Entering the 20,000 + era, the exclusive ＂business experience＂ of Zero Run Car has achieved remarkable results
Introduction: Entering the "20,000 Club", what did the zero-run car do right?
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In the fierce competition of new energy vehicles, many automakers are competing for market share, and the market competition has intensified. In this competition without gunsmoke, the delivery data of Zero Run Car reached 20,116 in June, ranking third in the new power list. In the first half of this year, Zero Run Car delivered a total of 86,696 new cars, which was "almost the same" as NIO and JK, becoming the "third place" after the ideal and the world.
The delivery volume exceeded 20,000 for the first time. For Zero Run itself, it is not only a digital breakthrough, but also an important milestone in the history of brand development. This marks that Zero Run has successfully reached a new level and set a new historical high for the brand. Unlike many luxury brands that focus on the high-end market, Zero Run has firmly ranked in the first echelon of new forces by virtue of its deep understanding and precise positioning of the popular market. Together with other industry giants such as Ideal and Q Jie, it leads the market together.
In the fiercely competitive automotive market, how did Zero Car enter the first tier of new energy vehicle sales?
In the first half of the year, Zero Car released a "nirvana"
In the first half of this year, the rim was not without excitement. Nouns such as "old man with car", "parameter storm", and "extensive layoffs" have emerged in an endless stream. Many car companies have tried to attract consumers through grandstanding marketing methods, but this practice has not translated into substantive results.
In this context, Zero Car silently demonstrated "technical strength" and converted it into sales and financial results. According to Zero Car’s first-quarter financial report for 2024 disclosed on May 17, Zero Car delivered 33,400 new cars during the period, an increase of 217.9% year-on-year; achieved revenue of 3.486 billion yuan, an increase of 141.7% year-on-year; net loss also narrowed year-on-year.
The replicability of the Uniqlo model has been a focus of attention in the capital-intensive and highly competitive industry of car manufacturing. Zhu Jiangming believes that the car should return to its essence as a durable consumer product and a means of daily transportation. He has said that Zero Run’s goal is to create a user-centric brand that provides vehicles with rich configuration, high quality and affordable prices. No matter how the market changes, Zero Run will adhere to this philosophy and position the car as a consumer product that can be easily enjoyed by the masses.
In June this year, Zero Car launched the flagship C16 model carefully built on the LEAP 3.0 architecture. With its cost-effective, luxurious configuration and leading technology, the C16 once again demonstrates Zero Car’s industry-leading position in technological innovation and cost-effectiveness.
Regarding how the Zero Run car cleverly integrates affordable prices and high-end configuration, Zhu Jiangming explained: First, Zero Run insists on global self-research, and the core components that account for more than 60% of the cost of the whole vehicle are developed and manufactured by itself, which can save part of the cost space; second, Zero Run always insists on technological innovation, optimizing design, and adopting the most competitive solutions; third, Zero Run always insists on cost pricing to give the optimized profit margins to users.
The reason why Zero Car can replicate the Uniqlo model is due to its keen insight and quick response to market pulsations. In 2023, Zero Car achieved stable revenue growth by adjusting its product sales strategy. Especially in the context of the intensifying "price war", Zero Car has always maintained a flexible sales strategy to ensure stable sales growth. Zero Car delivered 144,155 units last year, an increase of nearly 30% year-on-year; the annual revenue was 16.75 billion yuan, an increase of 35.2% year-on-year, and both revenue and delivery reached new highs, demonstrating the strong competitiveness and development potential of Zero Car in the market.
Going to sea in reverse, Zero Run Car is launching a new joint venture model
At a time when many new power automakers are facing challenges in going global, Zero Auto has successfully seized the opportunity of going global in reverse with its accurate market insights and innovative product strategies.
On May 14, 2024, Zero Run International Joint Venture was officially established, becoming the first reverse joint venture company in China’s automotive industry, and also an innovative solution and sample case of China’s automobile going overseas model. In Zero Run International Joint Venture, Zero Run plays the role of brand and product export, and Stellantis Group provides global market resources and influence. Zero Run International is committed to expanding into other major global markets except Greater China.
At the same time, Zero Run has established a unique development model for the industry: Chinese market + overseas market + Tier1 suppliers; in the future, Zero Run will continue to rely on the Chinese market to expand new business growth points, achieve breakthroughs in overseas vehicle sales and external supply of core components of Sandian, and accelerate Zero Run’s path to achieving positive net profit.
Compared with other Chinese car companies, the current operating model of Zero Run International is more efficient and faster in normal market conditions; in extreme cases, Zero Run International has stronger anti-risk ability – in markets without tariff restrictions, Zero Run cars will be exported directly; in restricted markets, Stellantis Group will help Zero Run cars achieve localized production, that is, Zero Run cars export auto parts, Stellantis Group is responsible for assembly and production.
This model is not only the implementation of new achievements in Sino-foreign cooperation, but also an innovation in China’s auto industry, marking the transformation of China’s auto industry from "bringing in" to "going out". Zero Run International showcases the achievements and competitiveness of Chinese automakers in terms of technological progress, branding, and product experience.
Zero Run C10 and T03 will be the first products of Zero Run International, and at least one new car will be launched overseas for the next three years. According to the news of the vice president of communications of Stellantis Group China, "Confirm that the first batch of trial production vehicles of Zero Run T03 models have been successfully assembled at Stellantis Group’s factory in Tychy, Poland." This marks the official launch of Zero Run International’s business.
With the help of Stellantis Group’s global distribution channels, Zero Run International plans to launch Zero Run products in nine European markets, including France, Italy, Germany, the Netherlands, Spain, Portugal, Belgium, Greece, and Romania, starting from September this year.
The establishment of Zero Run International provides a new model for the technology export of China’s automotive industry. Zero Run Auto can promote its brand and products globally through cooperation with Stellantis Group, and can also quickly complete the construction of service network, logistics network and after-sales support system through Stellantis Group’s global sales network, distribution channels and service network.
In the second half of the year, Zero Run cars still have "killer trump cards"?
According to the picture of Xiaohongshu ID "Zero Run Brick Moving Expert", the number of lock orders in June reached more than 25,000 units, which far exceeds the official sales. Lock orders mean that consumers have paid non-refundable deposits, and these basically determined order data will be converted into actual deliveries in the future.
Many netizens commented, "Zero Run is real. It turns out that more than 25,000 units were sold in June, and the number of external reports was underreported."
A single day can lock 2,816 units, which is rare in the industry. The daily lock-up volume of Zero Running Cars is equivalent to a month’s sales of some brands, indicating that Zero Running Cars is expected to continue to achieve sales growth in the second half of 2024.
Zhu Jiangming once said that "the style of zero-run cars is steady and steady, like a turtle in all new car-making forces, one step at a time, [striving to] improve a little bit every year."
In the second half of 2024, Zero Auto will continue to solidify its market position in the 150,000 yuan price range and further promote the C series products to meet the needs of consumers in this price range. With a solid sales base, Zero Auto plans to launch the A series products in 2025, positioned at the middle price of 100,000 yuan, to further expand its product line and cover a wider market. By 2026, Zero Auto will continue to innovate and launch products based on updated platforms. These new products will be positioned in the 200,000 yuan price range to meet the market demand for high-end smart electric vehicles.
In terms of channels, Zero Run International plans to expand a total of 200 sales outlets including the Stellantis & You network by the end of this year, and expand the sales network to 500 by 2026. By the end of 2024, Zero Run International will also launch products in Turkey, Israel and French overseas territories in the Middle East and Africa, India and Australia, New Zealand, Thailand, Malaysia in the Asia-Pacific region, and Brazil and Chile in South America. Relying on the mature business layout of Stellantis Group in other markets around the world, it will vigorously increase the sales of Zero Run car brands in the local market.
At present, Zero has solidified its leading position in new power car companies. The newly launched C16 model will further enrich the product matrix of Zero and meet the needs of different consumers. It is expected to become another popular model after the C10. Driven by a number of popular models, the monthly sales of Zero will remain high in the second half of the year, thus driving the annual performance to achieve high growth.
Zero Run International will use Stellantis Group’s distribution channels in more than 130 countries and a network of tens of thousands of dealers to quickly enter overseas markets. With the gradual development of overseas markets, the global sales of Zero Run cars are expected to further increase, thus bringing new growth points for the company.
It is foreseeable that under the launch of a number of popular models, the sales and performance of Zero Run cars will continue to grow. At the same time, with the accelerated landing of the Zero Run international global market, overseas markets will also gradually release their performance, providing strong support for the long-term development of Zero Run cars.
