The 21st Guangzhou International Auto Show officially opened on November 17th. The development of smart cars and new energy vehicles is not only a revolution in transportation, but also a change in lifestyle and mindset. With the continuous upgrade of competition in new energy vehicles, more new products and technologies will appear before the public. This year’s Guangzhou Auto Show will be themed “New Technology, New Life,” showcasing the latest technological achievements brought about by the development of smart cars, as well as the new changes it brings to consumers.
Different executives have different views on the competition and intensification of the new energy vehicle market. Li Pan, general manager of Shenlan Automobile Brand, said, “After so many years of competition in traditional cars, it has only reached a relatively stable state. New energy vehicles have just begun, and the key is to innovate in technology, because technological innovation brings cost reduction.” The following is the transcript of the interview: Sina Auto: Mr. Li, what highlights has Shenlan brought to the Guangzhou International Auto Show this time? Li Pan: This time at the auto show, we brought the well-selling Shenlan S7 and Shenlan SL03. In early November, we launched a high-end intelligent driving version of the Shenlan S7 and Shenlan SL03. We also have a hydrogen-powered version because Shenlan has been working on hydrogen energy. Last year, we released the Shenlan SL03 hydrogen energy, and this year the Shenlan S7 hydrogen energy will also be showcased at the exhibition, along with our Super Electric Drive and some battery technology exhibits. Sina Auto: Is anyone buying this hydrogen energy? Li Pan: Currently, due to issues such as the subsidy for new energy vehicles and its relatively high cost, there are not many buyers. But hydrogen energy is the future direction, and we will continue to persist in this direction. Sina Auto: Actually, I think hydrogen energy may still be far from our daily lives. Li Pan: There are several aspects. First, continuous breakthroughs are needed in technology, which will lead to cost reduction and entry into a mainstream sales price range. Second, the industry as a whole needs to have different advantages, such as providing a better user experience or more economical vehicle operating costs. If there is such value, customers will naturally choose it. Of course, the most important thing is the perfection of the entire system, such as the infrastructure construction for recharging and refueling, which, if not keeping up, will slow down the development. However, hydrogen energy has already been deployed in many specific areas or closed scenarios. Sina Auto: There may be relatively more commercial vehicles Li Pan: Yes, but I believe in the breakthrough of future technology, cost reduction, and the country’s overall development in the areas of energy supplementation and hydrogen exchange. In the future, it will also be a way, so you will find that the three technology routes of deep blue extended range, pure EV, and hydrogen energy are all being developed. We hope to continue exploring the future and providing more possibilities for users and the industry. That’s why we call ourselves the leader in all-scenario travel. We want to provide solutions to customers in any extreme road conditions and environments, and of course, the choice should be given to the customer based on their needs, usage scenarios, and preferences. Sina Auto: We include the deep blue in the “four small hybrids.” We call it that, but it sells very well. I recommended it to several people, and when they were considering the “four small hybrids,” they all chose the deep blue. It’s quite interesting. Even one of my high school and middle school classmates, after looking at BYD and deep blue, didn’t even bother going to a third dealership. Actually, you’ve already answered a lot of my second question, so I’ll just extend it a bit. Li Pan: Okay Sina Auto: There is a phenomenon where people think that a car will sell well if it has an extended range, and some cars even call themselves extended range models when they are actually DHM models. What is your opinion on this situation? Li Pan: I think they see an opportunity. The scale of hybrid vehicles from January to September this year is about 1.3 million, with a year-on-year growth rate of over 68%, and the extended range is close to 400,000, with a growth rate of 164%. You will find that the user base is growing rapidly. Of course, the volume is relatively smaller than PHEV plug-in hybrids, but customers are already making more choices in this direction. This is a trend. Regardless of what it is, whether it’s a plug-in hybrid or a range extender, the goal is to capture the so-called scale and the rapid growth dividend. This is my judgment, there is actually no right or wrong here. Secondly, range extenders and plug-in hybrids are two different things because their underlying logic is completely different. The plug-in hybrid is oil plus electricity, fundamentally to save fuel consumption compared to traditional oil vehicles. With a plug-in hybrid, energy consumption will be reduced, but the underlying logic of the range extender is pure electric drive, adding a range extender to recharge the battery and solve the problem of user anxiety about the mileage of electric vehicles. Therefore, it is inherently an electric vehicle, solving the problem of recharging electric vehicles, while the plug-in hybrid is inherently an oil vehicle, solving the problem of reducing fuel consumption. The benefits brought to customers are completely different in this situation. This morning, our general manager of Deep Blue Motors, Deng Chenghao, also released the ceiling of hybrid vehicles, which is the Deep Blue Super Range Extender. Why do we dare to say this? First, people buy new energy vehicles to save money. Based on user travel data calculations, for every 10,000 kilometers driven, the Deep Blue S7 range extender will save more than 5,000 yuan (700$) compared to traditional oil vehicles. At the current average of about 20,000 kilometers driven per year, at least 10,000 yuan (1400$) is saved. Second, Deep Blue’s 100,000-plus users have saved a total of 540 million yuan in fuel costs. Compared with plug-in hybrids, the savings are about 1,000 yuan (140$) per 10,000 kilometers. So we say the ceiling of hybrid vehicles is the Deep Blue Super Range Extender, the first being super savings, a natural piggy bank, the more you drive, the more you save. Sina Auto: A natural piggy bank, I really like this term. Two years ago when Wuling just came out, I really wanted to buy it. At the time, I arranged for two cars in Beijing, one Wuling and one Black Cat. Why did I buy these two cars, one costing 30,000 and the other 50,000? Now I spend 2,000 yuan (280$) on gas per month. If I drive a pure electric vehicle, I would save 20,000 yuan (2800$) a year. Li Pan: I’ve been driving for two months, and I really feel it deeply. Because the Deep Blue office is in Longxing, Chongqing, which is a bit far from where I live. When I used to work at Chang’an Group Financial City, it was about 30 kilometers round trip, 15 kilometers one way. Now it’s almost 40 kilometers to Longxing, 40 kilometers one way, 80 kilometers round trip. If I also go to the Global R&D Center and other places in between, it’s about 100 kilometers a day. I decisively switched to an electric car. Sina Auto: This mileage is most suitable for electric cars. Li Pan: Yes, I found that when I used to go to Deep Blue, I spent about 2500-3000 yuan (420$) a month on gas, and sometimes I would go out on weekends. Now, last month I calculated and was shocked to find that I only spent 50 yuan (10$). Of course, this includes charging at the company a few times, but it’s only a few hundred yuan in the end. It really saves a lot. Deep Blue Super Long Range, because its electric car technology can provide a forever electric car experience, no matter the scenario, it’s always the experience of an electric car. When buying a new energy car, one is the fast acceleration, and the other is the quietness of the electric car. The Deep Blue Super Long Range truly achieves seamless operation, with a very low decibel level, providing a better NVH experience and a better linear acceleration feeling. Why not choose it? The Deep Blue Super Long Range also provides a sense of safety at all times, with the 24-hour iBC digital battery steward, passive safety, and active safety multidimensional system safety design, ensuring that the battery does not catch fire or smoke, effectively avoiding thermal runaway and providing safety protection at all times and places. Sina Auto: Which interaction did you just select below? Li Pan: Sales volume. Sina Auto: Next, I want to ask you, how do you view the current phenomenon of over-competition in the internet car industry? This morning I read an article with a great title, saying that if you want to stay at the table, you have to pay a high price. I think that’s true. Li Pan: Yes, I think this is inevitable. In the past few years, new energy vehicles were mainly for pioneering users who were willing to pay for the ultimate experience. However, looking at the current penetration rate of new energy vehicles, I believe they will return to the mainstream. Comfort, driving experience, aesthetics, and technological capabilities will become the norm. New energy vehicles are just beginning, and the key is technological innovation, which will lead to cost reduction. As a brand, it is important to understand what customers want in order to stay relevant. There will be many future challenges, but Deep Blue has the confidence and determination to succeed. Sina Auto: There will be two new cars next year. Li Pan: There will be two new products launched next year, in addition to the current Deep Blue SL03 and Deep Blue S7, making a total of four products. The recent launch of the intelligent driving version has received good feedback, showing increasing acceptance and recognition of high-level intelligent products. Sina Auto: It is now very necessary. Without an intelligent driving version, it feels like buying outdated products. Li Pan: Yes, intelligence is the next track, and the future. Sina Auto: Our last question is about Changan Deep Blue’s plans for the overseas market. Li Pan: This morning, President Deng hinted that we will soon launch in Southeast Asia. Next year, we will expand to Europe and other countries. We have set a plan for ourselves, aiming for around 50,000 sales volume in the overseas market by 2025 and reaching 350,000 by 2030. Deep Blue is truly going global. Sina Auto: Thank you for accepting our interview. Thank you.