Compared to the Wenjie M7, the ideal "cheapest" model starts at 249800 yuan, and the brand's biggest battle is coming?

Ideal car has once again stepped up its game on its familiar extended-range track.

On April 18th, the all-new model Ideal L6 was launched by Ideal car. The new car is positioned as a mid-to-large-sized extended-range SUV, and it comes in two models: Pro and Max, with prices of 249,800 yuan and 279,800 yuan respectively.

"Before the launch of Ideal ONE, we wanted to introduce extended-range models, but it was difficult to seek capital as the capital market did not favor it. However, I want to build cars for myself and users, not for capital, so we chose to continue with the extended-range model route," said Li Xiang, Chairman and CEO of Ideal car at the launch event of Ideal L6, stating that Ideal L6 is highly anticipated by many users.

It is understood that Ideal L6 is built on Ideal car's second-generation extended-range platform. Officially, Ideal car stated that the car took three years to develop, with an investment of over 2 billion yuan, and Ideal has built a new production line for the car. Ideal L6 will start small-scale deliveries next week, with an estimated delivery of around 2,000 units this month, and large-scale deliveries will begin in May.

Unlike the previous extended-range products of the Ideal car, the Ideal L6 is equipped with lithium iron phosphate batteries. "We have developed a new generation of high-energy-density iron-lithium battery cells, which balance high-power performance. Especially in combination with the optimization of vehicle energy consumption and wind resistance, the Ideal L6 has a total range of 1390 kilometers and a pure electric range of 212 kilometers," said Tang Jing, vice president of research and development at Ideal car.

01 "Entering" the Red Ocean Market

It is worth noting that the Ideal L6 is not only the lowest-priced model currently sold by Ideal car (priced below 300,000 yuan), but also the first time that Ideal car has truly entered the fiercely competitive market.

Compared to the market space for passenger cars priced above 300,000 yuan where the Ideal L7 and L8 are positioned, the market space for passenger cars priced between 200,000 and 300,000 yuan is even broader.

According to data released by Cui Dongshu, secretary-general of the National Passenger Car Market Information Joint Conference, the retail sales of passenger cars in the 200,000 to 300,000 yuan price range accounted for 15.9% of the Chinese market in 2023, while the retail sales of passenger cars in the 300,000 to 400,000 yuan price range accounted for 11%, and the retail sales of passenger cars priced above 400,000 yuan accounted for 3.2%.

Zou Liangjun, senior vice president of Ideal car, once said, "The market space for models in the 200,000 to 300,000 yuan range is twice that of models priced above 300,000 yuan, and of course, the competition is fiercer. For example, a single model like the Model Y can sell 40,000 to 50,000 units."

A broader market space also means that many car companies are positioning themselves in this segment. It is reported that the Ideal L6's price range competes with models such as the Tesla Model Y, the WM Motor M7, the WM Motor new M5, the Lantu FREE, the NIO ES6 with the BaaS battery rental service, and the Xiaopeng G9.

Among them, the WM Motor M7 is the most direct competitor to the Ideal L6. In March of this year, the WM Motor brand delivered approximately 31,700 new vehicles, winning the sales champion of Chinese new energy brands for three consecutive months. Among them, the new WM M7 delivered nearly 24,600 new vehicles in March, with a cumulative delivery volume of over 120,000 vehicles, continuously topping the sales list of Chinese new energy vehicle models.

Faced with such competition, Ideal car still plays the "family" and "comfort" cards, positioning the Ideal L6 as a "luxury mid-to-large-sized five-seat SUV specially designed for young families." In this positioning, although the Ideal L6 is the smallest model of Ideal car, its length, width, and height reach 4925x1960x1735mm, with a wheelbase of 2920mm, which is similar in size to the Porsche Cayenne.

In the cabin, the Ideal L6 is equipped with a 15.7-inch LCD dual-screen (3K resolution) and a built-in Qualcomm Snapdragon 8295P processor. It also features two rows of four heated and ventilated massage seats, front row dual-seat ten-point massage, front row dual-seat memory, five seats with soft pillows, double-layer laminated soundproof glass, a huge panoramic sunroof (with sunshade), and CDC sports suspension for added comfort.

02 Target monthly sales of 20,000 units

Despite facing numerous challenges, for Ideal Auto, the Ideal L6 is a "battle that cannot be lost." Tianfeng Securities believes that the Ideal L6 is the core main model for Ideal Auto's product price reduction and incremental growth this year.

On March 1st of this year, Ideal Auto's flagship model, the Ideal MEGA, was launched, but its market performance did not meet expectations. Li Xiang also admitted in an employee letter that misjudgment of the pure electric strategy led to a poor start for the MEGA.

At the same time, the reporter from "Daily Economic News" also learned that the simultaneous release of Ideal Auto's flagship model and the main sales model has led to a situation where the communication end and the sales front line cannot be both taken care of, resulting in a certain degree of impact on the sales of extended-range products.

"The chaotic pace of Ideal MEGA has greatly reduced the time and energy of Ideal Auto's sales team to serve L-series users, leading to the main model Ideal L8, and even the placement of the store has not been given attention." Li Xiang also stated in the employee letter that Ideal Auto will reorganize the pace of subsequent models' launches internally, allowing sufficient time for communication and sales to "digest" the product strength and prepare to deliver value to users.

In this context, Ideal Auto has lowered its delivery volume expectations for the first quarter of this year to 76,000 to 78,000 units. There are rumors in the market that a communication memo shows that Ideal has also adjusted its annual delivery target from 800,000 units to 560,000 to 640,000 units, a decrease of 160,000 to 240,000 units.

However, it is worth noting that Ideal Auto's expectations for the Ideal L6 have not been lowered. Internally, it is believed that "the stable state still aims for monthly sales of over 20,000 units." "In the entire price range of 200,000 to 300,000 yuan, we hope to achieve a market share of around 10% by the end of this year," said Liu Jie, the product line president of Ideal Auto, expressing his expectations for the Ideal L6 to the reporter.

In addition, Ideal Car underwent a matrix organizational adjustment in March. According to Guotai Junan Securities, this adjustment signifies that the company has moved from reflection to action. The CEO's office is expected to reduce its burden and focus on product definition and implementation, further enhancing the company's user value, operational efficiency, and decision-making capabilities, providing a guarantee for the subsequent launch of new products.

According to a research report from Ping An Securities, a series of adjustment measures by Ideal Car highlights its agile corrective ability. The company is well-prepared, and the Ideal L6, positioned in the price range of 200,000 to 300,000 yuan, is expected to achieve a monthly sales volume of 20,000 units. The four L-series models have strong profitability and remain the sales base for the company in 2024.