"We can do it if we want to." -Xiaomi CEO&; Lei Jun, CEO of electric vehicle
"Young people's first electric vehicle is coming!" After Xiaomi announced the car, netizens said with emotion.
so, the question is, what will be the name of "young people's first electric car"? When can it come? What kind of surprise will the price of this car be? ..... At the spring new product launch conference of Xiaomi in 221, Lei Jun didn't give an answer, but he gave an infinite imagination.
Lei Jun gambled on everything about building a car
Lei Jun told a story with Musk about building a car. Lei Jun revealed that he visited Musk twice in 213 and became the owner of Tesla. "We seem to be doing things that others can do, and what Musk does is something that others can't think of!" Lei Jun once sighed.
Lei Jun confirmed to build a car: holding hundreds of billions of dollars in cash, you will be ashamed of rice flour if you don't build a car
Lei Jun revealed that in January 221, the board of directors suggested to study the prospect of electric vehicles. In this regard, Lei Jun was very resistant at first. Because Xiaomi managed to make the mobile phone business today, and finally became the third in the world, and this battle has not been finished, building a car may bring greater risks.
under such resistance, Xiaomi began to seriously investigate and build cars from January 15th, 221.
In the matter of building a car, Xiaomi conducted 85 visits and communication in the industry within 75 days, had in-depth communication with more than 2 senior people in the automobile industry, held four internal management discussions and two formal board discussions. Finally, Xiaomi decided to build a car.
This will be the last entrepreneurial project of Lei Jun's life.
"Next, I will put all my fame and achievements on the line to fight for Xiaomi Automobile." Lei Jun said.
why build a car and look for a second growth curve?
these days, it seems very OUT for high-tech companies not to build a car. Before Xiaomi announced to build a car, Baidu, Ali, Huawei, Apple and other technology companies have successively heard rumors of building a car. Baidu, on the other hand, has set up a car company, Jidu, in collaboration with Geely.
Apple has been rumored to build a car for a long time, and even its partner manufacturers once came out. Guo Ming Ti, an analyst at Tianfeng International, predicted that Apple would release the Apple Car in 225 at the earliest, targeting at very high-end models.
although Huawei has repeatedly announced that "Huawei does not make cars, but enables automakers to make better cars", it can be seen that its layout in the automobile industry chain is already very deep. According to the data, as of March 5, 221, under the names of Huawei Technologies Co., Ltd., Huawei Terminal Co., Ltd. and Huawei Terminal (Shenzhen) Co., Ltd., with "automobile, autonomous driving, radar and map" as the key words, it has reached 357 patents.
In addition, OV, who is also a mobile phone manufacturer, also expressed strong interest in cars. So, why are everyone interested in building cars at this time?
in addition to the technical level, the automobile industry is facing a once-in-a-century great change, which greatly lowers the threshold for building a car, makes it possible for cars to be intelligent and software-defined, and makes these high-tech enterprises with natural advantages in software and computing power see hope.
not only that, the smart electric car is an imaginative track. The report from IHS Markit predicts that by 225, the penetration rate of smart cars in the global automobile market will increase to 6%; The penetration rate of smart cars in China market will reach 75%, 15 percentage points higher than the former. This means that the demand for new energy vehicles in China will explode in the next four or five years.
such a "blue ocean" market makes the capital market excited. Judging from the new energy electric vehicle enterprises that have been listed at present, the company's market value has achieved substantial growth. According to public information, the market value of Tesla increased by nearly 7 times in 22; The market value of Weilai, a new force in building cars, even once surpassed that of BMW with a history of hundreds of years; Tucki and Ideal share prices have increased several times. Baidu's share price rose by 67% one month after it announced that it would build a car. This will be a vent that no one wants to miss.
for Xiaomi, this is a once-in-a-century historical opportunity.
According to Xiaomi's financial report, the annual income of Xiaomi has been growing continuously from its inception until 22. Lei Jun said that Xiaomi could achieve such income in 1 years, which definitely created another miracle in business history. And "building a car" will be the second growth curve of Xiaomi's growing revenue, and it is also another source of power for Xiaomi's "endless life".
Charles Handy, a master of management thought, once said that if organizations and enterprises can find the "second curve" to lead enterprises to take off twice before the first curve reaches its peak, and the second curve must start to grow before the first curve reaches its peak, so as to make up for the resource consumption in the initial stage of the second curve, then the vision of sustainable growth of enterprises can be realized.
According to media reports, CITIC Securities analysts also pointed out that as Xiaomi gradually touches the ceiling in the smart phone business, its valuation is limited, so it is necessary to find new growth points in the field of intelligence. Judging from the current market situation, new energy smart cars are undoubtedly one of the main outlets for future development.
before, Xiaomi realized the internet of everything with "mobile phone +AIoT", and after that, Xiaomi will realize the internet of everything with "mobile phone +AIoT+ car". Xiaomi will draw a bigger plate on the original basis.
not only that, but also in terms of follow-up and sound volume, Xiaomi's decision to build a car was "forced" due to industry pressure. After all, Huawei has gone deep into the core of the industrial chain in terms of "building cars", and Xiaomi has been one or two years late.
The arrow is on the string, ready to go
In an interview before, Lei Jun once commented that he was "extremely aggressive under extreme conservatism". "When the risk is controllable, the speed of Xiaomi's advancement is extremely fast, but we are very careful when the risk is uncontrollable."
Xiaomi needs to solve two difficult problems: capital and technology.
It is understood that Xiaomi has invested 1 billion yuan in the car track, and the latest financial report shows that the cash reserve in 22 has reached 18 billion. According to the announcement, Xiaomi's initial investment is 1 billion yuan, and it is estimated that the investment in the next 1 years will be 1 billion US dollars.
Li Bin, CEO of Weilai Automobile, once said, don't build a car without 2 billion yuan. However, from the actual situation, 2 billion is far from enough. Judging from the statements of Weilai, Tucki and Ideality, their accumulated financing amounts are 83.5 billion yuan, 45.8 billion yuan and 36.2 billion yuan respectively. Weilai, which has been established for five or six years, has not lost money so far. The financial report shows that the net loss of Weilai in 22 is 5.34 billion yuan, and the accumulated loss since its establishment has exceeded 3 billion yuan.
it can be seen that enough ammunition is needed to build a car. This is not a big problem for Xiaomi. Lei Jun even said with a domineering voice: We can afford it.
but what is difficult is stronger technology accumulation. It is reported that Xiaomi has started to accumulate related technologies. According to the data of Wisdom Bud, at present, there are 834 patents related to automobiles in Xiaomi Group, of which more than 96% are invention patents, and the fields are concentrated in wireless communication network, digital data processing, digital information transmission, image communication, traffic control system, distance measurement, navigation and other fields.
According to the analysis of the patent value of Wisdom Bud, the value of Tesla patent in new energy vehicles is more than 2 million dollars, that of Weilai automobile is 18.64 million dollars, and that of Xiaomi automobile is more than 1 million dollars.
However, it is worth mentioning that Xiaomi's current technology accumulation is mainly in car networking and car service, but there is still a lack of autonomous driving. Compared with car companies, Xiaomi's patents on smart electric vehicles still have some distance to be improved.
"We can do it if we want to." Lei Jun gave everyone confidence at the press conference.
who is most nervous about Xiaomi's car?
there is no doubt that the new energy vehicle market will be more than 1 billion in the future, but the trend theory that ignores the time factor is hooliganism.
In other words, this is an absolute trend, and fuel vehicles are bound to become a thing of the past. However, the number of people who buy new energy vehicles has not yet formed a huge scale. It is expected that within five years, car manufacturers will still grab a "small cake".
according to incomplete estimates, up to now, the cumulative delivery of Weilai automobile has reached 88, vehicles, that of LI has exceeded 4, vehicles, that of Xpeng Motors has exceeded 5, vehicles, and the annual delivery of fuel vehicles is 1 million vehicles. China's goal is that the sales of new energy vehicles will reach about 25% in 225. The long March has just begun.
So, if Xiaomi releases the car, it will definitely affect the whole plate of new energy vehicles at present, especially Xpeng Motors, Volkswagen series electric vehicles and even Wuling Hongguang MINI EV.
The sales volume of Wuling Hongguang MINI EV has exceeded 2,, which is equivalent to four full-brand deliveries in Xpeng Motors, and the price butcher is the real king. Whether Xiaomi can win this "feverish" market and become the "Pinduoduo" of smart cars, in a sense, determines the success or failure of this campaign.
The logic of Xiaomi's car-making is also here. These are exactly what Xiaomi is good at. After all, his mission is to make things for young people, supply chain management and cost control, and he will definitely hand over smart cars with "good price" that Lei Jun often said. Xiaomi will sell smart cars with low gross profit in the future, just like selling smart speakers and air-conditioned TVs.
References:
Inventory LatePost Xiaomi Determined to Build a Car
Electronic Information Industry Network Xiaomi Built a Car and Trapped in Rashomon
Bloomberg Businessweek Why do mobile phone manufacturers choose to build cars one after another?
The intelligent competition in the second half of "Building a Car" in Southern Metropolis Daily intensified! Huawei, Tencent and Baidu successively enter the market
How much did the third brother of real estate, Tesla, Weilai, Tucki, Ideality and Evergrande spend to build cars?
Related reading:
Xiaomi holds hundreds of billions of cash flow to prepare for 221. The average annual salary of employees is 45, yuan
Quiet/Text
On the same day, Xiaomi and Tencent both released their 22 financial reports. Although they are on different tracks, they are inevitably compared. Tencent's revenue and profit are natural. Compared with itself, Xiaomi has also achieved double growth in revenue and profit. In particular, Xiaomi has the fastest growth in overseas markets, with a year-on-year increase of 34.1%. Moreover, the proportion of overseas income is also nearly 5%. No wonder Lei Jun shouted: "Xiaomi has become a truly global company!"
Looking at Xiaomi's financial report, all businesses have achieved different degrees of growth, and the data also exceeded market expectations. It is particularly noteworthy that Xiaomi has also realized a cash reserve of more than 1 billion yuan, and can directly buy a 36. It can be seen that Xiaomi is ready for the bloody battle 221. The mobile phone market in 221 is destined to be the year of blood shed.
Key information:
1. In 22, Xiaomi Group's revenue was 245.9 billion yuan, up by 19.4% year-on-year; The net profit was 13 billion yuan, a year-on-year increase of 12.8%.
2. In 22, Xiaomi shipped 146.4 million smartphones worldwide, up 17.5% year-on-year, and ASP was 1,39.8 yuan, up 6.1% year-on-year.
3. In 22, Xiaomi's overseas income was 122.4 billion yuan, up 34.1% year-on-year, accounting for 49.8% of the total income.
4. In 22, Xiaomi invested 9.3 billion yuan in R&D, up 23.5% year-on-year.
5. In 22, Xiaomi has 22,74 full-time employees, and the total salary expenditure is RMB 9.915 billion.
Climbing the high-end ASP to achieve year-on-year growth
In 22, Xiaomi's mobile phone revenue reached 152.2 billion yuan, up 24.6% year-on-year, and smartphone shipments reached 146.4 million units, up 17.5% year-on-year. At the same time, Xiaomi also disclosed a data: in 22, Chinese mainland shipped 1 million high-end smartphones priced above 3, yuan or overseas priced above 3 euros. The annual ASP (average selling price) of Xiaomi also achieved a year-on-year increase, with 6.8% being 139.8 yuan.
according to Xiaomi's previous financial report, Xiaomi's smartphone ASP broke through 1, yuan for the first time in the first quarter of 22, reaching 1,38. yuan, and it also continued to rise in the second quarter, exceeding 1, yuan in the third and fourth quarters, thus achieving the year-on-year growth in 22.
this year is also the first year for Xiaomi to get rid of price constraints and rush to the high-end market.
in early 22, Xiaomi released its first product, Xiaomi 1 series, which hit the high-end market. Xiaomi revealed that Xiaomi 1 won the sales champion in the price range of 3,5-4,5 yuan during the JD.COM 618 Shopping Festival. The high-end flagship model Xiaomi 11 launched at the end of the year also exceeded 1 million in sales within 21 days of listing.
It can be seen that Xiaomi's dual-brand strategy has achieved initial results, but there is still room for improvement in Xiaomi's climbing speed to the high end.
The hardware accounts for a high proportion, and it is difficult to make a breakthrough in profit growth
According to the financial report, in 22, the revenue of Xiaomi's smartphone business was 152.2 billion yuan, and the revenue of IoT and consumer products was 62.1 billion yuan, accounting for 61.9% and 27.4% of the total revenue respectively, accounting for 89.3% and nearly 9% of the total revenue.
As we all know, as early as 218, Xiaomi promised that "the comprehensive after-tax net profit rate of hardware will never exceed 5%", and in 22, the comprehensive after-tax net profit rate of Xiaomi's hardware will still be less than 1%.
This means that in terms of profit, Xiaomi can hardly rely on the breakthrough growth of hardware, but can only hope for the Internet business. However, Xiaomi's Internet business accounted for no.