Introduction

Introduction

"Once the bow is drawn, there's no turning back. The brave win in times of reform."

In today's vibrant new energy vehicle market, almost everyone has their own perspectives on popular companies. Fans of brands like Xiaomi, WENJIE, NIO, and LIXIANG are actively cheering them on in various ways. However, despite the thriving industry, do all participants truly believe that there are ample opportunities in China's automotive market?

Evidently, the reality is different.

While joint ventures struggling to keep up with the pace of development and weaker new players forced out of the market abound, numerous seemingly thriving domestic automakers are also being stung by the rapid market changes. Their new energy vehicle brands, one after another, are suffering varying degrees of market setbacks.

Some have been besieged by early adopters due to rapid model updates, while others have hastily added hybrid versions due to slow sales of pure electric models. Still, others have even shifted their focus to overseas markets due to struggles in their domestic operations.

Such conflicting approaches are rampant in the market. To an outsider, it may seem like companies are simply paying the price for their inadequate strategic planning. Yet, for any automaker, it's hard not to feel the pressure. Take GAC Group's new energy business, for instance. Despite its high moments, it has struggled with pressing issues related to brand operations and market potential exploration.

Especially as we enter 2024, with the overall market environment continuing to evolve, disorderly competition is putting pressure on various market segments. Both GAC Aion and its new brand Hyperion face significant challenges in their operations.

We cannot predict how much worse the macro-environment might get, but for GAC Aion, there's nothing more important than swiftly enhancing its competitiveness. Launching new products, building the brand, generating buzz, and expanding its presence – every aspect is crucial.

Progressive development needs acceleration

Looking back at GAC Aion's development trajectory, it's clear that the new energy automaker, which emerged from GAC Motor's system, has fundamentally differed from other cross-industry newcomers since its independence. It leveraged the momentum of China's industrial transformation to accumulate a user base and establish itself in the market.

Today, even with its products fully refreshed and a user base approaching the million mark, GAC Aion continues to follow its established development path.

Given the scale of China's automotive market, it's unnecessary to criticize GAC Aion for failing to keep up with competitors. The real challenge lies in establishing Hyperion's market position as consumers increasingly value personalized new energy brands.

This year marks Hyperion's second year. While we don't expect it to achieve a significant market scale immediately, brand building takes precedence over sales. As GAC Aion's anchor to compete with emerging brands, Hyperion must not only establish a scale advantage but also enhance its brand reputation.

Truthfully, when Hyperion was first established, those familiar with GAC Aion knew that it wasn't initially intended as an independent brand. The first product, the Hyperion SSR, was more about elevating GAC Aion's brand image and technological prowess. However, as more mid-to-high-end new energy brands emerged, GAC Aion couldn't sit idle.

Before the “Hyperion” name solidified in the market, there was still time to kickstart the brand's independence. Since then, we've witnessed the launch of the Hyperion GT and HT, the expansion of dedicated sales channels, and the differentiation of marketing strategies from the parent brand GAC Aion – all geared towards propelling Hyperion to the forefront of the market.

During this period, while we won't delve into product strategies that benchmark Tesla, Hyperion's obsession with door-opening mechanisms is undoubtedly memorable. Even now, Hyperion remains fixated on its identity as a “door factory,” as evidenced by 360 founder Zhou Hongyi's focus on the Hyperion HT's rear gullwing doors during a test drive.

We won't overanalyze this. Each new brand has its unique marketing approach. If Hyperion insists on showcasing this as a selling point, we'll simply observe as spectators.

China's automotive market is incredibly competitive, with a level of ferocity rarely seen globally. After more than a year of market testing, Hyperion can confidently assess its plans while acknowledging insufficient brand recognition among consumers.

In other words, regardless of consumers' preferences for new energy vehicles, as more similar brands achieve phased successes (e.g., Xiaomi, WENJIE, ZEEKR, LIXIANG), Hyperion's growth trajectory falls short in terms of self-sustaining development or brand growth potential.

Perhaps amid a deteriorating domestic environment, GAC Aion is vigorously pushing Hyperion into international markets and closely monitoring competitors' moves. However, the market doesn't wait for anyone. A positive outcome requires more than just enthusiasm. Hyperion's adoption of a new English name, a deeper global perspective, and accelerated technological innovation must ultimately translate into sales figures.

Hyperion shouldn't be a burden for GAC Aion

The new energy vehicle market is buzzing this year, with price wars and media skirmishes fueling the frenzy. The magical reality stands before us.

Especially after Lei Jun entered the market with Xiaomi Automobile, an already competitive landscape underwent profound turbulence. This is undoubtedly bad news for Hyperion.

As mentioned earlier, Hyperion can no longer rely on outdated strategies for growth. Recent sales figures indicate underwhelming market performance.

Thus, while Xiaomi's SU7 disrupts the 200,000-300,000 RMB pure electric vehicle segment, Hyperion must accelerate its transformation to cope with all-around competitive pressures.

Against this backdrop, Hyperion announced a global brand rejuvenation, including changing its English name from “HYPER” to “HYPTEC,” shifting its brand color from blue to orange, and adopting a new brand concept: “Hyper Technology Life.”

Simultaneously, after consolidating its achievements in new energy technology, it unveiled a new generation of intelligent digital chassis and rolled out the Hyperion SSR pure electric supercar overseas. I believe these moves aim to achieve precisely that.

Will these efforts enable Hyperion to fulfill GAC Aion's ambitions? Based on GAC Aion's history and understanding, I sincerely hope so.

Throughout the industry, during the era of rampant subsidy fraud, GAC Aion (then known as GAC New Energy) was one of the few automakers vigorously developing pure electric platforms. By the end of 2023, it had established a sales advantage without incurring significant losses while pursuing technological innovation.

However, China's automotive market is highly unique, making it unlikely for any Chinese automaker to enjoy perpetual smooth sailing.

Gu Huinan, GAC Aion's General Manager, once publicly stated that Hyperion to GAC Aion is akin to Porsche to Volkswagen, representing brand aspiration and a desire to penetrate the high-end market. Nevertheless, despite this vision, as China's pure electric vehicle market approaches a development bottleneck, growing pains are inevitable.

Less than two years later, Hyperion chose to undergo a comprehensive brand rejuvenation, reflecting its concerns about translating technological innovation into brand value. In my view, this honestly exposes its developmental challenges.

Why can't the technological label resonate externally? Why have years of technological expertise failed to capture potential customers' attention? These questions linger before Hyperion's brand rejuvenation, demanding reasonable explanations.

I understand that Hyperion is now focusing on overseas markets, aiming to boost its domestic presence or achieve a clean break from GAC Aion's marketing strategies. These are its latest efforts to convey confidence as a leading new energy player.

Objectively, however, every voluntary attempt requires a vehicle. Beyond the Hyperion GT and HT, Hyperion urgently needs a new model that encompasses all current user needs, one that transcends door gimmicks and offers a holistic product. Furthermore, facing intense competition, it must compete head-on, prioritizing pricing, features, upgrades, and charging infrastructure – none of which can be overlooked. Rather than wasting energy on creating buzz and riding trends, Hyperion must focus on these essentials.

With just five months left in 2024, even as everything exceeds expectations, we sincerely hope to see a Hyperion that can alleviate GAC Aion's concerns.