As the saying goes, "It's better to lean against a big tree for shade." However, in the increasingly competitive new energy vehicle market, even the "second-generation entrepreneurs" of emerging automotive companies, born with a "golden key" and not lacking in funds and technology, are not guaranteed to succeed. This is indeed the case. Many emerging "second-generation entrepreneurs" automotive manufacturers that have emerged in recent years have encountered challenges. 

Lantu Automobile

From January to May 2024, Lantu Automobile's cumulative sales reached 24,868 vehicles, a significant year-on-year increase of 107%. Compared to itself, the achievements of Lantu Automobile are worth celebrating, but in the overall new energy market, it is still in a marginal position. Judging from the sales trend, Lantu Automobile's sales have always been tepid. From January to May, its sales were 7,040, 3,182, 6,122, 4,003, and 4,521 vehicles respectively. Based on Lantu Automobile's target sales of 100,000 vehicles, it has only achieved 25%. Although Lantu Automobile relies on Dongfeng Group, an established central enterprise, it has not gained much reputation in recent years. Not to mention the emerging automotive companies that are at the forefront of topics, even compared with other new energy second-generation entrepreneurs born from traditional automakers, such as ZEEKR, Arcfox, and AION, Lantu Automobile's attention is not high, and its brand influence is naturally weaker. Secondly, Lantu Automobile's product positioning and development are too far away from the core experience demands of users, and there is no clear label in brand marketing. According to the current situation, the Lantu FREE 318 has just been launched, and the Lantu Zhiyin will also be officially released in the third quarter. These two models will bring new increments to Lantu Automobile. Moreover, Lantu announced a cooperation with Huawei earlier, which may also help boost Lantu's sales.

IM Motors

IM Motors sold a cumulative of 17,522 new vehicles from January to May 2024, representing a significant year-on-year increase of 125%. Although this is a significant improvement for IM Motors itself, the figure is not impressive in the overall market. From January to May, its sales were 5,001, 2,000, 3,000, 3,000, and 4,521 vehicles respectively. Based on IM Motors' target sales of 120,000 to 130,000 vehicles, it has only achieved 13% to 15%. In fact, IM Motors has had its moments of glory. The medium-to-large SUV IM LS6 quickly became a dark horse in the pure electric market upon its launch, but its good fortune did not last long. The IM LS6 encountered widespread issues of "vehicle system failures," leading to a sharp drop in sales. In addition, IM Motors has long relied on pricing to increase sales, making it difficult to be considered a truly high-end brand. In May this year, the IM L6 was officially launched. Liu Tao, CEO of IM Motors, said, "The profitability of the IM L6 is a big challenge. The IM L6 is currently selling at a loss." It can be seen that the IM L6 intends to follow the path of "exchanging price for quantity," but after the failed launch, it did not become a bestseller. Rome wasn't built in a day. Currently, IM Motors' brand image, after-sales service, and product quality are all under scrutiny, leaving little room for "trial and error." Focusing on product development and marketing positioning will be IM Motors' top priority this year.

AVATR Automobile

AVATR Automobile, which relies on Changan Automobile, CATL, and Huawei, was once favored by the outside world when it was first established, but its sales have always struggled to scale. From January to May 2024, AVATR Automobile's cumulative sales reached 15,505 vehicles, representing a year-on-year increase of 75%. Compared to last year, AVATR Automobile has made significant progress, but its monthly average is only 3,101 vehicles. As an emerging brand, AVATR Automobile's two models, AVATR 11 and AVATR 12, are priced above 300,000 yuan, which does not fall within the mass consumption range. It is difficult for a new energy brand without brand accumulation and distinct characteristics to be recognized by consumers. In addition, although Huawei and CATL have a strong reputation and significant technological advantages, there are not a few models that also use CATL batteries or Huawei's intelligent driving systems in today's new energy vehicles. Therefore, AVATR's product characteristics and technological highlights are not prominent. Recently, AVATR's third model, AVATR 07, officially appeared in the Ministry of Industry and Information Technology's "Road Motor Vehicle Manufacturers and Products" (Batch 383) directory, entering the product notification phase, and is expected to be officially released in the second half of this year. Industry insiders said that the starting price of the new car may be around 200,000 yuan. In the future, the launch of this lower-priced model is expected to help AVATR reverse its sales decline. However, it should also be noted that there are also many 200,000-level new energy vehicles on the market, and AVATR 07 will also face fierce competition.

Arcfox Automobile

As a high-end new energy brand launched by BAIC in 2018, Arcfox bears the important task of brand transformation and upgrading, but its sales have been tepid for more than five years since its establishment. From January to May 2024, Arcfox Automobile delivered a cumulative of 9,818 vehicles, with an average of only 1,963 vehicles per month, a significant gap compared to leading new energy brands. Industry insiders said that the core reason for Arcfox Automobile's poor sales is that it lacks its own core technology. According to information, Arcfox has integrated BAIC New Energy's high-quality resources worldwide: the products are manufactured by a joint venture between BAIC New Energy and Magna, a globally renowned OEM; while technologies in areas such as intelligence and autonomous driving come from Huawei. This makes Arcfox heavily reliant on the supply chain. Fortunately, Arcfox Automobile recently announced the "Darwin 2.0 Technology System," demonstrating its technological breakthroughs in the areas of protection, intelligence, and performance. According to the official plan, Arcfox Kola S is about to start presales, which will bring new increments to Arcfox. However, the current MPV market is still a niche market, and whether Arcfox Kola S will gain recognition remains to be seen over time. 

Jiyue Automobile delivered a total of 2,239 new vehicles from January to May 2024, with an average of less than 500 vehicles per month. As a "rich second-generation" born into a prestigious family, Jiyue's sales can be described as dismal. In fact, one of the main reasons for Jiyue's low sales is its lack of popularity and low presence. In March this year, when Xia Yiping reflected on the reasons for the low sales of Jiyue 01, he pointed the finger directly at marketing, saying, "When a user enters a Jiyue store, the first question they think about is not whether they want to buy a car, but what brand this is. This is a problem we need to solve." Since this year, Jiyue has begun to overhaul its marketing and sales departments, with Xia Yiping personally leading the changes. Xia Yiping believes that users may not buy a car, but they must have a brand recognition when they leave. In addition, Jiyue's second model, Jiyue 07, is scheduled to be launched in the second half of this year, which is expected to help boost its sales to a new level. However, in the view of industry insiders, Jiyue still needs some time to emerge from the transition period.

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