Rebirth 08: Rise from copycat phones

Chapter 399 Untitled
The particularity of the automobile industry has allowed Xu Shenxue to take more flexible measures in the development of electric vehicles to ensure greater sales, thereby driving the development of the entire industrial chain.

In China, Xu Shenxue has been advocating the necessity of electric vehicles, mainly from the perspective of energy security, followed by environmental protection, and finally overtaking in the automotive industry chain.

Because in the field of traditional fuel vehicles, traditional automobile powers such as Japan, South Korea, the United States and Germany have already occupied a large number of fuel vehicle technologies and patents, leaving very little room for survival for latecomers in the entire industrial chain. China has been engaged in the traditional automobile industry for decades, but has still not been able to achieve a breakthrough, let alone overtake.

This is also the reason why our local traditional automobile companies have long been able to only stay in the low-end market and are unable to enter the mid-to-high-end market.

The technology has been locked!
But it is different in the emerging field of electric vehicles. In the field of electric vehicles, China itself is the leader, with BYD's early exploration and Hailan Automobile's large-scale development later!
In particular, the series of electric vehicle supply chains established by HaiLian Automobile are already ahead of overseas in terms of technology in all aspects.

Although there are some electric vehicle supply chains abroad, their technology is not very good or the cost is high...The two most critical parts in the field of smart electric vehicles are assisted driving and batteries.

Assisted driving requires better algorithms and computing chips...and these two areas are currently the exclusive monopoly of Zhiyun Group. Its EYEQ series of assisted driving platforms and PX open computing platform occupy 100% of the market share in various types of intelligent assisted driving fields except Hailan Automobile.

In the battery field, there are currently three first-class power battery manufacturers in China, namely BYD, Hailan, and Ningdai. Relying on these three power battery manufacturers, China is far ahead of other countries in the field of power batteries.

Hailan Battery has almost reached the limit in the field of lithium iron phosphate batteries, and now it has launched semi-solid-state batteries to lead the world.

BYD Battery mainly produces lithium iron phosphate batteries, which are technically inferior to Hailan Battery, but their costs are lower and they can control the cost of power batteries within a relatively low range. This is also a key factor in making their electric vehicles cheaper.

Ningdai is a third-party battery manufacturer with very good battery technology, especially its ternary lithium battery technology. It has become a power battery supplier for many domestic and foreign automobile manufacturers, and recently obtained partial authorization for semi-solid batteries from Hailan Automobile. It is expected to launch commercial semi-solid batteries to the market in 19.

Foreign power battery manufacturers mainly include LG from South Korea and Panasonic from Japan, but their technology is now outdated, and it is difficult for them to compete with Chinese power battery manufacturers in terms of cost.

Then there are some third- and fourth-rate foreign power battery manufacturers, but they are small in scale, have poor technology, and pose basically no threat.

Whether in the field of assisted driving or power batteries, China's electric vehicle industry chain can be said to be leading the world.

In other electric vehicle industry chains, China is basically self-sufficient and has a leading advantage in some areas.

Energy security, industrial chain advantages, and technological advantages are also key factors in the country's vigorous promotion and support for the development of the smart electric vehicle industry...not just because of environmental protection.

The effect of this support is extremely good, especially the opening of exclusive electric vehicle license plates in some large cities with license plate restrictions, which has enabled the domestic electric vehicle industry represented by HaiLan Automobile to achieve rapid development since last year.

Not only is the sales of Hailan Automobile continuing to rise, but the sales of domestic electric vehicle brands such as BYD are also growing rapidly.

BYD, GAC, Chery, BAIC and Geely, the five automobile manufacturers that started their business early in China, have successively launched plug-in hybrid or pure electric electric vehicles with considerable market competitiveness, all of which have achieved good sales.

Although they are still producing mid- and low-end models, they have still greatly expanded the market.

Of course, the one who benefited the most was Hailan Automobile.

The two mid-size models of Hailan Automobile, Hailan SLMC and Hailan MEV, which was just launched this summer, are both main models with very large sales.

At the same time, due to good cost control and continued subsidies, the entry-level price of HaiLan Automobile's HaiLan SLMC model has been lowered to 310,000 yuan.

Of course, in order to avoid price trampling that may cause dissatisfaction among consumers, or to prevent consumers from holding back on purchasing, Hailan Automobile did not directly reduce the prices of its existing models. Instead, at the press conference this summer, it launched a new entry-level Hailan SLMC with lower configuration... For other existing models, it chose to increase the quantity without raising the price.

But in fact, it is a price reduction, and the price reduction is not small.

Of course, the reason why domestic consumers can buy the latest entry-level Hailan SLMC with semi-solid power batteries at a price of 310,000 yuan is also closely related to the strong domestic subsidies.

According to the current subsidy standards, every Hailan car can get the maximum subsidy.

Taking Shenzhen as an example, if the range of a pure electric vehicle is greater than 250 kilometers, it can receive a national subsidy of 44,000 yuan and a local subsidy of 22,000 yuan.

At the same time, there is a subsidy for power batteries... For batteries with energy density greater than 120 watt-hours per kilogram, a subsidy of 1.1 times will be given.

All of Hailan Automobile's pure electric models have a range of more than 120 kilometers, and the battery energy density exceeds watt-hours per kilogram... Even the earliest lithium iron phosphate batteries of Hailan Automobile had an energy density of watt-hours per kilogram, which was later gradually upgraded to watt-hours per kilogram.

The latest semi-solid-state batteries now have an energy density of 350 watt-hours per kilogram.

Therefore, HaiLan Auto’s cars sold in China can get a lot of subsidies... This is also an important reason why HaiLan Auto’s smart electric cars are so expensive overseas but relatively affordable in China.

Subsidies and continued cost reductions have continued to push the terminal sales price of Hailan Automobile to become cheaper and cheaper.

But overseas, the price of Hailan cars is quite expensive!

On the one hand, there is the impact of tariffs, and on the other hand, there are no local subsidies or tax exemptions.

This ultimately resulted in the Hailan car being sold at a very high price overseas.

Hailan Automobile established factories in Thailand and Brazil, largely in exchange for the low tariffs and support strategy for electric vehicles given by Contemporary Amperex Technology Co., Ltd. As long as you support the electric vehicle strategy, give me subsidies, low tariffs and other benefits, then Hailan Automobile does not mind setting up an assembly plant locally.

Vehicles are produced by importing core parts and components, purchasing some non-core parts and components locally, and finally assembling them locally.

This is an exchange of interests.

However, this kind of exchange of interests can only be carried out in places where there is no automobile industry, such as Thailand and Brazil, and they are very welcoming to HaiLan Automobile.

However, it is not so easy to do business in markets such as Europe and the United States.

There are also many automobile industries in Europe. Germany has many automobile brands such as BMW, Mercedes-Benz, Volkswagen, Audi, etc. France also has Peugeot, and even Italy has their own automobile brands.

At the same time, BMW, Audi, Mercedes-Benz and other car brands are still the main competitors of Hailan Automobile...their car prices are similar!
Outsiders rarely pay attention to this, but what makes people in the industry tremble is that with the launch and global sales of Hailan Automobile's Hailan SLMC, the sales of BMW's 4 Series, Series, Audi A, Mercedes-Benz C Series and other models have been declining continuously.

Especially in the Chinese market, sales are declining very quickly.

Under such circumstances, Hailan Automobile still wants to enter the European market with low tariffs. Do you really think that local European automobile manufacturers are dead?

Even with the current 10% tariff, HaiLan cars are still doing very well in Europe and are selling like hot cakes.

Under such circumstances, they have begun to plan to raise automobile tariffs. Of course... they did not directly say that they would raise tariffs, but instead said that Hailan Automobile received too many subsidies from China, and that the low-price dumping after the subsidies destroyed the market fairness of the EU and other nonsense.

Only shameless people like them can say that Hailan Automobile is engaging in low-price dumping.

People all over the world, even those in primitive tribes in Africa, know that Hailan cars are very expensive!
The cheapest model among Hailan cars, the Hailan SLMC, generally costs more than 60,000 euros for the entry level model in the EU market... This price is even too high to enjoy many of their local new energy vehicle purchase subsidies... The new energy vehicle purchase subsidies in many European countries are limited to vehicle prices.

For example, Germany only subsidizes electric vehicles below 40,000 euros, and later introduced a manufacturer subsidy of 45,000 euros. However, the cheapest Hailan SLMC in Hailan Automobile costs 61,000 euros... This price is not enough to get subsidies.

To accuse Hailan of dumping a car whose cheapest price is over 60,000 Euros...only Europeans would be so shameless to say that; even Americans cannot say that.

The Americans have never accused Hailan Automobile of dumping at low prices... They directly used Hailan Automobile as a threat to national security and banned Hailan Automobile from entering all official institutions. At the same time, they are also planning to impose punitive tariffs... 100% directly.

Xu Shenxue had long given up hope on the American market, as that was Tesla's base, and it also owned General Motors and Ford, so it was not an easy place to enter.

So Xu Shenxue planned to take a roundabout route and set up an assembly and re-branding plant in Mexico, have his own Hailan cars pass through Mexican waters, and then change the logo and export them to the United States... with zero tariffs.

As for whether Mexico will be subject to additional tariffs in the future, that is all in the future... Let's make money first. If we can boost the US auto industry a little bit in the next few years, that would be great.

The American market is rather special and difficult to tap into. If the Chengyang Lake hairy crab model works, then do it. If it doesn’t, then it doesn’t matter.

However, as for the European market, although it is also very difficult, we should still try our best to fight for it.

After all, the competition between China and the United States is all-encompassing, ranging from semiconductors to electric vehicles, to artificial intelligence, the Internet, smart terminals and many other fields.

However, in Europe, although there is competition, it is not all-round competition... There are still many aspects that can coexist and even complement each other... Especially when Europe no longer has the Internet industry, artificial intelligence, semiconductors and other emerging industries.

Europe is no longer a rival...

Today's Europe is actually a place where many American high-tech companies, such as Apple, Tesla, and Google, and many Chinese high-tech companies, such as Zhiyun Group, Wilmar Technology, and HaiLian Auto, are competing for the fat meat.

That’s right, Europe is already the fat meat on the table!

The biggest disagreement between Xu Shenxue and the American consortium is: who gets to eat the biggest piece of meat!

In the field of electric vehicles, Tesla and Hailan Automobile are each scrambling to grab land in Europe. In order to seize the European market, Tesla is even preparing to build a factory in Germany... By the way, Tesla is also in contact with China and is preparing to invest in building a factory in China. On the one hand, Tesla wants to better enter the Chinese market, but more importantly, it is to reduce their costs and facilitate the export of their Teslas to other regions.

To put it bluntly, although Tesla's sales in China are not very good, and with the suppression of Hailan Automobile in the future, it is highly likely that there will not be any sales...but it still wants to take advantage of China's mature and cheap smart electric vehicle supply chain to reduce their vehicle manufacturing costs and thus improve their market competitiveness.

Hailan Automobile has started to launch the Hailan SLMC priced at RMB 310,000, and the management of Tesla is also looking very anxious.

In addition, the biggest cost, that is, the power battery part, has already reached a strategic cooperation agreement with Ningdai Battery. We are now starting to use some of Ningdai Battery's ternary lithium batteries, and will use Ningdai Battery's semi-solid-state batteries from the beginning of 19.

In addition, there is a PX computing power platform which also belongs to Zhiyun.

Chips and power batteries have already used what Xu Shenxue learned, so why bother struggling? Just move the assembly plant there to further reduce costs. When the products are produced in the Chinese factory, they can be directly shipped to ASEAN, Europe and other regions.

As for moving the factory to China, it’s hard to say whether Americans will make money, but Musk will definitely make a fortune!

In the field of electric vehicles, if Tesla wants to compete with Hailan Automobile, it must place its factory in China and take advantage of China's mature smart electric vehicle industry chain.

Whether Musk is willing or not, he has to do this... otherwise he will just wait to die.

A similar situation actually exists in fruits.

You can’t buy fruit phones in Huaxia, but more than 80% of fruit phones are still produced in Huaxia City...

Because regardless of whether Fruit can be sold in China, if Fruit phones want to compete globally with mobile phone manufacturers such as Zhiyun, Sixing, and Wecoo Electronics, they cannot do without China's smart terminal supply chain.

This situation is also common... Many products of foreign brands seem to be foreign goods, but in fact they are all produced in China. The supply chain manufacturers are in China, the assembly plants are in China, and even the R&D departments are in China.

What is left of foreign companies is just a brand and a marketing department.

This is the globalization advocated by many European and American companies... European and American companies are happy, Chinese companies and workers are happy, global consumers are happy, and a world has been achieved in which only European and American workers are unhappy.

Unfortunately, as the situation changes, they no longer like globalization and have started talking about employment and imposing tariffs.

Letting capitalists talk about employment is simply a huge joke!

When they just started to impose tariffs, Xu Shenxue immediately approached Tesla's boss Musk.

Brother Ma, you want to set up a factory here and use my supply chain to reduce costs, right? That’s a good thing. Come on, don’t worry. I, Old Xu, support you.

As long as you come over, I guarantee that you will be able to use semi-solid-state batteries in early 19, and I will give you the best PX chips. You don't have to go through the trouble of developing any computing chips on your own. I will directly give you the greatly upgraded PX chip, which has absolutely top performance.

As the richest man in the world, I speak with all my heart and without any empty words.

Then, Hailan Automobile here also wants to get involved in Mexico. If you can make some connections, I will go to visit them with gifts and talk about the gold mine.

As for the European market, there have been some issues recently. There are too many rebels there. I still hope that we can maintain a unified pace... When parents are fighting, you can’t let the children interrupt!

After all, although our two companies are located in different places, we have a common enemy: traditional fuel car manufacturers!

If you and I join forces, we can directly defeat General Motors, Ford, Volkswagen, Toyota and the like.

After these traditional fuel vehicle manufacturers are wiped out, you and I will share the global automobile market equally!
From now on, the Chinese market is mine, the American market is yours, and other markets belong to all of us... This is the perfect world!

When Musk heard this, he couldn't help swallowing...

If someone else said this nonsense, Musk would just kick them out, but since Xu Shenxue said this, it is worth Musk's in-depth thinking and research.

Are they working together with General Motors and Ford to use safety as an excuse to fight against Xu Shenxue's Hailan Automobile?

Or should we cooperate with Xu Shenxue's HaiLan Automobile, take advantage of their technology and supply chain advantages, and then together defeat GM and Ford?
There are also the European market, the ASEAN market, and the South American market, which sound very exciting.

So, do you want to cooperate with Xu Shenxue and make something big?
If this is successful, can Tesla expect annual sales of one million, two million or even three million units?
The revenue must be over 100 billion US dollars.

But the risk is not small. The management of GM and Ford and the financial groups behind them are not fools. Moreover, they are all old financial groups with all kinds of means at their disposal.

Even Musk is afraid of accidents!

(End of this chapter)