Xiaomi’s car is already on the line, but Xiaomi did not shoot it, but chose to temporarily put it down.
Leifeng was exclusively informed that Xiaomi did have related plans on the issue of “building a car” before-led by Wang Chuan and Li Wanqiang,
a “wang bombing combination”, to establish Xiaomi Holdings, a new company held by the team. The starting valuation of Che’s new company is as high as 5 billion U.S. dollars.
However, a person familiar with the matter revealed to Leifeng.com that out of many considerations, Xiaomi has temporarily shelved the above-mentioned car-making plan.
“The pace of Xiaomi’s impact on high-end mobile phones has not stabilized. Building a car will distract Xiaomi’s core business. At the same time, the opposition from partners is too loud; this should be an important reason why Lei Jun has not made up his mind,” the source said.
At the same time, a person familiar with the matter added, “In the voting for the partners of the car-building plan, Wang Chuan and Li Wanqiang as the parties insisted, but two people also voted against it, and Lei Jun chose to abstain, which ended in a deadlock.”
Millet builds cars, not without wind and waves:
There is indeed a “past ongoing tense” in Xiaomi’s car building.
A person familiar with the matter revealed to Leifeng.com that Xiaomi has been paying attention to car building for a long time and will enter the substantive planning stage in 2020.
In addition to Wang Chuan, the main driving role is Li Wanqiang, who has completely faded out after the listing.
Wang Chuan is mainly responsible for the implementation level, comprehensively exploring the smart car industry, meeting with talents in the automotive industry, and fully researching car-making technology and factories.
Also Read This:
“Li Wanqiang is also very optimistic about the new energy vehicle track”, the person familiar with the matter said. In the matter of car building, Li Wanqiang is not only in charge of “marketing”,
that is, brand marketing, but also in charge of external financing and government relations in the name of CEO. The specific car building is still led by Wang Chuan, who is the president.
Judging from past experience, under the blessing of Xiaomi, the combination of “Wang Chuan + Li Wanqiang” can indeed be regarded as “the level of king bombing.”
Prior to joining Xiaomi,
Wang Chuan was a serial entrepreneur. His entrepreneurial projects included audio-visual entertainment equipment company Leishi Technology and Dukan Technology. Later, when Xiaomi acquired Dukan Technology, Wang Chuan joined Xiaomi and became the eighth co-founder.
In the following years, Wang Chuan was in charge of Xiaomi’s Mi Box, TV and other businesses, and successively served as Senior Vice President of Xiaomi, Chief of Staff of Xiaomi Group, and President of Xiaomi China.
Among them, under the leadership of Wang Chuan, the Xiaomi TV business performed exceptionally well-in February 2018, the shipment volume of Xiaomi TV had ranked first in the country.
What’s interesting is that Leifeng.com has heard two diametrically opposed claims about Wangchuan’s product engineering capabilities.
In the eyes of Xiaomi design schools such as Liu De and Su Jun, Xiaomi TV has lowered the level of the Xiaomi brand in product design, but In the eyes of many Xiaomi’s first-line product managers, Wang Chuan is the only super player in Xiaomi who can balance the trinity of product definition, engineering realization and channel marketing.
After the last round of Xiaomi’s structural adjustment, Wang Chuan was also arranged to open up Xiaomi’s major appliances business.
This is Lei Jun’s affirmation of Wang Chuan’s ability to kill all quarters, but this is obviously a sledgehammer, and Wang Chuan is not willing to be content.
Therefore, after quickly bringing the major appliance business on track, the matter of building a car became Wang Chuan’s interest.
Li Wanqiang entered Xiaomi earlier than Wang Chuan. When Xiaomi Technology was established in 2010, Li Wanqiang was one of the co-founders of Xiaomi.
Although he had entered and exported Xiaomi twice, in terms of brand marketing, Li Wanqiang can be regarded as the soul of Xiaomi. Some people say that he is also one of the two best people on the planet.
When Xiaomi was founded,
Li Wanqiang led the team to do MIUI overall R&D, design, and operation from scratch. A few years later, Li Wanqiang began to be responsible for the establishment of Xiaomi.com, and was fully responsible for the marketing, service, e-commerce, logistics and other businesses of Xiaomi mobile phones.
After retiring from Xiaomi for the second time, Li Wanqiang was more indulging in photography, calligraphy and painting collection and other personal hobbies. But starting in 2020, it has also begun to pay attention to building cars.
The source said that in the plan, Xiaomi will not build cars within the Xiaomi system, but set up a new company.
“The new company is valued at 5 billion U.S. dollars, Xiaomi has 3.5 billion, accounting for 70% of the shares, Wang Chuan and Li Wanqiang each have 500 million U.S. dollars, each accounting for 10%, and the remaining 10% is used to attract the Xiaomi employee team to buy shares.”
Compared with the huge investment of other car companies, $5 billion seems “difficult to get on the road.” However, Northern Lights partner Wu Feng told Leifeng.com that in recent years, as the smart car foundry industry chain has matured and the cost of bicycle manufacturing has gradually decreased, this initial capital is sufficient for Xiaomi to hand over the “first and second Xiaomi.” car”.
According to the Northern Lights survey, NIO spent more than 20 billion U.S. dollars to build the first car, Xiaopeng was 10 billion U.S. dollars, and the ideal was only 1 billion U.S. dollars.
Although Long Yu, a partner of NIO’s investor BAI Capital, believes that the ideal is to build range-extended electric vehicles, and the proportion of smart driving is not high, and they are not the same variety.
Therefore, the cost of an ideal smart car should be in the order of 3 billion US dollars. ——But with the current eagerness of Foxconn BYD Geely, the exponential decline in the cost of smart cars is inevitable.
Sources told Leifeng.com that after hearing that Xiaomi is building a car, many mainstream VCs are willing to follow up immediately with a valuation of 10 billion U.S. dollars; therefore, a major purpose of splitting the new company is to raise funds without having to suffer. Limited to Xiaomi’s performance.
With the capital available, the continuous improvement of the automotive foundry industry chain has made the proportion of car manufacturing in the brand definition increasing. With the combination of “Wang Chuan + Li Wanqiang”,
Xiaomi may not be able to occupy a place in the blue ocean of car manufacturing.
However, there have been twists and turns in the process of implementing this plan.
The car plan is rejected, Xiaomi is hesitant:
The source revealed to Leifeng.com that this seemingly promising car-building plan was rejected in a high-level vote within Xiaomi. “Someone voted against it, Lei Jun chose to abstain, and the final result of the vote was that the car building plan was temporarily put down.”
Regarding the “reason for Xiaomi’s postponement of its car-building plan,” many sources have given an explanation. There are three possible factors behind it:
1. Xiaomi should concentrate on hitting the high-end mobile phone market
The source said that Xiaomi will focus on its mobile phone business next, impact the high-end market, and win the share of mobile phones that Huawei has vacated in China.
In February 2020, at the Xiaomi Mi 10 conference, Lei Jun announced that Xiaomi mobile phones will fully impact the high-end market.
In the following year, Xiaomi launched a number of high-end models priced at more than 4,000 yuan; among them, in December 2020, Xiaomi rushed to release a new generation of high-end models Mi 11 at the end of the year, which hit the rhythm of the high-end market. It is not urgent.
However, even though Xiaomi has rarely released two generations of high-end flagships in a year, its impact on the high-end has just begun.
Among them, in the first half of 2020, in China’s smartphone market with a price range of more than $600, Huawei took the first place with a market share of 44.1%, and Xiaomi ranked third with only 4% (IDC data); and in the second half of the year,
Huawei Although mobile phones are losing ground, in the high-end market, Xiaomi has not taken the opportunity to win much share.
A related smartphone industry person told Leifeng.com that although Xiaomi has made great efforts in 2020, Huawei’s dominance in the high-end domestic mobile phone market is still very strong.
At the level of high-end brands, Xiaomi’s recognition is still very low, especially In the government and enterprise high-end customer market.
“At this stage, hitting the high-end market is a more core thing for Xiaomi.”
2. The car-building project will cause an imbalance in the company’s internal personnel
Based on the previous reason, Xiaomi is more willing to keep more important personnel in the core business department.
“Car-building projects are already hotter than mobile phones. Coupled with the presence of Wang Chuan and Li Wanqiang, many people are willing to go and work together.” A source told Leifeng.com.
The source added that if too many people flock to the car-making project, the mobile phone business that originally wanted to focus on the high-end market will easily fail.
“If the car-making project really starts to be implemented, the internal will also worry that the basic disk is not stable enough,” the source said.
At the same time, Xiaomi’s executives, especially the founders, have obvious differences on the matter of car building.
Based on his business experience, one of the founders expressed opposition to all the actions of splitting the business to become a subsidiary, naturally including Xiaomi making cars; while the other founder who voted against it was more due to the outside world.
The concern about the founders’ reduction in stock holdings seems passive.
3. The idea of core making is still there, making a car is easy to distract
An insider close to Xiaomi revealed to Lei Feng that, outside of the mobile phone business, Xiaomi still has big ideas about core manufacturing.
Multi-line parallelism is easily distracting. Some partners believe that the priority of core manufacturing is higher than that of core manufacturing. Car builder.
Leifeng.com learned that Xiaomi’s core manufacturing began in 2014, and after three years of research and development, the “Surge S1” chip was released in February 2017. However, for various reasons, Xiaomi did not continue the core manufacturing project.
There is room for reversal in the car-making plan:
Sources told Leifeng.com that although the current plan to establish subsidiaries to build cars by Wang Chuan and Li Wanqiang has been temporarily shelved, it does not mean that Xiaomi will not build cars in the future.
Judging from Xiaomi’s frequent initiatives in car-building projects in the past, Xiaomi is extremely interested in smart cars, and the suspension of the Li Wanqiang + Wangchuan subsidiary’s car-building plan is also out of business priority considerations.
Leifeng.com learned that three parties , including Lei Jun, Xiaomi Technology, and Shunwei Capital, have invested in about 40 companies related to car manufacturing, automotive aftermarket and travel.
In addition, this tuyere for smart cars is still prevailing, and the market stock space is large. Other Internet companies are vying to enter this field and quickly deploy.
The HISMarket report shows that by 2025, the penetration rate of smart cars in the global automotive market will increase to 60%; among them, the penetration rate of smart cars in the Chinese market will reach 75%.
In addition, according to the requirements of the “New Energy Automobile Industry Development Plan (2021-2035)” issued by the State Council, the sales of new energy vehicles will reach 20% of the total sales of new vehicles in 2025.
It is not difficult to see that in recent years it has been the golden age of smart cars.
“It is logically reasonable for mobile phone manufacturers to build cars,” a number of industry professionals including companies such as OPPO and Huawei told Leifeng.com.
Li Shi, the founding partner of Chaojing Investment, also believes that Xiaomi’s car building is a key move for Xiaomi to move higher.
In fact, although Huawei has vetoed car building rumors many times, there are still many voices outside that believe that Huawei will inevitably embark on the road of car building.
Many die-hard Huawei dealers also said that an important hint that Huawei attracts them to stick to it is There will be cars coming out soon for them to help sell. Some people in the supply chain even bet that Huawei will launch its own smart car around July.
Wu Feng also believes that building a car today is a mobile phone made ten years ago. He has experienced the rise of the mobile Internet more than ten years ago, and he is certain that today’s smart car is the mobile phone of the year and has become the commanding height of the industry.
His view is that although today’s mobile phone battlefield has not been finalized, it has actually entered an endgame.
Many of the life and death problems of mobile phone wars will actually be solved in the smart car track, just like the many fate of PC Internet wars are all in the mobile Internet. Get the knot in the arena.
Wu Feng even believes that if he misses building a car, it will be Lei Jun’s lifelong regret.
“I don’t know one day, Lei Jun will change his mind and lead the car building himself.” The source said.