On September 1st, several new energy vehicle companies announced their delivery data for August. With the implementation of scrapping subsidies and replacement policies in various regions, multiple enterprises have achieved year-on-year growth, proving that the off-season is not weak.
Among them, Ideal Automobile and NIO saw a slight decline compared to the previous month, with the former still ranking first with nearly 50000 vehicles, while the latter delivered over 20000 vehicles for four consecutive months; Zero Run Motors delivered over 30000 vehicles in a single month for the first time, with a year-on-year increase for 16 consecutive months; Xiaopeng Motors and Nezha Motors are still stuck at around 10000 vehicles; There has been a fluctuation in sales in the market, and Xiaomi has delivered over 10000 vehicles for three consecutive months.
The new energy brands incubated by traditional car companies have started to increase in volume, with Deep Blue Automobile selling over 20000 vehicles per month for the first time, and Extreme Fox Automobile selling over 10000 vehicles per month for the first time. Extreme Krypton Automobile, Zhiji Automobile, and Lantu Automobile have all achieved year-on-year growth.
According to data from the China Association of Automobile Manufacturers, it is preliminarily estimated that the total retail market size of narrow passenger cars in August was about 1.84 million units, a decrease of 4.4% compared to last year and an increase of 7% compared to the previous month. The retail sales of new energy are expected to reach 980000 vehicles, and the penetration rate is expected to further increase to 53.2%.
Ideal, NIO's slight decline, Xiaopeng hopes for MONA
After delivering over 50000 vehicles in July after a six-month hiatus, Ideal Auto experienced a slight decline in August, delivering 48100 new cars that month, a year-on-year increase of 37.8% and a slight decrease of 5.64% compared to the previous month. The Ideal L6 has exceeded 20000 units for three consecutive months, increasing Ideal's market share but lowering the average selling price. Ideal's vehicle gross profit margin has dropped from 19.3% in the first quarter to 18.7% in the second quarter.
Li Xiang, Chairman and CEO of Ideal Automobile, stated during the financial report communication meeting that with the optimization of economies of scale and adjustments to sales policies, Ideal's vehicle gross profit margin is expected to rebound slightly in the third quarter, reaching over 19%, and the overall gross profit margin is expected to return to over 20%.
Ideally, it is expected that the delivery volume in the third quarter of this year will reach 145000 to 155000 vehicles, an increase of 38% to 47.5% compared to the third quarter of 2023. This means that Ideal Auto will need to deliver 84000 vehicles per month in September to meet the delivery target lower limit. As of August 31st this year, Ideal Automobile has delivered a total of 921500 vehicles, one step away from the Million Club.
Following closely behind is Zero Run Motors, with monthly deliveries exceeding 30000 units for the first time, a year-on-year increase of 113.57% and a month on month increase of 37.17%. Among them, the delivery proportion of the Zero Run SUV family exceeds 72%, and the Zero Run C16 has delivered over 8000 units. As domestic sales continue to rise, Leapmotor is accelerating its overseas market layout. In the fourth quarter of this year, Leapmotor will debut its first product B10 on a new platform at the Paris Auto Show.
However, Zero Run, which aspires to become a Uniqlo in the automotive industry, has not yet formed a scale effect, and due to its low product prices, it is still not profitable. In the first half of this year, it incurred a net loss of 2.212 billion yuan and a gross profit margin of 1.1%.
In the view of Zhu Jiangming, founder, chairman, and CEO of Zero Run Motors, sales volume is more important than gross profit margin. Of course, we cannot sell at a loss. We must have a certain gross profit margin and gross profit margin. Zero Run's strategy is to systematically increase the gross profit margin year by year. This year, we aim to achieve an average gross profit margin of 5% or even better, and move towards 10% next year. Ultimately, Zero Run's gross profit margin will be around 15%. "Zhu Jiangming said that Zero Run's goal is to become one of the top eight best-selling car groups in the Chinese market this year.
NIO, which saw a decrease in discount rates at the end of July, delivered over 20000 vehicles in August, a slight decrease of 1.57% compared to the previous month. During the Chengdu Auto Show, Qin Lihong, co-founder and president of NIO, stated that the milestone of delivering 20000 vehicles per month was a bit late, but it is the height that NIO should reach now.
In addition to NIO's main brand, NIO's second brand, Ledo, opened its first batch of 100 stores on September 1st. The new Ledo L60 car arrived at the stores and will be launched this month. Qin Lihong revealed that NIO's third brand, Firefly, will debut in the first half of next year. This brand is younger and more fashionable, and its price will be relatively lower.
Xiaopeng Motors delivered 14000 new cars in August, a month on month increase of 25.94%, but there is still a gap compared to the three aforementioned companies. Xiaopeng Motors regards the MONA M03 (119800 yuan to 155800 yuan) as the next lever to boost sales, and it is currently the cheapest model on sale for Xiaopeng. The high-end version is equipped with advanced intelligent driving functions. It is reported that MONA M03 has exceeded 30000 units in the first 48 hours after its launch. In addition, Xiaopeng Motors will launch the Xiaopeng P7+based on the new generation of autonomous driving hardware platform in the fourth quarter.
When Xiaopeng entered the market, there were 300 new car making forces competing with 100 traditional companies, but now only 40 have reached scale, and in ten years, there may only be 7 mainstream domestic car brands left. "Xiaopeng Motors Chairman He Xiaopeng judged that selling 1 million smart cars per year will be the threshold for staying at the table.
Nezha delivered 11000 vehicles in August, which is basically the same as last month and a decrease of 9.07% compared to the same period last year. Nezha Motors is also seeking new increments. Recently, the Nezha S Hunting Edition was launched, based on the Shanhai Platform 2.0, with a price range of 159900 to 209900 yuan. It offers two power forms: pure electric and extended range. In addition, the CIIC 800V version, the world's first Ningde Times integrated intelligent chassis, has officially started pre-sales.
Overall, the automotive market is still in a low point, and the extreme price war within has led the industry into a stage of 'mutual slaughter', "said Fang Yunzhou, director of Nezha Automobile, in an interview." Some people have been spreading anxiety, saying that there will only be seven or eight new energy vehicle companies left in the next few years. However, after so many years of development in the global automotive industry, there are still a certain number of car companies in countries and regions such as Europe, America, and Japan, which indicates that the market capacity is large enough
Amidst fluctuations in the market, Xiaomi has surpassed 10000 yuan for three consecutive months
As new car manufacturers delivered in July with a month on month growth, new energy brands such as Xiaomi, Lantu, and Shenlan also continued to increase their sales.
Since the beginning of the year, Wanjie, which has been competing with Ideal Motors, delivered 31200 vehicles in August, a decrease from the previous month's 41500 vehicles. Among them, 15400 units of Wenjie M9 were delivered, and 10300 units of Wenjie's new M7 series were delivered.
Regarding the fluctuation in delivery performance of the WENJIE, He Liyang, President of SAIC Motor, stated that the peak monthly production capacity of the WENJIE M7 series exceeded 30000 units, and a high-temperature technical upgrade was launched in August, resulting in fluctuations in delivery. The delivery volume of the new M7 Pro in the first week of its launch was 3000 units, and over 10000 units were delivered in the first month of its launch, with a delivery cycle of 2-4 weeks
On the eve of the Chengdu Auto Show, the WENJIE new M7 Pro (249800~289800 yuan) was launched, which is the lowest priced model in the M7 series. The new car adopts a lower computing power pure visual solution, reducing the hardware cost of high-end versions of LiDAR, and may become a support point to boost WENJIE's sales.
Yu Chengdong, Executive Director of Huawei, Chairman of Terminal BG, and Chairman of Intelligent Automotive Solutions BU, said, "Selling a new M7 Pro in Wenjie would result in a loss of nearly 30000 yuan. The topic of "selling a new car at a loss" is not just about the industry. Recently, the topic of "Xiaomi losing over 60000 yuan on selling a car" has sparked heated discussions. Xiaomi founder Lei Jun responded by saying, "Making cars is tough, but success must be cool. Xiaomi cars are still in the investment stage, and we hope everyone can understand
The WENJIE series of models also drove the sales performance of SAIC Motor, with sales of 36000 new energy vehicles in August, a year-on-year increase of 479.55%. Among them, SAIC Motor sold 34000 vehicles, a year-on-year increase of 949.40%. The cumulative sales of new energy vehicles from January to August this year were 279000 units, a year-on-year increase of 381.75%.
This month, the sales dispute between HarmonyOS and Ideal Motors has once again escalated, with the sales gap widening from 6900 units in July to 14400 units. In the first eight months of this year, Ideal Auto and HarmonyOS delivered 288100 and 272000 vehicles respectively. With the launch of multiple new cars such as the Zhijie R7 and the Wenjie M9 five seater version, the competition between the two sides will become even more intense.
Li Xiang recently stated, "HarmonyOS is currently Ideal's biggest competitor, and we will coexist in the market in a long-term and healthy manner. At the same time, we will continue to learn from Huawei, especially in research and development
The highly popular Xiaomi car has delivered over 10000 units for three consecutive months. Xiaomi founder Lei Jun revealed that Xiaomi Auto is expected to achieve its annual delivery target of 100000 vehicles ahead of schedule in November, aiming to deliver 120000 vehicles annually. So far, Xiaomi Auto has delivered over 45000 vehicles.
Starting from June, Xiaomi's automobile factory has implemented dual shift production, with shorter delivery cycles for various models compared to before, but the waiting period is still relatively long. Currently, the delivery cycle for Xiaomi SU7 Standard and Max versions is about six months. However, the long waiting time and the discount offered by competing models have diverted some users of Xiaomi SU7. A Xiaomi car salesperson told 21st Century Business Herald reporters that the number of new orders has significantly slowed down compared to before.
The Guangzhou Automobile Aion, which was singing high last year, has hit a bottleneck in sales growth this year. Its sales in August were 35400 units, compared to 45000 units in the same period last year, showing a significant year-on-year decline. In the first eight months of this year, its cumulative sales volume was 248400 vehicles, only achieving 35.5% of the annual sales target of 700000 vehicles. To boost sales, GAC Aion unveiled the Aion Tyrannosaurus 520 LiDAR version at the Chengdu Auto Show, priced at 169800 yuan. The second global model of the Aion brand is about to debut.
Gu Huinan, General Manager of GAC Aion, stated in an interview with 21st Century Business Herald that in order to seek faster growth, Aion has begun to transform its pure electric product strategy and plans to expand into the plug-in hybrid/extended range market.
Other new energy brands have shown varying degrees of growth: in August, the controversial "backstabbing" of old car owners by Jike Motors delivered 18000 units, a year-on-year increase of 46% and a month on month increase of 15%. During the Chengdu Auto Show, the large five seater SUV Jike 7X started pre-sales and will compete with Tesla Model Y and others, with pre-sale prices starting at 239900 yuan. In addition to the 7X, in the fourth quarter of this year, Jike will also launch another new car, Jike MIX. The two new cars, along with models such as 001 and 007, are seen by Jike as key drivers of sales in the second half of the year. Jike's sales target of 230000 vehicles this year has not been adjusted, "emphasized An Conghui, CEO of Jike Intelligent Technology.
In August, both Deep Blue Automobile and Extreme Fox Automobile made new breakthroughs: the former exceeded 20000 vehicles, a month on month increase of 20.4%, and a year-on-year increase of 37%; Jihu Motors has sold over 10000 units; Lantu Automobile and Zhiji Automobile have stable sales of around 6000 units, with little fluctuation. At the Chengdu Auto Show, the Zhiji LS6 was newly released, and both Lantu Dreamer and Zhiyin started pre-sales. The Deep Blue S05 and Deep Blue L07 were unveiled at the Chengdu Auto Show, and the intention of car companies to sprint for the "Golden September and Silver October" is self-evident.
Lantu Automotive CEO Lu Fang told 21st Century Business Herald reporters that Lantu's sales have doubled in the first seven months, and the monthly delivery volume has been increasing. This year, we will definitely achieve our internal goals. According to previous reports, Lantu Motors has an annual sales target of 100000 vehicles, with a cumulative delivery of 42500 vehicles in the first 8 months, achieving 42.5% of the set target.
In addition, Jiyue Automobile also announced its sales volume, delivering 2117 units of Jiyue 01 in August, a month on month increase of 108%, doubling its sales for two consecutive months. On the eve of the opening of the Chengdu Auto Show, Xia Yiping, CEO of Jiyue, looked back on his car manufacturing experience and shed tears during an interview. He told 21st Century Business Herald reporters, "At the beginning, sales were not good, and everyone was under a lot of pressure. We went through a lot of things in the middle, but it was actually quite tough. I don't think there is a problem with the underlying logic, product strength, intelligence, and the support of two powerful shareholders (Geely and Baidu) behind the scenes. Why can't we sell well
Sprint for the 'Golden Nine and Silver Ten'
With the further implementation of scrapping and renewal policies, as well as the gradual introduction of local policies for exchanging old vehicles for new ones, the national call for anti involution has led to a stabilization of terminal prices, further easing consumer sentiment of holding money and observing, and a rebound in overall car market heat. With changes in the energy structure of the car market, the penetration rate of new energy sources has exceeded 50%, and the overall seasonal trend of the car market is gradually diverging from that of traditional fuel vehicles. The heat of the car market in August will not decrease, continuing the trend of 'off-season is not weak', "said the China Association of Automobile Manufacturers.
The arrival of the "Golden September and Silver October" may make the new energy vehicle market even more prosperous in September, as can be seen from the ongoing Chengdu Auto Show. Unlike the "traffic manufacturing machine" and "business" that Lei Jun transformed into at the Beijing Auto Show, the sales team from 4S stores across the country will rush to open orders, making selling cars the top priority.
At multiple brand booths and in front of densely packed phone stands, salespeople are live streaming car sales. In front of popular car models, there are even four sales representatives introducing their products and offering high discounts, striving to seize the upcoming peak sales season; Salespeople wearing uniforms from brands such as Jike, NIO, and Xiaopeng walked through the exhibition halls, attracting every consumer interested in buying a car. On the first day of the opening, a reporter from 21st Century Business Herald added the WeChat accounts of nine salespeople from different brands; There are also ground promotion personnel who scan codes to give gifts, guiding consumers interested in gifts to fill in relevant information such as name, phone number, and intended car model. After successful submission, they immediately receive enthusiastic service from relevant sales personnel to make an appointment for on-site test drive
But even good wine fears deep alleys, and car companies' thirst for traffic and product exposure has not weakened. Under the pressure of traffic and marketing changes, it is difficult for automobile companies to instill product features to consumers according to the previous top-down communication model. For automobile companies that want to enhance their voice, "relying on" people who bring their own traffic or becoming the traffic itself becomes one of the ways out.
Pay more attention to my video account, "CEO Lu Fang issued an invitation at the beginning of the interview. In his opinion, it used to be an incremental market where you just needed to run faster than others. Now it's a stock market, taking on the task of converting fuel vehicles into new energy vehicles while accommodating so many new car companies in a limited market. It must be a very intense and "life and death" competition.
Deng Chenghao, CEO of Deep Blue Motors, is also on the path to becoming a traffic influencer through live streaming. He will test drive live before the auto show and live stream before the opening day interview. After the interview, the next live stream will begin; The day before, "crying" Xia Yiping broadcasted the first test of OTA 2.0 version live in Chongqing the next day, and demonstrated the challenge of pure visual advanced intelligent driving empowered by end-to-end large models on the complex urban roads of Chongqing. Of course, products are important, and traffic is the password. For example, when CEO Xia Yiping shed tears at a press conference, traffic and attention came, and that's the key, "joked Ma Lin, assistant vice president of NIO.
At the end of the day, traffic is just a means, not an end in itself. Real sales are the key to success. After the hustle and bustle, the core of the automotive manufacturing industry needs to return to the essence of commercial competition - the technology, quality, and service level of products. The automotive industry is undergoing a comprehensive and profound transformation, from production and manufacturing, technological changes to marketing. Traffic may boost sales in the short term, but in the cruel marathon of car manufacturing, the foundation and logic of competition are still advancing with the times in terms of product and technological competitiveness, research and development investment, supply chain cost control, and smooth internal decision-making mechanisms. The car company bosses who are currently exploring "human design" in the live broadcast room will eventually return to their most familiar battlefield.