On March 17th, at the China Electric Vehicle Summit 2024, Lu Fang, CEO of LanTu Motors, delivered a keynote speech titled "Building a New Ecology for Automotive Consumption Upgrading: Consolidating and Expanding the Consumption of New Energy Vehicles."
Lu Fang stated: "We do not advocate increasing market share through price wars; price wars are not the norm."
Ultimately, we need to return to the essence of product and service, focusing on user experience and brand values.
Additionally, Lu Fang mentioned: "We do not advocate excessive marketing, adhere to bottom lines, do not violate public order and good customs, avoid exaggerated advertising that misleads users, and adhere to a sense of conscience, creating value for society rather than consuming its wealth."
In addition, Lu Fang outlined five major trends in the consumption of new energy vehicles:
Transition from hardware consumption to a combination of hardware and software. With software's marginal cost nearly zero, automotive companies are shifting focus towards "software-defined cars," developing new software and service-oriented architectures to meet users' evolving driving experience needs.
Transition from green consumption to a combination of green and intelligent consumption. In recent years, the penetration rate of L2 and above intelligent vehicles has continued to rise, expected to exceed 40% by 2025. In the future, more users will accept and prefer to purchase intelligent vehicles.
Shift from offline consumption to a combination of online and offline. Users of new energy vehicles and hybrid vehicles tend to prefer online channels, accounting for 43.7% and 43.4% respectively, higher than the 22.8% and 30.8% of offline 4S stores. The gap between online and offline channels is narrowing, and there will be more synergy between the two channels in the future.
Transition from rational consumption to a combination of rational and emotional consumption. Among new energy vehicle users, this group identifies with the environmental concept of new energy and has a higher acceptance and willingness to try new things. They also have a stronger sense of responsibility towards the times and are more easily influenced by novel trends.
Transition from separation of production and finance to integration of automotive and finance. Currently, there is a development pattern of automotive finance represented by automotive finance companies, commercial banks, and financing leasing companies.
