"We predict that by the end of this year, there will be particularly clear top three companies in the new energy vehicle market priced above 200000 yuan, and they may even occupy 70% of the market share. Among the top three companies, we (Ideal Automobile) and Wenjie will definitely be among them." Recently, Liu Jie, Vice President of Ideal Automobile Business, said in an interview with the Daily Economic News.





Image source: Provided by the company



Public data shows that in the fourth quarter of 2023, in the new energy vehicle market with a price of over 200000 yuan, Ideal Automobile's market share was 15.96%, while BYD and Tesla's market share were 20.83% and 9.87%, respectively. From the data, Tesla has the highest market share in this segment.



"Last year, in the new energy vehicle market worth over 200000 yuan, the market share of the top three had already reached 50%. If the market share of the top three could reach 70%, it would also mean that this segment of the track would have a higher concentration in the luxury car market than BBA (i.e. Mercedes Benz, BMW, and Audi) in the era of gasoline vehicles." Liu Jie said.



In addition, according to the data from the fourth quarter of 2023, Wenjie's market share in the new energy vehicle market of over 200000 yuan did not enter the top three. Regarding whether Wenjie can become one of the top three companies he predicted, Liu Jie only stated that Huawei is the only Chinese technology company that has achieved revenue close to one trillion yuan, which reflects the company's capabilities.



Data shows that in January this year, with the hot sales of the WENJIE M7, WENJIE achieved sales of nearly 33000 vehicles, surpassing the delivery volume of Ideal Automobile by 31600 vehicles for the first time; In February, this momentum continued, with Wenjie delivering 21100 new cars, surpassing Ideal Auto's 20200. In addition, Hongmeng Zhixing stated that nearly 18500 units of the new Wenjie M7 have been delivered, with a cumulative delivery of over 100000 units and a cumulative breakthrough of 150000 units; The cumulative sales volume of Wenjie M9 has exceeded 50000 units.



It is worth mentioning that Li Xiang, Chairman and CEO of Ideal Automobile, once stated during the financial report conference call in November 2023: "In the face of Huawei, the management of Ideal Automobile has a unified understanding: 80% is learning, 20% is showing respect, and zero complaints.". As a startup, we are very impressed and excited to encounter such a role model who has made nearly a trillion yuan in revenue and can learn from when we enter a revenue scale of 100 billion yuan. This is our true mentality

"A company that achieves trillion yuan in revenue, when it enters an industry, can continue to iterate and grow, and learn from others, which is a very important ability, which is why we attach great importance to Huawei." Liu Jie told reporters that the users of Wenjie and Ideal Automobile are different. Ideal Automobile's users are still family users, but competition from top enterprises will persist for a long time, Any industry will start with the so-called "Hundred Schools of Thought" and gradually enter the competition among top enterprises.

The reporter learned that the prerequisite for Ideal Automobile to become the top three in the new energy vehicle market with a price of over 200000 yuan is to achieve an annual sales volume of 800000 units. Liu Jie stated that Ideal Automobile is currently in the new energy vehicle market of over 200000 yuan, with a market size of approximately 2.6 million vehicles in 2023 and a penetration rate of about 40% for new energy vehicles. It is expected that this year, the market size will reach 3.5 million vehicles, and the penetration rate of new energy vehicles will exceed 50%, with great growth potential.



The annual sales target of 800000 vehicles means that the market share of Ideal Cars needs to reach over 20%. Liu Jie said, "This year, we have a market share base of 16%, and we also have the Ideal MEGA, L6, and three high-voltage pure electric models that will be launched in the second half of the year. Based on this, we are very confident in achieving a market share target of over 20%."





Image source: Ideal Automobile Official WeChat



According to industry judgment, if the penetration rate of the new energy vehicle market exceeds 50% this year, the mainstream choice for the automotive market with a price of over 200000 yuan will shift from gasoline vehicles to new energy vehicles, and market penetration will enter the late Volkswagen stage from the original early Volkswagen stage. After entering the late mass market stage, the market will become more concentrated towards top enterprises. Liu Jie believes that in such a situation, a market share target of over 20% is very necessary for Ideal Automobile.



Regarding the sales contribution of different technological routes, Liu Jie judged: "Currently, in the new energy vehicle market with a price of over 200000 yuan, the ratio of hybrid and pure electric products is 4:6, and it is expected that this ratio will change to 5:5 this year."



As for Ideal Automobile, it officially entered the pure electric competition camp this year, not only launching the MPV model - Ideal MEGA on March 1st, but also launching three other pure electric products in the second half of this year. However, due to the short sales cycle of pure electric models this year, extended range models will still be the main force in the sales composition of Ideal Automobile this year.



According to the reporter's understanding, Ideal Automobile's sales expectation for Ideal MEGA is to challenge the monthly sales of 8000 units. "Because we see that among passenger cars priced above 500000 yuan, regardless of MPV or SUV, the peak monthly sales of a single product are around 8000 units." Liu Jie said that for the Ideal L6, the ideal expectation is to achieve a monthly market share of about 10% using this car within the price range of 200000 to 300000 yuan by the end of this year.