Introduction

Introduction

Sales figures speak volumes.

In fact, since last year, although the ranking of brand sales in the Chinese auto market has experienced many fluctuations, on the whole, the changes have not been revolutionary. Those familiar joint venture brands and independent brands have been "bouncing up and down" in the market in a way visible to the naked eye, constantly adjusting their positions and strategies.

Especially against the backdrop of increasingly fierce market competition and accelerated differentiation, the gap between top brands and tail brands has become increasingly apparent, and this separation is even widening. This trend is particularly evident in the mass consumer market. Consumers' demand for automobiles is increasingly diversified, and major brands are striving to cater to these changes by continuously innovating and optimizing products to seize market share.

However, despite the achievements of independent brands in the mass market, they still face considerable challenges in the high-end market. At present, apart from a few independent brands such as Li Auto and AITO that can demonstrate a certain level of competitiveness in this area, most of the market share is still held by traditional luxury brands such as BBA.

Relying on their profound historical heritage, exquisite craftsmanship, and strong brand influence, these brands have steadily established a strong presence in the high-end market. For independent brands, achieving a breakthrough in this area undoubtedly requires more effort and wisdom.

Buying services is buying emotional value

The trend towards new energy and electrification undoubtedly presents an invaluable opportunity for independent brands to aim higher. For this reason, we cannot deny that independent brands have gradually established a certain influence in the high-end market above 300,000 yuan. New energy models from independent brands have not only won the recognition of consumers but also competed fiercely with traditional luxury brands in the high-end market.

However, from the perspective of independent brands' journey upwards in recent years, the price point of 300,000 yuan is not only the watershed between the mid-range and high-end markets but also the dividing line between pure electric vehicles and plug-in hybrid electric vehicles (including extended-range electric vehicles) against the backdrop of the development of new energy vehicles.

The price point of 300,000 yuan not only delineates market segments but also reflects the diversity of new energy vehicle technology and the differentiation of consumer demand. Consumers with a budget below 300,000 yuan may focus more on cost-effectiveness and practicality, while those with a more generous budget may place greater emphasis on vehicle quality and brand premium.

For example, among the products currently priced above 300,000 yuan with significant sales volume are Model Y, AITO M9, Li Auto L7, VOYAH Dreamer, Denza D9, Li Auto L9, Li Auto L8, NIO ES6, Wey Blue Mountain, Tank 500, NIO ET5T, and ZEEKR 009. However, in terms of power types of these models, the proportion of pure electric models is actually quite small.

Although some of the above products offer both pure electric and plug-in hybrid (or extended-range) versions for consumers to choose from, in actual sales, the plug-in hybrid (or extended-range) versions often account for the vast majority. This phenomenon reflects that in the current high-end automotive market, consumers still have concerns about driving range and charging facilities.

Many people believe that those who can afford these cars must have private charging piles and therefore would not have range anxiety. In reality, the essence of range anxiety is the cost of time. Consumers with a more generous budget are more concerned about the cost of time rather than the energy efficiency of the vehicle itself.

So, why have only Tesla and NIO's pure electric models successfully entered the high-end market? Most people should be able to understand that Tesla and NIO first possess a certain degree of uniqueness in branding. Tesla's own brand premium speaks volumes, while NIO relies on a series of comprehensive services to enhance the product experience.

Many people will also question why Huawei's HarmonyOS-powered pure electric models, under its empowerment, are not as successful as the above two brands. The reasons can be broadly classified into two: one is the strategic issues of HarmonyOS itself, and the other is that for many consumers, HarmonyOS products are extremely intelligent, which is not a pain point for high-end consumers.

This actually extends to another question: When a new energy vehicle priced at 400,000 yuan shares over 50% of the same or similar configurations with one priced at 140,000 yuan, why would anyone spend 400,000 yuan to buy a car? Ultimately, it boils down to a very traditional question: Consumers who buy high-end cars are not buying the product but the service.

In the era of internal combustion engine vehicles, such services may have been more embodied in superficial courtesies and treatments, such as the "serving tea and water" style of service from dealers. However, with the rise of new energy vehicles and the integration of intelligent technology, the connotation of service has undergone profound changes, shifting more towards the provision of "emotional value."

Therefore, it is not easy for Chinese auto brands to aim higher because they face many challenges, especially how to consider consumers' needs from their perspective and whether automakers can meet these needs. Only when these two aspects are perfectly matched will it not be long before they become high-end brands.

Buying configurations is buying cost-effectiveness

Below 300,000 yuan, especially in the mid-range market price range of 200,000 to 300,000 yuan, the market landscape is vastly different from the high-end market. Here, plug-in hybrid (extended-range) models have enjoyed soaring sales and are deeply loved by consumers. These models perfectly meet the dual pursuit of practicality and cost-effectiveness for mid-range market consumers with their excellent fuel economy, long driving range, and flexible charging methods.

At the same time, it is worth noting that pure electric products have also performed well in this price range, successfully securing a considerable market share. This is mainly attributed to the advantages of pure electric vehicles in terms of environmental protection, energy conservation, low maintenance costs, and policy support. With the continuous advancement of battery technology and the increasing improvement of charging facilities, the competitiveness of pure electric vehicles in the mid-range market will be further enhanced.

Similarly, here are some models with significant sales volume: Tesla Model 3, Xiaomi SU7, BYD Han/Tang, IQIYI S7, ZEEKR 001, ZEEKR 7X, Li Auto L6, AITO M7, IM Motors LS6, Letao L60, and more. It can be seen that there are significantly more pure electric products in this price range than in the range above 300,000 yuan.

In other words, within the price range of 200,000 to 300,000 yuan, pure electric models exhibit diverse product characteristics. Different brands and models of pure electric vehicles have their unique strengths in terms of driving range, performance, intelligence level, etc., providing consumers with ample choices. This diverse product layout satisfies the personalized needs of different consumers and further promotes sales growth.

Among these distinctive models, we can easily find a commonality: each car's configuration can be considered top-notch. From advanced 8295 cockpit chips to powerful NVIDIA autonomous driving chips, to precise LiDAR, and efficient 800V architecture and ultra-fast charging battery technology, these models spare no effort in technological configuration.

For example, Xiaomi SU7 relies on Xiaomi Group's AI technology, Xiaoai voice assistant, surging intelligent cockpit, and high-performance electric drive; IQIYI S7 is the first sedan under HarmonyOS, equipped with Huawei's HarmonyOS cockpit and Huawei ADS advanced autonomous driving system; ZEEKR 7X itself has the aura of the ZEEKR brand, equipped with rear electric sliders, intelligent child safety seats with airbags, etc.

It can be said that in today's automotive market, consumers are enjoying an unprecedented cost-effectiveness advantage. Some high-end configurations may not even be found in luxury cars priced in the millions, yet within the price range of 200,000 to 300,000 yuan, consumers can easily own them. Behind this reflects the overall rise and maturity of China's automotive industry chain.

The supply chain of Chinese automotive products is already excellent, which cannot be ignored. After years of development, domestic auto parts suppliers have made significant progress in technology research and development, production processes, quality control, and more. This enables mid-range priced products to also be equipped with top-tier configurations while maintaining excellent cost control.

The advantages of the supply chain not only enhance product competitiveness but also provide tangible benefits to consumers. It is precisely because of these top-tier configurations that models in the 200,000 to 300,000 yuan price range stand out. These models are generous with their configurations, covering almost all consumer expectations for an ideal car.

The formation of this cost-effectiveness advantage is not accidental. It is the result of the continuous accumulation and innovation of China's automotive industry and a product of increasingly fierce market competition. In this price range, major brands are striving to enhance their product strength to attract more consumers. This competitive landscape undoubtedly provides consumers with more high-quality, cost-effective options.