While an appealing appearance can draw attention, practicality is crucial for converting interest into sales.

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As President of Xiaomi's ecological chain enterprise Smartmi Technology, Su Jun's first project at Chery iCAR was the iCAR V23, which sparked a wave of cancellations upon its launch.

Public opinion largely focused on the V23's overpriced and inadequate configuration, which fell short of consumer expectations, earning it the nickname "leek box" among netizens.

Subsequently, Su Jun tweeted, "If you know you're wrong, you should change it," and added more user benefits.

Many attribute the unsuccessful launch of the iCAR V23 to product issues (excessive pricing) or management issues (Su Jun's lack of understanding of user needs), but the larger problem may reside with Chery Automobile itself.

A Vase Offering Emotional Value

Objectively speaking, the iCAR V23 stirred up so much commotion because consumers initially held high expectations for it.

The iCAR V23 model was first unveiled in April this year and pre-sold over 31,000 orders at the Guangzhou Auto Show in November, essentially securing its popularity in advance. The fact that potential car buyers had to wait for over six months for its release indicates that the V23 had its own product highlights.

The design of the iCAR V23 is its most prominent feature. Adopting iCAR's signature boxy shape, with outward-protruding wheel arches and robust front and rear bumpers, it embodies a rugged off-road style. The brand positions this product as: "A-class new energy-style off-road SUV".

However, having an off-road style doesn't make it an off-road vehicle. The iCAR V23 doesn't use a non-load-bearing body and lacks standard off-road features like mechanical four-wheel drive, differential locks, and a transparent underbody. Essentially, this vehicle is an urban SUV with an off-road exterior.

Therefore, although marketed as an off-road vehicle, its primary use for users may be camping. However, to achieve a refined and upright four-wheel and four-corner design, the front and rear overhangs of the iCAR V23 are relatively short among off-road models of the same class, resulting in a trunk capacity of only 234 liters. This size can only accommodate water and snacks; larger items like tents are out of the question. In comparison, the trunk capacity of the similarly priced Galaxy L6, positioned as a sedan, is 454 liters.

Pursuing an attractive appearance at the expense of practicality is not the only issue with the iCAR V23's design. Other problems include a 1:1 aspect ratio resulting in an excessively narrow interior width, limiting the iCAR V23's rear seats to two passengers; and the installation of large, cool-looking tires that increase power consumption, among other design choices that further reduce the vehicle's practicality.

Then, addressing the central issue of this public outcry, the "10,000 yuan optional package," even though Su Jun later offered it for free, the entry-level model at 99,800 yuan still doesn't come with L2+ autonomous driving assistance, front and rear collision warning, automatic parking, and other smart driving features. Even compared to the 99,900 yuan fuel-powered Geely Niuzai, the latter includes L2 autonomous driving features such as full-speed adaptive cruise control and 360-degree imaging.

In today's highly competitive domestic market, it's unprecedented for a smart car of the same price to be less intelligent than a fuel-powered car. It's not hard to understand user reaction after the pre-sale.

Innovative creativity and design can draw attention to a brand, but practicality and sincerity are what convert interest into actual sales.

For iCAR, the most crucial task now is to adjust its product marketing strategy based on the actual needs of users.

First, it's essential to clarify what kind of potential customers iCAR primarily targets. The rugged off-road style naturally attracts more males, while females might opt for more comfortable models due to style preferences and family considerations (like bringing children). For example, the recently popular Geely Xingyuan; among male consumers, there are also preferences. Older males with families might have the need for family outings, so compact SUVs like the iCAR V23 are more suitable for younger or married men without children.

Then, in terms of pricing, users of products priced between 100,000 and 150,000 yuan are relatively price-sensitive, especially younger individuals who haven't yet accumulated wealth and prioritize essential needs when purchasing their first car. Therefore, the iCAR V23 must not only be 'attractive' but also 'fun'.

However, to achieve fun, product positioning should consider outdoor scenarios and range requirements. The iCAR V23 is completely outperformed by competitors in these two areas. The small space has already been demonstrated. In terms of range, the entry-level model of the iCAR V23 only has a range of 301 kilometers, roughly equivalent to the 80,000 yuan Baojun Yueye PLUS but nearly 20,000 yuan more expensive. Compared to the similarly priced BYD Yuan UP Vitality Edition, it has 100 kilometers less range.

The iCAR V23 should not merely provide users with an 'off-road dream' filled with emotional value. Only by achieving both internal and external excellence and adjusting the car price and configuration can automakers demonstrate enough sincerity to convince consumers to willingly make a purchase.

Choice is More Important Than Effort

While it may not be the worst scenario for a product to have issues with pricing, configuration, design, and other aspects, the company can reduce prices, add benefits, or learn from mistakes to design better products. However, choosing the wrong path comes at a greater cost because often, choice is more important than effort.

iCAR Automobile is Chery Group's first new energy vehicle brand and a vital part of Chery's transformation towards new energy vehicles.

Chery Group Chairman Yin Tongyue clearly stated that iCAR is a 'new special economic zone' created by Chery Group. The group will spare no effort to support the development of iCAR, with no upper limit on investment, to help iCAR enter the first tier of the new energy vehicle market.

It can be said that great hopes are placed on iCAR Automobile, but sales have been mediocre. According to public information, iCAR Automobile sold 5,745 vehicles in November, a decrease of 17.5% from the previous month; cumulative sales for the year have reached 55,508 vehicles.

This is closely related to the brand positioning of iCAR Automobile, which adheres to the brand philosophy of 'building cars for young people.' In addition to the iCAR V23, the entire brand has two other models, the iCAR 03 and iCAR 03T, all of which inherit the rugged 'boxy' design and focus on an off-road style.

It's hard to say this is a wise choice.

First, the off-road vehicle market has always been a niche market in China. According to a research report by Northeast Securities, in 2023, China sold a total of 224,000 rugged off-road vehicles, accounting for only 1% of total car sales in China, a fraction of household SUVs and sedans.

There are few participants in the industry, and the number of small cars priced below 200,000 yuan is even more limited. For example, the purely electric boxy Baojun Yueye, which also prides itself on its unique personality, has performed poorly in sales, with 628 vehicles sold in November this year and only 855 vehicles sold for the two-door version, the Baojun Yueye Plus. If iCAR Automobile persists in the idea that 'young = off-road' without seriously considering user needs, it may also end up in a situation similar to Baojun Yueye.

Some might argue that compared to the 10% penetration rate of off-road vehicles in the United States, there's still significant room for growth in the domestic off-road vehicle market. However, this may not necessarily be the case. Given the current level of infrastructure in China, even in pastoral areas, most road conditions are not bad, except for a few isolated regions. Many herders choose to buy two-wheel-drive small cars. Therefore, there aren't many people in China who have a genuine need for strong off-road capabilities.

It can be said that iCAR Automobile has set a limit on its future development from the start. The market for young people is not limited to the 'rugged' style, nor is 'rugged' the only way to represent young people's personality. Diversity is key.

Moreover, iCAR also faces internal competition from within the same group. Another subsidiary brand of Chery, Jetour Automobile, is also actively deploying in the new energy rugged off-road vehicle market, with some overlap with iCAR in the compact off-road SUV market.

'The more children, the merrier' is a traditional skill of Chery, but can such a small market really accommodate so many products? Do young people have so many off-road adventures to embark on?

Currently, the most important task for iCAR is to clarify user needs and adjust product positioning; while Chery Group should sort out the numerous brand positions within the group and reduce internal friction through differentiated market positioning and product strategies to better meet the needs of different consumer groups.