Recently, Liu Jie, Vice President of Business at Ideal Automobile, stated in an interview with China Securities News that this year, Ideal Automobile's strategy is to focus on both extended range and pure electric routes. A total of 8 products were planned for the year, and delivery capacity is a major challenge. "How to effectively replicate and apply the successful practical experience of 1-2 products to our future product strategy is a great test of the organizational and process assurance capabilities," Liu Jie said.
On March 1st, Ideal Automobile held a spring press conference and officially released the first pure electric model, Ideal MEGA, as well as the 2024 Ideal L series models (including Ideal L7, Ideal L8, and Ideal L9). With the launch of Ideal MEGA, Ideal Automobile has officially entered the pure electric market.
This year is a big year for Ideal Automobile's products. In addition to the four products mentioned above, Ideal Automobile also plans to launch the L6 and three pure electric SUVs this year.
On March 11th, Ideal Automotive's first pure electric product, Ideal MEGA, officially began nationwide delivery. Liu Jie said, "Ideal Automobile's expected delivery volume for March is over 50000 vehicles, and the overall delivery volume in the first quarter will exceed 100000 vehicles, which is twice that of last year's first quarter, in line with our plan and expectations."
In Liu Jie's view, in 2023, the market size of new energy vehicles worth over 200000 yuan in China will be 2.6 million vehicles; In 2024, the scale of the new energy vehicle market with a price of over 200000 yuan will reach 3.5 million vehicles. For the annual delivery target of 800000 vehicles for Ideal Automobile, "it means that our market share must be above 20%." Liu Jie said.
Data shows that in the fourth quarter of 2023, the market share of Ideal Automobile in the new energy vehicle market above 200000 yuan increased to 16%, ranking first among Chinese automotive brands. "With only three SUV products (Ideal L7, Ideal L8, and Ideal L9), our market share in the new energy market above 200000 yuan is 16%. In 2024, we have added Ideal MEGA, Ideal L6, and three high-voltage pure electric models to be launched in the second half of this year, so we are very confident in achieving a market share target of over 20%."
According to industry judgment, if the penetration rate of the new energy vehicle market exceeds 50% this year, the mainstream choice of the automotive market with a price of over 200000 yuan will shift from gasoline vehicles to new energy vehicles, and the market will be more concentrated towards top enterprises. Liu Jie believes that in such a situation, a market share target of over 20% is very necessary for Ideal Automobile.
Liu Jie judged that in the new energy market of over 200000 yuan last year, the cumulative market share of the top three reached 50%. If the market share of the top three reached 70% this year, it means that the market share concentration of BBA in the era of fuel vehicles is even higher.
"By the end of this year, there will be a particularly clear top three in the new energy market with over 200000 yuan, reaching a 70% share. Among the top three, we and Wenjie are definitely among them, and we look forward to a third Chinese brand becoming one of them," Liu Jie said.
From January to February this year, Wenjie's monthly delivery volume exceeded expectations, and it continued to hold the top spot in monthly delivery sales for new forces. Regarding the competition with Wenjie, Liu Jie said, "We believe that the competition between top companies is long-term and necessary for the market, which is benign. At present, we feel very lucky to have a strong competitor like Huawei."
In addition, Liu Jie revealed that this year, Ideal Automobile will enter overseas markets in the form of exports. "This year's plan is mainly focused on the Middle East market, with the construction of a local sales and service team launched in Dubai. Delivery in Dubai is expected to begin in the fourth quarter of this year."