NIO Founder Li Bin on Industry Trends and More at 2024 China Automobile Chongqing Forum
TapTechNews June 8th news, at today's 2024 Chongqing Forum of China Automobile, Li Bin, the founder, chairman and CEO of NIO, delivered a speech.
Regarding the question of 'where exactly does NIO's money lose', Li Bin replied, 'Very simply, it loses on R & D and infrastructure investment.'
Li Bin indicated that no matter how difficult it is in terms of R & D investment, NIO still maintains an investment of 3 to 4 billion yuan every quarter. Li Bin also talked about how to achieve a continuous and steady upward trend in sales.
On one hand, we need to increase the coverage of the charging and swapping network, because currently most of NIO's cars are still sold in first-tier and second-tier cities. In third-tier and fourth-tier cities, whether it is in terms of popularity or infrastructure network, it is a disadvantage and needs to strengthen the short board.
Second, for NIO, we should bring into play the capabilities we already have, such as the capabilities in intelligence and hardware, and accelerate the software iteration.
Third, we need to communicate with users more actively, rely on users' word-of-mouth to do a good job in product quality, and can really 'break the circle'.
Regarding the 'involution' in the automotive industry, Li Bin expressed that this is the inevitable result of normal market competition, and also called on car companies 'not to forget to cooperate', especially in areas related to infrastructure. 'When it comes to long-life batteries and going overseas, cooperation is needed.'
Li Bin said that the Chinese automotive industry will 'prosper together' - in the end, it is impossible to leave only one or two left, it must be the collective success, and it cannot be just the success of one enterprise.
Li Bin also mentioned the problem of the life cycle of electric vehicle batteries this time. He believes that if the lifespan of the car exceeds the lifespan of the battery, it is a relatively big problem, and everyone needs to pay attention to this matter in advance. 'Call on everyone to pay attention to this matter in advance, to develop long-life batteries, and to do a good job in planning for long-term battery warranties and subsequent after-sales services.' He also said that if the battery life problem is not resolved, within 8 years, a total of more than 20 million vehicles' batteries will be out of warranty.
TapTechNews summarizes the partial views expressed by the executives of various car companies at this forum as follows:
Zhu Huarong, chairman of Changan Automobile: 'Involution' is the process of good money driving out bad money. The 'involution' itself means the pursuit of excellence, which will roll out a new height of Chinese brands and will roll out the maximization of user benefits and truly create value for users.
Zeng Qinghong, chairman of GAC Group: In 2030, the automotive market will be in a '433' structure, 40% are hybrids, 30% are pure electric, and 30% are fuel vehicles. It is recommended that when the share of new energy vehicles and pure electric vehicles reaches 50%, the government departments should study 'equal rights for fuel and electricity'.
Wang Chuanfu, chairman and president of BYD: There is 'involution' only when there is competition. Only with 'involution' can there be technological breakthroughs, industrial upgrades, and excellent products can be born. 'Involution' is a natural law. Don't worry, and only by actively embracing can you come out from the competition.
Li Yunfei, general manager of BYD's brand and public relations department: Many car companies such as BYD have increased their p rices in the past two years due to factors such as subsidy withdrawals and price increases of battery raw materials. And now the situation has changed, and the significant drop in raw materials has made price reduction possible. 'Why isn't the drop in raw materials reflected in the product pricing now? I think this is immoral to consumers.'
Li Shufu, chairman of Geely Holding Group: The degree of involution in the Chinese automotive industry is the first in the world, and the price war is higher and higher, which is also unparalleled in the world. This phenomenon is both a good thing and a bad thing. If the marketization level is high, the law is sound, and the law is strictly enforced, and there is transparent and fair competition, it is a good thing; otherwise, it is a bad thing.