At the same time that SAIC announced that it would fully sprint vehicle sales of 6 million vehicles in 2023, brands of Zhiji, Feifan and other groups began to launch new models with full horsepower. On February 10th, the intelligent "pure electric medium and large luxury SUV" Zhiji LS7 announced the vehicle configuration and price, which was officially listed nationwide.
Tamia Liu, co-CEO of Zhiji Automobile, said in an interview with Shell Finance on February 16th that the sales target of Zhiji Automobile in 2023 is 45,000 vehicles. In order to achieve the goal, Zhiji will speed up the spread of channels, and it is estimated that there will be 240 experience and delivery centers this year.
The reporter noted that according to the sales volume of Zhiji Automobile in 2022, the sales volume of Zhiji Automobile in 2023 needs to increase more than 8 times year-on-year to achieve the goal.
Regarding vehicle pricing, Tamia Liu said that with the endorsement of SAIC, Zhiji can get better quality parts at a lower cost, thus reducing the cost and selling price. However, Tamia Liu also said that the current crazy price war in the industry is more negative than positive. "If we do simple electrification at a low price and low level, in addition to our limited development, it will also make the market very unhealthy."
Frankly speaking, the channel is slow to spread, taking advantage of SAIC endorsement to flush sales.
Shell Finance: What is Zhiji’s future sales target?
Tamia Liu:We mainly rely on L7 and LS7 to support this year’s sales target, and another model will be launched in the second half of this year. With these three models, we hope to sell 45,000 cars this year.
Shell Finance: At present, domestic brands are very "involuted". Some people even say that many brands will die in the next 3-5 years. How can Zhizhi occupy the mainstream position?
Tamia Liu:Zhiji was jointly built by SAIC, Zhangjiang Hi-Tech and Alibaba Group, and the initial round of financing reached 10 billion yuan. Zhiji has the endorsement of SAIC’s supply chain and manufacturing industry, and the endorsement of Ali and Zhangjiang. At present, these empowerment and potential have not been fully realized.
For example, some people ask whether Zhiji is under pressure in the supply chain and whether the chip will still be the bottleneck in the next impact on sales. But I feel confident. As long as SAIC can buy chips, it will never lack Zhiji’s chips. Moreover, SAIC allows us to get better quality products at the most appropriate cost.
Shell Finance: What kind of planning does Zhizhi have in terms of channels in the future?
Tamia Liu:At present, there are about 120 experience centers and delivery centers in Zhiji. Because of the great inertia of channels, the annual operating expenses of channels are hundreds of millions. Once the market fluctuates, the sales volume is too small and there are too many channels, there will be cash flow pressure and channel management will be difficult. As a brand-new brand with a level of 400,000, Zhiji also had its own forecast of sales volume at that time, so it was conservative in channel spreading. Now it seems that it is true that the speed of spreading our channels is somewhat slow.
Our goal at the end of the year is to open 240 channels, of which we are confident that 180 to 190 will be opened before June 30, and a large number of second-tier cities will be covered.
After studying the high-end luxury market, choosing ladder pricing means that the negative side of price war is greater than the positive side.
Shell Finance: What are the considerations and processes for the pricing of a car?
Tamia Liu:It is a long process for car companies to price and configure products. The iteration cycle of the mobile phone can be changed instantly; The automobile development cycle is long, and there are many restrictions on price adjustment. For example, the whole supply chain adopts very strict approval and centralized procurement. The cycle of a model from the beginning of planning to listing is about two and a half years. Basically, in the initial period of time, 99% of the configuration of this car has been decided. According to these configurations, the price of the car has been basically set at that time.
Shell Finance: Why did Zhiji choose the current pricing range? What do you think is the most suitable price range for the luxury car market in China?
Tamia Liu:At present, the mainstream price range of high-end luxury electric SUVs and cars in China is 350,000 to 390,000 yuan. Among the medium and large SUVs with more than 250,000 yuan, the sales volume of five products is much larger than that of seven and six; Most of the intensive sales segments are 300,000 yuan to 350,000 yuan. If the price exceeds 400,000 yuan, users’ requirements for models will increase, and it will be difficult to achieve the sales target.
Therefore, the pricing range of Zhiji LS7 this time has been designed, and the core pricing is 329,800 yuan, 349,800 yuan, 379,800 yuan and 459,800 yuan. Which is the key and which is the auxiliary has been scrutinized. For example, Zhiji relies on L7 to help Zhiji automobile stand firm in the queue of high-end brands, and LS7 strives for more market share through the lower price and higher value ratio of 329,800 yuan.
The price of 459,800 yuan is really high. We consider that Zhiji, as a new brand, has a low popularity, and it is a great challenge for users to accept the pricing of 400,000 yuan. Last year, due to comprehensive reasons, the sales of Zhiji L7 also failed to meet expectations. However, we think that the overall design and handling of our models are good, so we continue to move towards the price range of 360,000 yuan to 400,000 yuan.
Shell Finance: What does Zhiji think about product planning in the next step?
Tamia Liu:If the popularity is 0 to 100 points, brands such as Tesla and Volkswagen have 99 points, and brands that you have heard of have 80 points, then the popularity of Zhiji is only 40 points now. Next, we plan to raise the brand awareness to 80 points in three months.
In fact, from 2021 to now, we are observing which version the sales of mainstream brands like Tesla are mainly focused on. In the future, we will launch a version suitable for daily commuting in cities, that is, the 77kWh standard battery life Pure exclusive rear drive version.
Shell Finance: The listing of Zhiji LS7 coincides with the fierce price war of new energy. What do you think of this situation?
Tamia Liu:From an industry perspective, I personally think that the negative side of crazy price war is greater than the positive side. Crazy price reduction, crazy involution, and all kinds of mixed products madly grab the market, which is unhealthy competition. Moreover, products with insufficient quality are particularly irresponsible to users.
Compared with oil vehicles, the cognitive threshold of smart electric vehicles is relatively high. After all, the fuel vehicle has a history of 137 years, and it is well known by the industry, users and market. Intelligent electric vehicle is a clear track, but the cognitive threshold is relatively high, and a large number of brands and products flock in, which is not conducive to the development of the industry.
In particular, electric vehicles have high requirements for intelligence and motor quality. If they are simply electrified at a low price and level, in addition to their limited development, they will also make the market unhealthy. Maybe users don’t have a complete product understanding at first, and they will pay the bill in a short time, but there will never be a second time. The core is product strength. You must have lasting product strength before users will pay for your brand and products.
Definitely do not change the power to ensure the iterative speed of the battery
Shell Finance: Previously, Zhiji L7 had wireless charging function. What do you think of the fact that car companies built their own energy replenishment system?
Tamia Liu:For the time being, Zhiji LS7 has no open unlimited charging function. We mainly consider that the situation in each city is quite different. Because of the ground, residential environment and other reasons, many users’ parking spaces are not suitable for installing unlimited charging equipment. We are also optimizing this function, which has not been opened yet.
Regarding the energy-supplementing system, if the starting point of car companies is "I will do it if others do it", it will come to a dead end. Because charging is essentially an infrastructure operation, it is difficult for car companies to do heavy asset operation, so we still think that everyone should do their own professional things. Zhiji currently has charging piles available in the delivery center, but we will not blindly expand charging piles. I don’t think this is the field that Zhiji is good at.
Shell Finance: SAIC has joined hands with PetroChina and Sinopec to change electricity. Will Zhiji launch a model that can change electricity in the future?
Tamia Liu:Zhiji is very clear not to change electricity. There are many benefits, but there are also many challenges and limitations, which are mainly reflected in the basic aspects at present. Zhiji’s L7 and LS7 models are the thinnest in the current market segment. If the battery is changed, it needs to be standardized, and the battery should be 20mm to 30mm thick.
On the one hand, such a thickness will have a great impact on the shape, and it will also reduce the internal space of the vehicle. On the other hand, the iterative speed of the battery will be greatly limited. We believe that the technical reserve of battery cruising range has supported the cruising range of 1000 kilometers, and the mileage anxiety of users has been greatly reduced. There is no need for us to change electricity.
Beijing News Shell Financial Reporter Lin Zi
Editor Yue Caizhou
Proofread Liu Baoqing