Introduction

Introduction

Near thirst requires near water to quench.

Author: Cui Liwen

Responsible Editor: Cao Jiadong

Editor: He Zengrong

Recently, several sets of data have sparked deep reflection.

According to the terminal results announced by the China Passenger Car Association, in May, the wholesale sales of new energy vehicles reached 897,000 units, representing a year-on-year growth of 32.1%. Among them, pure electric vehicle wholesale sales reached 531,000 units, an increase of 9.4% year-on-year; true plug-in hybrid wholesale sales reached 276,000 units, an increase of 84%; and extended-range vehicle wholesale sales reached 91,000 units, an increase of 105%.

Obviously, the third segment has become the one with the largest increase.

Following this trend, considering the so-called "extended-range giants" in China's automotive market, Lixiang and Wenjie are undoubtedly the undisputed main players. Their delivery volumes in May reached 35,020 units and 30,578 units, respectively.

Moreover, according to statistics from relevant research institutions, the share of extended-range models in their respective product matrices has reached 98% and 93%, respectively.

Additionally, it is worth noting that during the week of June 3rd to June 9th, just past, when observing the phased performance of various new forces in carmaking, Lixiang and Wenjie still ranked first and second on the list without any suspense, with weekly sales of 10,900 units and 8,900 units, respectively.

The crazy harvesting at the terminal is making other automakers envious.

And the ultimate point of elaborating on these contents is: "This year, the speed of the electric transformation of China's automotive market has indeed exceeded everyone's imagination once again, but looking behind the浮华 surface, due to various reasons, pure electric models have already fallen into a bottleneck in their leap forward. For a large part of potential consumers, the 'fuel tank' is still a key factor that dispels doubts, reduces anxiety, and makes them willing to turn to new energy vehicles."

Precisely because of this, whether it is Lixiang and Wenjie bringing extended-range models to popularity with their own halo or the result of user choice as the overall market has developed so far, this technological route contains energy that has been largely underestimated before.

Is it embarrassing to make extended-range vehicles?

In fact, for a long time in the industry, there has always been a bias: "Making extended-range vehicles is embarrassing." It seems that there is an invisible "chain of contempt" existing, and brands that solely bet on pure electric technology routes always feel superior.

But in the end, bloody results have proven that as competition and slaughter become increasingly brutal, when even surviving becomes difficult, in pursuit of maximizing immediate benefits, some obsessions have to be completely put aside.

As a result, "slapping in the face" has gradually become the norm, and more and more players are embracing or about to embrace "extended range".

For example, Xpeng.

"Customers have a real demand for hybrid power. We surveyed many users and found that after accepting hybrid power, they realized that they only need to refuel a few times a year and charge more often. Therefore, when choosing a car next time, they can accept pure electric."

"From a technical perspective, the difficulty from extended range to pure electric is much higher than from pure electric to extended range. The current generation of extended-range models has already encountered challenges, such as issues with the extended-range experience under high-speed conditions. For Xpeng, what the next generation of extended-range models will be like is what we are thinking about more."

Not made up, the above two paragraphs are truly from He Xiaopeng's statements during a conference call after the release of the first-quarter financial report. Combined with recent revelations on the internet, the meaning conveyed is focused on: "Anything is possible."

After all, Xpeng's "weakness" in sales this year is visible to the naked eye.

Next, this new force in carmaking will rely on both pure electric and extended-range models to walk, especially when more products are introduced into the high-end market above 300,000 yuan, which may be a good way to break the deadlock, even though they are still "stubborn" so far.

Apart from Xpeng with a subtle attitude, flipping through the latest batch of new car directories from the Ministry of Industry and Information Technology this week, we have unexpectedly discovered the "true face" of the AVATR 11 and AVATR 12 extended-range versions.

Coupled with the AVATR 07 extended-range version still in the preheating stage, as well as a later-arriving sedan positioned below the AVATR 12, this "national team" member has obviously abandoned the obsession of solely betting on pure electric technology routes and chosen to "double open".

Coincidentally, after ZM Motor continuously launched the L7, LS7, LS6, and L6, but none of them caused much splash in China's automotive market, there is also the latest news that it will release an extended-range SUV targeting the Lixiang L7 in the first quarter of next year.

According to insiders, "As ZM Motor's first extended-range project, this model has been approved since the second half of 2023, and the internal expectation is to open up the market with a new positioning."

In contrast, GAC AION, which has encountered significant resistance in the pure electric segment, has made it clear that it will introduce plug-in hybrid and extended-range models based on market changes and consumer demand.

Moreover, don't forget that as early as last year, Xiaomi Automobile released some R&D positions, including extended-range system design and development engineers, fuel system engineers, exhaust system engineers, and more.

Even though it is currently dominating the pure electric market with the crazy output of the SU7, considering Lei Jun's impending ambition and ambitious goals, when to "play its cards" seems to be just a matter of timing.

At this point, as the above list gets longer and longer, embracing extended range has apparently become the general trend in China's automotive market. In contrast, sticking to pure electric has become the "minority".

The former, from being embarrassing to standing in the center of the stage, in the blink of an eye.

Can making extended-range vehicles definitely save the day?

"Will NIO make extended-range vehicles?"

"If you ask those users who buy extended-range vehicles what their next car will be, how many people will say they will still buy extended range? As a father of several children, I find it very interesting. After weaning, children need a pacifier for a while, but you can't say that the pacifier should be used all the time."

At the beginning, a controversial dialogue came from an exclusive interview the day after NIO's second brand, Leyao, made its debut in mid-May. Li Bin was once again asked about that well-worn question.

As a witness, from his slightly controversial views, we can dissect two meanings.

First, due to the relationship of development concepts and the advantages of its self-built energy replenishment system, NIO did not make extended-range vehicles in the past, does not make them now, and does not want to make them in the future.

Second, if the timeline is extended, this technological route has always been a "transitional" solution.

However, in the eyes of many people, although the truth is not false, not all automakers are like NIO, including Tesla, with so-called brand burdens and heavy assets for charging and battery swapping.

On the contrary, China's automotive market is so huge, and there are so many potential consumers who are holding on to their money. Currently, harvesting according to one's own abilities is the right solution.

Making extended-range vehicles is essentially not right or wrong.

Recently, I had a conversation with a friend who just bought a Lixiang L6 in Lanzhou, Gansu, and the feedback I received was very informative.

"Although our area is still developing, the public charging resources can't compare to Shanghai. The cold winter is so long, and most trips are long-distance self-drives of up to thousands of kilometers. The energy replenishment conditions at highway service areas are not very good either. After comprehensive consideration, extended range is more suitable for me. In the city, I use it as a pure electric car because I have a private charging pile at home, and on the highway, I use it as a pure gasoline car."

This simple paragraph reflects a central idea that is more like this: from the user's perspective, because China's geography is vast, corresponding vehicle usage needs will be complex and diverse. Although the general direction of new energy transformation has become irreversible, multiple technological routes will definitely coexist rather than a single one dominating.

In many northern cities and lower-tier cities, compared to the difficulty of promoting pure electric vehicles, the educational cost of extended range to "open up new territories" is indeed much lower.

Moreover, from the perspective of OEMs, technology is also constantly iterating. Some of the shortcomings that were widely criticized on some older extended-range models have gradually been overcome and resolved.

Correspondingly, the "strengths" of extended-range systems, such as their simple structure, low entry barriers, and controllable manufacturing and R&D costs, are becoming increasingly prominent and can even become a lever for fierce "price wars".

For example, the hardcore SUV Deep Blue G318, which was officially launched this week, has a starting price of only 175,900 yuan for its entire extended-range lineup, demonstrating its determination.

For weaker second-tier new forces in carmaking like Zero Run and Nezha, venturing into extended range is one of the few hopes for them to escape from the quagmire. For example, the former's Zero Run C10, C11, and the upcoming C16, as well as the latter's Nezha L, are the best evidence.

At this point in the article, I believe many readers still have one last question: "Can making extended-range vehicles definitely save the day?"

Regarding the answer, I want to say: "Given the current fierce competition in China's automotive market, blindly entering the market with speculative intentions will still result in more harm than good. After all, the extended-range segment is also becoming a suffocating red ocean."

In addition, we should also clearly understand that for leaders like Lixiang and Wenjie, extended range plays more of a role in adding icing on the cake, and the fundamental reason for their explosive sales is due to the excellent quality of their respective products and the halo of the brand itself.

Therefore, while not underestimating the energy contained in this technological route, we should also not overestimate its "magic" that will have immediate results.

Of course, it's not embarrassing to make extended-range vehicles; it's embarrassing to die...