At the year-end Guangzhou Auto Show, car companies such as NIO, XPeng, Great Wall, Jianghuai, and Volvo all unveiled their new energy MPV models. It seems somewhat gratifying that in the last few months of 2023, MPVs have become the MVP of the automotive market.
Image source: Ideal Car In terms of the overall proportion of the car market, MPVs are quite niche. The market size is not large. According to data from the China Passenger Car Association, from January to October, the cumulative sales of MPVs in China reached 906,000 units, accounting for only 5.19% of the passenger car market. However, the MPV market is gradually changing, with more and more players entering the race. As early as the second half of 2022, the launch of the BYD Tang D9 attracted attention, and now with monthly sales exceeding 10,000 units, it can compete with the established MPV leader, the Buick GL8. Subsequently, Great Wall Motors and Lantu Automobile have successively launched MPV models. Today, new forces represented by Ideal and Xiaopeng are placing MPVs in the spotlight, attracting a lot of attention from the audience. The competition between Ideal MEGA and Xiaopeng X9 has also garnered a lot of attention. Why are new forces shifting their focus to the MPV market? Can this slightly niche market bring substantial market space? As newcomers, how much chance do new forces have compared to traditional MPV brands? Ideal MEGA and Xiaopeng X9 competing on the same stage Obviously, the most attention at the Guangzhou Auto Show is on Ideal MEGA and Xiaopeng X9. The two competing on the same stage is igniting the final spark of the 2023 car market in the MPV segment. “You might think you’re looking at a high-speed train, but this is actually the Ideal MEGA.” At the Guangzhou Auto Show, the most common description used by car presenters for the MPV with a front end resembling a high-speed train is “highway high-speed train.” Data shows that the new car has dimensions of 5350*1965*1850mm, with a wheelbase of 3300mm, positioning it as a large electric MPV. In terms of appearance, the Ideal MEGA has a very personalized and futuristic exterior. In terms of the interior, it continues the design layout of the Ideal L9. It is worth mentioning that the Ideal MEGA has a drag coefficient of 0.215, making it the MPV with the lowest drag coefficient among production models.
Image source: Ideal Car In terms of power battery, the new car is equipped with a 102.7kWh CATL Kirin 5C ternary lithium battery pack, and the power unit adopts a front and rear dual-motor drive system cabinet, with a maximum power of 400KW. Overall, the ideal MEGA CLTC has a pure electric range of 700 kilometers under working conditions. To better meet the user’s power supplement needs, the ideal MEGA supports 800V architecture 5C rate ultra-fast charging, with a peak charging power of over 520kW. Using the ideal 5C super charging pile, it only takes 12 minutes to supplement 500 kilometers. Xiaopeng Motors’ first pure electric MPV, the Xiaopeng X9, did not perform well during the exhibition compared to the Ideal MEGA. On the day of the press conference, Xiaopeng Motors invited Jimmy Lin to come and help out, making the booth exceptionally lively.
Photo source: Xiaopeng Motors In terms of appearance, the Xiaopeng X9 has body dimensions of 5293*1988*1785mm and a wheelbase of 3160mm. The exterior design is very distinctive, with a split-type front headlight and a signature through-type light strip on the front face, sharp lines on the body, and equipped with electric sliding doors and concealed door handles. The Xiaopeng X9 is positioned as a mid-to-large pure electric MPV, and is also the world’s first MPV model with rear-wheel steering, with a turning diameter as low as 10.8 meters. Unlike many other MPVs on the market, the Xiaopeng X9 focuses on avant-garde design and intelligent driving capabilities. With a starting pre-sale price of 388,000 yuan (54660$) announced for the Xiaopeng X9, it seems to be slightly lower than the Ideal MEGA. However, Xiaopeng Motors has high hopes for this large seven-seater MPV under the intelligent evolution architecture. Xiaopeng Motors CEO He Xiaopeng once stated at a financial report meeting that the goal of the Xiaopeng X9 is to “become the top-selling large pure electric MPV in the market.” However, there is also a slightly intense dispute between the two sides, mainly revolving around the safety and comfort of the third-row seats. For example, Ideal Motors’ Vice President of Business, Liu Jie, stated, “Many MPVs are still using safety concepts from Japanese MPVs 20 years ago, sacrificing third-row safety for weight reduction and flexibility in space.” This was interpreted as implying that the Xiaopeng X9 sacrifices safety for third-row space and comfort. He Xiaopeng, on the other hand, pointed out at the Xiaopeng X9 launch event that the Xiaopeng X9 is the world’s first MPV model to use front and rear integrated aluminum die-casting technology, ensuring both space and safety. He also claimed that in a 88km/h rear-end collision test, there would be no intrusion into the third-row cabin. In comparison, the Ideal MEGA, aside from its unique design, also highlights safety as one of its selling points. Liu Jie explained aspects such as body structure, steel strength, collision test results, and safety airbags to convey the safety capabilities of the Ideal MEGA to the audience, even being interpreted as “the Ideal MEGA is the safest MPV in the world.”
Image source: Xiaopeng Motors The Xiaopeng X9 emphasizes user experience and intelligence, with a refrigerator, TV, and large sofa, along with central air conditioning and XNGP intelligent driving empowerment. The Xiaopeng X9 is the first to be equipped with the 8295 intelligent cockpit chip. In addition, the entire series comes standard with rear wheel active steering, giving the vehicle a significant advantage in flexibility. Overall, both sides are competing on the same stage, each with its own strengths, making them the twin stars of the MPV at the Guangzhou Auto Show. Will the MPV market shift from “blue ocean” to “red ocean”? New forces have set their sights on the MPV market, not just a sudden trend this year. As early as 2018 and 2019, both Jike and Lantu separately initiated high-end MPV projects. In 2021, BYD partnered with Daimler’s joint venture Tengshi and chose the MPV as the first category to restart. At the Guangzhou Auto Show, the competition between Ideal MEGA and Xiaopeng X9 is seen as a continuation of the trend of new forces entering the MPV market. According to McKinsey’s global partner Fang Yinliang, there are not many competitors in the MPV market, as “the most mainstream sedan and SUV markets are already fiercely competitive.” From the perspective of car companies, selling a MPV for around 400,000 yuan (56350$) faces fewer competitors than selling an SUV in the same price range. In other words, the MPV market is still in the “blue ocean” stage, which is one of the factors that many car companies see as a new battlefield after recognizing the market situation. From a data perspective, although the MPV market share is not large, it maintains a high growth rate. Data from the China Association of Automobile Manufacturers shows that in October, domestic MPV sales were 93,000 units, a year-on-year increase of 13.1%; from January to October, cumulative sales were 906,000 units, a year-on-year increase of 17.6%, ranking first among sedans, SUVs, and MPVs. Looking at the sales ranking of MPV models in October, the Buick GL8 still ranks first with sales of 11,028 units. The Tengshi D9 ranks second with sales of 10,063 units, making these two models the only MPVs with sales exceeding 10,000 units. From this analysis, the MPV market structure is still not stable, and new players will have the opportunity as the market trends change.
Image source: Tengshi Automobile From a policy perspective, the continued hot MPV market also has a driving force. iResearch Consulting’s “Insight Report on China’s Household MPV Market” shows that with the introduction of the comprehensive two-child policy, three-child policy, and the continuous improvement of domestic consumption levels, the demand for family travel in China is gradually increasing. In other words, unlike in the past, where it mainly targeted commercial scenarios, the MPV market has now evolved to meet household needs. It is these factors that have caught the attention of new forces. Wang Dean, an analyst at Ping An Securities, pointed out that almost all new energy MPVs on the market are positioned for commercial use, and considering their adaptability to different scenarios, they generally adopt plug-in hybrid/pure fuel forms. The target audience for ideal electric car products is still families with multiple children, equipped with 800V high-voltage fast charging and other technologies. With the flagship model positioning of ideal electric car products, the intention is to open up a new blue ocean beyond the traditional commercial MPV track and seize the car needs of large families and group travel. The MPV market has enormous potential for development, especially under the promotion of the “three-child policy,” more and more families with multiple children are starting to consider MPVs as their preferred vehicle. This aligns with the positioning of ideal cars in the household market, as Liu Jie said, ideal cars have seen the opportunity behind the MPV market and introduced MEGA with the goal of becoming the champion of cars priced at 500,000 yuan (70430$) or more. Cui Dongshu, Secretary General of the National Passenger Car Market Joint Conference, believes that with the changing structure of Chinese families, the future high-end growth of MPVs is not just a flash in the pan. Especially with the promotion of new energy, the MPV market will sustainably grow, bringing development opportunities for domestic brands. New forces vs. old forces, who will come out on top? Looking at the history of car models, MPV models are not a new species. The concept of MPV was born in the 1980s, and then, led by representative models such as the Honda Odyssey, Buick GL8, and Toyota Alphard, it has become a type of vehicle that Chinese consumers are familiar with. Of course, MPVs have always been labeled as “high-end business vehicles” and mainly used in business scenarios. Therefore, in the MPV market, the Buick GL8, which naturally has a business attribute, once dominated the Chinese market. It can be seen that the MPV market has always been a field of constant change, not a moment of maintaining the old and new. From the perspective of consumers, this situation is also easy to understand. In the high-end car market, “face” will naturally be an important factor that consumers value. Although the MPV market can meet the needs of multi-child families, the “face” factor is not strong. Car enthusiast Wang Yu told Gai Shi Auto, “MPVs meet the needs of family users in all aspects, but no one wants to spend over 400,000 yuan (56350$) on a car as the head of the family, only to be seen as the driver when traveling with the whole family.”
Image source: Xiaopeng Motors In order to open up new prospects in the MPV market, it is necessary to create an MPV that breaks traditional perceptions and meets current trends while providing ample space. From the current perspective, new energy MPVs may be a breakthrough that changes the status quo, which is one of the reasons why Ideal and Xiaopeng jointly launched pure electric MPVs. However, creating an excellent new energy MPV is not a simple matter, as energy consumption, range, and charging efficiency are all ongoing issues to be addressed. Currently, there are two effective approaches: changing the drag coefficient, and using batteries with higher energy density to extend range. Therefore, the Ideal MEGA adopts a high-speed train design concept to reduce drag. In addition, in terms of range, it is equipped with NIO’s Kirin 5C battery, which claims to have “the fastest charging speed for electric vehicles in the world, charging 500 kilometers in 12 minutes.” Furthermore, Ideal is accelerating the construction of supercharging stations to alleviate users’ range anxiety. So, who will come out on top in the showdown between new forces and old forces? From the perspective of Ideal Motors, a deep understanding of the product and a focus on the family theme have always been Ideal’s strengths. In addition, the overall transformation of the MPV image meets the needs of the new middle-class families while balancing the owner’s desire for prestige. This may be the confidence that Ideal Motors has on the MPV racetrack. As the first pure electric MPV under Ideal Motors, the Ideal MEGA is priced at less than 600,000 yuan (84520$). The price will be officially announced in December, and deliveries will begin in February next year. During the auto show, Ideal announced its pre-sale results, with pre-orders opening in just 1 hour and 42 minutes, and the number of pre-orders exceeding 10,000 units.
In the past two years, the MPV market has been gradually changing. For example, the sales of the Tengshi D9 have been steadily increasing since its launch in October 2022, and recently, the sales have exceeded ten thousand units, showing a strong competition with the Buick GL8.