucki in the same period. Next, choosing the direction and crazy investment are the keys to the ideal to break the game.

In terms of products, the ideal thinking about the demand side is to choose to continue to deepen the main battlefield of family segmentation and extend the product planning to 2027. On the other hand, Li Xiang is still working hard to break the bottleneck of production capacity. On October 10th, he issued a document saying that the impact of Changzhou factory upgrading and Beijing factory qualification switching at the end of September has been lifted. "We can challenge the delivery of 40,000 in advance this month".

At the same time, for the function of intelligent driving, Li Xiang also has a "late step" reflection, and bluntly said, "The lessons that fall behind due to insufficient investment can only be solved by strengthening investment." At the same time, it is ideal to promote the person in charge of perception and system to vice president respectively, which is a signal that the weight of smart driving business is upgraded. In addition, on October 10th, LI officially released more than 50 jobs for intelligent driving in one breath, covering software algorithms, large models, vehicle hardware, testing, operation and other fields.

Some people close to the ideal revealed that they think that by 2025, the decisive battle of smart cars in the second half will be over. At that time, they will come out if they can run out, and they will be gone if they can’t. Because the data model and training amount have been finalized, what is needed behind it is a large number of start-up users, which is the decisive battle time in these three years. Ideal will try to overtake at the corner of the smart driving track.

No one can accurately predict whether the smart driver of the ideal future will catch up later, but it can be predicted that after the end of the year, Ideal and Huawei will further meet in product matrix and technology. In the next knockout, any short board may give the opponent a chance to overtake.

In this context, family background and technology will become the key words for new energy vehicle enterprises to compete.