As the entire internet was diligently practicing for 'Black Myth: Wukong', Jiyue Automobile, with a slightly lower profile, pulled off a big stunt.

On August 22, Jiyue Automobile's PR head suddenly lambasted Lei Jun and Xiaomi on social media, accusing Xiaomi of selling the SU7 at a loss, joking that "if this were in the past, it would be considered dumping, the worst form of merchant behavior."

In fact, this tirade wasn't a genuine attack but rather a veiled criticism tinged with jealousy, albeit a bit overzealous in its wording.

Lei Jun indirectly responded on Weibo: "Building cars is tough, but success will definitely be cool! Xiaomi Automobile is still in the investment phase, I hope everyone understands."

During this period, Lei Jun visited He Xiaopeng of XPeng Motors in Guangdong. While in the car, Lei Jun advised He Xiaopeng to change his personality and do more live streams.

In reality, one only needs to look at netizens' comments on this incident to discern who is in the upper hand.

In terms of sales, Xiaomi delivered 27,307 SU7s in Q2, aiming for an annual delivery of 120,000 vehicles. On the other hand, Jiyue sold around 2,700 vehicles in the first half of the year, averaging 450 vehicles per month.

Image source: Jiyue official website

Sales determine status. On one hand, Lei Jun remains calm and composed, never mentioning Jiyue. On the other hand, Jiyue is aggressive and overbearing.

Instead of heating up the competition for their rivals, it would be better for them to focus on their own promotions. Lei Jun continued with his live streams. However, for Jiyue, the heat from the incident cooled rapidly, leaving them with a lack of both sales and buzz.

01

CEO Issues Letter to Put Out the Fire

On August 23, media reported that Jiyue CEO Xia Yiping sent a company-wide letter addressing the social media outburst against Xiaomi.

The letter stated that the remarks did not represent the company's views or align with its values.

It instructed relevant departments to severely criticize the individual involved and emphasized adherence to company communication guidelines, refraining from discussing competitors or spreading opinions that contradict company values.

Prior to this, the PR head of Jiyue, the incident's protagonist, had already pleaded online for leniency, expressing efforts to mitigate the incident's impact.

Image source: Internet

After the incident, the two companies were compared: Xiaomi's first car became a top seller, while few knew about Jiyue's brand.

In reality, the companies behind Jiyue are giants. Both Baidu and Geely possess attributes of the internet and AI-driven driving, with Geely being an automaker as well.

In January 2021, Baidu announced its entry into the automotive industry by formally establishing a smart car company as a vehicle manufacturer, with Geely as its strategic partner.

Two months later, Jidu Auto, founded by Baidu and strategically invested by Geely, was officially launched.

With Geely's support, Jidu Auto progressed rapidly. In June 2022, the Jidu ROBO-01 concept car was unveiled, followed by the limited edition Jidu ROBO-01 Lunar Exploration version four months later.

In August 2023, Baidu and Geely announced an upgrade in their strategic cooperation, renaming 'Jidu Auto' to 'Jiyue Automobile' and the original Jidu ROBO-01 model to 'Jiyue 01,' which was included in the Ministry of Industry and Information Technology's latest batch of new automotive products.

In October 2023, Jiyue Automobile officially launched its flagship model, the Jiyue 01, hailed as a peak representative of global intelligence in the mid-to-large intelligent pure electric SUV segment, offering two models priced at 249,900 yuan and 339,900 yuan, respectively.

02

Not-So-Friendly Ties with Xiaomi

Of course, the incident ended with a "severe reprimand," revealing CEO Xia Yiping's attitude towards Lei Jun and Xiaomi.

Both being brands that emphasize intelligent driving and technology, Jiyue and Xiaomi have had their differences in the past.

As early as April 15, Xia Yiping and Baidu founder Li Yanhong live-streamed to showcase the advanced intelligent driving features of the Jiyue 01.

When asked about the newly launched Xiaomi SU7, Xia Yiping noted that the two models differed in both form factor (SUV vs. sports sedan) and target audience (the SU7 catering more to enthusiasts who enjoy driving).

He also highlighted the larger interior space and industry-leading intelligence of the Jiyue 01, such as voice control and intelligent driving capabilities.

Image source: Jiyue live stream screenshot

Just two days later, a former Jiyue employee claimed to have been fired without compensation for purchasing a Xiaomi SU7 and shaking hands with Lei Jun, citing a breach of non-compete agreement.

The Jiyue Automobile Legal Department issued a statement stating that the dismissal was due to the former employee's continuous promotion of Xiaomi-branded vehicles on multiple social media platforms during their employment, which conflicted with their job responsibilities and professional ethics.

Additionally, company records showed multiple unexcused absences by the employee.

At the Beijing Auto Show on April 25, the Jiyue Automobile booth was conveniently located opposite Xiaomi's. Lei Jun frequently visited competitor booths during the show, trending on social media, but notably skipped Jiyue's booth.

Rivalries among competitors are common, but ultimately, sales speak louder than words.

Xiaomi's Q2 financial report revealed cumulative deliveries of over 27,000 SU7s, with an anticipated milestone of 100,000 vehicles by November.

In contrast, Jiyue 01 sold only 2,700 units in the first half of the year, with July sales spiking to 1,143 units.

Market observers attribute this surge to Baidu's Luoborun, as Jiyue and Luoborun share the same intelligent driving platform.

Towards the end of the month, the Jiyue 07, Jiyue's competitor to the Xiaomi SU7, will debut at the Chengdu Auto Show, with presales beginning and official launch on September 10.

The head-to-head model comparison seemingly hints at the motivation behind the social media outburst.

However, will sales improve? At least so far, there's no significant increase in attention.

03

Can 'New for the Sake of Being New' Save Jiyue?

The upcoming Jiyue 07, adopting a coupe design with a length of 4953mm and a wheelbase of 3013mm, is comparable to the Xiaomi SU7.

Unlike the Xiaomi SU7, which balances driving dynamics with intelligence, the Jiyue 07 seems poised to further emphasize its intelligent and technological feel.

For instance, it lacks door handles, opting for push-button entry; the front row features a single 35.6-inch center screen, covering only half of the driver's field of view; and employs a U-shaped steering wheel, Cancelled the turn signal lever and physical gear shift ， Switch to using screen mount instead , similar to Tesla's design.

According to Leifeng.com, the Jiyue product manager admitted that Jiyue's product definition revolves around being "new" and aligning with the "automotive robot" positioning, leading to numerous features that contradict conventional operating habits.

Image source: Jiyue official website

Whether these radical designs will appeal to tech-savvy consumers remains to be seen, with sales figures as the ultimate test. Given Jiyue 01's lackluster sales, the pressure on Jiyue 07 is even greater.

When Jiyue was still known as Jidu, Baidu held a 55% stake, while Geely held 45%.

Now, with Geely's stake rising to 65%, becoming the dominant shareholder, how much room does Jiyue have amidst Geely's other brands like LYNK & CO and ZEEKR?

Particularly concerning ZEEKR, whose share price has been declining post-IPO, recently announced price cuts and upgrades for the ZEEKR 001 and ZEEKR 007 models, angering some existing owners while attracting new ones.

ZEEKR CEO An Conghui issued an open letter in July, aiming for monthly sales of over 30,000 units in the second half of the year. Meanwhile, LYNK & CO's first pure electric vehicle, the Z10, has entered presales and will soon hit the market.

Amid intense internal and industry-wide competition, Jiyue's senior management, grappling with anxiety, issued a shocking personal statement that can be somewhat understood in context.

Founded in March 2021, Jidu Auto builds upon Baidu's unmanned vehicle efforts dating back to 2013.

In contrast, Xiaomi, which also announced its entry into the automotive industry in March 2021, has achieved far superior sales, reputation, and buzz in just three years compared to Jiyue.

Perhaps, in addition to reprimanding Xu Jiye, Xia Yiping should consider how to genuinely captivate consumers beyond merely offering "new for the sake of being new" features.