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Ideal: Misjudged MEGA Timing; No Future Price Cuts

Re Feng Fri, Mar 22 2024 10:23 AM EST

March 21 update: Earlier tonight, a blogger leaked an Ideal Motors communication brief.

According to the brief, Ideal Motors is adjusting its Q1 delivery forecast to 76,000-78,000 vehicles, primarily due to overestimating its capabilities and misjudging the timing of the MEGA launch, resulting in substantial misallocation of sales investments.

Despite this, the price of MEGA will remain unchanged. The error in judgment is seen as more of a timing issue, and Ideal will now focus on operations centered around its first-batch users. s_67cc3f574af3457ba1a5530dbdd43339.jpg Regarding the controversy surrounding the Ideal MEGA, Ideal has stated that the peak of public backlash has passed and that they will be enhancing their marketing efforts to improve the situation.

When the Ideal MEGA was first released, it faced lower-than-expected order volumes, similar to the challenges faced by the Ideal ONE at its launch. However, Ideal Automotive has a strong organizational structure that allows them to quickly assess and address issues in order to enhance customer value.

After the release of each new Ideal vehicle, there have been various challenges, and over a hundred people have been involved in the review process. In response to the current MEGA situation, Ideal has outlined three key lessons:

  1. Charging stations are an essential need, and their absence was a major oversight on Ideal's part.
  2. Identifying and targeting the MEGA's core user base effectively.
  3. Other similar vehicle models have experienced a resurgence in popularity. (The Aito M7 is one such example.)

However, the root of the MEGA issue lies in flawed expectation management, and Ideal must take tangible steps to resolve the situation. This serves as a valuable warning and opportunity for the organization.

Reportedly, the current price of the Ideal MEGA is 559,800 RMB, and while Ideal has not disclosed delivery figures, an industry report on weekly sales data indicates that since its launch on March 11th, the MEGA has delivered approximately 1,100 units per week, placing it second in the Chinese pure electric MPV sales rankings, behind only the Xpeng X9. s_06aeec6e37124975af751586e9fa5c3b.png