Zhiji Auto has come to realize that messing with Xiaomi might not be a wise move.
Just 24 hours after Xiaomi Auto's release demanding an "immediate formal apology" from Zhiji, Zhiji Auto embarked on a spree of apologies.
As of now, Zhiji Auto and its co-CEO, Liu Tao, have apologized three times for the incident, emphasizing that there was no intention to defame subjectively.
Sina Technology observed that Liu Tao might be the automotive executive who has publicly apologized the most.
In January of this year, numerous Zhiji Auto owners reported encountering car system failures. Liu Tao expressed his regrets on Weibo after explaining the reasons.
Last October, the app's backend servers crashed, prompting Liu Tao to express his "utmost apologies."
Even earlier, Liu Tao faced administrative penalties for violating traffic regulations in a video released by the company, showing him illegally parking, changing lanes without signaling, crossing solid lines, making consecutive lane changes, and speeding during a high-speed test drive of the Zhiji L7. He also publicly apologized to the audience.
Despite Liu Tao's sincerity, it failed to boost Zhiji Auto's sales. Previously, Liu Tao had stated a sales target of 120,000 to 130,000 vehicles for Zhiji Auto in 2024. However, in the first quarter of this year, Zhiji Auto's cumulative sales were only 10,001 vehicles. Analysts suggest that based on these sales figures, Zhiji Auto might not achieve even half of its annual target.
After "baiting" Xiaomi, Zhiji Auto apologized thrice.
The sequence of events is not intricate. On the evening of April 8, Zhiji Auto unveiled its new car, the L6, directly comparing it to Xiaomi's SU7 Max version during the launch event and mistakenly misstating Xiaomi's car specifications, claiming that "Xiaomi's car motor uses front IGBT and rear silicon carbide module drive, while Zhiji L6 uses front and rear dual silicon carbide drive."
However, soon thereafter, Zhiji Auto faced a strong counterattack from Xiaomi Auto. On the night of April 8th to the early hours of April 9th, a spokesperson for Xiaomi posted three consecutive Weibo posts urging Zhiji Auto to apologize.
In the eyes of Xiaomi Auto's spokesperson, it was either a sign of "professional incompetence" or "intentional spreading of rumors and defamation" for Zhiji Auto, as a holding subsidiary of SAIC Group, to make such egregious errors. This behavior was deemed incompatible with the reputation of SAIC Group, and was incomprehensible to other companies in the industry.
Perhaps under pressure, up to now, Zhiji Auto and Liu Tao have publicly apologized three times. Emphasizing "in light of recent discussions about the Xiaomi SU7 product features, due to oversight in team content review, an error occurred in marking a critical parameter."
However, in its latest apology, Zhiji Auto explicitly stated that the "Xiaomi company spokesperson" used derogatory terms such as "intentional rumor-mongering, smearing, harassment, and lack of decency" in three official responses. Zhiji Auto urged the Xiaomi spokesperson to "show mercy in words" as Mr. Lei Jun suggested!
The series of actions by Zhiji Auto have not only left consumers puzzled but also sent shockwaves through the industry.
The top executive's "proficiency" in apologies
In fact, this isn't the first time Liu Tao has publicly apologized. On January 3rd of this year, Liu Tao had just issued a public apology due to widespread issues with Zhiji Auto's in-car systems.
Earlier this year, numerous Zhiji Auto owners reported encountering malfunctions with their in-car systems, including issues such as speed and gear indicators not displaying, lack of steering wheel sound, absence of radar alerts, and malfunctioning streaming rearview mirrors. This series of problems posed safety hazards while driving.
According to the person in charge of Zhiji Auto's software, this incident was caused by "a very immature software bug," explaining that "the reason was a timestamp bug in the rendering algorithm for the PDC (reverse radar) prompt sound in IMOS."
At that time, Liu Tao had publicly apologized for this issue, stating, "We sincerely apologize to users on behalf of Zhiji Auto for the inconvenience and trouble caused by the recent lack of screen display information and reverse prompt sound on some vehicles."
Before this incident, on December 5, 2022, Liu Tao had also faced administrative penalties for various traffic violations captured in a video released by the company. These included illegally parking during high-speed test drives of the ZhiJi L7, changing lanes without signaling, crossing solid lines, making consecutive lane changes, and speeding. Liu Tao had publicly apologized for these actions.
However, there have been instances when Liu Tao did not offer an apology. According to previous reports by Sina Technology, during the launch event of ZhiJi Motors' first model, the ZhiJi L7, Liu Tao announced a benefit for "angel round car owners":
After the vehicle is delivered, as long as the owner drives more than 5,000 kilometers per year, the data benefits generated can be used to exchange for the next generation of fused laser radar brackets or to upgrade to a high-end energy battery with a capacity of no less than 120 kWh after three years of normal driving.
Subsequently, the company altered this policy for reasons unknown, leading to changes in the rights of the first batch of vehicle purchasers. As 452 owners embarked on a collective rights protection journey, Liu Tao, as a former promise-maker of the company, has yet to publicly respond to this matter.
Following the intense "price war" that persisted throughout 2023, the automotive industry in China finds itself still deeply embroiled as 2024 unfolds.
On one hand, price reduction remains a favored promotional tactic among major automotive manufacturers. According to previous industry statistics, in just the months of February and March 2024, around 30 car companies including BYD, Wanjie, Leapmotor, XPeng, Dongfeng, Great Wall, Chery, GAC, and SAIC Volkswagen joined the ongoing price war. They engaged in customer acquisition through direct price cuts, equity giveaways, and buyback guarantees.
On the other hand, the rapid rise in sales of smart electric vehicles from the Huawei ecosystem, along with the entry of new players like Xiaomi Auto, are further intensifying competition, fueling the industry's turmoil.
In the view of seasoned automotive industry analyst Mei Songlin, "The decisive battle for the automotive market has begun, and elimination matches are underway. Only companies with technology, foundation, distinctive products, and market-recognized brands can survive in the end."
However, for Zhiji Auto, a high-end pure electric brand jointly developed by SAIC Group, Zhangjiang High-Tech, and Alibaba, which was born with a "golden spoon" in its mouth, it seems to have failed to achieve the desired results in this competition.
According to earlier interviews with Liu Tao, Zhiji Auto aimed to sell between 120,000 to 130,000 vehicles in 2024. To achieve this target, monthly sales of Zhiji needed to be between 10,000 to 10,800 vehicles, with a required year-on-year growth of 213.32% to 239.43%. However, according to the latest vehicle sales data released by SAIC Group for March 2024, as of March 31 this year, Zhiji Auto's cumulative sales for the first quarter reached only 10,001 units. This represents only 1/12 of the sales target previously announced by Liu Tao, indicating a low completion rate for the annual target.
In the current intensifying competition in the automotive industry, Zhiji Auto, plagued by vehicle issues and a series of accidents during new car launches, finds itself in a precarious situation.
