The reason for the domestic electric car *** is not to make money, but because the low-end market is already considered "industrial waste". This article will explain the reasons for the domestic electric car and explain why the high-end market was chosen not to make money, but to improve competitiveness.
With the release of high-end domestic electric vehicles such as Huawei Wenjie M9, people have begun to realize that the best domestic electric vehicles are getting higher and higher. However, this is not just about making money, in fact, most domestic electric vehicle manufacturers are losing money. So why domestic electric vehicles***?
1.The three core components of high cost: three-electric system, intelligent cockpit and autonomous driving technology are the core competitiveness of electric vehicles. However, to achieve breakthroughs and upgrades in these technologies, costs are inevitable. Lei Jun, the founder of Xiaomi, said that the battery cost of Xiaomi SU7 exceeded 100,000 yuan. Similarly, the minimum price of Tesla Model 3 has exceeded 200,000 yuan. It can be seen that the cost of domestic electric vehicle manufacturers is higher than that of Tesla, not lower. Moreover, the configuration of domestic cars is usually more advanced than Tesla, so the price will definitely be higher than that of Model 3, at least more than 200,000 yuan. If you want to further improve the configuration and more powerful performance, the price will be further increased, even reaching 300,000 yuan or 400,000 yuan.
2.Lack of competitiveness in the low-end market: Unlike traditional fuel vehicles, the core competitiveness of electric vehicles lies in their technology and intelligent functions. If the focus is on the low-end market, it is likely that the electric vehicles produced will not be comparable to those of competitors, and may even be considered "industrial waste" and eventually eliminated from the market. As a result, domestic EV manufacturers have to target the high-end market and establish their own brands by improving configuration and performance to gain a competitive advantage.
While making money is the goal of any business, making money is not the main consideration in the current domestic electric vehicle industry. Here's why you should choose the premium market:
1.Enhance brand competitiveness: Domestic EV manufacturers hope to compete with internationally renowned brands such as Tesla by building high-end brands. In order to achieve this, they must surpass Tesla in configuration and technology to become a high-end brand in the minds of consumers. Only by improving the competitiveness of brands and products can manufacturers stand out in the fierce market competition.
2.More impressive returns in the high-end market: While domestic EV manufacturers are generally losing money at present, the high-end market has greater potential for returns. High-end consumers are more willing to pay more for better configuration and performance**, so high-end electric vehicles will bring higher profits to manufacturers. While it's too early to make money, by establishing a brand at the premium end of the market, manufacturers can build a solid foundation for future profitability.
3.Avoid being left out of the market: In today's competitive EV market, low-end models often don't survive. If domestic electric vehicles are only in the low-end market, the problem of insufficient product quality and competitiveness will be highlighted, which will eventually lead to elimination. Therefore, choosing the high-end market is an inevitable choice for domestic electric vehicle manufacturers, and it is also to avoid being eliminated by the market.
Domestic electric vehicles are not to make money, but to improve competitiveness to choose the high-end market. The three core components with high costs, the lack of competitiveness in the low-end market, and the high-end market with higher brand competitiveness and return potential have led to domestic electric vehicle manufacturers having to adjust their strategies and move towards the high-end market. Although losses are still widespread at this stage, domestic EV manufacturers are expected to achieve higher returns and profitability in the future by establishing high-end brands and improving product competitiveness.