NIO and Xiaopeng almost simultaneously announced the plans and progress of their second brand, which may once again stir up the competitive landscape of new car making forces. Firstly, both NIO and Xiaopeng have successfully established a relatively broad brand foundation in the market, and launching a second brand at this time may result in twice the result with half the effort. At the same time, compared to the main brand, the second brand launched by the two companies is aimed at a more downward market, and "volume" will undoubtedly be the top priority. For the small overall size of the new car making forces, each "dark horse" has the possibility of impacting the market pattern.
The competition of new forces in car manufacturing may enter a new era.
On March 16th, He Xiaopeng, Chairman and CEO of Xiaopeng Motors, revealed for the first time at the China Electric Vehicle Hundred People Conference Forum (2024) that Xiaopeng Motors is about to launch a new brand and officially enter the global automotive market with a price range of 100000 to 150000 yuan. The new brand will overturn technological innovation in this market price range, create a new species of AI intelligent driving, and provide a true AI intelligent driving car for young people.
The picture is taken from Xiaopeng Auto's official account
Coincidentally, just two days ago (March 14th), Li Bin, founder, chairman, and CEO of NIO, was also forced to publicly respond to the progress of NIO's second brand at the "NIO Long Life Battery Strategy Communication Meeting" due to the leakage of test car images on the internet.
Li Bin said, "I originally planned to announce the second brand through Weibo in January, but in order to be more formal, I decided to officially release it in May. However, recently there have been leaked pictures of test cars online, so there is no need to hide them anymore." He continued to introduce, "NIO's second brand - Ledo has a clear product positioning, which is aimed at home users."
The two brands with the highest influence in the new car making forces have almost simultaneously announced the plans and progress of the second brand, which may once again stir up the competitive landscape of the new car making forces.
Looking back at the past few years, the competitive landscape of new forces in the automotive industry has undergone multiple changes. In 2021, Xiaopeng, NIO, and Ideal experienced a surge in sales, all rushing towards the milestone of 100000 vehicles; In 2022, Nezha emerged as a new force, leading Ideal, NIO, Xiaopeng, and Lingpao to break through the 100000 vehicle barrier. In the past two years, the development of leading companies in the new automotive industry can be said to be advancing together.
In 2023, Ideal stood out and presented a situation of "one company dominating" for new forces in the automotive industry. In 2023, Ideal Strong sold 376030 vehicles, monopolizing the first group. In contrast, the breakthroughs of NIO, Zero Run, Xiaopeng, and Nezha are no longer sharp.
Less than three months after 2024, the competition among new forces in the automotive industry has reappeared in a new pattern. Wenjie has dominated the rankings for two consecutive months, unable to conceal its sharpness; To challenge the ideal sales target of 800000 vehicles in 2024, only 51416 vehicles were sold in the first two months; The average monthly sales of NIO, Lingpao, Nezha, and Xiaopeng in the first two months were less than 10000 vehicles.
If the second brands of NIO and Xiaopeng can land in a timely manner, it will not only stimulate the vitality of both companies, but also continue to stir up the ever-changing market landscape. Firstly, both NIO and Xiaopeng have successfully established a relatively broad brand foundation in the market, and launching a second brand at this time may result in twice the result with half the effort. At the same time, compared to the main brand, the second brand launched by the two companies is aimed at a more downward market, and "volume" will undoubtedly be the top priority. For the small overall size of the new car making forces, each "dark horse" has the possibility of impacting the market pattern.
However, it should also be noted that whether the development of the second brand of the two companies can proceed smoothly remains to be tested by the market. Firstly, launching a new brand requires rebuilding market awareness, and it is unclear whether this will distract the company's energy. At the same time, Xiaopeng once launched the "entry-level" P5 during the rapid development of P7, but not only failed to achieve a doubling, some industry insiders even said that this move almost disrupted the development pace of the enterprise; NIO has high hopes for the "cheapest" model ET5, but its performance has clearly not met expectations. It can be seen from this that the two companies clearly have little experience in creating "cheap cars".
The launch of the second brand "Impulse" may also highlight the helplessness of NIO and Xiaopeng's main brands in charging high. From January to February, NIO sold 18187 vehicles, a year-on-year decrease of 11.98%, making it the only company among the top six new car making forces to experience a decline in sales. Xiaopeng is also struggling, and the highly anticipated Xiaopeng X9 has not yet become a new growth pole since its launch on January 1st. In February, Xiaopeng's sales were only 4545 units, almost at a bottom. Launching a second brand or a choice for two companies to switch paths for development.
Looking at the other two leading companies in the new automotive industry. The ideal trend of 2023 is difficult to maintain, but the performance in the first two months of this year was not satisfactory. After the launch of the new Mega model under the new category, there has been a differentiation in its reputation. Coupled with its high price level, it may be difficult to become the main model that drives the ideal's annual sales of 800000 units; The L6, which is expected to be launched in the second quarter, should be the focus of attention.
Huawei, which does not manufacture cars, has incubated brands such as Wenjie, Zhijie, and Xiangjie with its strong allies. Wenjie has also experienced a surge in sales, becoming the leader of new car manufacturing forces in the past two months, demonstrating a strong desire to compete for the annual sales crown. (China Economic Network reporter Guo Yue)
