Reported by Pulsestacks on March 17th, from March 15th to 17th, the China Electric Vehicle Hundred People's Forum (2024) was held at the Diaoyutai State Guesthouse in Beijing. With the theme "Consolidating and Expanding the Advantage of New Energy Vehicle Development," the forum delved into in-depth discussions on various topics, including the new situation of global automotive industry development, new paths for green and low-carbon transformation of the automotive industry, new directions for the development of intelligent connected vehicles, new strategies for the integration and development of automotive cities, innovation in the power battery industry, and applications of technologies such as big computing power, big models, and big data, as well as the construction of charging infrastructure and new changes in the automotive market and consumption.
On March 17th, at the Market and Consumption Forum, He Liyang, President of Seres Automotive, stated that there are several key aspects to brand strategy and luxury strategy for cars in the era of intelligent electric vehicles.
Firstly, it is crucial to clearly shape the brand. Secondly, continuous iteration of product capabilities through technology is essential. "In the era of intelligent electric vehicles, there is not much difference in hardware. Ultimately, the competition will definitely be in software and ecosystems. This iteration will redefine what constitutes new high-end and luxury in the future."
Thirdly, user services need to be online. Fourthly, it is necessary to establish an operational system that adapts to ToC, provides differentiated and batch services to users. "We believe that, under the overall trend of new cars and new luxury, establishing the research and development system, supply chain system, quality, and service needed for the brand will undoubtedly be the core of building our brand."
The year 2024 started off with a bang, full of ups and downs. From our own experience, things have been moving fast and furious, with rapid advancements in technology, pricing, products, and even our understanding of consumer behavior. This has greatly accelerated the process of electrification. One thing that stands out is how quickly the narrative shifted, especially in the automotive industry. We witnessed one of our sister brands under the Sales Corporation initiating price parity between electric and traditional fuel vehicles. Soon after, the discourse changed to comparisons highlighting the advantages of electric vehicles over traditional ones, further propelling this shift.
Moving into 2024, the landscape is a mix of highs and lows, where being on a ranking list brings attention, but also anxiety about slipping down. Performance evaluations by bosses have become more frequent and intense, transitioning from monthly to weekly, and even daily assessments. Sales and business teams face immense pressure to maintain or improve their standings.
In light of these challenges, let's share some insights. Sales Automotive has collaborated with Huawei in the field of smart electric vehicles. Over the past three years, our consistent efforts have earned us frequent appearances on various ranking lists. However, our focus has always been on doing our work diligently, without being too preoccupied with rankings.
One particular list that caught our attention is the luxury brand ranking. Internally, we've had numerous discussions on how to redefine luxury in the era of smart electric vehicles. How can AITO Motors become a true representation of the new luxury, meeting the demands of both luxury and tech-savvy consumers while evolving in new directions? Today, we ponder over these questions amidst the backdrop of new trends, strategies, and future practices in the automotive industry.
Especially after the launch of AITO Motors' M9, we've observed a significant shift in our user demographics, with a more educated and youthful consumer base. Within a month of opening our flagship store, data analysis and research have revealed that our users range from 25 to 60 years old, representing diverse sectors such as internet, finance, government enterprises, and technology, extending even to professions like lawyers and teachers. This presents a new perspective as many of these users were previously patrons of luxury brands, regardless of the type. As we transition to the era of smart electric vehicles, their expectations remain unchanged in terms of luxury and sophistication, yet they are eager to explore and experience the offerings of the future.
In this evolving landscape, the definition of luxury is undergoing a profound transformation. In the era of smart electric vehicles, the traditional emphasis on "three major components" of luxury, especially in terms of power, is becoming less relevant. The transition to electric power has fundamentally altered many traditional elements, yet precision and speed remain paramount. Consequently, the focus is shifting from physical luxury to digital luxury.
As I've been benchmarking and analyzing the efforts of luxury brands, one significant observation is the abundance of physical buttons in traditional luxury vehicles. However, in our latest model, the M9, we've embraced a software-defined approach with minimal physical buttons. While this has been perceived as overly intelligent by some users, it signifies the necessary transition toward embracing emerging technologies. As the smart electric vehicle industry progresses, it's imperative for us to collectively facilitate a shift in user habits.
Unlike traditional vehicles that become outdated over time, smart electric vehicles continually evolve and improve, driven by data. We offer proactive services, where user feedback and interactions shape personalized driving experiences. This contrasts starkly with traditional luxury cars, where annual upgrades and additional expenses were the norm. With over-the-air updates, we've streamlined this process in the era of smart electric vehicles.
The realm of connected vehicles is expanding rapidly, evident in the collaborations between traditional and emerging automakers, as well as tech companies. This convergence has given rise to an ecosystem where connectivity evolves daily, presenting new challenges and opportunities in the era of smart electric vehicles. The transition from traditional fuel-powered vehicles to smart electric ones involves a shift from the "old three major components" to the "new three major components," as well as from physical space to digital space. Especially in the widespread adoption of intelligent driving over the past year, the impact has been profound. We all know that intelligent driving has been promoted for many years, but it hasn't been as successful as we hoped. Leaving aside the debates over routes, whether based on high-precision maps or visual navigation fused with sensors, let's focus on the user experience. Intelligent driving primarily addresses safety, transitioning from passive safety to active safety, ensuring safety as the top priority. Under the premise of safety, it aims to provide a more comfortable, convenient, and relaxed experience. In our experience with advancing intelligent driving last year, we realized the importance of clearly and thoroughly explaining the safety of intelligent driving. We won't delve into online discussions like AEB, but they also underscore the importance of safety.
In the evolution of intelligent driving, it can achieve end-to-end navigation based on standardized maps, enabling driving anywhere, thus avoiding the need to expand driving areas. Traditional intelligent driving based on high-precision maps tended to encourage more driving. However, in the era of smart electric vehicles, this logic and direction are undoubtedly changing.
For automakers, this change necessitates faster iteration and product definition. It requires providing higher enjoyment and experiences based on user feedback and connecting car life and travel accordingly to enhance the working and living experiences in vehicles.
Therefore, we believe that in the era of smart electric vehicles, brand strategies for automotive companies, whether luxury or otherwise, should focus on several key aspects:
Clear brand shaping: Although we cannot engage in brand discussions with traditional automobiles or luxury cars since we are still on the road, we have a clear set of values.
Continuous iteration of product strength through technology, especially through established platforms. In the era of smart electric vehicles, where differences in components and hardware are minimal, the ultimate competition lies in software and ecosystems. At the core of these ecosystems are users, data, and experiences, which will redefine what constitutes new types of high-end and luxury in the future.
Online user service: In the era of smart electric vehicles, user tolerance is limited, especially as the brand rises. How to quickly improve the user experience through online services, proactive service, and care is crucial, particularly in branding and luxury aspects. While traditional VIP services were once dedicated to specific individuals in physical locations, in the smart electric era, support must be data-driven and rapidly provided to customers proactively.
Establishing an operational system tailored to To C, differentiating services for users, and standardizing them for mass production, as mentioned by previous speakers, will not be discussed here.
We believe that under the overall trend of new automobiles and luxury vehicles, creating a brand requires a research and development system, supply chain, quality, and service that meet the demands and aspirations of the brand.
In the past 21 years, in collaboration with Dongfeng Motors, we have achieved significant milestones, from entering complete vehicles with the FAW's Weiwang brand to launching electric vehicles in 2016 and conducting research and development in the United States. In 2021, we embarked on a comprehensive strategic cooperation with Huawei, exploring new frontiers and expanding into cross-border domains. We have also collaborated strategically with key partners such as Bosch and CATL in supply chain management. In fact, in the M9 product, over twenty core suppliers account for 90% of the supply chain, forming an integrated innovation ecosystem. This enables rapid iteration and adaptation to future developments based on user and product definitions through integrated supply chains and innovation applications.
In recent years, in collaboration with Huawei, Siles Auto has made new advancements in market progress, product iteration, and product strength with the jointly designed AITO Interface. Here's a shared statistic: as of today, AITO Interface's automotive users approach 300,000 vehicles, with intelligent driving-enabled models accounting for over 50%, exceeding 152,000 vehicles, and covering over 56 million kilometers. The proportion of intelligent driving mileage exceeds 35%, with an NPS recommendation score for intelligent driving exceeding 87%. This means that in the era of smart electric vehicles, intelligent driving has become a foundational configuration, at least for AITO Interface. We hope to work together with industry peers to promote brands in the new era of smart electric vehicles, serve users well, and collaborate more closely with the industry chain. Thank you, everyone!
