ideal auto’s difficult decision

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as a leader in the new power sector, ideal auto's performance in the market has been attracting much attention in recent years. however, in the first and second quarters of this year, ideal auto's vehicle gross profit margin was lower than its target of 20% for two consecutive quarters. this forced li xiang to face the reality that "as a smart electric vehicle company, ideal auto needs to achieve a gross profit margin of 20% to achieve healthy development." this has also become a major challenge facing ideal auto.

can pure electric vehicles maintain their position in the market?

ideal auto had planned to launch several pure electric models this year, but due to adjustments to the product portfolio, these plans have been postponed to next year. there is still uncertainty about whether ideal's pure electric models can be successful. li xiang said, "we are still very confident in the competitiveness of pure electric suvs." he pointed out that ideal needs to solve two problems: product design and super charging station construction.

huawei hongmeng intelligent driving becomes a competitor of ideal auto

as the main sales support of hongmeng zhixing, wenjie's product line and price segment are closely linked to ideal auto and directly compete with it. data shows that in the first half of 2024, hongmeng zhixing delivered a total of 194,027 vehicles, while ideal auto delivered 188,981 vehicles. hongmeng zhixing surpassed ideal auto to become the sales champion of china's new power brands in the first half of the year. li xiang said frankly, "i think hongmeng zhixing is our strongest competitor in the market."

how can huawei technology help the development of ideal auto?

in the field of intelligent driving, huawei's qiankun intelligent driving has been upgraded to version 3.0, and the qiankun intelligent driving basic edition has been launched to cover relatively low-priced models. ideal is also increasing its layout in intelligent driving, and focused on introducing the latest progress and future plans of intelligent driving technology at the chengdu auto show. lang xianpeng, vice president of intelligent driving research and development at ideal auto, said, "in terms of intelligent driving technology architecture, ideal auto is not much different from tesla, and is even a little ahead."

how to balance technology and market?

at present, ideal auto is working hard to optimize both hardware and software. the advantages of huawei's qiankun intelligent driving also force ideal auto to consider how to remain competitive with its competitors in technology.