Ideal has completely transcended the circle of new forces.

A 100,000-word article: Ideal Car's Crucial Year

2023 is a crucial year for Ideal Car. With the success of popular models like L7 and L9, Ideal Car has surpassed its peers in the new energy vehicle sector. It is expected to directly exceed the threshold of 300,000 units in annual sales, crossing the life-or-death line.

This achievement has allowed Ideal Car to break free from the circle of first-generation new energy vehicle companies such as NIO, Xiaopeng, Leap Motor, and NIO. It has entered the 300,000+ club and can even compete with traditional luxury car brands like Mercedes-Benz and BMW.

On November 9th, just a few days after achieving monthly sales of over 40,000 units, Ideal Car released its third-quarter performance report.

According to the financial report released by Ideal Car for the third quarter, with the help of the L7, L8, and L9 models, the company delivered 105,100 new vehicles in the third quarter, a year-on-year increase of 296.3%.

This significant improvement in revenue data is evident. The financial report shows that Ideal Car's revenue for the third quarter was 34.68 billion yuan, a year-on-year increase of 271.2%. Operating profit and net profit were 2.34 billion yuan and 2.81 billion yuan respectively, marking four consecutive quarters of profitability.

As of September 30th, Ideal Car's cumulative sales from January to September reached 244,225 units, with a total operating income of 82.12 billion yuan. It is only 17.88 billion yuan away from the target of 100 billion yuan in annual revenue. Many industry insiders believe that achieving this goal will not be difficult.

With the addition of October's sales (40,422 units), Ideal Car's sales for this year have reached 285,000 units, with a completion rate of 95% for the target.

As for the guidance for the fourth quarter, Ideal Car expects monthly deliveries to exceed 40,000 units, with quarterly deliveries between 125,000 and 128,000 units. This means that Ideal Car will achieve sales of over 350,000 units for the whole year.

As one of the fastest-growing new energy vehicle companies this year, Chairman Li Xiang has revealed his ambitions for the future.

During the third-quarter financial report conference, Li Xiang stated that the supply bottleneck issues encountered in the past have been successfully resolved. In terms of new vehicle models and component procurement, Ideal Car has formulated long-term strategies to ensure stability. "Ideal Car's production capacity can meet the sales targets for the next two years."

Li Xiang further reassured investors by stating that in October, Ideal Car's manufacturing base in Changzhou completed capacity upgrades, preparing for further production ramp-up in the fourth quarter. In terms of supply chain management, Ideal Car has continuously broken through the bottleneck of component supply by optimizing management strategies, upgrading management processes, and strengthening efficient collaboration with suppliers. It is expected that in the fourth quarter, Ideal Car's total deliveries will reach between 125,000 and 128,000 units.

Looking ahead, in 2024, Ideal Car will release and deliver four new products, making it the year with the most diverse product lineup since its establishment.

In the first half of 2024, Ideal Car will release the Ideal L6, a mid-to-large-sized SUV targeting younger families. In the second half of the year, three pure electric vehicles will be delivered.

In addition, Li Xiang is also working hard to address the shortcomings in intelligent driving. During the third-quarter financial report conference, Chief Engineer Ma Donghui stated that leading in intelligent driving will be Ideal Car's core strategic goal in the future. In terms of investment, currently there are about 900 ideal smart driving personnel, and the ideal plan is to have over 2,000 smart driving personnel by next year and over 2,500 by 2025. In the future, Ideal will also increase its R&D investment in vehicles, computing power, and personnel. "We have sufficient cash reserves and cash flow to support the funding needed for smart driving."

It is worth mentioning that Ideal and Huawei are currently in fierce competition in terms of products. Even on the same evening as Ideal's Q3 earnings report, the pre-sale event for the Zhijie S7, a collaboration between Huawei and Chery, is also taking place.

In response to this, Li Xiang stated that the internal attitude of Ideal towards Huawei is very consistent: 80% is learning, 20% is respect, and 0% is complaints. "As a start-up company, when we reach a revenue scale of 100 billion yuan and encounter a technology role model that has achieved nearly trillion yuan in revenue, Ideal is very fortunate and excited."

As for how to achieve the annual sales target of millions of vehicles in 2025, Li Xiang pointed out three main aspects. The first is the consensus level of the company, including corporate culture, user brand, and corporate strategy. The second is the business level facing consumers, including product, R&D, sales, service, supply, and manufacturing, all of which need to be coordinated. The third is the construction of the entire functional system, including manpower and company operations.

Li Xiang stated that in the face of intense competition, in order to achieve annual sales of over one million vehicles, just like the theory of weaknesses, every aspect needs to be done well enough.

Over four months ago, Li Xiang stated in a company-wide letter that Ideal's goal is to become the number one in sales among all luxury brands in the Chinese market, with a delivery volume of 1.6 million vehicles per year by 2025.

At the end of last year, during the organizational restructuring of Ideal, Li Xiang stated that this was "preparing for revenue in the hundreds of billions or trillions."

Clearly, in today's fiercely competitive and "survival of the fittest" new energy vehicle market, Li Xiang is ready to seize the opportunity and go further.

With the emergence of new energy vehicle brands such as NIO, Xiaopeng, Leapmotor, Jike, Huawei Wenzhijie, and Aiways, a new market landscape is taking shape, and the battle for the top position has become increasingly crucial. Li Xiang has already launched an offensive.