Yesterday, Tesla China announced a price reduction for all models of Model Y, Model S, and Model X currently on sale in the Chinese market. Today, Ideal Motors also followed suit with price reductions.
On April 22nd, the official WeChat account of Ideal Automobile announced the new prices of the 2024 Ideal L7, Ideal L8, Ideal L9, and Ideal MEGA.
The price reduction for the 2024 Ideal L7, Ideal L8, and Ideal L9 models ranges from 18000 to 20000 yuan. Among them, the Ideal L7 Pro is priced at 301800 yuan, the Ideal L7 Max is priced at 329800 yuan, and the Ideal L7 Ultra is priced at 359800 yuan; The Ideal L8 Pro is priced at 321800 yuan, the Ideal L8 Max is priced at 349900 yuan, and the Ideal L8 Ultra is priced at 379800 yuan; The Ideal L9 Pro is priced at 409800 yuan, while the Ideal L9 Ultra is priced at 439800 yuan. The new price of Ideal MEGA is 529800 yuan, a decrease of 30000 yuan compared to before.
Ideal states that both newly ordered users and those who have already ordered but have not yet delivered can enjoy the new price. Currently, ordering can also enjoy a car purchase benefit worth 10000 yuan.
At the same time, Ideal Automobile stated that it will also provide cash feedback to owners of the 2024 Ideal L7, Ideal L8, Ideal L9, and Ideal MEGA models who have already picked up their vehicles, and will push cash feedback notifications through the Ideal Automobile App.
Today, the Hong Kong stock of Ideal Automobile opened significantly lower, falling below HKD 100 during trading. As of press release, it fell 6.02% to HKD 99.9. In fact, since the release of Ideal MEGA, the stock price of Ideal Automobile has fallen consecutively, dropping more than 45% from its high on February 28th.
Ideal L6 orders over 10000 units within 72 hours of launch
According to data released by Ideal Automobile, the order for Ideal L6 has exceeded 10000 units within 72 hours of its launch.
On April 18th, the Ideal new family five seater SUV, the Ideal L6, was released with a starting price of 249800 yuan for the Pro version and 279800 yuan for the Max version.
It is understood that the Ideal L6 adopts dual motor intelligent four-wheel drive, with a 0-100km/h acceleration of 5.4 seconds, a CLTC comprehensive range of 1390 kilometers, and a pure electric range of 212 kilometers. Equipped with a 15.7-inch 3K dual screen, it achieves high-definition four screen interaction. In terms of autonomous driving technology, the Ideal L6 Pro is equipped with the Intelligent Driving AD Pro 3.0, equipped with 10 cameras and 1 millimeter wave radar. It uses the Horizon Journey 5 Intelligent Driving chip, which can achieve functions such as high-speed NOA, automatic parking, and off parking. The Ideal L6 Max version is equipped with an intelligent driving AD Max, which adds one camera and one LiDAR, and is equipped with the Nvidia Orin-X chip. It has more comprehensive functions and can support advanced intelligent driving functions such as high-precision map free city NOA and valet parking.
Regarding this new car, Meituan founder, director, and controlling shareholder Wang Xing said on social media, "Let me put it this way, I think among all the models launched by Ideal so far, the L6 is likely to be the one that Ideal's employees have bought the most. I believe many employees of Ideal are also aware of this in the process of designing and producing this car."
Previously lowered sales targets
At the beginning of 2024, Ideal Automobile set a target of selling 800000 units annually.
However, since the beginning of this year, the sales situation of Ideal Automobile has not been ideal. According to data released by Ideal Automobile, the company delivered 29000 new cars in March 2024, a year-on-year increase of 39.2%. In the first quarter of 2024, the company delivered 80400 new cars, a year-on-year increase of 52.9%. Although the year-on-year growth rate of sales is relatively high, there is still a significant gap compared to the previous year's sales target of 800000 vehicles (monthly average sales of 66700 vehicles).
On March 21st of this year, Ideal Automobile announced a reduction in its expected vehicle delivery volume for the first quarter of this year, from 100000 to 103000 units to 76000 to 78000 units.
Ideal Automobile also conducted a review in the announcement, stating that the company mistakenly operated Ideal MEGA from stage 0 to 1 (commercial validation period) as from stage 1 to 10 (high-speed development period). Therefore, the next step will be to operate Ideal MEGA at a rhythm from 0 to 1, focusing on the core user group and cities with strong high-end pure electric consumption capabilities, and then promoting it to more cities and larger user groups.
In addition, Ideal Automobile also stated that due to excessive focus on sales and competition issues, the user value and operational efficiency that the company was originally best at have significantly decreased. Next, Ideal Automobile will lower its sales expectations and return to healthy growth, focusing on users rather than competition. Return to improving user value and operational efficiency that one excels at.
According to a research report by Ping An Securities, after the listing of Ideal MEGA, the sales resources of Ideal terminals have been heavily tilted towards MEGA, squeezing out the sales resources of the L series, leading to a decrease in the conversion of orders from the main sales force of the L series. As Ideal Automobile mentioned in its announcement, the company will operate Ideal MEGA at a rhythm from 0 to 1, focusing on the core user group and cities with strong high-end pure electric consumption capabilities. In the future, the sales resources of the L series will increase, and the sales of the L series are expected to return to the previous level.
Ping An Securities believes that the L-series of Ideal Automobile is the company's sales and profit base for 2024. With the adjustment of the company's sales resources, the L-series is expected to return to the right track and maintain the sales forecast of 650000 units of Ideal Automobile in 2024. The L-series will account for more than 80% of the company's total sales, and the company's net profit is expected to reach 14.56 billion yuan in 2024.
