New Energy Perspective (ID: xinnengyuanqianzhan) Original

Full text: 2676 words, reading time: 7 minutes

Auto industry leaders are fond of "talking big," and even "engineer-type" Chery Chairman Yin Tongyue is no exception.

The internet has a memory, and it will mark everyone's words and deeds, waiting for the day of reckoning.

Therefore, you'll notice that automakers relying on empty promises to stimulate consumption are gradually being backfired by the market and consumers. Especially in the current environment of intense price wars and frequent automotive quality issues, their trustworthiness is plummeting. As the saying goes, "What goes around comes around."

1. Automakers who lie blatantly face backlash

As global awareness of environmental protection grows and governments worldwide press for reduced carbon emissions, the new energy vehicle (NEV) industry has ushered in unprecedented development opportunities. As one of the world's largest automotive markets, China naturally stands at the forefront of this transformation.

In recent years, the number of NEVs has soared, from less than a million in 2015 to tens of millions today. Amid this growth, major automakers have poured into NEV research and production, aiming to secure a foothold in this emerging market.

However, amidst this fervor, some automakers' leaders have resorted to exaggerations and empty promises to grab market share. They either claim to have broken through certain technical bottlenecks when the technology is far from mature or promise incredible features and services before products even hit the market.

These exaggerated claims indeed attracted consumers' attention in the short term, but as time passes and consumers discover discrepancies between reality and promotion, disappointment and dissatisfaction ensue.

"Erase spontaneous combustion from the NEV vocabulary," boasted one automaker in promoting its batteries, hitting a consumer pain point and generating numerous orders. But as it turned out, "spontaneous combustion" was far from eradicated, with many NEV smoking and fire incidents reported in the news linked to this automaker.

Photo/Battery slogan of an automaker

Source/Screenshot from New Energy Perspective

In the second half of the electric vehicle to smart vehicle transition, some automakers' executives have claimed their vehicles possess L4-level autonomous driving capabilities to grab headlines. In reality, however, these so-called "autonomous driving" features are limited to assisted driving and pose numerous safety risks. Users have found vehicles perform poorly in complex situations, leading to multiple accidents and widespread skepticism.

Meanwhile, some automakers touting customer care have offered "lifetime free maintenance" to alleviate all worries. In practice, however, they fail to honor their promises. Consumers seeking free maintenance face stringent restrictions and contractual traps, often resulting in high costs instead of free services. This inconsistency has sparked outrage among consumers, leading to a sharp decline in brand reputation.

Additionally, some companies exaggerate in after-sales service, luring customers in with promises. For instance, one automaker experienced widespread quality issues shortly after launching a new model but failed to promptly address consumer complaints, resorting to delay tactics and attempting to cover up the truth. This approach further damaged their brand image and could lead to severe legal consequences.

These examples demonstrate that exaggerated marketing tactics cannot sustain long-term market presence. Instead, automakers risk self-inflicted harm by failing to fulfill their promises.

2. Marketing matters, but delivering on promises is more compelling

Undoubtedly, in the fiercely competitive auto market, merely focusing on manufacturing is insufficient. Finding a balance between effective marketing and actual delivery is crucial for success. Perhaps the master of marketing is one who can attract attention with bold claims and then deliver on those promises.

In this regard, Chery's Yin Tongyue has crafted a compelling narrative.

Previously, we described Chery's journey in NEVs as "getting up early but arriving late to the party." They established Chery New Energy Vehicle Co., Ltd. in 2010, predating companies like NIO, Xpeng, and Li Auto, as well as Tesla. Witnessing rivals surpass them, Chery might have sighed in admiration for the younger generation's prowess.

At last year's Chery Tech Day, Yin Tongyue declared, "Chery NEV will no longer hold back." Since then, Chery brands have concentrated released new models, with Star Trek Star Era ET's series of bold moves reshaping consumers' perceptions of Chery NEV.

Star Era ET globally premiered with CATL's Supernova super-fast charging battery, undergoing rigorous battery and body tests before its launch. These tests encompassed performance evaluations under extreme temperatures and collision safety assessments. Chery invited multiple authoritative institutions for third-party verification and transparently showcased the entire testing process to consumers. By doing so, Chery showcased its product reliability, safety, and commitment to quality.

Photo/Star Era ET

Source/Screenshot from New Energy Perspective

This tangible approach quickly garnered positive market feedback. Upon its launch, the new model's exceptional performance and stellar reputation propelled sales skyward.

A year later, Chery NEV soared from outside the top ten to fourth place, truly living up to Yin Tongyue's promise of "no holding back."

Data shows that in September, Chery NEV sold 58,941 units, up 183.4% year-on-year, surpassing Changan and Li Auto. Overall, Chery sold 244,500 vehicles, with nearly 110,000 exported in a single month.

"Last year, I said Chery NEV would no longer hold back. This year, our NEVs are full steam ahead. Next year, Chery's intelligence will also make its mark!" Yin Tongyue stated at the keynote of the 2024 Chery Global Innovation Conference on October 18th.

Photo/Yin Tongyue's speech

Source/Screenshot from CCTV Finance and New Energy Perspective

From a "small hut" to the Fortune Global 500, Yin Tongyue's journey is fueled by supplier support and self-motivation in product innovation. He aims to make China a global automotive powerhouse.

This year's Tech Day showcased breakthroughs in Mars architecture, smart cabin, autonomous driving, and ecosystem technologies, underscoring Yin Tongyue's confidence in "Chery Intelligence will no longer hold back."

As market competition intensifies and consumer demands rise, enterprises adhering to integrity and innovation will gain a competitive edge. In the rapidly evolving NEV industry, such an unapologetic stance is paramount.

3. Let automakers' "no holding back" be more intense

In today's market, consumers are increasingly rational and less swayed by flashy advertising. Instead, they prioritize product performance and corporate integrity. To win over consumers, automakers must align words with actions and prove their worth through deeds.

Crucially, enterprises should introduce product features factually, avoiding exaggerations. Safety and range are particularly crucial indicators requiring caution. Consumers will only pay when products meet or exceed expectations.

Secondly, enterprises must invest continuously in R&D to enhance technological capabilities. Both improving battery energy density and optimizing autonomous driving systems demand relentless efforts. Additionally, strengthening after-sales service ensures a satisfying customer experience throughout the vehicle's lifecycle.

In contrast, while low-price strategies can attract price-sensitive consumers in the short term, they're often unsustainable. Low prices can compress profit margins, hindering R&D investments. Moreover, subpar quality damages brand reputation. Instead of relying solely on low prices, enhancing product competitiveness and service quality is the path to market success.

In summary, the NEV industry is rapidly evolving amid fierce competition. In this context, automakers must uphold integrity and deliver on their promises. Only then can they establish a strong brand image and achieve sustainable development. As demonstrated by Chery, winning market recognition through tangible actions is the fundamental path to long-term success.

Photo/Advancements in Chery's five core technologies

Source/Screenshot from New Energy Perspective

As the NEV market expands, consumers have more choices and heightened demands. In this context, enterprises adhering to integrity and innovation will gain a competitive advantage.

Chery and other automakers have showcased their prowess in technological innovation, quality assurance, and service systems, winning widespread market recognition. Other automakers should learn from their successes, respond to consumer expectations with tangible actions, and jointly promote the healthy development of the NEV industry.