From knock-off old-man's electric vehicles to industrial giant

Chapter 246 Market Competition, Ideological Attack?
If you do not abandon me...

Zong Jianmin almost blurted out that Tianyue Advanced only had 40 to 50 million in revenue a year, and even with R&D, it still lost 15 million, with a total valuation of 300 million. Meanwhile, Xingchen had invested over 150 million in building production lines and acquiring shares.

It's said that Xingchen Motors likes to support its downstream supply chain, but the extent of this support...

As for acquiring shares now, he's come to terms with it.

Zong Jianmin graduated from Qilu University of Technology with a major in silicate engineering. After making his first fortune in the field of engineering sales, he turned to the high-tech semiconductor field, mainly to fulfill a dream he had had in his youth about materials science.

The reason why a dream remains a dream is because it is too difficult to realize.

Without StarCraft's investment in the industry chain, the prospects for jointly developing and mass-producing 6-inch silicon carbide substrates would be truly bleak.

After acquiring Taihua Tianrun, Xingchen Automotive also possesses the production capacity of power semiconductors, which means it has integrated the upstream and downstream industries. With such a large order for 4-inch and 6-inch wafers, it is not impossible for it to independently cultivate a 4-inch wafer fab.

"President Xu, Tianyue is willing to join hands with Xingchen Motors for mutual progress!"

Zong Jianmin hesitated for a moment, then grasped Xu Yi's hand tightly and spoke from the bottom of his heart.

……

Xingchen Motors is also making great efforts to develop the upstream and downstream semiconductor industry chain.

With the statistics released at the beginning of the month, the sales figures for the Highlander last month have also been revealed.

— A total of 9967 units.

Upon seeing this number, Huang Yongqiang felt a chill run down his spine and almost lost his balance.

"Mr. Huang, Xingchen has announced its first monthly delivery figure for the L7 new car—a total of 7121 units!"

Marketing Manager Du Bo called to report an urgent message.

Huang Yongqiang's vision went black again!
Seven thousand units?!
--hiss.

A moment of astonishment and a gasp followed.

The growth of Xingchen Motors is simply too exaggerated.

Is the first month's production surge really that terrifying?
wrong.

They must have stockpiled production capacity before the press conference!

This is a very bold move.

But it's clear that Xingchen Motors won the gamble.

……

9967 units versus 7121 units.

This put a lot of pressure on GAC Toyota internally.

It's worth noting that the Highlander's sales target last month was 12,000 to 13,000 units, but after the launch of the Starry Night L7, its sales actually dropped by more than 2,000 units compared to expectations.

The Ford Edge also saw a similar drop in sales. Like the Highlander, it is a model that mainly targets the five-seater and seven-seater segments. The Ford Edge maintained a stable sales volume of 8,000 units in July, August, September and October, but when the sales figures were released in November, the peak sales season, the sales volume dropped to 7200 units.

Those who buy six- or seven-seater family cars have always been a relatively fixed group.

For the precise market of six-seater and seven-seater vehicles, this efficiency in capturing users is crucial!
Bashu.

Changan Ford Headquarters.

President Zhao Ren sat in his office, staring at Ford's national sales statistics report. Faced with this data, he also felt dizzy!
"Disrupting the market! Purely destroying the market environment!!"

"How can you sell cars like this..."

"It's one thing to have a uniform national price, but to have an engine installed in the car and still be eligible for new energy vehicle subsidies and a free green license plate..."

Is there any fairness in this?

Faced with the loss of market share, Zhao Ren was first heartbroken, and then rebuked the company.

The overall environment has been ruined by these new energy vehicles.

"Mr. Zhao, we need to take measures. If we allow the Xingchen L7 to expand like this as a competitor, the sales volume and profit per vehicle at the end of the year will probably not be good."

Opposite him was Vice President He Runhui, whose expression was rather stern.

There was a strange feeling in my heart. In the first half of the year, BYD Tang was launched as a competitor with a facelift, but the internal attitude was very calm and indifferent.

Despite the fact that the Tang DM also has good power and can receive a green license plate and subsidies for free, it has not posed a threat or impact on them.

I've never been scolded like that before.

The Tang DM's best-selling month this year only saw 2,300 units sold, and that number may include some discrepancies in dealer stock.

What about the Starry Night L7? Seven thousand units sold is too glaring!
It's still a directly operated model.

The publicly announced order volume is enough to make competitors at the same stage stare in disbelief.

"I want to control prices through distribution channels first, then have the manufacturer increase discounts and promotions, and then get dealers to take on more cars. This year, we can't raise prices like in previous years..."

He Runhui resorted to his usual three-pronged approach.

To be honest, we didn't have any other options.

Unlike other commodities, cars cannot be offered with discounts and promotions without price increases, which manufacturers consider a great show of sincerity.

Traditional automakers typically require several months to half a year to plan and adjust their model updates.

"This Starry Sky L7 is competing in such an unconventional way that it's caused us significant losses," Zhao Ren sighed.

In the past, towards the end of the year, especially for families with seven-seater vehicles, the consumer market was eager to buy cars.

Therefore, when the ex-factory price is raised, the additional profit is naturally considered normal profit. Now that sales are declining and the price cannot be raised, it naturally has to be included in the loss.

"Moreover, the government is too biased towards new energy vehicles. Range-extended electric vehicles, as an interim solution, should be phased out by subsidies. If they were on the same starting line, they wouldn't have such a big advantage."

He never used to say things like that.

Because the three-electric systems of many new energy vehicle manufacturers, as well as the durability, lifespan, and safety of their batteries, are simply not up to par.

"Mr. Zhao, there's some breaking news," the secretary suddenly said, leaning closer.

"What, Xingchen Motors has announced new order numbers again?" Zhao Ren's expression was not good, because Xingchen Motors had been releasing data one after another, and he was now very sensitive.

"It's from the Southern Daily. The news report stated that a BAIC New Energy electric vehicle spontaneously combusted while charging, and that it happened at a supercharging station under Xingchen Motors."

The spontaneous combustion of new energy vehicles has become a trending topic, which is not a new phenomenon in the past two years. Zhao Ren was originally happy about it, but now he seems to see hope for turning losses into profits.

Zhao Ren's inner turmoil dissipated considerably.

"If this goes well, it will allow our sales channels to step up their efforts and help us win back our lost customers..."

……

Deep city.

Unfortunately, Wang Jiahua was one of the car owners that the salesperson was trying so hard to retain.

At noon, the vibration of his phone caught his attention, and he opened the chat window to take a look.

There are already several unanswered messages.

They were all sent by a salesperson from a Ford 4S store.

February 11:
"Mr. Wang, regarding the Edge 2.0T AWD Premium Edition you were looking at, if you weren't satisfied with the previous quote, we can come inside and discuss it further. If you're truly interested in buying the car, please pay a deposit first, and I'll go to the manager to apply for a discounted price for you..."

February 11:
"Mr. Wang, there's a promotion on the Edge recently. If you pick up your car at the dealership now, you can get free handling fees. Are you still interested in buying a car?"

February 11:
"Mr. Wang, we have a four-wheel drive Edge in stock..."

Finally, today's.

"Mr. Wang, if you come to our store now, not only will you be exempt from handling fees, but you'll also be exempt from financial service fees. We'll also offer a 15,000 yuan discount on your car purchase, plus free maintenance. Are you still there?"

……

Looking at the chat history.

Wang Jiahua just wanted to laugh inwardly.

The further you read, the more relaxed you feel!

He went to the Ford 4S store to look at cars at the beginning of last month, but was met with an arrogant and overpriced package.

Later, I saw information about the Starry Night L7 online, so I went to the store to pay a deposit of 5,000 yuan to lock in the order. What followed was the constant adjustment of the original model I intended, and the price fluctuations were as ridiculous as child's play.

"Online car enthusiasts are saying that the Xingchen L7 has impacted the 300,000 yuan family car market, and now the Highlander and Ford Edge aren't even adding much to their prices anymore. I didn't expect it to be true..." He had also seen many posts about it. He hadn't originally considered domestic cars, but after test driving it, he found it so appealing that he now had no desire for the seven-seater versions of the Ford Edge and Highlander. "Don't message me anymore, I've locked in the Xingchen L7, no immediate plans to buy a car," Wang Jiahua replied, finding it quite amusing.

This kind of plot, where you ignored me yesterday but now I'm someone you can't afford to miss, is cliché.

But when it actually happens to you, it's actually quite satisfying.

Don't you like to raise prices during peak season?
Why aren't you adding it anymore?
What happened to your previous unruly attitude?
Show it to me again?

Price increase?

We won't buy it unless the price is increased!
Big sabbey!!

I feel so much better after sending the message!

...

He was about to delete the salesperson when another message popped up in the window, catching his attention: "Mr. Wang, you've locked in the Xingchen L7, but that's a domestically produced electric vehicle. Aren't you worried about safety hazards?"

"What safety hazards? They passed the European NCAP safety assessment, so what problems could there be?" Wang Jiahua retorted.

He's already watched the review videos.

How thick are the crash beams on the Starry Sky L7?

It is more than 4mm thick.

The material used for one of the anti-collision beams is thicker than the material used for the entire door of a Japanese car.

You question whether this car poses a safety hazard?
The other party sent a news link: "Take a look at this news; it just happened this morning."

Wang Jiahua clicked on the link—[At 10:10 AM, a BAIC EC180 suddenly caught fire near the Shapu Bitou charging station…]

One of the snapshots shows a vehicle on fire, half of which is blackened by the raging flames, with half of its green license plate still faintly visible. According to news reports, no one was injured.

He frowned slightly, realizing that this was indeed a Starry Sky brand supercharging station.

"This is a BAIC electric car that's burning. What does it have to do with the Xingchen L7?" Wang Jiahua retorted. He had a very good impression of Xingchen Motors. After test driving the car and getting a few free meals, he even recommended it to his colleagues and friends.

“Mr. Wang, the news just broke, and we don’t know if the problem stemmed from the car itself or from other external factors, but the risk of spontaneous combustion in new energy vehicles is something we must take seriously… If you had chosen a gasoline car, you certainly wouldn’t have had this concern,” the salesperson replied.

Wang Jiahua: "Starry Sky's Polaris battery can pass the needle penetration test, and there have been no cases of spontaneous combustion."

The salesperson's next sentence shocked him: "But this brand's new energy vehicles have only been officially launched for two years. Many new energy vehicles spontaneously combust after five to seven or eight years due to battery aging... Of course, I'm not attacking all new energy brands, but when choosing a family car, you definitely need to consider multiple dimensions."

Wang Jiahua paused, unable to help but gasp slightly.

He opened Weibo, searched for the full content of the news, and confirmed its authenticity. It was indeed something that had just happened this morning. The specific cause was still unclear, but the fire had been extinguished, and the relevant departments and the company were investigating the cause of the fire.

at the same time.

A blogger named "Old Yogurt" cited trending news topics and posted videos on Weibo and multiple platforms such as Autohome and Youku.

"New drivers are very prone to making mistakes when buying a car. If you want to avoid making mistakes, buy a gasoline car and never choose a new energy vehicle."

"Electric cars accelerate very quickly, can get green license plates for free, and save fuel and costs. Why would I advise you not to buy an electric car when they seem so appealing? Because I don't know if the spontaneous combustion incidents reported in the news will happen to me. This invisible fear is the biggest obstacle to buying a new energy vehicle."

"Especially for some emerging brands, there is simply no market time to verify their reliability. If you have a monthly salary of ten thousand or eight thousand and want to buy a car to take care of your family, a gasoline car is your best choice."

Wang Jiahua came across this video, checked out the comments section, and noticed some keywords such as "the biggest Japanophile car reviewer on the internet" and "the woman who knows the Honda Fit best on the internet".

The video wasn't initially very popular, but after it referenced a link from Southern Daily, it quickly went viral and sparked discussions about electric vehicle fires and Xingchen supercharging stations.

Old Yogurt posted another video.

"New drivers are very prone to making mistakes when buying a car. If you want to avoid making mistakes, buy a car with simple features."

"Some new energy vehicles already have huge hidden dangers, yet they still manage to load refrigerators, TVs, and large sofas onto them. I wonder if they'll start loading toilets and other appliances onto them in the future? With such big screens, are they watching TV or driving?"

"At any time, the simpler the car's configuration, the better. The simpler, the more durable. If you're making a car purchase decision, I recommend Toyota. Toyota is the most stable brand in the world, a brand proven by people all over the world. From the frigid Siberia to the arid Sahara, wherever there are people, there are Toyotas..."

……

The fire at the charging station was dealt with internally by Xingchen Motors immediately. Just two hours later, Xingchen Motors issued an official inspection report from the fire department.

—The report shows that all fire safety standards of the supercharging station are normal, the cause of the accident was caused by a vehicle, and the vehicle was not charging at the time.

BAIC New Energy also issued a statement saying that there were no casualties and that the vehicle that caught fire has been towed back to the factory for further testing and investigation into the cause of the fire.

The news was quickly relayed to Xu Yi. After reading the online news and comments, as well as the fire inspection report from Shenzhen, he asked, "Are you sure it wasn't caused by our charging stations?"

"That's not it. The fire started too suddenly. The car had just parked here and hadn't even started charging when it spontaneously combusted. The initial assessment is that the battery suffered thermal runaway." Sun Pengfei, as the head of the internal electric vehicle technology team, also watched the on-site monitoring video immediately.

Xu Yi was taken aback. "Thermal runaway? Isn't CATL BAIC's battery supplier?"

"That's true, but BAIC only purchases battery cells for its factory and uses its own battery packaging technology, just like we did back then, saving on this part of the cost. If there are problems with the packaging process or if the coolant used is corrosive, it could lead to internal short circuits and thermal runaway."

Sun Pengfei analyzed that battery packaging is a cost-saving process, but it also depends on the technology. In particular, the requirements for cooling and strength of battery packs are getting higher and higher. They have applied for dozens of patents just for battery packaging.

Other automakers have not conducted in-depth independent research and development on batteries. If they want to reduce costs in packaging processes and the materials used for coolant procurement, there are still overall risks. In the current market, to purchase new energy vehicles, manufacturers must at least master battery technology themselves to ensure the integrity of the battery technology links before and after. Otherwise, simply accepting the complete solution from the battery manufacturer is also a prudent approach.

Just then, Yu Nian arrived at the office: "President Xu, the market department's investigation results are out. This is not the first time the BAIC EC180 has spontaneously combusted this year. There was even a case where it spontaneously combusted while being repaired at a 4S store... It seems to be a manufacturing issue, but coincidentally, it caught fire at our charging station, which has brought this wave of public opinion."

Xu Yi also saw some voices online while browsing the news.

Besides the car reviewer "Old Yogurt," several other car reviewers have jumped out.

These people are divided into two factions, each holding their own views. One side promotes the "new energy safety hazard theory," while the other side uses lame jokes to lead a group of gasoline car owners to ridicule the ridiculous remarks such as "refrigerator, color TV, big sofa, and later the toilet will also be moved into the car" and "buying a car is like decorating."

Yu Nian keenly sensed that this was a conspiracy: "President Xu, why don't we just use our legal department?"

These people are incredibly popular, and there's clearly a powerful force behind them pushing their popularity.

If it really becomes a meme.

So all their hard work in developing the vehicle's features, including electric comfort seats comparable to those costing over 500,000 yuan, and top-of-the-line Samsung screens purchased at high prices, was wiped out by a disgusting remark like "buying a car is like decorating" or "we'll be bringing the toilet into the car in the future"?

“These people didn’t name names; they’re engaging in ideological attacks.”

Xu Yi shook his head slightly, appreciating the difference in tactics used by joint venture brands. These minor figures who stepped forward clearly knew how to avoid risks.

What is an ideological attack?
They label you and force you to take sides. If you say your product has strong power, they say it's more environmentally friendly. If you say your product has high configuration, they imply that you lack individuality, create vulgar memes, and link it to jokes to lower the brand image.

Although my configuration is inferior to yours and my product strength cannot beat yours, as long as your brand collapses and consumers no longer accept your product concept, then sales will naturally rebound.

"Not naming names or making insinuations won't work... I don't believe their accounts are that powerful."

Yu Nian chuckled, "All that's left is to roll up our sleeves and get to work."

Xingchen's legal department is not to be underestimated.

"It seems some people are getting impatient. We were originally prepared to discuss this based on normal market competition..." Xu Yi said with a wry smile.

Xingchen Motors was merely making a move in the high-end market; it wasn't targeting anyone present.

to be honest.

Xu Yi believes that with the current sales volume, it's just enough to make a living.

The main limitation is production capacity. Even if we sell 10,000 units a month, it's not that exaggerated!

The competitor, however, couldn't wait to pull out a spear...

can.

Very courageous.

Xu Yi remained completely calm; in fact, he even felt a little amused.

If it were to compete with other brands, Xingchen might only be able to deal with them step by step, but those car reviewers who are making the most noise have Toyota's backing, which is what makes things interesting.

"When we were disassembling and reverse engineering cars before, did we find any safety hazards or abnormal and non-compliant details in a few Japanese cars?" Xu Yi asked.

He remembered clearly that the last time the whole vehicle R&D project was reported to him about this matter.

Previously, when StarCraft conducted reverse engineering, they were extremely serious, to the point of being tireless and meticulous.

Because I have no experience!
The only way is to thoroughly study the competitors' cars from the inside out, learn them from beginning to end, and conduct precise measurements, disassembly, and various analyses and discussions.

But unexpectedly, some "problems" were discovered during the dismantling.

To know your peers best, you have to be one who has thoroughly studied their competitors.

For example, something like "atmospheric pressure fuel tank" might not have been made public for another ten years unless it was revealed by the most knowledgeable competitor.

(End of this chapter)