At 10:00 a.m. on February 24, Li Wulian, editor-in-chief of Sina Finance, Feng Qingfeng, CEO of Lotus Group, Wu Yingqiu, chairman and CEO of Huanqiu Automobile Group, Guan Qingyou, president of the Institute of Financial Research, and Liu Yan, deputy secretary-general of the China Association, said that Lotus will develop in the future.
The following is a transcript of the live broadcast.
Li Wu:Hello everyone! I'm Li Wu, editor-in-chief of Sina Finance. On Friday, February 23, local time in the United States, Lotus Technology, an industry leader focusing on luxury electric vehicles, rang the bell for listing on the NASDAQ exchange.
In the short video just now, we also saw the grand occasion of the listing, and Lotus has also become the first car brand to be listed on the NASDAQ in the United States at the beginning of 2024. Today, we will invite a number of guests to interpret the topic of Lotus's listing in the United States.
First of all, let me introduce you to the guests who are connected. Hello Mr. Wu Yingqiu, Chairman and CEO of Huanqiu Automobile Group, a senior industry commentator from the automotive industry!
Wu Yingqiu:Hello everyone, host!
Li Wu:Hello Ms. Liu Yan, Deputy Secretary-General of China *** Association!
Liu Yan:Hello everyone!
Li Wu:There is also an old friend we are very familiar with, a well-known economist such as Mr. Guan Qingyou, the dean of the Institute of Financial Research, hello Mr. Guan!
Guan Qingyou:Hello host, everyone!
Li Wu:Finally, Mr. Feng Qingfeng, CEO of Lotus Group, hello Mr. Feng!
Feng Qingfeng:Hello, Mr. Li, I'm Feng Qingfeng, CEO of Lotus, hello everyone!
Li Wu:Thank you for joining us! After giving you a brief introduction to Lotus, let's start today's discussion.
First of all, congratulations to Mr. Feng and congratulations to Lotus Technology for its successful listing. Mr. Feng, please talk about what are the overall strategic considerations of your company behind Lotus's listing in the United States?
Feng Qingfeng:Thank you, Mr. Li. First and foremost, Lotus was born in the UK, and our goal is to take the leap and become a global company. This listing in the United States has laid another milestone for our global landscape and competition.
Lotus Technology has always had a global presence, for example, we have an innovation center in Germany, a styling center in the UK, a global marketing center in London, and a model research institute in China. "Planning, including our U.S. launch today, will help accelerate our global vision 80 footprint."
Li Wu:Listening to Mr. Feng's introduction, it seems that Lotus's global development strategy does involve many countries in all aspects, involving multiple dimensions such as product line updates, technology research and development, and marketing channel expansion. Leveraging the global capital market is an inevitable choice. At the same time, the capital market welcomed the listing of Lotus, which was also a positive response.
The following question I would like to ask Mr. Guan, how do you evaluate Lotus's global development path? Is it a good fit for today's global consumption and industry trends?
Guan Qingyou:The automotive industry itself is a global industry, and it can be said that it is born global. I think it can be used as an analogy, Lotus has always made luxury cars, just like the top students we met when we were studying, they have always been very studious, very smart, and very diligent, and constantly ask for improvement.
In the face of this round of globalization of Lotus, in fact, the listing is an important milestone. It's like a top student now has a new plan and a new point of interest. From the perspective of those of us who are not top students, it is ready to open up a new field, and there will be a lot of unknown things in it. Because automotive companies are global, each company has a different globalization strategy.
For an old luxury car company like Lotus, or a traditional scholar, it has given us a lot of expectations for the capital market and a new round of globalization. It has also reached its own new no-man's land, and its exploration, innovation, and even a lot of trial and error, I think are particularly worthy of our attention. This is my own experience as an outsider observing the way an established academic company plays in the new capital market and globalization process.
Li Wu:That's right, Mr. Guan. Your analogy is very good, Xueba itself has to upgrade and evolve, and we are always full of curiosity about it.
Guan Qingyou:Yes, in fact, every business needs to be global. The automotive company must be global, but its globalization is different, so I find it very interesting, and I would like to continue to observe this company.
Li Wu:Let's turn our attention to China a little, China is already the world's largest new energy vehicle market. Like overseas consumers, Chinese consumers' demand for luxury electric vehicles is no longer limited to speed and driving pleasure, but also to sustainability and environmental protection. Therefore, everyone is also very much looking forward to the development of luxury electric vehicles. Here I would like to ask two industry experts first, first ask Mr. Wu, what kind of role will Lotus play in the future in the Chinese market?
Wu Yingqiu:Hello everyone, first of all, I would like to congratulate Lotus Technology on its successful listing in the United States. I think that's what Mr. Guan just said, and it's a milestone for Lotus.
Why congratulate him on his successful listing? This also proves that the capital market's recognition of Lotus is a comprehensive affirmation of Lotus's positioning and future development path - seeing Lotus's unique development path. Because we all know that the world's automobiles have been around for more than 100 years, if Lotus still uses traditional methods to make traditional cars, I believe that the responsiveness of the capital market or the positive elements of the capital market will be greatly reduced.
Liu Yan:The market for luxury electric vehicles has huge potential.
Li Wu:Mr. Liu, do you have anything to add?
Liu Yan:I'll add a little bit from the perspective of the industry and this trend insight. In the past 2023, China's automobile production and sales have achieved a historic breakthrough. We say that China's auto market has entered the era of 30 million vehicles. Behind the record high data, new energy vehicles are the biggest growth driver, but also the biggest highlight and bright spot.
Specifically, when it comes to the luxury electric vehicle segment, in the statistics of the China Association of Automobile Manufacturers, we count the new energy high-end passenger cars produced in the Chinese market according to price and class. Let me briefly share a few data, among the models in the price range, the sales of more than 500,000 new energy vehicles are increasing year by year. Last year, the year-on-year growth reached 59%, well above the average for passenger cars. In terms of categories, the D-segment of new energy vehicles has risen the most, exceeding 160%. The market size of C-class vehicles and new energy vehicles has also exceeded one million, with a growth rate of 73%.
These data all show that the consumption upgrade of the Chinese market is very clearly reflected in the luxury electric segment, and it shows a continuous growth trend and potential. This is confirmed by the data of the global automotive market. Lotus's main model is priced in the range of $80,000 to $150,000, which is also the market with the largest demand for luxury electric vehicles in the world, and it is also a growing market, and it is also the main market for Lotus, and I think this is also an excellent development opportunity for Lotus.
Li Wu:Thank you, Mr. Liu, for your comment. Mr. Feng, you have just heard that two very senior experts in the automotive industry have given high praise and expectations to Lotus. Now I would like to ask you, from the perspective of the leader, what are the unique advantages of Lotus in the field of luxury electric vehicles?
Feng Qingfeng:This question is very good, because in the pure electric luxury market, the absolute volume of the market that you see at present is not large, but as Liu Yan mentioned, its growth rate is very fast. Recently, we have also seen some information that some ultra-luxury brands in the past are also going to do pure electric luxury. It's an interesting phenomenon.
First, it shows that everyone sees an opportunity. Lotus has already made this plan in 2018, and this is where we have taken the lead, and how can we play to the lead, which is the question for us. At the same time, more and more people join the market, the more they can meet the needs of consumers, and the more they can make the cake of this market bigger. Of course, who can get more in the cake and more in the already big market depends on their unique skills.
At the same time, we must also make good use of our global scientific and technological strength - that is, to embrace electrification and intelligence. In terms of electrification and intelligence, our future pure electric supercars can also meet consumers' greater demand for intelligence. I would like to describe it in one sentence: Lotus is a pure electric car with sports car performance, a smart car with sports car performance. That's what makes Lotus unique.
Li Wu:Mr. Feng also told us about some of the special advantages of Lotus, that is, on the basis of traditional luxury car brands, there is also a combination of modern technology and intelligent direction, which can be said to be the capital that Lotus is now living in or is enough to successfully go public in the United States.
Next, I would like to ask Mr. Guan, what is your comment on the Lotus model that Mr. Feng just mentioned? Is there a moat?
Guan Qingyou:When Mr. Feng was talking about it just now, I was thinking about this, in fact, I can use the analogy I just used to say, what is this equivalent to? Similar to the monthly and quarterly exams of the top students, there is no need to take the exam, and you can concentrate on the competition. I want to fight for the provincial, national, and even international Olympiad competitions, and I also welcome like-minded people to join in and overcome the Olympiad competitions at all levels, which is probably such a characteristic.
I think that in fact, an excellent enterprise and an excellent brand are like Xueba, it doesn't have to think about this problem at all, but to open up more fields and let more peers participate. This is different from our general understanding of ** war and involution, it is not a one-dimensional competition.
I think that if Lotus can make breakthroughs in the main goals planned now, whether it is technological innovation or transformation, it will not only make a great contribution to the entire industry, but also to the entire industrialization. So to put it simply. Now Lotus's goal is not quite the same as that of ordinary companies, it focuses on the Olympiad rather than the simple monthly and annual exams. This is my own observation.
Li Wu:Xueba Lotus has embarked on a new track, that is, the transformation of a luxury brand. At this time, I want to throw the question to Mr. Liu Yan, you have many years of experience working in luxury car brands, I would like to ask, can this new path taken by Lotus this time, including the successful listing in the United States, provide some good transformation experience for the entire industry?
Liu Yan:Thanks *** for the question! When it comes to the pressure of transformation, I think it exists for all car companies and brands. Whether it is a traditional car company or a new car manufacturer, whether it is a luxury brand or a non-luxury brand, it is just that their challenges and problems are different. In these times of change, we often talk about change and change.
That's changed a lot, times have changed, the car itself has changed. Mr. Wu has been talking about the concept of the new car, which is no longer the usual means of transportation, but now a mobile intelligent terminal. Consumers have changed, the perceptions of the new generation of consumers have changed, and the understanding and demands of luxury brands have also changed, which are all normal changes. But I think there are also some essential things that remain constant.
Going back to the question just now, I personally think that luxury brands, it needs to meet the demands of consumers' functional value and emotional value, which is unchanged.
The functional value is easy to copy, that is, the performance car mentioned by Mr. Feng just now, it is a rational concept and can be homogeneous. And the strong association with the brand is the emotional value, which is the difference between brands, and it is also the key to why luxury brands are luxury brands and not other brands.
I think the biggest challenge for traditional luxury brands in the transformation is how to identify change and change, how to deal with the relationship between inheritance and innovation, and not go to extremes. Everything is user-centric, and the needs of the target group are identified in a timely manner, so as to provide them with an exclusive and unique brand experience. This includes the experience of product features and the emotional experience of the brand, so that users have a strong sense of identity and become your loyal users, which is the most important thing.
Li Wu:Thank you, Mr. Liu. Can Lotus provide a good experience for the transformation of luxury cars? I'll leave this question to Mr. Wu.
Wu Yingqiu:What differentiates Lotus from other luxury brands? Looking at it now, I just mentioned that it is the first of the three major sports car brands to propose full electrification and intelligence. The second is that our current traditional luxury brands are half a beat slower in this process of transformation.
So I always say that the automobile industry is now undergoing great changes, everyone is competing in it, and it must be mentioned that there is no more than you on the traditional track, and there is a lot less than you, you must find new dynamics on the new track, and you must re-understand the car and create a new species.
Other companies have encountered problems and are now aware of the transformation, but they have slowed down by half a beat. It's all about time, and that's the challenge of transformation. I think Lotus's transition to a new car must be a long-term and difficult task, and the biggest challenge is whether you can stick to it.
Li Wu:Good. Lotus has this persistence, and we have to think about where his persistence comes from. We all know that Lotus proposed to transform to electrification and intelligence as early as 2018. Just like Mr. Ren Zhengfei of Huawei said, resolutely marching towards a no-man's land, can you review for us what Lotus has achieved so far? Or do you have any experience and insights to share with us?
Feng Qingfeng:When we made our decision in 2018, we were also facing fear of the future. But we need to dispel fear and turn it into unwavering action, so we see the trend of the future: maybe it will not happen in 2018, it will not happen in 2020, it will happen in the future, and we must embrace the electrification and intelligence.
It doesn't matter who you were in the past or how good you were, if you don't follow this trend in the future. No matter how brilliant you are in the past, or as Teacher Guan said, you will be slowly eliminated under the big torrent. At that time, because we did not have an example to refer to, we could only say that we saw such a trend clearly, so we went on bravely. I think that up to now, we have slowly presented our performance, and at the same time, we have been recognized by the capital market, many industries, and our users. Including in 2023, we have also received more than 19,000 orders around the world, which is a recognition.
So when we made up our minds to do this, we formulated several strategies for vision80: one is the product strategy, the other is the brand revival strategy, and the other is the global layout strategy, which supports the vision80 plan.
We are gradually implementing these strategies and products, and we have talked about vision80 more than half of the ten years and more than half of the goals. This is why we are unswervingly embracing the future and using our practice to explore this path. Judging from the current results, we are still on this path, especially the more competitors join, the more it shows that our path is correct.
Li Wu:Thank you Mr. Feng for sharing just now, let us return to the issue of listing, Mr. Feng, how do you see the impact of this listing on the future development of Lotus Technology and the Lotus brand?
Feng Qingfeng:First and foremost, we remain steadfast in our vision80 strategy. In fact, the listing is also an acceleration for us to complete. This is a mission we have given ourselves. There is no doubt that thanks to the capital market, we are able to manage this company more transparently and scientifically, and our team is more global, and finally realize the vision80 strategy.
Li Wu:Okay, special congratulations to Mr. Feng, the listing has indeed made Lotus like a tiger. We also focus on the impact on the industry as a whole. Mr. Wu, what kind of signal do you think Lotus will release for the luxury pure electric market after its listing? How will it change the industry as a whole?
Wu Yingqiu:I would like to answer the moderator's question in two ways. First of all, I always think that Lotus must be regarded as a new car, and it must be regarded as the same as the current new car-making forces. Lotus is a new car, and Lotus Technology is a new force in car manufacturing. Why? Because everyone knows that in the automotive industry, new cars have been very lively in recent times, and some have begun to enter deep adjustments. It can be said that the new car has reached the final stage. Then Lotus's successful listing this time means that it has already got a ticket to the finals. Therefore, its listing is very important for the competition between new car companies, and Lotus has won the ticket to the final of the new car manufacturer.
For the luxury pure electric market, it is only one unit in the final field, and we have to put the whole force in and watch it together. First, I think new cars are now moving towards premiumization, and Lotus is clearly a benchmark for premiumization. Whether it is from the point of view of price or the new path, it must be in line with the general trend of high-end development.
The second signal is that our new cars must take the path of differentiation. The development path of many new EV manufacturers in the Chinese market is basically homogeneous, including in terms of products and playing methods. And Lotus's advantage in differentiation is undoubtedly very obvious.
Third, today's new cars have entered the stage of globalization, and Lotus has completed the global layout ahead of schedule.
To sum up: the signal brought by the successful listing of Lotus is premiumization, differentiation and globalization.
Li Wu:Thank you, Mr. Wu, do you have anything to add?
Liu Yan:I think the successful listing of Lotus reflects the recognition and recognition of Lotus by investors from all over the world for Lotus' firm promotion of the vision80 strategy and strong promotion of electrification transformation measures, as well as the market's confidence in the luxury electric supercar track and the Lotus brand.
In the industry, we often review the samples of some companies, especially the samples of some companies that have failed, and later find that they do not have a strategy, but that the strategy is very vacillating. It's not that they won't execute, but they don't do it firmly. Several experts have mentioned that Lotus has been steadfast in 2018 to put forward a clear transformation strategy and to execute it strongly. So today's listing success also means that it has been recognized and is a phased success.
On the other hand, I think that with the growth of the luxury electric market brought about by consumption upgrades, the demand for luxury pure electric supercars is expected to be further released, which will also become an excellent development opportunity for Lotus. Therefore, after landing in the capital market, Lotus can also lead the completion of the electrification transformation with a more thorough and clear role change.
The third significance, which I think is worth mentioning, is that in the era of electric vehicles, Lotus has provided a product portfolio that makes luxury supercars no longer cold and no longer toys for a few rich people.
In the past two years, Lotus has also strongly led the popularization and development of car culture in the Chinese auto market and among users, and I think all this has made the brand more vibrant. From this point of view, Lotus is also expected to have a promising future at a new starting point for listing.
Li Wu:Thanks to the views of the two teachers, the listing of Lotus Technology reflects the high recognition of the company's goals, development strategy, corporate governance and management execution by global investors.
Finally, because Sina Finance has been paying attention to the actions of enterprises in ESG, I have also paid attention to Lotus's forward-looking strategy and achievements in ESG.
Lotus takes "driving change" as its ESG strategic goal, puts forward the strategic goal of zero carbon by 2038, releases the first corporate ESG report in 2023, and implements many practical measures in carbon reduction and emission reduction, benefiting the community, and transparent governance, and has achieved substantial results.
Okay, that's all for our live connection, thank you to all the guests for their wonderful views. I also hope that Lotus will develop better and better in the future!