Pulsestacks reported on May 20th that in the era of traditional fuel vehicles, Lynk & Co, aiming to provide a luxury car experience, is positioning itself as a replacement for joint venture vehicles. In the era of new energy vehicles, Lynk & Co is targeting the joint venture market while still eyeing the market share of joint venture fuel vehicles.
Recently, Lynk & Co's mid-size plug-in hybrid sedan, the Lynk & Co 07 EM-P, has been officially launched.
Compared to the mainstream luxury sedan experience, the starting price of the Lynk & Co 07 EM-P is only 163,800 yuan, with a price range concentrated below 200,000 yuan, around 170,000 yuan. What is the intention behind this?
Is it aiming to leverage Lynk & Co's own brand image and product reputation to compete in the lower end of the market? Or is it focusing on original design, premium sound system experience, and the CMA Evo architecture to compete in the upper end? How strong is the "lethality" of Lynk & Co 07 EM-P in its specific market segment?
"We must make profits even if they are small. We cannot wait for a good market; markets are created through competition," said the Senior Vice President of Geely Auto Group and General Manager of Lynk & Co Auto Sales Co., Ltd.
"In the era of new energy, Lynk & Co aims to replace the market of joint venture fuel vehicles and become the preferred brand for fuel vehicle users to upgrade to new energy vehicles.
Seven years ago, Lynk & Co came to challenge joint venture brands, and seven years later, Lynk & Co has sold millions of vehicles, achieving remarkable results.
This success is inseparable from Lynk & Co's precise insight into the pricing of segmented markets."
The Lynk & Co 07 EM-P, as a medium-sized plug-in hybrid sedan, is priced in the range of 16-18 thousand yuan.
Currently, the average transaction price of joint venture fuel cars is around 140-160 thousand yuan. With the addition of new energy subsidies and purchase tax, the Lynk & Co 07 EM-P falls right into this price range.
Turning to the new energy vehicle market, the price range of the Lynk & Co 07 EM-P also fits snugly into the most fiercely competitive price range of A and B-class new energy sedans.
It can be said that the Lynk & Co 07 EM-P competes with mainstream joint venture fuel cars with its plug-in hybrid advantage. When compared with BYD's models in the same class, it has styling and brand tonality advantages. In battles against brands like Zerun, NIO, and Yipai, it holds a brand advantage. Ultimately, the Lynk & Co 07 EM-P may compete with BYD's Han and Dolphin to capture a share of the joint venture market, and there is ample room for imagination in this market.
During the one-hour communication meeting, Lin Jie repeatedly emphasized originality.
"The Lynk & Co 07 EM-P is the first sedan of the second-generation design language, which is of great significance to Lynk & Co." As a brand built for the global market, Lynk & Co must ensure originality and adhere to principles. "Because only originality can truly go global, only then can it truly gain global respect, and this is what Lynk & Co insists on."
As Lin Jie mentioned, if we were to summarize the essence of Lynk & Co products in a few words, "originality" would certainly be one of the most important. Being the "trendsetter in the automotive industry" comes with its own aesthetics, emphasizing originality over imitation.
Of course, "safety," "performance," and technological features are also part of Lynk & Co's DNA.
"Without safety, it's not Lynk & Co." Lin Jie pointed out that Lynk & Co has established the "Lynk & Co Basic Safety Management Measures," abbreviated as the "Lynk & Co Safety Law." This ensures that regardless of changes in the technical team, Lynk & Co will only add to its safety standards, never subtract.
Regarding the industry's hot topic of hidden door handles and safety in accidents, Wang Ying, the Deputy Director of the Lynk & Co Brand Research Institute, mentioned that the design of Lynk & Co's hidden door handles considers various scenarios to ensure that the handle can still pop out normally after a collision. Even if the electric system fails, the unique mechanical design of the hidden door handle ensures that by applying pressure to the front end of the handle, the rear end will pop open the door. "These designs are carefully considered, and we have even applied for patents for them."
In terms of intelligent driving, the Lynk & Co 07 EM-P adopts the Sky Pro intelligent driving platform, supporting high-speed NOA function. "Geely has a strong intelligent driving research and development team, including Lotus Robotics Company and the self-developed team of Lynk & Co, both of which will contribute their technologies to Geely Group, including Lynk & Co." In April of this year, the high-speed NOA function of Lynk & Co 08 EM-P has already been made available. "The urban NOA function is still under development and will be gradually introduced based on hardware upgrades and regulatory permissions."
Since September 2023, Lynk & Co has been fully promoting its new energy strategy, seeking development on the second curve. Throughout 2023, Lynk & Co sold 220,000 vehicles, a year-on-year increase of 22.27%, with new energy vehicle sales reaching 51,000 units, accounting for 25%.
In the fiercely competitive market of new energy vehicles, Lynk & Co's one-step pricing strategy demonstrates its willingness to sacrifice some profit to expand market share. Data shows that in April of this year, Lynk & Co sold 18,727 vehicles, a year-on-year increase of about 34%, with the proportion of new energy models reaching approximately 50%.
Lin Jie emphasized that Lynk & Co will not operate at a loss. While they do not actively engage in price wars, they are committed to competing in terms of value, brand, service, and ethics, maintaining a focus on high-value development.
Currently, Lynk & Co will no longer introduce new gasoline vehicle series, instead focusing on upgrading and optimizing existing gasoline products. Financial reports show that in 2023, Lynk & Co's revenue reached 34.787 billion RMB, a 19.5% year-on-year increase, but they incurred a full-year loss of 1.105 billion RMB, transitioning from profit to loss.
Making profits in the era of new energy is indeed challenging. Expanding globally and transitioning to new energy sources require continuous investment from Lynk & Co. The company urgently needs new products to reverse losses and restore profitability. Lin Jie mentioned during an interview at the 2024 Beijing Auto Show that while everyone needs traffic, it is essential to exercise restraint and not prioritize traffic for the sake of traffic. It is crucial to deliver valuable products based on the company's actual situation.
In his view, the words spoken by a brand represent a commitment. It is essential not to disappoint the traffic received from users. The focus should be on converting the flow of traffic into a lasting impact, which requires a deeper level of care.
Transforming traffic into lasting impact hinges on the importance of product quality and user reputation for the long-term development of the brand.
Lynk & Co's Deputy General Manager, Mu Jun, emphasized the value and experience of Lynk & Co products in the same market segment by offering a high-end car experience at a lower price point. By introducing premium features such as advanced sound systems, comfortable seats, and panoramic sound, Lynk & Co allows users to enjoy ventilated, heated, and massage-equipped rear seats, enhancing the product's value and appeal.
Regarding the choice of a 126-kilometer pure electric range for the Lynk & Co 07 EM-P, Wang Ying also provided an explanation. "Geely has the technology for longer range, but opting for 126 kilometers is to balance the purchase and operating costs." He mentioned that both Geely and Lynk & Co are committed to achievable mileage figures, avoiding overstatement, with the aim of providing a realistic and cost-effective range solution.
Geely's Lynk & Co, breaking through joint venture barriers, has sold 1.13 million vehicles in its 7-year history.
In the "post joint venture" era of the Chinese automotive market, Chinese brands like Lynk & Co are pushing forward in the field of new energy vehicles, striving to capture market share from joint venture traditional fuel vehicles.
During this fierce competition, where profits for car manufacturers are generally diluted, Lynk & Co, backed by the Geely Group, benefits from systematic resources, ensuring a constant stream of innovation. With the introduction of more new energy vehicle products, Lynk & Co's transition to new energy vehicles is expected to accelerate, aiming to firmly establish its presence in the market and achieve sustainable growth.
