Rebirth 99 to become a car giant

Changan Automobile has never been as popular as it is today.

There are more reports and discussions about Changan MINI on the Internet than any other car.

Many of the contents were generated spontaneously by netizens, and Changan Automobile did not spend money on public relations.

This is awesome!

Especially when the media reported that orders for Changan MINI reached 10,000 units within three days of its launch, many people immediately took a liking to it.

"Mr. Zhang, can we Aian also consider developing a cheap mini car?"

"This is very good for boosting sales."

"As long as we can achieve sales of more than 100,000 units, our Aian can consider putting it on the market alone."

"With the current market enthusiasm for new energy vehicles, I don't think there will be any problem in financing on the American stock market."

Zeng Guangda thought that his electric car was originally the best-selling one on the market, and many black car drivers had already replaced their cars with Aion S.

But even so, the average monthly sales of Aian S did not exceed 10,000 units.

Only occasionally in special months can we hit the 10,000-unit mark.

Now Changan MINI has received over 10,000 orders within three days of its launch, although this does not mean that there will be that many orders every day in the future.

Consumers can also choose to unsubscribe after placing an order, but this can also explain a lot of problems.

According to Zeng Guangda's speculation, it is certain that Changan MINI's monthly sales will exceed 10,000, and it is not impossible to hit the ultra-high goal of monthly sales of more than 20,000.

This made him extremely envious.

"The range of Changan MINI is far less than 400 kilometers. There is no way to enjoy local subsidies here in Yangcheng."

"If we want to produce electric vehicles like this, then the subsidy policy needs to be modified."

"That might be a little troublesome."

Zhang Jiaqi suddenly thought of a new question.

In order to block some competitors from the electric vehicle market in Yangcheng, Yangcheng Automobile Group pushed the local subsidy policy introduced in Yangcheng City to set the threshold at 400 kilometers.

For electric vehicles at this stage, the requirement of 400 kilometers of driving range is definitely very high.

It can be said that few companies can do it, and even if they do, the cost is very high.

Electric vehicles in this era are completely uncompetitive without the support of subsidies at all levels.

After all, any battery costs hundreds of thousands. How much do you want to sell the car for?

Even versions like the Changan MINI, which has a range of more than 100 kilometers, not only cannot get local subsidies, but also cannot get much subsidies from ministries and commissions.

Because the subsidy standards announced by ministries and commissions are different for electric vehicles with different ranges.

If the range is less than 200 kilometers, the subsidy will be significantly reduced.

Changan Automobile can only receive several levels of subsidies at the same time in a few places such as Shuangqing City.

In this case, setting the selling price so low is actually losing money.

In other words, all R\u0026D costs and factory building costs are amortized on gasoline vehicles, and sales expenses are cut to the greatest extent to achieve such a low price.

"Changan Automobile has created a new trend this time. It is reasonable for us to use this trend to promote changes in subsidy standards."

"Besides, the biggest market for this kind of car may be in third- and fourth-tier cities."

"Many families in these places can handle the charging problem by themselves. Most of the time when driving in urban areas or counties, a battery life of more than 100 kilometers is enough."

"There is no purchase tax, fuel costs are saved, basically no maintenance is required, and the total price is low. These advantages can perfectly attract a group of users."

Although the issue mentioned by Zhang Jiaqi does need to be considered, Zeng Guangda thinks it is not a big problem.

Changan Automobile faces the same problems as Yangcheng Aian in markets outside Shuangqing City.

Since Changan MINI can keep the price so low under such circumstances, why can't it do the same?

As for the issue of making money, Zeng Guangda believes that the biggest problem for electric vehicles now is not making money, but opening up the market.

Even a loss of 10,000 to 20,000 yuan per car can be considered.

"What you said makes sense, but it is very challenging for us to make the price the same as Changan MINI."

"In terms of Sanden parts, Nanshan Automobile Group must provide sufficient support."

"We will make an internal plan first. If we are sure to do it, we will have a good communication with Mr. Cao to see if they are willing to supply parts for our new models at zero profit."

"It can't be that those of us who make complete vehicles are losing money, while those of us who make parts are making a lot of money, right?"

Zhang Jiaqi's words can be regarded as revealing a flaw in the new energy vehicle industry.

In the previous life, even ten years later, this situation had not fundamentally changed.

Except for a few companies such as Tesla, most new energy companies are losing money.

It doesn't seem right to say that you are making money at a loss.

But more than 80% of companies are indeed losing money.

…

If the Yangcheng Aian side is a little envious and jealous of Changan Automobile's performance, then the Nanshan Hongqi side is sour.

Even though he was thousands of miles away, Cao Yang could feel the sourness of Zhu Zhengfeng on the other end of the phone.

"Mr. Cao, I think a car like Changan MINI can be produced by Nanshan Hongqi."

"I can even personally run the policy and ask the ministries and commissions to revise the threshold for subsidies for new energy vehicles."

"For different levels of models, the cruising range standards can be set differently, which makes it more fair."

Seeing the emergence of a new energy vehicle with an annual sales volume of over 100,000 yuan, it completely launched the first shot of the auto market in 2012.

Zhu Zhengfeng is definitely very jealous.

Southern Hongqi is now taking the road of official vehicles, hoping to increase sales through this.

But Zhu Zhengfeng would definitely not mind if he could take several roads together at the same time.

Although he also knows that new energy vehicles do not make money, for Nanshan Automobile Group, if Nanshan Hongqi produces similar electric vehicles, in the end the entire vehicle will not make money, and it will have to repay part of the money.

And if Changan Automobile is allowed to produce it, Changan Automobile will bear the losses of the entire vehicle.

But the parts are not being sold at a loss, which is equivalent to Nanshan Automobile Group making money on this project.

However, if some changes in supporting policies can be further promoted, Zhu Zhengfeng feels that Changan MINI can also achieve breakeven.

The most important thing is to increase sales and start manufacturing new energy vehicles so that they can be listed for financing.

The money earned by then will definitely be more than the money lost now.

Especially in the United States, Tesla has gone public and its current market value is also good.

"Mr. Zhu, hasn't Nanshan Hongqi always wanted to take the mid-to-high-end route?"

"If we produce 30,000 to 40,000 minicars, will it have a certain impact on Hongqi's brand value?"

Facing Zhu Zhengfeng's "dissatisfaction", Cao Yang must have found some reasons that were difficult to refute.

After all, objectively speaking, Cao Yang thinks that a car like Changan MINI is more suitable for Changan Automobile, which is famous for its mini cars.

As for what Zhu Zhengfeng said about going public, Cao Yang didn't think it was that reliable.

New energy vehicles developed by traditional automobile companies will naturally be disliked by capital if they want to be listed for financing.

Because the main shares of the company are not in the hands of capital.

Unlike the new Internet car-making forces, they have given large distressed shares to capital.

Then all kinds of funds will naturally be much more active in promoting their listing.

"Although it may have a certain impact, I don't think it is absolute."

"For a mini car like a convertible, I think even if the price is very low, it won't do any harm to the brand."

"Even because of the emergence of this kind of model, the brand power will increase to a certain extent."

"For example, Toyota and Honda, Volkswagen and General Motors also have some relatively cheap models."

Zhu Zhengfeng did not give up, and still wanted Cao Yang to support Nanshan Hongqi in developing a model similar to Changan MINI.

In this regard, Cao Yang did not insist on refusing, but asked Nanshan Hongqi to conduct market analysis and proposals internally first.

As long as everyone really thinks this path can be taken, it doesn't matter to him.

After all, he can ensure that Nanshan Automobile Group will not lose money on this project through auto parts.

If Nanshan Hongqi can really develop electric vehicles, it will not be a bad thing for Nanshan Automobile Group.

…

As Changan MINI continues to be popular, new energy vehicles have also become popular inexplicably.

Many car companies feel that the spring of new energy vehicles has arrived and they need to increase investment in related models.

For new energy vehicles that have not yet been mass-produced, everyone has increased their sales expectations.

In this regard, Lin Cheng, general manager of Nanshan Battery, feels the most.

"Mr. Cao, we may need to consider building a special production line in Shuangqing to supply the battery needs of customers in Chang'an and central China."

"In the past few days, several companies have confirmed their battery production capacity with us, saying that their car companies' production quantities will increase."

"I think it is necessary to take advantage of this opportunity to further consolidate Nanshan Battery's production capacity advantage."

As China's largest power battery company, Nanshan Battery's market share will definitely increase further this year.

Because several car companies that sell well in China's new energy vehicle market use Nanshan battery products.

This makes the cost advantage of Nanshan batteries even more advantageous.

Because your production capacity utilization rate is high, various development expenses, equipment expenses, and factory amortization expenses will be low.

In addition, in the battery industry, the more advanced your technology is, the lower the production cost can be.

To a certain extent, this is a winner-takes-all industry.

Therefore, Lin Cheng definitely hopes to prepare production capacity in advance.

"No problem. According to the current development trend of Changan MINI, it is estimated that it will be normal to sell more than 100,000 units a year in the future, and it is possible to even exceed 200,000 units."

"This car alone is enough to support a large battery factory."

Cao Yang also attaches great importance to Nanshan Batteries.

This is a trillion-level market. Once it becomes bigger and stronger, all investments can be doubled in return.

And new energy vehicles are destined to be a trend. After mastering the core battery technology, Nanshan Automobile Group will also be able to form certain advantages in the development of its own vehicle business in the future.

"If Changan MINI's annual sales can reach 200,000 units, then it will directly require 5GWH production capacity."

"After considering reserving part of the production capacity and considering other customers, our new factory in Shuangqing can be directly planned into two phases."

"The first phase is planned according to the production capacity of 8GWH, and then the land for the second phase factory with the same production capacity is reserved."

"When completed, this factory will be the largest power battery factory in China at this stage and become an industry benchmark."

Since Lin Cheng came to report to Cao Yang, he must have already made some plans.

Although there are many battery manufacturers now, the general production capacity still does not exceed 1GWH.

This new factory of Nanshan Battery has directly killed the total production capacity of many battery manufacturers.

The pressure this brings to other manufacturers is definitely huge.

Similarly, this is also very important for establishing Nanshan Battery’s dominant position in the industry.

After all, your technical advantage is only one thing, but you also need to have an advantage in production capacity.

Otherwise, it would only provide very high-end batteries for very small car models, which would have no special meaning.

"In principle, I agree, but you'd better sort out the specific plans for factory construction and the status of new projects in the future as soon as possible."

"At the same time, we must also consider developing a new generation of battery technology to ensure that our technology remains at the forefront."

"For example, this time Changan MINI uses lithium iron phosphate batteries, but the cruising range is not particularly high."

"We can consider some special structural solutions to greatly increase the cruising range of lithium iron phosphate batteries."

"Similarly, other lower-cost material solutions also need to be developed."

"For example, in terms of ternary lithium batteries, the cobalt content of the batteries currently used is too high, resulting in high material costs."

"If we can further increase the amount of nickel and reduce the amount of cobalt, it will be more promising."

Cao Yang also shared some of the power battery development routes of later generations with Lin Cheng.

He is now focusing a lot of energy on Daystar Aerospace. He wants Nanshan Battery to make some technological breakthroughs in batteries by itself.

Only when he encountered a problem and couldn't figure it out was he prepared to help himself.

Nanshan Battery has accumulated technology for so many years and has formed its own R\u0026D system.

Now that I have pointed out the big research and development direction, it is not that difficult to make some breakthroughs.

After listening to Cao Yang's words, Lin Cheng naturally said nothing and began to arrange personnel to implement these things.

Soon, the news that Nanshan Battery was building a 16GWH ultra-large battery factory in Shuangqing City spread throughout the industry.

Although the 16GWH is divided into two phases for construction, this plan is also very scary.

"Mr. Wang, I think it is necessary for the company to launch some cheap and high-volume electric vehicles. In this way, even if the electric vehicles do not make money, it can promote the improvement of our battery and motor production, thereby increasing the size of the group."

As the person in charge of BYD Battery, Lu Faxiang couldn't help himself immediately when he saw the news that Nanshan Battery was going to build such a large new factory in one go.

Originally, BYD Battery was ahead of Nanshan Battery, but now it has fallen behind.

If we wait until the new Nanshan Battery factory is completed, the gap between everyone will be even greater.

Yangcheng Aian, Yangcheng Nanshan Commercial Vehicle, Future Automobile, Changan Automobile...

Nanshan Battery has many customers.

As for those that don’t focus on volume, BMW, Xingchen Automobile, General Motors...

That's more.

Under such circumstances, Lu Faxiang no longer dares to think about surpassing Nanshan Battery.

He just hopes that BYD Battery can secure its second position in the industry and not be pulled too far by Nanshan Battery.

"The hot sales of Changan MINI have really made everyone focus on mini electric vehicles."

“But it’s actually not easy at all to make this kind of car well done.”

"Changan Automobile has found a very good entry point this time and made mini cars famous."

"Such a cute shape, and there is even a convertible version, which makes everyone forget that this is a cheap car."

"If we can find a good entry point, I will definitely support the company in developing similar models."

"But if it's just imitation, it's not necessarily a good choice."

"The competition will be very fierce and the price will be so low. Even with subsidies at all levels, the losses will be huge in the end."

Wang Fu is relatively prudent in his work now and doesn't want to be so radical.

BYD itself also produces batteries, and the cost of batteries now is much higher than in later generations.

The era of a few cents per WH has not come so soon.

According to the current battery prices, even a relatively cheap lithium iron phosphate battery will cost tens of thousands of yuan.

The price of a Changan MINI is tens of thousands of yuan.

It can be said that the battery is given to the car.

Under this circumstance, he felt that even if Changan MINI sells well, it will definitely be difficult to make money in the end.

There is a high probability that you will lose money.

BYD is a listed company, and Wang Fu pays great attention to financial statements.

If the model produced has to lose money, the loss is small and it can be compensated by the publicity effect, so it is regarded as advertising.

But he doesn't have the determination to let high-volume models lose money.

Even if a car loses 10,000 yuan, if it produces 100,000 units annually, it will be a loss of 1 billion yuan.

The key is that in Wang Fu's view, even if a car loses 10,000 yuan, it may not be possible in the end.

"Or we can change our thinking a little bit and target the entry-level model market of 70,000 to 100,000 yuan."

"Changan MINI is a two-seater model, so many people may be more concerned about it."

"If we can normally produce a five-seater electric car, even if the price is a little more expensive than Changan MINI, I think there will still be a market."

"At that time, we can also use cute styles to attract some young people to buy."

Lu Faxiang changed his mind and proposed a new plan to Wang Fu.

Wang Fu was a little more interested in this proposal.

"You can discuss it with the sales department and see how to do it."

"If everyone thinks it's good, it's not impossible."

With Wang Fu's instructions, Lu Faxiang immediately took action.

…

The core parts of electric vehicles are the three electric parts.

On the Nanshan battery side, Lincheng has specially arranged related production capacity expansion and new technology research and development. Naturally, the motors on the Nanshan auto parts side cannot fall behind.

"Mr. Dai, our current motors are all three-in-one products, which are relatively advanced in the industry."

"But soon, other motor manufacturers have also launched similar three-in-one motor products. We have to consider further raising the technology of this part to a higher level."

Although Cao Yang will not personally lead everyone in the research and development of new motor technologies, it is necessary to determine the correct development direction.

This can greatly speed up the development of motor technology in Nanshan Auto Parts.

Anyone who is engaged in technology knows that the most terrifying thing is that there is no research direction.

After all, choice is more important than hard work. This is not only true for life, but also for technological development.

Just like today's flat-panel TVs, some companies in Japan have chosen plasma as their development direction. In the end, even if your technology is very good, it is destined to have no market.

New energy vehicles have developed relatively rapidly in the past few years, and the technology iteration of related parts will also be relatively rapid.

At this time, even if you have technical advantages now, if you develop in the wrong direction later, you will soon fall behind.

Naturally, Cao Yang couldn't watch Nanshan's auto parts technology lag behind its peers.

The slogan of relying on technology to win orders cannot be discarded.

"Six motors in one?"

Dai Hanbiao was shocked. Now is the time for three-in-one motors. In his opinion, it is more appropriate to start with four-in-one motors.

Step by step, we will ultimately be in line with the direction of technological development.

Now he is a little worried about directly engaging in six-in-one motors.

"Yes, our current three-in-one system combines the motor, reducer and motor controller to reduce the overall size and weight and improve space utilization."

"The next step is to combine the DC/DC, charger and power distribution box together, which can further reduce the size, weight and cost."

"Even in the future, we can combine the motor, reducer, motor controller, DC/DC, charger, power distribution box, battery manager, and vehicle controller into an eight-in-one motor."

Cao Yang directly expressed his thoughts.

There is no point in discussing and arguing at this time. Just tell Dai Hanbiao the final answer and ask him to arrange for someone to study it.

Relatively speaking, this technical solution is more of an upgrade and does not have any core bottleneck technical issues.

As long as you take the time to research, it can definitely be done.

Dai Hanbiao could naturally feel Cao Yang's attitude from his tone.

Besides, this wasn't the first time he had seen Cao Yang's miraculous instructions in the technical field.

So he was surprised, but he didn't hesitate anymore and directly said that he would make arrangements immediately.

It is hoped that new models will be officially equipped with this new motor in two years' time.