What's wrong with me being a rich man?

Chapter 541 Industry Shake-Up (1 words) (Seeking monthly votes)
A small deposit of 10,000!
You're bragging!
As the head of BYD, a veteran in car manufacturing, and an explorer of new energy, Wang Chuanfu maintained his basic demeanor and did not express his first reaction.

BYD is a car company that balances traditional and new energy vehicles, and it understands the intricacies of the industry best. Many car companies create market hype by counting the number of orders. For example, the "small orders" that have been circulating online are sometimes wholesale orders submitted by dealers to the OEMs in order to prepare inventory in advance. In addition to submitting small orders, these dealers also submit non-refundable large orders in order to secure quotas for popular models.

Anyway, the hype has already started; how things develop after that is another matter.

比亚迪上个月发布“唐”的时候也搞过热度，是在21日凌晨5点42分通过自家平台启动限量100台的预售，通稿标题则是“12分钟售罄100台的行业震撼”，而之所以选择这样的时间是为了凸显“542”战略。

But, but, the Silicon Carbon Group claims to be a directly operated company.

This order definitely doesn't contain any inventory that the distributor has stockpiled.

Wang Chuanfu licked his lips, a multitude of thoughts flashing through his mind. Finally, after a moment of silence, he asked with an incredulous yet tactful tone, "President Yu, you... you have 20 stores?"

He quickly identified the suspected problem based on his industry experience.

The data for carbon silicon is easy to calculate because there are only 4 days. If the small order is 1, the average number of small orders per day per store is 125.

This is a very exaggerated number.

Because not everyone who comes to the store will become a small-purchase customer. Assuming that the conversion rate of small purchases is 30%, which is extremely high in the industry, at least 416 groups of customers who come to the store will be needed.

BYD's own stores can see around 30 groups of customers a day on weekends.

Can silicon carbide production achieve 14 times the performance of BYD's?
“Yes, that’s right. Just 20 stores are too much pressure. We’ve opened 10 more stores in the Yangtze River Delta region to convert customers.” Yu Xing hadn’t thought that far ahead, he was just sharing his experience. “Our stores in the core business districts of first-tier cities have had a very good effect on attracting customers. The online feedback from our official website and app is also very good. Mr. Wang, you can also try online channels later.”

Wang Chuanfu fell silent again.

Hmm? A store in a prime commercial area of ​​a first-tier city?

This touches on a blind spot in BYD's knowledge.

How good is this traffic generation effect?

His Adam's apple bobbed up and down; his thoughts were indeed disrupted by the other person's achievements and words.

Yu Xing continued to share his experience: "Mobile Internet is indeed different from the Internet. Douyin helped Silicon Carbon promote its traffic this time, and the advertising effect was very good. Oh right, I only clarified this point about stores during the meeting today. We should build core stores in first-tier cities and standard stores in second- and third-tier cities."

Listening to President Yu's tone, Wang Chuanfu felt it was a sincere sharing of experience and inexplicably wanted to share his own experience as well. He broke the silence again: "President Yu, congratulations on your great start! Over 10,000 orders, awesome! President Yu, you must pay attention to keeping up with production capacity. Last year, when we were making the 'Qin DM,' we received 8000 orders in a single month, but battery production capacity became limited, and we could only deliver 800 vehicles per month, extending the delivery cycle to half a year. We even managed to kill off the market enthusiasm."

BYD's Qin received 8000 orders in May last year, but its total sales for the year were only 14,700 vehicles, averaging 1100 vehicles per month, indicating a severe limitation on production capacity.

Yu Xing smiled and said, "President Wang is right to remind us of that. Our meeting this evening was about production capacity."

Wang Chuanfu controlled his breathing and suddenly felt he had nothing to say. Either the other party was bragging, or the other party was too awesome. He needed to process both situations.

But he couldn't end the call so abruptly, so he brought up one last topic: "Mr. Yu, I've ordered a Kyushu, the Max version, remember to ship it to me as soon as possible."

“Mr. Wang, you have a good eye. Mr. Zhang Chaoyang from Sohu urged me to ship the goods yesterday. When I checked, I found out he had ordered the Pro version. Wow, I told him to switch to ordering a Max. Our top-of-the-line model is very popular, with pre-orders exceeding 20%.” Yu Xing exclaimed, “Customers really understand the materials we use.”

On the first day, 3% of the orders for silicon carbide were for the top-of-the-line Max version. As the total number of orders increased further, this proportion dropped to 2%, but it was still far beyond expectations. Therefore, the production schedule for the top-of-the-line version was actually slower, requiring 2-4 weeks.

Wang Chuanfu fell silent for the third time during the phone call.

If I remember correctly, the top-of-the-line Max is priced at 38.58 yuan. Even after deducting subsidies and small deposit cash discounts, the final price is still 32.68 yuan. This is a solid step over the 30 yuan threshold, unlike the Pro version which is less than 29 yuan.

Wang Chuanfu held the phone up to his eyes and looked at it before putting it back to his ear: "President Yu, congratulations. We need to learn from you. The future of new energy in China is promising."

“We will learn from each other,” Yu Xing said with a smile. “I absolutely believe this; it is the prelude to industrial innovation.”

Wang Chuanfu offered his congratulations again, then hung up the phone, took off his glasses, and looked somewhat bewildered.

The office was quiet, but only a small part of the sound from the other end of the line could be heard.

The three vice presidents who had been urging the boss to change his mind looked at him and exchanged bewildered glances. They had heard the information about "over 10,000" but only heard bits and pieces of what followed. However, the boss's three silences seemed deafening.

Surely you wouldn't actually believe that, would you?
Vice President Su Feipeng said, "99% of the silicon carbon companies are just trying to generate buzz. No matter what, they want to get orders first and have something to promote. Then they can explain away any problems with the production line or the restrictions on suppliers."

Another vice president, Yan Shuning, who had just overheard the boss's words on the other end of the phone, also pondered, "A small deposit of over 10,000, judging from this tone, must be just over 10,000. Even if it is 10,000, the Carbon Silicon Group simply does not have that much capacity to bear it. President Yu is just bragging without thinking."

Wang Chuanfu rubbed his face, offering no judgment, and looked at Gao Jinchuan, the last vice president who hadn't spoken, asking, "Old Gao, what do you think?"

Gao Jinchuan hesitated: "Logically speaking, this number is unlikely. It's understandable to have some outrageous features when launching a new car, but for a car in the 30 yuan price range, such an order is too outrageous..."

The absurdity made him doubtful.

Wang Chuanfu brought up Mr. Yu's words and asked, "Mr. Yu said that the traffic-generating effect of stores in prime commercial districts is extremely good. What do you think?"

All three fell silent; BYD currently lacks experience in this area.

After a moment, Su Feipeng shook his head and said, "Even if it's extremely good, as good as the BBA stores in the core business district, I've walked past them before, and it's not that bad. No, this isn't normal."

This is a bit sad, but even if you haven't eaten pork, you've still seen pigs run, right?

Wang Chuanfu leaned back in his chair and exclaimed, "That's just the norm. Aren't new energy vehicles themselves breaking the industry's past conventions?"

BYD is relaunching its "542" strategy this year, with the launch of the "Tang" model as the center. The company will hold the "Tang vs. Foreign Nations" challenge in the middle of the year, which mainly consists of 0-200 meter acceleration and off-road challenges. In 13, when the "Qin" model was launched, the company held the "Qin vs. Nations" arena competition, which focused on 0-400 meter acceleration.

This demonstrates how new energy vehicles break with convention in terms of performance.

However, this event didn't become big news within the industry, and instead attracted ridicule from foreign executives—"Running fast doesn't mean you can sell it."

If the more than 10,000 orders for new cars from the Silicon Carbon Group are genuine, or rather, not significantly inflated, then this undoubtedly breaks with convention in terms of "selling out."

Wang Chuanfu recalled his previous visit to Shenzhen and Yu's feigned incomprehension when Yu remarked that "BYD's headquarters in Shenzhen doesn't have ventilated seats."

He shook his head: "Customer needs are important, and we need to put more effort into this. When President Yu came last time, he said that we should use subsidies as a starting point. Now it seems that he has won half the bet."

Su Feipeng said somewhat unconvinced, "Isn't it easy to fix the interior?"

Wang Chuanfu frowned: "Why didn't Tang include seat ventilation in the first place? With the price going up, I think it's really unnecessary to cut corners on some costs. The decision to reduce the voltage from 800V to 400V with silicon carbide is indeed more suitable for today's market."

Su Feipeng was filled with questions about the Kyushu order. Hearing his boss say that, he muttered to himself, "Our 800V is the technical route."

“Isn’t the integrated die casting of silicon carbide a technology? Isn’t the heat-free aluminum alloy derived from that integrated die casting a technology?” Wang Chuanfu frowned even more. “Silicon carbide is not without technology. Customer needs and technical routes are not mutually exclusive. Su Feipeng, you need to think about this carefully.”

Su Feipeng was taken aback when his boss spoke up for silicon carbide so directly, and he immediately felt embarrassed.

"Mr. Wang, you can't blame Lao Su for this. Anyone would have doubts after hearing that," Gao Jinchuan, who was still somewhat skeptical, spoke up to help smooth things over. He then joked, "The authenticity of the silicon carbide order hasn't been confirmed yet, Mr. Wang. I think you're becoming a 'state-braggart' now. Do you really believe what Mr. Yu says?"

He had never met Yu Xing. He hadn't seen him when Yu Xing last came to Shenzhen on a business trip. He only knew about him from other people's stories and the news, and didn't know what kind of person he was.

“Even Jack Ma of Alibaba said that Mr. Yu is sincere in his dealings with people, and I felt that he was very sincere when he spoke on the phone.” Wang Chuanfu said this, then rubbed his face and suddenly laughed, “Alas, Mr. Yu’s sincerity has hurt me a little.”

Silence fell over the office for a moment.

Wang Chuanfu lit a cigarette, smoked half of it, and then gave his thoughts: "Although it's an exaggeration, the problems with offline stores can be alleviated. I tend to believe the number of orders from President Yu's side."

The three vice presidents looked at each other again, thinking that the boss's judgment was probably true.

Thinking about the positioning of the car models in Lingang, Yan Shuning muttered, "With such a booming order volume, the Silicon Carbon Group is going to explode..."

Gao Jinchuan shook his head and said, "It can't explode; it's also lithium iron phosphate."

Yan Shuning rolled his eyes: "You...you're not funny."

After finishing his cigarette, Wang Chuanfu's complex emotions subsided, and he began to consider the significance of this matter for the entire industry. He said, "If silicon carbide vehicles can continue to sell well, this will indeed be the prelude to industrial innovation. If the mid-to-high-end market can be established, domestic new energy vehicles will be able to obtain better development space. This is a good thing. There must be something to learn from everyone. It's okay to be a 'state enthusiast'."

After saying this, he turned to his own business: "Denza's kind of exploration can be done with more effort."

BYD has a disadvantage in brand positioning, but it explored cooperation with Mercedes-Benz in 2010 and established Denza, a company with each party holding 50% of the shares, the following year, with the goal of high-end new energy vehicles.

In this collaboration, BYD is responsible for the three-electric system (battery, motor, and electronic control system), while Mercedes-Benz is responsible for the overall vehicle design and manufacturing. The Denza 400 was launched to the market last year.

BYD has high expectations for Denza. Last year, at the handover ceremony for the first Denza owner in Shenzhen, Wang Chuanfu and Daimler board member Tang Shikai attended the handover together. The owner was Yu Chengdong, then chairman of Huawei Terminal BG.

However, Denza is considered neither a Mercedes-Benz nor a BYD in the market, and its sales target of 3000 vehicles this year seems unlikely to be achieved based on last month's figures.

Wang Chuanfu had opinions about the design of the first Denza model, but the cooperation model between the two parties had already been determined, with Mercedes-Benz responsible for these aspects, so he could only do nothing about it.

Now that he hears about the hot sales of "Jiuzhou", and looks at Denza, he feels that perhaps it's not impossible to succeed without Mercedes-Benz.

Upon hearing this, the three vice presidents each had their own thoughts. Denza's investment was substantial, and if changes occurred, it might not be a bad thing for them to take on the responsibility.

If silicon carbide can succeed, it proves that the domestic high-end market is entirely achievable. So why can't Denza succeed?

The office was filled with smoke, and astonishment, doubt, and shock mingled in the minds of the four people.

……

In the last week of February, Silicon Carbon Group clarified two primary principles for the current phase.

Ensure conversion and delivery.

Since the data was released on the first day of the press conference, management has realized the enormous pressure that front-line stores will face. This is because it is a simple math problem, and if it cannot be digested smoothly, market enthusiasm will cool down quickly.

Therefore, ensuring conversion becomes the top priority; only with conversion can there be continuous delivery.

On the third day, the Silicon Carbon Group launched its "direct" campaign based on industry experience, contacting potential customers in batches through small orders, and then bringing them to the port factory by bus. In Shanghai, they launched temporary outlets around the warehousing and logistics center.

However, this response was further optimized just half a day later.

When Yu Xing saw the bus in his office upstairs, a question suddenly occurred to him: although the efficiency of such buses in transporting a group of people seemed very high, even with employees on board, it would be difficult to make effective use of the time spent on the journey.

Since we're bringing them all to Lingang anyway, why not just send out a bunch of "Jiuzhou" cars? That way, they can get a test drive experience on their way to Lingang, and the entertainment screens in the passenger seat and back can play explanations of the car's features.

A large bus can carry fifty or sixty people at a time, while a "Jiuzhou" bus, after removing the driver and tour guide, can only carry four people, but the Silicon Carbon Group has a lot of vehicles.

The former is simply transportation, while the latter can be regarded as a more complete transformation activity.

Moreover, the passenger experience in the front passenger seat and the rear seats is itself a significant advantage.

The "Jiuzhou" is a six-seater mid-to-large SUV. Those who are willing to consider this type of vehicle are actually completing a general screening process. They care more about multi-person travel scenarios, and therefore care more about the riding experience of family members, rather than their own driving experience.

The resulting small-order customers are then further screened and converted.

Therefore, although taking the "Jiuzhou" train to Lingang reduces passenger efficiency, this process combines the advantages of the vehicle model with their needs.

Yu Xing shared his idea with Cai Junhui and Jia Qidong, who were in charge of sales. It was immediately adopted as a newer solution, and new employees were temporarily assigned to the roles of "driver" and "accompanying driver," which was considered a job rotation.

People named it "Ants Moving House".

Silicon Carbon Group is a new car company with less rigid processes. After quickly changing the plan and testing it, they immediately concluded that putting the transformation on the road was more effective.

There are a total of 20 stores nationwide. Originally, each store had to handle an average of 125 small-order customers. Now, the front-end stores, the mid-end stores in Kyushu, and the back-end stores in Lingang or warehouses work together to absorb the pressure of customer flow during this special period.

This pressure is expected to ease in mid-to-late March as the IPO gains momentum and new stores are built.

Of course, too much pressure needs to be dealt with, while too little pressure can also be worrying.

Because of the licensing factor and the value of the licenses, Shanghai is the city where the Silicon Carbon Group has the best market response nationwide.

Therefore, the Silicon Carbon Group will participate in the Shanghai International Auto Show held from April 22 to 29. Combined with the response to the launch of "Jiuzhou", it is expected to boost sales again, and at that time there will be more foundation and experience to digest the products.

On February 26, Yu Xing once again indulged his sales passion by temporarily acting as a guide at the silicon carbon headquarters. He had just returned to his office when he received a call from Director Zhu Zehui.

Director Zhu was also very concerned about the Silicon Carbon Group, but his reaction to the data circulating online was noticeably slow. This phone call was to inquire about the specific situation.

This time, Yu Xing didn't discuss the small order figures, but instead told the other party about "Jiuzhou's" delivery volume to date.

In five days, Silicon Carbon Group delivered 713 Kyushu vehicles.

From small orders to large orders, because large orders have a 72-hour lock-in period, the actual delivery lags behind the growth of small and large orders.

"713??" Zhu Zehui clearly understood the number but still asked, "What? President Yu, I didn't hear you clearly, please say it again!"

Yu Xing said slowly and deliberately, "Director, what I mean is that we have delivered 713 Kyushu cars to date, including 534 Pro versions and 179 Max versions. 257 of them have been delivered to Shanghai, accounting for more than 3%. It truly lives up to its reputation as our home base."

Zhu Zehui made a sound that seemed to come from his throat: "Uh, uh, uh..."

Yu Xing was afraid the other person would choke in the office.

"It's only been a few days? This..." Zhu Zehui was shocked and confused. "You, didn't you say 'not bad' last time? Is this 'not bad'?!"

Yu Xing confirmed, "Yes, it's not bad."

Zhu Zehui pressed further: "No, I thought your 'not bad' last time meant you could sell around 1000 cars a month..."

Yu Xing flattered, "Director, you have a brilliant idea. We'll discuss it in the next few days. We can only sell about 1000 vehicles in February."

February only has 28 days, and it's almost over. The first day of March is a Sunday, which is perfect for releasing the weekly sales rankings.

Zhu Zehui fell silent.

He told the city leaders who cared about the Silicon Carbon Group last time that selling 1,000 cars a month would be a passing grade for the Silicon Carbon Group. Now... now what the hell, are you going to be the director of Lingang in the future?

Zhu Zehui quickly calmed down from his huge surprise and cautiously asked, "President Yu, you and I have watched Silicon Carbon Group grow from nothing, and I absolutely support Silicon Carbon Group. Can your current situation continue? What will happen next month? If the leaders ask, what do you think is appropriate?"

He now felt that the carbon silicon group next door was completely distorted, and instinctively doubted the authenticity of the data. But while other data could be falsified, the actual number of cars delivered must be very low. 713 vehicles was just a number in the hundreds, yet this had already generated over 2 million in revenue! And this was for a car priced in the 30 range!

Yu Xing said lightly, "I don't know. I certainly hope it continues to sell well, but you never know."

Zhu Zehui scratched his scalp a couple of times and asked, "Do you think the Silicon Carbon Group can achieve its target of 3 vehicles this year?"

Yu Xing thought the question was very good and replied, "As long as the supply is stable, I think the target for this year could be 5 to 6 vehicles."

Zhu Zehui was overjoyed, but before he could speak, he heard the other person continue speaking.

“However, we are already preparing to expand our production line,” Yu Xing continued. “Regardless of whether we can continue to increase production to 7 or 8 vehicles this year, our expectations for next year are already higher.”

Although subsidies will definitely decline next year, they will not decrease by too much. Considering the delivery volume of "Kyushu" and further promotion, there is reason to believe that there will be a significant increase next year.

Yu Xing concluded by saying, "If the market sales go smoothly, we will consider starting preparations for a US listing. The SEC process takes a long time. If we apply in October or November, we may not be able to officially list until June next year. However, we can use the simplified disclosure rules for emerging growth companies like EGC, which may speed up the overall process."

Zhu Zehui was taken aback. He had heard about President Yu's ideas before, but he thought they were just empty promises. Now, the first model had only been on sale for a few days, and they were already considering going public in the US.

He didn't know anything about EGC's simplified disclosure, but he felt that Mr. Yu's tone indicated that he already understood the process.

"President Yu, what are the considerations behind the quick IPO of Silicon Carbon Group?" Zhu Zehui asked thoughtfully.

Yu Xing replied, "Jiuzhou has already gone public and the response has been good. We believe this is not only because of the subsidies, but also because our market positioning is accurate. Once we reach a certain scale, even if the subsidies decline, we will still be competitive."

“The subsidies gave us a boost, but Kyushu’s product strength is very strong. Therefore, we can make full use of the capital operation in the secondary market to continue to capture this market segment and prepare for competition with more models in the future.”

"The funds raised from the IPO will be used for research and development and the construction of the second-phase factory."

This was a plan that Yu Xing had considered beforehand, and Kyushu's initial market validation allows it to continue moving in this direction.

Zhu Zehui felt dizzy; he needed to process all the big news that had just come in.

He offered a few words of encouragement, though he himself was a little unsure of what to say. After hanging up, he started smoking, and after smoking three cigarettes in a row, he finally sighed leisurely.

I really enjoyed that smoking session.

Zhu Zehui also realized that the Carbon Silicon Group was the vanguard of the new energy industry!

What does it mean to be a vanguard?
Dare to explore and experiment! Be the first to try!
What about Lingang?
That is the future new energy industry cluster and innovation hub!
He picked up his teacup, drank half a cup of cold tea, and shifted his position, wanting to go check on the situation at the silicon carbide plant, but then felt that he might disturb their work. In the end, he sat calmly in the office with satisfaction, surprise, and even a hint of smugness.

On the other side, Yu Xing had a brief chat with his boss about the company's major initiatives for the year before quickly returning to his own work and scheduling a meeting with several key suppliers for next week.

However, in the evening, Secretary Zhang Yangxu hurriedly entered the office and mentioned a message from a competitor.

Li Hui, deputy general manager of GAC Toyota, gave a media interview and publicly discussed the uncertainties of integrated die-casting technology, believing that such an unproven technology should not be hastily applied to products like automobiles.

Yu Xing frowned as he looked at the first news report on Weibo. He found that in addition to criticizing the integrated die-casting technology, the other party also subtly discussed the chaos of inflated orders in the industry.

Undoubtedly, this is also in response to the data circulating online in Kyushu.

Silicon Carbon Group does not publicly disclose small order data. Of course, it's not that they are unwilling to discuss it, but rather that they want to use more authoritative data to create the weekly ranking. Small order data still has a lot of uncertainty, but the rumors are already rampant outside.

The news first came from a supplier employee's post on the Baixiaosheng Forum, and later it also appeared on Weibo. With short comments and congratulations from BYD executives on their WeChat Moments, the hot sales of "Jiuzhou" seemed to become a fairly certain piece of news.

“Li Hui, from GAC Toyota, he’s quite astute.” Yu Xing shook his head. “Don’t worry about him, we’re too busy with our own things.”

Seeing that his boss said that, Zhang Yangxu simply kept his attention to himself.

However, Li Hui is indeed very perceptive.

He is the deputy general manager of GAC Toyota, and is in charge of the Highlander business.

Although I didn't attend the launch event for Silicon Carbon Group, I was still curious about this new car company, especially after hearing that they were comparing it to the Highlander, which made me even more interested.

Li Hui arrived in Shanghai on the 23rd to prepare for the unveiling of the facelifted Highlander at the Shanghai Auto Show. On the 24th, he heard the data circulating online and simply laughed off the thousands of orders from Kyushu.

This is just a naive tactic used by new car companies to generate hype.

However, things changed late on the 24th.

Li Hui finished his drinking party around 10 p.m. and was driving past the Century Link Shopping Center in Pudong when he suddenly caught sight of the name "Carbon Silicon". He looked back and saw that there were still people there, brightly lit.

He immediately instructed the driver to turn around at the intersection and then passed by again to confirm the situation of the silicon carbon group's 4S store.

Why are there still employees and customers around at nearly 11 p.m.?
Li Hui got out of the car in surprise. After walking in, he was treated as a customer. Only then did he see the real "Jiuzhou", touch the materials inside the car, and see its rich features.

"Sir, we're about to close for the day. If you have time tomorrow or another day, we can pick you up for a test drive," the employee politely asked Li Hui. "Could you please leave your contact information so we can see when is convenient for you?"

Li Hui simply shook his head and left the silicon carbon store without saying a word.

He got into the car and checked his watch again; it was already past 11 o'clock.

In the short ten minutes Li Hui spent in the store, besides realizing that the last customer wasn't a shill, he also easily noticed a common thread: the employees who spoke all had somewhat hoarse voices.

Seeing is believing. After seeing it, and then recalling the data circulating online, I felt a chill run down my spine.

Six-seater model, suitable for families, with rich features and free license plates.

Li Hui had previously learned that Carbon Silicon Group was a car company that dared to use subsidies on the vehicle body, and unlike BYD, which emphasized the advantages of motors in vehicle speed, it had begun to cater to the more real needs of users.

He felt somewhat heavy-hearted, and a vague sense of unease crept into his mind: the Highlander was about to face a challenge.

Li Hui returned to the hotel and continued searching for information about the Silicon Carbon Group. He found that the group had not officially announced any data, and the relevant media had not reported on it either.

Is the data circulating online inaccurate? Is it simply that the Shanghai stores have a lot of foot traffic? Or perhaps, does Silicon Carbon Group lack experience in marketing?

Li Hui had some doubts in his mind, so he instructed his secretary to keep an eye on the silicon carbon store the next day and use the most basic method to count the daily customer flow in groups.

On the evening of the 25th, Li Hui, having finished work, summoned his secretary.

"Mr. Li, I've counted them group by group today, and there are nearly 150 groups of customers." The secretary, who had been squatting all day, was also surprised by the excessive workload of the silicon carbon store.

Li Hui, with his extensive work experience, mentally calculated the data and concluded that while the thousands of orders for silicon carbide were indeed inflated, the amount was not excessive.

Contrary to intuition, GAC Toyota's data shows that the conversion rate of mid-to-high-end models is actually higher than that of economy models. The former targets a more precise customer base and can achieve a conversion rate of 30%-40%, while the latter is as low as 10%-15%.

The higher the price of a car model, the fewer competitors it has. In contrast, the economy car market is already a fiercely competitive red ocean, with customers having too many models to compare.

Li Hui deliberately didn't drink too much today, and as he pondered the competition from the silicon carbon group, he felt quite hesitant.

Shanghai is a key city market for the Highlander.

In other words, markets like Beijing, Shanghai, Guangzhou, and Shenzhen, which are the focus of the Silicon Carbon Group's offensive, are also the Highlander's traditional territory, contributing more than 40% of its annual sales in previous years.

Now a "Jiuzhou" has emerged... Most importantly, new energy vehicles can provide free license plates, which adds a significant advantage.

The Highlander is getting a facelift this year, with an annual target of maintaining its 9% sales and aiming for 10% growth. If it loses market share to Kyushu, it will be a real problem, because it won't be competing with other brands for just one year.

Li Hui paced back and forth in the hotel, feeling quite agitated, his mind filled with complaints about the company.

He personally is quite optimistic about the future of new energy. However, GAC Toyota is a joint venture, and all decisions must be approved by the full five-member board of directors. The Japanese side, on the other hand, strongly opposes and restricts the company's investment in the field of new energy.

To date, GAC Toyota has only undertaken one pure electric project for a small car, which will also be showcased at the Shanghai Auto Show. However, its range is only 128 kilometers, and its design is very mediocre, making it almost certain to be a failure.

Li Hui felt helpless about this decision, but fortunately, the businesses he had were all doing very well.

but……

The Kyushu Association is a threat.

After much deliberation, Li Hui called Guo Baixun in the company's marketing department to share his thoughts.

Guo Baixun was rather dismissive: "President Li, aren't you taking this too seriously? That's how all those electric car companies operate. BYD did the same last year, with several thousand orders a month, but only a little over ten thousand a year. If you're going to do it, do pure electric. Developing an outdated range extender using carbon silicon is a dead end. It'll probably only live off subsidies for two years, and then who knows how they'll take over."

This is the prevailing view in the current market.

Li Hui shook his head: "The Kyushu of carbon silicon is different."

"Isn't it a range extender?" Guo Baixun laughed. "I believe we can definitely produce a car that sells for 30 yuan, but it will definitely not be a car company like Carbon Silicon."

"Anyway, get me something that will spark public discussion. I have an interview tomorrow, so I'll talk to the media about that outdated range extender technology and the cost of integrated die casting." Li Hui said impatiently, "Damn it, the customers that silicon carbide stores in Shanghai are equivalent to those at a car show booth every day. Go and see for yourself when you have time. This is a threat to the Highlander."

The Highlander has chosen a relatively differentiated competitive path, and in the past there was not much competition. As a result, it is also more difficult to break through its upper limit.

Sales have been around 80,000 to 90,000 in recent years.

Now, Kyushu is following the same differentiated competitive path.

Furthermore, Li Hui felt he could practically make a judgment: Kyushu was like a product that brought together the best of the domestic supply chain.

Baosteel's steel, Huayu's head-up displays, CATL's batteries... and the iBooster system from the international Tier 1 supplier...

Independent brands can certainly be good, but the current "Jiuzhou" is a bit too good.

Li Hui has watched the new car launch of the Silicon Carbon Group and agrees with Yu Xing's views on industrial transformation. After all, the domestic policies are very strong. However, the first thing to be affected is the business that has been transferred to his own hands. How can he bear that?
Guo Baixun still felt that President Li was exaggerating, but he agreed anyway. After hanging up the phone, he asked his subordinates to work overtime and prepare a discussion on carbon silicon vehicle models.

On February 26, before the interview, Li Hui suddenly received a call from Guo Baixun.

Guo Baixun: "Novoland is really different..."

Hearing the voice on the other end of the line that was clearly different from last night, Li Hui said, "Therefore, we need some normal market competition."

Guo Baixun agreed with this point, and then gave a timely reminder: "Yu Xing of Silicon Carbon is a very charismatic person."

He believes that having a strong personality gives you the opportunity to drag the other person into public opinion.

The market awareness of new energy vehicles is weak, and public opinion can be a factor in determining sales. Whether it is outdated technology or electric toy, once the label is attached, it is not easy to remove.

Li Hui understood his old partner's meaning and immediately launched an attack on the application of new technologies in the interview, mentioning the chaos of inflated orders and advising new car companies to be down-to-earth in their car manufacturing.

The person was in Shanghai, the interview was conducted online, the name was mentioned again, and the target was Jiuzhou Deyu's integrated die casting. It's just waiting to be torn apart.

As the deputy general manager of GAC Toyota, Li Hui holds a certain position in the industry.

Although there was no immediate response from the parties involved, his move did garner considerable support, primarily mocking the inflated order figures and criticizing Kyushu's configuration.

"It's very clear. Baixiaosheng Forum belongs to Yu Xing. He's just hyping up orders on it. As for the so-called supplier employees, they're just talking to themselves!"

"Yu Xing should just stick to his internet business; he has to get involved in the messy automotive industry."

"They even put a refrigerator in the car. I don't understand. This car is just too flashy."

"Instead of spending time researching refrigerators, color TVs, and large sofas, Silicon Carbon Group should focus on improving its cars. This is my personal advice to Yu Xing."

Li Hui's downfall sparked a wave of discussion, while Guo Baixun's actions proved that Weibo's commercialization is indeed quite advanced.

However, to his surprise, the founder of a new energy project came out to criticize the Silicon Carbon Group.

Shen Haiyin of Singulato Motors had a public confrontation with Yu Xing at a luncheon in Lingang. After seeing the criticism from GAC executives, he also said on Weibo: "Personally, I will not buy a range-extended vehicle, no matter how high its configuration is, because such a model with an excessive technological approach will become outdated after two or three years and will only hurt consumers who support the development of the new energy industry."

Li Hui was secretly amused by Shen Haiyin's remarks. He could say with certainty that China's infrastructure development still needs time, and there will be some mileage anxiety for at least the next five to eight years.

This one... well, it just proves that Yu Xing isn't very popular.

The company trended on social media for two consecutive days, but Silicon Carbon Group remained silent throughout February.

On March 1, Automotive Business Review published a report titled "Why is it called 'Kyushu'?"

Reporter Qiu Jiayou succinctly summarized the public opinion trends of the past few days, subtly bringing together issues such as the instability of new technologies, the outdated range-extending approach, consumer concerns, criticisms from GAC Toyota executives, and remarks from the founders of new energy projects for discussion.

Finally, he succinctly remarked: "The Silicon Carbon Group named its first model 'Jiuzhou,' claiming to be a representative of China's new energy vehicles. However, how can a model that has attracted so much controversy within just a few days of its launch be called Jiuzhou?"

"The automotive industry has not yet succeeded, and domestic brands still need to work hard."

Li Hui immediately shared this report on WeChat Moments.

However, not long after, while he was replying to comments on his WeChat Moments, he suddenly saw that someone else had reposted a latest news report with a "?".

—Carbon Silicon Group released its sales figures for the fourth week of February, with Kyushu entering the top ten with 1215 units sold.

"Sales ranking of mid-to-large SUVs in the fourth week of February 2015."

"Fourth place, Silicon Carbon Kyushu, 1215 vehicles."

Fourth? 1215 vehicles?!
Li Hui was stunned. Impossible! Absolutely impossible!
The previous orders for several thousand units of Yin-Yang Carbon Silicon were inflated; how is it possible that over a thousand vehicles have actually been delivered?

However, the fine print below the list indicates that the data source is a summary of insurance registrations from China Automotive Data Center!
Li Hui was stunned, and along with his disbelief, the weekly rankings from the Silicon Carbon Group quickly swept across the entire industry and continued to spread beyond it.

Everyone's first reaction was that it was impossible. How could a new car company like Silicon Carbon Group break into the top ten in sales of mid-to-large SUVs?
No independent brand has ever reached this position before, let alone fourth!

As the first weekly ranking of Silicon Carbon Group was released, Yu Xing still gave it a sense of ceremony, reposting the latest report from "Automotive Business Review" on his WeChat Moments and adding five words.

Why is it called the Nine Provinces?
This is how the Nine Provinces are called.

(End of this chapter)