Rebirth 08: Rise from copycat phones

Chapter 465: Riding the Wind to Impact the Top Ten Global Automakers
HaiLan Automobile launched the HaiLan YEV priced at more than 200,000 yuan, which caused a much greater shock to the automobile market than the third-generation super-fast charging technology advocated by Xu Shenxue at the press conference.

As for Volkswagen, targeted meetings were held to discuss the new models of Hailan Automobile, and their attitude was very pessimistic.

"The threat posed to us by their Hailan YEV is far greater than some of their new technologies, such as the third-generation super-fast charging technology and the second-generation semi-solid-state battery!"

"Although these new technologies are great and have a huge leading advantage, they cannot bring much actual change to their car sales!"
"Because Hailan Automobile is already a global leader in assisted driving, power batteries and fast charging technology, even if they don't launch these newer generations of technology, they can still use their existing technological advantages to gain a competitive advantage in the market!"

"However, the Hailan YEV is different. From the perspective of technical features, according to our analysis, many of the technologies used in this model are their mature technologies. Whether it is L3-level assisted driving or semi-solid-state batteries, these are not much innovative compared to the previous Hailan SLMC model!"

"Many other parts of the vehicle also use their mature structures and spare parts. We highly suspect that their Hailan YEV is actually just a reduced version of the existing Hailan SLMC, with only some changes in appearance and interior!"

"This means that the R&D cost of Hailan YEV will be very low. If the R&D cost is low, the R&D cost per vehicle will be very low. At the same time, the hardware it uses, especially the chassis, frame and other spare parts are all mature shelf products. Although the power and computing chips are new products, they can also share the R&D costs with other models. The large production capacity can further reduce the unit price of these spare parts!"

"This can make the cost of Hailan YEV very low, which is why the price of this car can be as low as 280,000 before subsidies!"

"You know, this is a car that uses a lot of top-level technologies. The entry-level version has a range of 500 kilometers. The technical cost is very high. At least if we were to make this car, the cost would be more than 280,000 yuan."

The Hailan YEV is currently only available for sale in China. The standard dual-drive version is priced at 280,000 yuan before subsidies. In most parts of the country, after enjoying a total of 60,000 yuan in national and local subsidies, it can be purchased for only 220,000 yuan.

Two hundred and twenty thousand, this price is a price that makes Volkswagen and other major automobile manufacturers tremble with fear!
Because this price has seriously threatened the market share of mainstream B-class models of major automobile manufacturers.

If other car companies launched a smart electric car model priced at 220,000 yuan, they would not feel anything... However, the problem is that the car was launched by Hailan Automobile!
Looking back at the history of the automotive industry over the past few decades, Hailan Automobile can be regarded as a BUG-like automobile manufacturer that does not follow the usual path at all... This can be seen from some of the terms used by Hailan Automobile in its self-promotion.

In fact, HaiLian Automobile has never promoted the cars it manufactures... They have always portrayed themselves as a smart electric car company, not a traditional car company.

They don't even think of themselves as traditional manufacturing companies, but rather as high-tech enterprises.

Its product is not a car, but a traffic terminal based on artificial intelligence technology...

Look at this. It's typical rhetoric of those who play with high technology and the Internet. It's obviously a car, but they like to use all kinds of terms to package it as a so-called high-tech product.

Not to mention, most of Hailan Automobile's senior management were transferred from Zhiyun Group and Weiku Electronics. In addition, it was merged with Zhiyun Group's existing autonomous driving technology business, which gave the company a strong high-tech attribute from the very beginning.

In Hailan Automobile, there are actually very few executives who are truly from the automotive industry!

HaiLan Automobile actually did not develop and manufacture smart electric vehicles in the same way as it developed and manufactured traditional cars. They tried to do so in the early days, but the results were not good, which led to Xu Shenxue carrying out a major purge of HaiLan Automobile's early senior management.

Today's Hailan Automobile is actually making smart electric vehicles in the same way as smart terminals... They don't regard their products as cars, but as smart phones with four wheels.

This leads to the uniqueness of Hailan Automobile. First of all, it attaches great importance to technological research and development and likes to play with all kinds of novel new technologies. Secondly, the investment in research and development is particularly large and the cycle is particularly short.

In areas such as sales and promotion, it is a pure smart terminal manufacturer, and even has the genes of an Internet manufacturer. It pays great attention to online promotion and brand building, and its online army is everywhere.

They like to hold on to a certain technological advantage and then brag about it to create the high-tech brand characteristics of Hailan Automobile.

These gameplays are very different from those of traditional car manufacturers.

The effect of making the Hailan cars in this way is also very good. Regardless of whether the Hailan cars are easy to use or not, especially their practicality, each one is full of high-tech feel.

Even though the HaiLan YEV only costs over 200,000 yuan, its exterior and interior design are full of HaiLan Automobile's usual high-tech feel.

There are a lot of small functions that are technologically advanced but actually useless or even difficult to use...

But when these are combined together, it gives people a sense of novelty... When people see the Hailan car, they feel it is very high-end and technological.

It seems that this is what cars of the future should be like!
To quote the CEO of a domestic automobile manufacturer, in private: The people at Hailan Automobile are not only great at high-tech, but also great at bragging...

But people just buy into it!
As a result, the Hailan SEC launched by Hailan Automobile became a global hit in its first year. Every subsequent car launched every year became a hit. Even a large luxury car like the Hailan SLC was manufactured by them.

After playing in the high-end market for several years and building up its brand, HaiLan Automobile has made a big move into the mid-size car market, launching the HaiLan SLMC and the HaiLan MEV which was launched on the market last year. These two models, priced at more than 300,000 yuan, instantly set off the market.

It completely pushed HaiLan Automobile to the status of an automobile giant with annual production of one million vehicles!

Such a brand of Hailan Automobile has now launched the Hailan YEV priced at more than 200,000 yuan. How can the degree of its market threat be ignored?

HaiLian Automobile is not like other car manufacturers that develop smart electric vehicles. There is a huge difference between the two.

Before this, the automotive industry was not without new energy vehicles priced at more than 200,000 yuan. Domestic manufacturers such as BYD, overseas manufacturers such as Toyota, Honda and other overseas manufacturers have also successively launched new energy vehicle models priced at more than 200,000 yuan, mainly plug-in hybrid and hybrid, and there are also some pure electric models.

But in fact, it did not cause much response!
Compared with the booming high-end and low-end markets, the mid-range market of more than 200,000 does seem a bit lonely!

The current new energy vehicle market presents a rather extreme differentiation situation.

Represented by HaiLan Automobile, plus Tesla and BMW, their models focus on the high-end market, with prices starting at more than 300,000 yuan. Among them, HaiLan Automobile is an absolute giant, occupying more than 90% of the market share, followed by Tesla.

Below the high-end, the models that are shipped in large quantities are not those priced over 200,000 yuan, but rather low-end models with a price of less than 200,000 yuan after subsidies.

This market is dominated by online ride-hailing vehicles and microcars.

In this field, domestic automobile manufacturers' independent brands such as BYD, GAC, and BAIC dominate, and their total sales volume is very large.

There are also new energy vehicle models priced over 200,000 yuan, but they don’t sell well, and are mainly hybrid or plug-in hybrid models...pure electric models are basically out of the question.

Instead of spending more than 200,000 yuan to buy a pure electric car of other brands, it is better to add tens of thousands to more than 300,000 yuan to buy the Hailan SLMC.

However, there are still many consumers who have concerns about pure electric vehicles. They want to experience some of the pure electric experience and also want some of the characteristics of fuel vehicles, so these consumers will choose to buy BYD's plug-in hybrid models.

Of course, price is also a very important reason... There is a big price gap between the 200,000 yuan plug-in hybrid model and the 300,000 yuan Hailan SLMC.

In the above-mentioned new energy vehicle market, both the high-end and low-end are large, but the sales volume in the mid-end market is very small.

And now, Hailan YEV has broken this situation!
The price of 220,000 yuan after subsidies, plus the bonus of Hailan Automobile's high-end luxury brand, and the high-tech attributes that are inherent to Xu Shenxue's brand, have made the Hailan YEV model attract a lot of attention from consumers since its launch.

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After the launch of the Hailan YEV and the official opening of pre-orders nationwide, it received orders for more than 50,000 vehicles in just one day.

Pre-order orders for Hailan cars require consumers to pay a deposit in real money, and the deposit is non-refundable, which can basically be regarded as a standard order.

That’s not all. HaiLan Auto’s flagship stores in cities across the country have also opened offline test drives and pre-orders.

Offline flagship stores have also received a lot of pre-order orders.

A week later, in order to continue to create market heat, Hailan Automobile officially announced the pre-order orders for Hailan YEV: one week after the release, the total orders have reached 130,000 vehicles!

After this news was officially announced, many people in the industry could not help but remain silent after seeing this number!

This Hailan car is even more exaggerated than expected, and it has become another hit!

It's only been a short time, just a week.

And it's only in the domestic market... This model has not yet been launched for sale overseas, but in just one week, the domestic market has accumulated orders for 130,000 vehicles.

You know, most car models in the domestic market cannot sell more than 130,000 units a year!
In the domestic automobile market, there are nearly 600 models, but only about 50 of them have annual sales exceeding 130,000 units.

The HaiLan YEV achieved the annual sales volume of others in just one week... Although these are only pre-orders and it will take time to deliver them, if it is expanded to an entire sales year (twelve months) and only the domestic market sales are counted, it is very likely that the sales volume will exceed 500,000 units!
What does it mean to have an annual sales volume of 500,000 vehicles?
Able to rank among the top three in the automobile market!
This model will most likely allow HaiLan Auto's models to enter the top three of the national car sales list for the first time!
Before this, that is, last year, the best-selling model of HaiLian Automobile was HaiLian SLMC, with global sales reaching more than 600,000 units. However, this sales volume is global sales. This car also sells well in markets such as ASEAN and Europe.

Specifically in the domestic market, sales are approximately 380,000 units, ranking fifth in the domestic market's annual automobile sales list.

The domestic sales volume is 380,000 units, not because the car has no potential in China, but because people’s wallets are not good…

In China, Hailan Automobile's brand positioning has largely replaced the traditional BMW, Audi and Mercedes-Benz, becoming a representative model of high-end cars.

How should I put it? Nowadays, driving a BMW is definitely not as prestigious as driving a Hailan car...

Car models such as BMW, Mercedes-Benz and Audi have a particularly large number of shares, and there are also many second-hand cars. People are no longer surprised by them!

Many people think that when they see you driving a BMW, they might think that you bought a used car and are trying to show off.

However, there are not many Hailan cars in existence, and there are very few second-hand cars. Most of the cars on the road are new cars.

Buying a BMW, Mercedes-Benz or Audi may not necessarily prove your strength, but buying a Hailan car can definitely prove your strength...

Coupled with its high-tech attributes and cool appearance, the Hailan car attracts a lot of attention on the streets.

Especially the two-door, two-seater sea blue SEC sports car, which has become the first choice for many young second-generation and first-generation entrepreneurs when playing with cars.

Driving a Hailan SEC while holding a girl in your arms is much more interesting than driving a Ferrari with one hand. Hailan Automobile's high-end models have L4 automatic driving, which can completely free the owner's hands, and the owner can do whatever he wants with his hands... Many second-generation people and younger first-generation entrepreneurs buy Hailan Automobile for this reason.

Hailan Automobile's brand is high-end enough and has enough appeal. The only factor that limits its sales is the limited wallets of consumers...

This is also an important reason why HaiLan Automobile launched the HaiLan YEV with a price of more than 200,000 yuan.

It is impossible for HaiLan Automobile's sales to continue to break through to several million vehicles by relying on high-end models such as HaiLan SLMC.

We can achieve more than one million vehicles, and two million vehicles at most is already the limit... Even so, we will basically need to take away a large part of the market share of traditional luxury car brands such as BMW, Mercedes-Benz and Audi.

It will be extremely difficult to continue to break through. BMW, Mercedes-Benz and Audi also have their own traditional advantages and basic market. You can’t take them away just because you have a better car.

This makes it extremely difficult for Hailan Automobile to continue to make significant breakthroughs in the high-end market.

In order to achieve greater sales, Hailan Automobile chose to enter the mid-range market with a price range of more than 200,000 yuan.

The number of pre-orders for HaiLan YEV in the first week obviously met the expectations of HaiLan Auto’s top management.

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A week later, Hailan Automobile's YEV model officially started delivery.

HaiLan Automobile also held a large-scale delivery ceremony for the first HaiLan YEV, and simultaneous delivery ceremonies were also started in offline flagship stores.

Here, it should be noted that these flagship stores are all self-operated flagship stores of Hailan Automobile!
HaiLan Automobile does not adopt the traditional car dealer sales model, but chooses a self-operated sales model.

In the early days, HaiLan Automobile chose to set up flagship stores in major cities across the country and sell cars through an online pre-order model. Later, it gradually extended its offline flagship stores from first- and second-tier cities to third- and fourth-tier cities.

To date, 500 flagship stores have been established across the country, all of which are self-operated flagship stores.

In order to maintain a unified and transparent pricing system and repair and maintenance system, Hailan Automobile has resolutely adopted a self-operated model and has never adopted a traditional dealer sales system.

To this end, a considerable amount of money was paid to establish this self-operated sales system... It is also very capital-intensive to run a flagship store over the years, but Hailan Automobile is rich and can afford it!

This also allows Hailan Automobile to obtain a completely independent and controllable sales and after-sales service system, and to keep more profits in its hands.

The most important thing is the unified selling price across the country, and the after-sales service prices are all transparent... the price is directly marked on the official website, and it is what it should be.

The sale of each Hailan car requires an order to be placed through the official website's car ordering system. The offline flagship store only provides test drive experiences. To place an order for a car, consumers need to place an order from the official website.

This means that the price of Hailan cars is completely transparent at the sales end, and there is no price difference issue.

This avoids consumers’ concerns: worrying about getting cheated by buying at a high price!

Unlike other car manufacturers, which adopt a dealer sales system, this leads to price opacity at the consumer end... Although there is a guide price, this guide price is basically useless. The prices given by different 4S stores, and even by different salesmen in the same 4S store, are different... This brings great trouble to consumers when buying a car.

Even after selecting a certain model, you still need to compare prices repeatedly in different 4S stores and with different salesmen.

The prices of Hailan cars are completely transparent... You don't even need to go to an offline store or contact any salesperson. You can place an order directly on the official website, and then go to a nearby offline flagship store to pay the balance and pick up the car.

This car-buying model makes many consumers feel easy and convenient.

You don’t have to spend a lot of time bargaining with the salesperson. After bargaining and placing the order, you will still worry about whether you have made a loss or been cheated...

Just place an order if you like it, it’s simple and convenient!
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With the official delivery of the first Hailan YEV, a new round of boom in the new energy vehicle market this year has officially begun.

Some analysts have also raised their sales estimates for Hailan Auto this year.

In the first half of the year, many analysts believed that Hailan Automobile's global sales this year should be around 1.3 million vehicles.

But now, analysts do believe that Hailan Automobile's global sales this year are expected to reach 1.8 million vehicles.

Part of the sales increase was affected by the successive production of the Thai and Brazilian factories. The Thai and Brazilian factories were put into production this year, which will enable Hailan Automobile's overseas sales to increase by about 100,000 vehicles.

The other sales increase is mainly reflected in the Hailan YEV!

The sales of this Hailan YEV model are so exaggerated that even though there are only eight months left this year, analysts believe that it is still expected to reach sales of 500,000 units.

This is not just domestic sales, but also overseas sales. After all, according to Hailan Automobile's global market strategy, this car will inevitably be launched in other overseas markets in the following months, such as ASEAN and European markets. Together with the domestic and overseas markets, it is very likely that the sales volume will reach 500,000 in the next eight months.

Although many analysts believe that the HaiLan YEV model will to some extent impact the sales of HaiLan SLMC models under HaiLan Automobile, but after adding and subtracting, it is conservatively estimated that it can bring an additional 400,000 units of sales to HaiLan Automobile.

As a result, analysts finally believe that Hailan Automobile's sales this year are expected to reach 1.8 million units!
The forecast data given by these third-party analysts made many people in the automotive industry frown...

The automobile market is a stock market. In the past two years, global sales have been generally stable, at around 70 to 80 million vehicles.

Among the major automobile sales markets, there are China with more than 20 million, the United States with about 17 million, Europe with about 15 million, Japan with 5 million, India with more than 4 million, Brazil with 2.5 million, and Canada with about 2 million.

Sales in major global automobile markets are generally stable. There will be fluctuations, but there will not be significant increases or decreases.

In this case, a sharp increase in Hailan Automobile's sales means that other automobile manufacturers' sales must have dropped sharply.

The first to be affected are naturally some traditional luxury car brands such as BMW, Audi, Mercedes-Benz, Cadillac, Lexus, Volvo, etc. Their markets are being largely eroded by Hailan Automobile, especially in the Chinese market, where they are facing a survival crisis.

At the same time, with the launch of HaiLan YEV into the market, part of the market share of B-class traditional fuel vehicle brands such as Volkswagen, GM, Ford, Toyota, Honda, and Hyundai, which are priced between 200,000 and 300,000 yuan, will be swallowed up.

As for the domestic independent automobile brands... there is a certain impact, but not big... because among the current domestic independent automobile brands, except for Hailan itself, other domestic brands are basically in the low-end market, and there are very few models with a price of more than 200,000 yuan that can achieve good sales.

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As expected, just as the outside world predicted, HaiLan Automobile just announced that it had achieved pre-order sales of 130,000 vehicles within a week. A few days later, it held a new model launch conference in Thailand, announcing that its new model HaiLan YEV will be put into production in the Thai factory and launched in Thailand and ASEAN markets.

Compared with the Hailan SLMC launched locally before, this cheaper Hailan YEV is more in line with the purchasing power of consumers in the ASEAN market and has been very popular among local consumers.

At the same time, HaiLian Automobile also announced that its HaiLian YEV model is preparing for launch in countries around the world, and is expected to be launched in major automobile markets around the world in the next three months, including the EU market and major markets such as Japan, Canada, Mexico, Brazil, and Australia.

In addition, it must be pointed out that there is no mention of the Indian market here!

In fact, Hailan cars are also sold in India. However, in order to protect their automobile industry, India’s automobile tariffs have always been very high. The tariff on cars worth more than 40,000 US dollars is as high as 100%, which is extremely exaggerated.

Because it is very difficult to sell cars to India through conventional import methods.

Whether it is Hailan Automobile or traditional luxury car brands such as BMW, their sales in India are very bleak!

BMW's local sales are only more than 10,000 vehicles a year, and Hailan Automobile is not much better, having sold a total of 12,000 vehicles in India last year.

In the local area, HaiLan Automobile is a typical luxury car brand, and those who can afford it are all rich people.

As for building a factory there just for the local market, that is impossible.

Not to mention Hailan Automobile, even Tesla is unwilling to be the scapegoat.

In fact, India has also been trying to develop smart electric vehicles in the past two years and has invited Hailan Auto to set up factories there several times, but each was rejected by Xu Shenxue... If it is just a regular market exchange for employment, Xu Shenxue is also willing to share profits with local consortiums. As long as he can make the biggest profit and keep the core technology in the country, Xu Shenxue is actually very happy to cooperate with consortiums from other countries in the field of smart electric vehicles.

However, the problem is that the way people eat in India is so ugly.

Xu Shenxue knew with his ass that once he went over to invest, the other party would definitely increase the investment layer by layer and constantly demand an increase in the proportion of localization, forcing Hailan Automobile to continue to move its core spare parts technology, especially battery manufacturing, over there... Do you think that moving over there will be the end of the problem?
No, once you move there and build up the local industrial chain, they will kick you out, and they will use disgusting tricks like forcing you to buy from them at low prices.

If it is normal market competition and you cannot beat them and finally withdraw from the market, then there is nothing to say, you are just not as skilled as others...but the problem is that others are not playing normal competition with you, but are forcing you to leave through all kinds of disgusting means.

The previous GM was badly cheated and finally left the market in disgrace...

General Motors was backed by an American consortium, but it was cheated and suffered heavy losses, and finally had to sell its shares at a loss. Xu Shenxue claimed that he was not much more powerful than the American consortium, so naturally he would not go there to get slaughtered.

We are just using the pure import model now, and we will sell as many as we can.
Coincidentally, Tesla was also wooed by India, but Musk is not stupid. He is a smart man and refused without saying a word.

Then, just like HaiLan Automobile, it tried to negotiate with the other party and get them to lower the import tariffs on smart electric vehicles.

But India is also very determined and is unwilling to lower tariffs!

Since Hailan Automobile and Tesla, two typical companies, don't come over, they will try to fool, no, try to win over other car manufacturers... I have put such a big piece of fat meat in front of me, I don't believe that no one will take the bait, as long as one takes the bait, I will reap the benefits!
However, Xu Shenxue had already taken precautions. He had no control over whether the downstream automobile manufacturers went there or not. These automobile manufacturers were just assembly plants anyway, and they did not have their own core spare parts technology in the field of smart electric vehicles.

Today, some core parts and components companies in the smart electric vehicle industry chain, such as Ningdai Battery, Hailan Automobile's laser radar and motor companies, and Zhiyun Semiconductor's computing chip companies, are all controlled or strategically invested by him.

If he says he can’t go out to sea, then he can’t go out to sea!

As for other core spare parts companies, as long as Xu Shenxue could influence them, he would not allow them to go overseas at will.

Don't blame Xu Shenxue for being ruthless if you dare to expand the core industrial chain overseas without his permission, create overseas competitors for HaiLan Automobile, and affect his global layout of the entire smart electric vehicle industry chain.

If he doesn't drive them bankrupt, his character "Xu" will be written backwards!

Affected by many factors, the Indian market is quite special. Its contribution to the sales of Hailan Automobile is not zero, but it is not much either and can be almost ignored.

There are more or less tariffs in the markets of other countries, but not as exaggerated as in India. Hailan Automobile is still able to sell some cars thanks to its strong brand appeal and high-tech attributes.

Selling thousands or tens of thousands of vehicles here, and thousands or tens of thousands of vehicles there, the accumulated amount is not a small amount in the end.

Especially the ASEAN market, the European market and the Brazilian market, these three markets are the main overseas markets for HaiLian Automobile.

It is worth noting that HaiLan Automobile enjoys certain tariff preferences in these three markets. This is because HaiLan Automobile has invested in and built factories in the above three regions, each of which has given HaiLan Automobile a certain low-tariff import quota.

For example, in the Brazilian market, the automobile tariff is 20%, but HaiLan Automobile invested in building a factory locally. As one of the rewards, HaiLan Automobile can export a total of 200,000 cars to Brazil within three years. These 200,000 cars can enjoy a 10% tariff reduction, so the actual tariff is only 10%.

The situation is similar in the ASEAN region. Thailand has tariff exemptions for imported A-Class cars. In addition, although the tariffs in Indonesia are very high, due to the investment negotiations between the two sides, the other party has also agreed to give certain tariff exemptions for imported cars.

In the EU, the tariff is only 10%.

Then Norway is quite special. The tariffs on electric vehicles in this country are very low. They are vigorously promoting new energy vehicles, and the tariffs are directly zero. Previously, Hailan Automobile used lithium iron phosphate batteries, and the battery life was seriously degraded when used in cold environments. However, since the launch of semi-solid batteries last year, the battery life performance is excellent in severe cold environments. Therefore, Hailan Automobile's local sales have skyrocketed.

The small country of Norway has become the largest sales country for Hailan cars in Europe.

The above three regions are all typical routes of exchanging market for employment. Hailan Automobile obtained a ticket to enter these regions by investing in and building an assembly plant in the local area.

As for other national markets, we will adopt a pure import model and the tariffs will be what they should be.

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In May, Xu Shenxue went to HaiLan Auto and held a meeting with Bao Yongyan and other senior executives of HaiLan Auto.

The main content of the meeting was to prepare for future market changes.

"We predict that the market will have a huge growth this year, and the main factor affecting our production capacity is still production capacity!"

"At present, our production capacity has reached its limit. If we want to expand our production capacity in the future, we have to wait until the domestic Sichuan factory is fully operational in the second half of the year and the first phase of the Brazilian factory is operational!"

"We expect that by the end of the year, our global production capacity will reach two million vehicles to meet the needs of markets around the world!"

"Next year, the second phase of our Brazilian plant and the Mexican plant will be put into production, which will increase our overseas production capacity by another 200,000 vehicles!"

"For the domestic part, our headquarters Shenzhen Phase III factory, Jiangcheng Phase II factory, and Beijing Phase II factory will also be put into production one after another, adding another 400,000 vehicles to our production capacity!"

"By next year, our production capacity will be further increased to 2.6 million vehicles."

"By the year after next, our production capacity will further increase. Our three overseas factories in Spain, Hungary and Indonesia are expected to start production, which will bring us an overseas production capacity of 300,000 vehicles."

Together with the planned second phase of the Shanghai plant and the fourth phase of the Shenzhen project, the capacity expansion of these two core plants will bring us an additional 400,000 vehicles of production capacity.”

"By then, our global total production capacity will be able to increase to 3.3 million vehicles. If nothing unexpected happens, we should be able to rank among the top ten automakers in the world!"

"However, simply expanding production capacity is not a big problem. If necessary, we will start the expansion plan now. At most, we will be able to increase production capacity by at least one million vehicles in one to six months. However, sales may not be able to keep up!"

"Our production capacity is planned based on sales expectations in markets around the world. According to the analysis of our marketing department, the production capacity of 3.3 million vehicles in two years will already have a relatively large risk of insufficient capacity utilization!"

"After all, we are targeting the mid-to-high-end market, and the market capacity is relatively limited. It is impossible for us to expand production capacity on a large scale in a short period of time like those car companies that mainly target the low-end market!"

"I heard that BYD's mid-term planned production capacity is not smaller than ours. Compared with us, their capacity expansion is even more aggressive. However, they are taking the low-end route, with a very obvious sales growth rate and huge market potential. They can fully absorb the market with a larger production capacity. We are different!"

"Our current production capacity planning is based on the premise that the Hailan YEV, a model with a price of more than 200,000 yuan, can continue to be popular around the world. At the same time, the mid-range SUV model expected to be launched next year and priced from 250,000 yuan after subsidies can also bring sufficient sales!"

"If these two future main models fail to meet sales expectations, the production capacity we are planning will be underutilized, further reducing our gross profit margin."

Xu Shenxue nodded slightly when he heard this: "It's better to be cautious. The automobile market is quite special. We can't do it blindly!"

At this point, Xu Shenxue thought for a moment and said, "Your main task in the next stage is to reduce costs and be prepared for a substantial reduction in subsidies!"

"The current high domestic subsidies for new energy vehicles cannot continue forever. In the early days, the new energy market was small and needed high subsidies to support its development. But now that the domestic new energy vehicle market has taken off, these high subsidies will inevitably decline gradually."

"In order to avoid the impact on sales due to higher vehicle prices after the subsidy is reduced, cost control must be taken seriously!"

"The 220,000 yuan Hailan YEV and the 280,000 yuan Hailan YEV are completely different. You must be prepared in advance!"

Xu Shenxue's words were not groundless, but he had received consultation from his superiors before... People asked him how the current development of smart electric vehicles was going, whether they could be self-reliant, and whether they could still compete and win against foreign auto giants without subsidies?

At the same time, it was also tactfully pointed out that the current sales volume of domestic new energy vehicles is too large, increasing day by day. If the subsidy is too large, it can be sustained for a while, but if this trend continues and the domestic sales volume of new energy vehicles reaches several million next year, it will be more difficult to continue with such subsidies... After all, with a large family and a large business, there are many places to spend money, and we cannot just focus on the smart electric vehicle industry!

At that time, Xu Shenxue considered for a long time and gave a positive answer: After years of cultivation, smart electric vehicles can now be self-reliant!

At the same time, he also promised that in order to cooperate with the subsidy reduction, by next year, his mining alliance that produces rare or precious metals such as lithium and cobalt needed to produce lithium batteries will also initiate price reduction measures to reduce the cost pressure of domestic smart electric vehicle manufacturers.

A large part of the cost of electric vehicles is battery cost, and the cost of materials such as lithium is the largest part of the battery cost. The direct price reduction of raw materials will greatly reduce the cost of electric vehicles.

At the same time, we can also take advantage of this price reduction opportunity to suppress the bad intentions of some countries with lithium mineral resources to make a fortune by using lithium mineral resources.

Recently, some countries with abundant lithium mineral resources, seeing the development of electric vehicles, want to make a big bite of it and even want to establish a lithium OPEC... What a nice thought!
The world's largest lithium material suppliers and users are all companies under Xu Shenxue. How can you ask him to restrict himself?
At present, except for a very small number of senior executives, no one knows that Xu Shenxue’s more than a dozen mining companies under different names currently control more than 90% of the world’s lithium mining production capacity, and also controls the production capacity of some rare materials and precious metals needed for power batteries.

These mining companies under his control seem to be competing with each other, but in fact they are all under the control of Xu Shenxue.

By next year, the mineral companies under his control will launch a so-called price war and direct and direct the lowering of the price of lithium materials.

Then, when the price of lithium materials plummeted, they took the opportunity to continue to buy at the bottom, acquired other lithium mines for large-scale development, and focused on the development of lithium resources in China and Africa and other regions. The current source of lithium resources is more dependent on Australia and South America, which is not a good phenomenon!
However, the super-large lithium mine development project invested by Anton Mining under Xu Shenxue in Africa has now entered the production stage and is gradually increasing its production capacity.

This is a super project with an annual output of 500,000 tons, which is higher than the lithium mine production capacity of Australia!
In order to ensure the smooth development of this super lithium mine, Galaxy Security has stationed more than 500 security personnel in the local area, with all kinds of armored vehicles, drones and other equipment. If they are pissed off, the local warlord can be replaced!

Of course, the local warlords are not that stupid... They can live a comfortable life by sharing a small part of the profits, and there is no need to offend these international mining giants!
You won’t even know how you died by then!
These days, mining is much more ruthless than high-tech...

Although Anton Mining, which has laid out its mining market in Africa, has no reputation in the outside world, if the local warlords ignore it and think that Anton Mining is just an ordinary foreign-funded enterprise, they will suffer a great loss!
How can ordinary companies have the courage to go to Africa, especially to develop minerals in war-torn and unstable areas...

When Anton Minerals went to open a mine, they brought a large number of people from Galaxy Security with them!

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Xu Shenxue does not expect to make money from lithium mineral resources. What he wants is to control the price of lithium materials.

In order to control prices, huge production capacity is absolutely necessary.

In order to control the price of lithium ore materials, his companies are also vigorously developing lithium materials and the recycling of precious metals in other batteries, and the technology is quite good.

In the future, it may even be possible to obtain enough lithium materials for the production of new power batteries through the recycling of used lithium batteries and the development of domestic lithium mines...forming a stable internal cycle.

When the time comes, let those countries with lithium resources go to hell, so that they don’t have to be disgusted every other day like they do now!
Lithium OPEC... What are you dreaming about in broad daylight!
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After hearing what Xu Shenxue said, Bao Yongyan also said: "I also attended a symposium on new energy vehicles a few days ago, and I also noticed that the higher-ups have this intention. I optimistically estimate that subsidies will be gradually reduced next year, and it is not ruled out that some regions will cancel local subsidies in the second half of this year!"

"We have made sufficient preparations for this!"

"Our semi-solid-state battery technology is mature, and we are currently gradually reducing costs through large-scale mass production and sales. According to our forecast, by the end of the year, the cost of our semi-solid-state batteries is expected to be reduced by about 15%."

"At the same time, the cost of our intelligent driving system is also continuously decreasing, especially the L3-level assisted driving, which is the main product in terms of shipment volume. The previous R&D costs are being rapidly diluted, and the hardware costs are also gradually decreasing, especially in the fields of LiDAR and computing chips, where the cost reduction trend is quite obvious."

"We are confident that by next year, we will be able to reduce the cost of our main models, the Hailan SLMC and Hailan YEV, by 20% and 25% respectively!"

"This level of cost reduction is enough to cover the price difference after the subsidy reduction. Even if only local subsidies are reduced next year and national subsidies are still there, we can even further increase our gross profit margin!"

Xu Shenxue said: "It's good that you are prepared for this!"

Not only HaiLan Automobile has received the news, in fact, some other domestic electric vehicle manufacturers have also more or less received the news that subsidies will be reduced soon. Now they are all preparing to actively reduce costs to avoid the increase in vehicle prices caused by the sharp reduction in subsidies tomorrow, which will in turn affect sales.

But no matter what, the domestic smart electric vehicle industry has already taken off, and what needs to be done next is to take advantage of the situation and dominate the market!

(End of this chapter)