Lei Jun press conference, no new cars

On the occasion of the third anniversary of Xiaomi Auto, Lei Jun’s annual speech revealed Xiaomi’s path to building cars. Although the 100,000 sales target has been achieved ahead of schedule, production capacity and supply chain challenges still exist. In the future, can Xiaomi Auto’s sales myth continue?
On the occasion of three months since Xiaomi officially entered the market, Lei Jun and his team held the fifth "Annual Speech". At this press conference, Lei Jun gave a systematic explanation of the ins and outs of Xiaomi's car-making and the stories that have happened in the past three years.
Lei Jun revealed that Xiaomi’s creation of the car was due to an accident. In 2021, Xiaomi mobile phones were sanctioned by the United States. In order to cope with the predicament at that time, Xiaomi considered building cars. For this new business of building cars, almost all Xiaomi executives expressed their approval.
In order to gain a deeper understanding of the industry, Xiaomi established a special research team composed of more than 60 people, conducted more than 80 surveys in multiple cities, held four executive meetings, and interviewed more than 200 people in the automotive industry . During the investigation, Li Bin, the head of NIO, and He Xiaopeng, the founder of Xpeng Motors, both encouraged Lei Jun to build cars.
Faced with the problem of entering the car industry too late, Lei Jun said frankly that intelligence is the soul of cars, and the era of intelligence has just begun. Cars are a century-old track. As long as you really want to do it, it is best to start at any time. opportunity.
Regarding the latest progress of Xiaomi’s car manufacturing, Lei Jun revealed that the company is expected to achieve the annual sales target of 100,000 vehicles in November ahead of schedule. At the same time, Xiaomi Auto's sales network has also been established very quickly. In July alone, it successfully expanded to 4 new cities and opened 17 new stores. For cities that have not yet opened stores, Lei Jun promised his fans: "Wait a little longer, don't be anxious."
This time, Lei Jun also revealed Xiaomi's goal for the next 10 years - to become the best seller on the Nürburgring Northern Circle. The fastest four-door electric model. As a holy place in the racing world, the Nürburgring Nordschleife has witnessed the birth of countless legends. If it succeeds, Xiaomi will be one step closer to building a "dream car" comparable to Porsche.
01 Xiaomi Motors, self-produced and sold
Lei Jun emphasized at the press conference that Xiaomi Motors' annual target of 100,000 units is expected to be completed in November this year, mainly due to Xiaomi Motors' recent production capacity debugging and improvement.
A front-line employee of the Xiaomi factory once told "Leopard Change" that the designed production capacity of the production line is 40 units an hour, and a single shift of 10 hours is about 420 units. After double shifts were started in June, the production capacity was increased, and the production capacity was 7 hours. 320 vehicles. Although the average production capacity per hour has increased to 45.7 vehicles, the length of a single shift is also decreasing. The most fundamental reason is that the Xiaomi factory produces daily quotas. If the output is sufficient, it will stop. The monthly production target of the Xiaomi factory in June It is no less than 10,000 vehicles.
There are two main reasons for quantitative production: on the one hand, the turnover of front-line employees in Xiaomi factories is too fast, and newcomers who have been here for less than one month account for more than half of a single shift; on the other hand, since 6 The production line has been sped up since January, and the robots cannot keep up with the production rhythm of the assembly line.
Due to limited production capacity, many rice fans went to Lei Jun's Weibo comment area to leave messages urging delivery. Lei Jun responded: "The delivery in June will definitely exceed 10,000."
At the moment, in order to solve this problem, Xiaomi is giving time to newcomers Adapt to the production line and slowly increase production capacity. On the other hand, the Xiaomi factory will give workers a holiday in July and refit the production line, and will increase production again after resuming work.
Lei Jun revealed that thanks to the modification of the production line, Xiaomi Motors’ current cumulative delivery volume has exceeded 30,000 vehicles.
After three years of car manufacturing, from being affiliated with BAIC to obtain production and sales tickets to obtaining independent car manufacturing qualifications, Xiaomi Motors is gradually on the right track.
On July 12, the Ministry of Industry and Information Technology announced that four "Xiaomi brand" pure electric vehicles have been approved, and the new tail label of Xiaomi SU7 has been registered, changing from the original "Beijing Xiaomi" to "Xiaomi".This means that Xiaomi Motors has officially obtained the qualification to build independent cars.
It is understood that Xiaomi Motors has obtained the last car-making qualification in China, and its license plates cannot be traded or bought in the future.
According to the standards of the Ministry of Industry and Information Technology, if a new car company wants to obtain independent car-making qualifications, the company must meet the production requirement of 30,000 vehicles. However, Xiaomi is building a car for the first time. Without qualifications, it cannot mass-produce and can only be affiliated first. BAIC has obtained the production qualification to meet its mass production target of 30,000 vehicles.
Now that the independent qualification has been approved, it means that the mass production of Xiaomi cars has exceeded 30,000 units. For a new car-making force that released its first product less than 4 months ago, progress is rapid.
Take Weilai Automobile as an example. It began official delivery in June 2018, and it was not until December 2019 that the cumulative mass production and delivery volume reached 30,000 vehicles.
A Xiaomi insider believes that after Xiaomi’s car-making qualifications are approved, it also means that Xiaomi itself has the flexibility and autonomy in production planning, product development and market strategies. Moreover, obtaining complete car-making qualifications will also greatly improve Xiaomi Auto’s brand influence.
"After all, self-produced and self-sold products are more convincing than OEM." The insider said.
02 Can the sales myth continue?
A great start, allowing Xiaomi Motors to create the myth of "locking orders for more than 70,000 units" within one month of its launch. As the popularity slowly subsided, Xiaomi SU7's sales growth also showed a fluctuating and weak trend.
In order to maintain the popularity, in the past two months, Lei Jun, as the most influential "image spokesperson" and "talker" of Xiaomi Motors, has been either making short videos, on the way to make short videos, or doing live broadcasts. Lei Jun keeps running around Xiaomi Auto stores across the country to support Xiaomi Auto.
Marketing has always been considered Xiaomi’s biggest advantage. In the development process of Xiaomi mobile phones, Lei Jun has adopted a series of unique and successful strategies, from the selection of low-end phones to the implementation of the "hunger marketing" concept, and has made good progress.
Even Liu Qiangdong once expressed his recognition of Lei Jun's marketing capabilities. He once said in the show, "Don't compare marketing with Lei Jun. Being able to sell Xiaomi mobile phones for tens of billions is definitely not an ordinary person."
Previously, when Xiaomi Motors released SU7, Lei Jun used his marketing capabilities to continuously build momentum. He personally conducted a series of "tribute" marketing through his personal Weibo account, purchased billboards in multiple cities, and specially released a poster to pay tribute to China's new energy vehicle companies. Netizens jokingly called it "the pattern." opened.
Now, Lei Jun has also successfully copied his marketing capabilities to Xiaomi cars.
In the first month after the release of Xiaomi SU7, the number of locked orders exceeded 88,000 units, while the actual deliveries from April to June were 7,058 units, 8,630 units and 10,000 units respectively.
Regarding future production capacity issues, Lei Jun once said that Xiaomi Automobile Factory will start double-shift production in June to ensure that the delivery volume in June will exceed 10,000 vehicles. He also promised to guarantee the delivery of 100,000 vehicles throughout 2024 and sprint towards the target of delivering 120,000 vehicles.
At the end of tonight’s conference, Lei Jun also showed the outside world the full picture of Xiaomi SU7 Ultra, equipped with Xiaomi Super Motor V8s. According to the plan, in October this year, the prototype will challenge the New North Africa production lap record.
Do you think Xiaomi Auto can maintain its sales myth?

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