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

Chapter 75 Coach, I Want to Switch to Culture

The new generation of "old man's cars" equipped with luxurious interiors and ambient lighting strips has swept through the entire lower-tier market with lightning speed.

It is evident that people have virtually no resistance to the addition of luxurious interior features and a wider selection of paint styles.

In the past, this would have been almost impossible at this price point.

However, Xingchen Motors mass-produced it at extremely low cost, completely solving the problem of the crude interior of the high-imitation old man's car.

of course.

The most powerful product is the "Starry Sky 01 Youth Edition". Even though it has been stripped down in every aspect, it has been priced at an unprecedented 16,900 yuan!

This completely prevented other competitors, who were still struggling in the 17,000 to 18,000 yuan price range, from continuing this fiercely competitive game.

Once a leading brand of electric vehicles for the elderly, Levdeo Auto has had to lower its proud head after several changes.

Not only did they lower the price, but they also achieved stable monthly sales of six to seven thousand units.

no way.

Compared to something as outrageous as Xingchen Auto, it's simply impossible for them to compete at the same price point.

Because of the previous scandals, even with the same configuration, consumers will choose Xingchen Auto without hesitation.

Moreover, as the number of Xingchen senior citizen vehicles on the market increases, the rural and urban markets will increasingly recognize this brand effect.

……

do you know?
It's just weird.

According to their investigation, even in this price range, the quality of the cars produced by Xingchen Automotive is exceptionally high!

This quality doesn't refer to the product's overall quality.

Rather, it refers to the tolerances, failure rate, and quality control of the entire vehicle.

According to their investigation, Xingchen Automotive's overall after-sales rate is very low.

They managed to build a reputation for "durability and durability" for this kind of "knock-off old man's fun" product in the lower-tier market.

For urban-rural fringe areas and rural markets.

The phrase "durable and robust" is a very high compliment.

Because of the complex usage environment, people in lower-tier markets often have a very strong obsession with the attribute of "durability".

Just like the socket market in the past, while all sorts of shady and counterfeit manufacturers were making a mess of things, only Bull sockets and a few other brands did not choose to cut corners, and their production processes were normal and up to standard.

Even years later, when Bull brand sockets are more expensive than other national standard qualified brands on average, they still have strong consumer inertia and capture the top sales volume in the market.

That's something we can do.

This only proves that Xingchen Automotive's production line technology and quality control processes far surpass theirs.

When it comes to this, it's not something that can be caught up with overnight.

...

Reading Auto has done some internal calculations.

If we were to follow Xingchen Automotive's quality control standards to establish a quality inspection process, we would conduct detailed quality inspections and process requirements on every new car that rolls off the production line.

Leaving aside whether they can catch up in terms of market sales, the quality control costs and rework rates alone will drive them crazy!

and so.

There's absolutely no way!
Faced with the overwhelming pressure from Xingchen Automotive, even if they copied the configuration exactly, they had no choice but to lower the price.

After the price reduction, the gross profit margin of the whole vehicle will undoubtedly be lower.

With lower profit margins, it becomes more difficult to strictly control quality and build a good reputation in the market.

It's a vicious cycle.

Xingchen Automotive is like a mountain, weighing heavily on the hearts of all manufacturers of counterfeit electric vehicles for the elderly!
……

"That's good. We can maintain a stable sales volume of six to seven thousand for now..."

"As long as we continue to focus on cost-effectiveness and absorb the entire market share in rural areas, it will be a huge profit. At that time, sales may reach 10,000 to 20,000 per month."

If we can't go for the high-end, then we'll go for the low-end!

This is what Zhou Tao is thinking right now.

The change in policy direction has indeed dealt them a heavy blow.

However, this also brings with it a deeper understanding of the market.

Zhou Tao has thought it through.

The demand in the rural market will still be widespread in the future, but the profits will not be as high or as exorbitant as in previous years, and making money will not be as easy or mindless.

Don't panic, it's just a technical adjustment! There's still a lot of room for profit in the market as a whole!
and.

According to external sources, their biggest rival, Xingchen Motors, has reportedly invested over a billion yuan in research and development, and has fully acquired a factory that was using a fake car manufacturing license, making a full-scale entry into the car manufacturing industry.

Faced with this behavior, Zhou Tao just wanted to laugh!
Young people are arrogant and reckless. They dare to do such foolish things after achieving a little success in the low-end market.

Is it so easy to enter the car manufacturing industry?
Those are all regular troops.

Without strong local policy support, without a pool of top-tier R&D talent, without backing from major capital firms, and without substantial financing...

By the time.

Over a billion yuan was burned to nothing!

Ideally, their cash flow would dry up, causing the company to go bankrupt, so that Leding Motors could regain its dominant position in the four-wheeled vehicle market!
As Zhou Tao thought about it, he couldn't help but hum a soft hum!

……

"Mr. Zhou..."

With a heavy heart, Vice President Liu Bin hesitated at the door for a long time before finally deciding to knock and come in.

But then they discovered that Zhou Tao was leaning back in his chair with his eyes half-closed, a faint smile playing on his lips.

broken.

Could it be that the recent pressure at the company has been too great, and the series of setbacks have caused Mr. Zhou to hallucinate?
"President Zhou!!"

A sudden noise woke Zhou Tao from her sweet dream.

The first thing I saw when I opened my eyes was the vice president's expression, as if his mother had just died!
"What... is your family holding a funeral?" Zhou Tao blurted out, a sense of unease suddenly welling up inside him.

Liu Bin forced a smile that looked more like a grimace: "I'd rather it were a funeral at home..."

"What happened?"

"Xingchen Motors has released a new model, and sales in our entire urban-rural fringe and rural market have completely exploded. We probably won't even break four thousand this month..."

"what--?!"

Market reports and images of the facelifted Xingchen Automotive were quickly provided.

Staring at the two incredibly cool and stylish interior designs of the latest generation Starlight, and the incredibly rich color options.

Zhou Tao's mouth remained wide open the entire time.

Then, I saw the "Starry Sky 01 Youth Edition" with an anchor price of 16,900.

This moment.

His rock-solid heart finally showed a crack.

"I'm fucking...cracked!!!"

……

It is no coincidence.

Jinpeng Group Headquarters.

Yu Zilong stared at the recent market research report with a deathly pale face.

They're in even worse shape than Reading Motors.

The projected sales of four-wheeled vehicles this month will not even exceed three thousand units!

They are just a simple manufacturing company.

Where have I ever seen such a feat as preparing three swords in a year?
The key is--

And they've gone to such lengths to make every car this expensive, with these specs and prices... how are their competitors supposed to compete? How are they supposed to cut costs?
There was absolutely no hope of winning.

"Beast!!!"

...

Yu Zilong is numb.

He picked up the internal phone and spoke with difficulty.

"Boss, I know this decision is difficult, but we really should consider a business transformation. I think investing heavily in the two-wheeled electric vehicle market would be a good choice..."

Given the current harsh and unpredictable track conditions, Jinpeng is truly unable to continue operating their four-wheeled elderly vehicles.

That being the case.

It would be better to switch cultures as soon as possible.

……

(End of this chapter)