How can the new forces break through?

However, Ideal and Xpeng are different in the intensity of adjustments. Xpeng Motors is reforming rapidly, while Ideal is piloting on a small scale first and then rolling it out on a large scale.

Image source: Li Auto

On the product side, new forces are highly dependent on a single market segment in the early stages. Once the market environment changes, they will be more affected because it is difficult to follow up quickly. Ideal has been criticized for its single product and extended-range power. However, Li Auto is also well aware of its shortcomings and has been improving its models since last year. In 2022, Lili launched the Lili ONE replacement model Lili L8, as well as the larger and more luxurious Lili L9, and the upcoming L7 model. In addition, according to Li Auto, Li Auto will launch its first pure electric product in 2023. Compared with the usual only one Ideal ONE, in 2023, Ideal will have three models on sale.

In the view of Li Auto’s senior management, the Ideal ONE period is the start-up stage from 0 to 1. Starting from 2023, Li Auto has reached the development stage from 1 to 10. To this end, Li Auto will focus on products, intelligent AI self-research, and sales and service systems in 2023.

Nezha Automobile’s previous development policy was to build cars for the people, that is, it mainly promoted mid- to low-end models under 200,000 yuan, similar to Xiaomi’s early model. This strategy allowed Nezha Automobile's sales to rise steadily, and it soon grew into a leading new power car company. However, Nezha Auto's shortcomings are also obvious. Because it mainly promotes mid- to low-end models, Nezha Auto's losses have been high and its development prospects are limited.

Zhang Yong, CEO of Nezha Automobile, once said frankly that compared with Li Bin and others, my target market is several times larger than his, so although Nezha is on par with them in terms of monthly sales, I think he is doing better than me. If I can score 60 or 70 points for myself, I think Li Bin should be able to score 80 or 90 points.

To this end, Nezha Automobile is transforming and moving to higher latitudes. Nezha Automobile has launched the Nezha S, which is built on the self-developed platform "Shanhai" and is priced at RMB 200,000-350,000. In addition, Nezha Automobile also released the full-stack self-developed TA PILOT intelligent driving system.

In addition to changes in organizational structure and products, new forces are also actively preparing for war in supply chain, capital investment, services, etc. Just like the wooden barrel effect, car companies need to complete the last plank of the wooden barrel without leaving any shortcomings, that is, to improve the competitiveness of the system. Only in this way can new forces stand out in the fierce market competition.