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Apple spent 80 billion and Evergrande spent 100 billion to build a car, why did Xiaomi, which spent 10 billion, succeed?

author:90 companies

In recent years, the mainland's automobile industry has developed very vigorously, and in 2023, the number of automobile exports in the mainland will become the world's first. In addition to traditional auto companies, some large manufacturers have also entered the game, either cooperating with car companies or directly building their own car brands.

And Xiaomi also joined the team of car manufacturers, and on April 3, the delivery ceremony of Xiaomi SU7 was officially held. In the Xiaomi automobile factory in Yizhuang, Beijing, Lei Jun personally appeared to open the car door for the first batch of Xiaomi car owners, and also took a photo with the car owners. Lei Jun, who was smiling all the way, was very approachable.

Apple spent 80 billion and Evergrande spent 100 billion to build a car, why did Xiaomi, which spent 10 billion, succeed?

Previously, at the press conference on March 28, Lei Juncong announced the launch of 5,000 units of the Xiaomi SU7 founding version. The Founding Edition is available in the standard and MAX versions, as well as exclusive emblems and auto parts. After the Xiaomi SU7 launch event, it instantly caused a lot of discussion on the Internet.

Whether it is the price of Xiaomi SU7, the model or its performance, it has become a hot topic of discussion. But there is another point that makes many people very curious is that Xiaomi is not the only big man who has entered the automobile industry. Previously, Evergrande and Apple had plans to build cars.

Moreover, Evergrande and Apple have spent huge sums of money, and Evergrande and Apple themselves are not strong enough, so why have they not succeeded in the automobile industry? On the contrary, Xiaomi, which only spent 10 billion yuan, has really built its own car?

Apple spent 80 billion and Evergrande spent 100 billion to build a car, why did Xiaomi, which spent 10 billion, succeed?

First of all, Evergrande Automobile has shortcomings in technology. The new energy vehicle industry involves a number of complex fields, such as automotive electronics, intelligent driving and body design, etc., Evergrande's strength in these fields is relatively weak, lacking core technology, and it is difficult to break through technical barriers and compete with industry leaders.

Secondly, Evergrande Automobile is facing serious financial problems. We all know that after Evergrande's thunderstorm, it was revealed that it owed more than 2 trillion yuan, so at least there were problems with Evergrande's capital chain before. Then it is likely that Evergrande will not be able to continue to invest a lot of money in R&D and production. This has a direct impact on the production capacity scale and market competitiveness of Evergrande Automobile.

In addition, the low market acceptance is also an important reason for the failure of Evergrande Automobile. Deliveries of Evergrande Automobile's first mass-produced model, the Hengchi 5, were not satisfactory, and the market response was lackluster. Consumers have doubts about the quality and technical level of Evergrande Automobile, resulting in low market acceptance and difficult sales.

Apple spent 80 billion and Evergrande spent 100 billion to build a car, why did Xiaomi, which spent 10 billion, succeed?

In addition, Evergrande Automobile also has problems in strategic positioning and market layout. Although Evergrande Auto divested its real estate business and focused on new energy vehicles, this strategic adjustment did not bring a significant market advantage. At the same time, Evergrande Automobile also has deficiencies in market positioning, product positioning and sales channels, and fails to effectively meet consumer needs. Therefore, with many of the above shortcomings, it is naturally difficult for Evergrande to build a car.

The reason why Apple chose to abandon building cars is because they also have many considerations. From a market and technology point of view, Apple does have a strong advantage, and if Apple chooses to build a car, a large number of users will definitely pay for it. However, the majority of consumers' expectations for Apple are too high, just like Apple once launched the iPhone4 to lead the mobile phone revolution, if Apple built a car but did not meet everyone's expectations, then Apple's brand influence is also an invisible consumption.

Apple spent 80 billion and Evergrande spent 100 billion to build a car, why did Xiaomi, which spent 10 billion, succeed?

And from a strategic point of view, at present, many major manufacturers in the world have entered the automobile industry, Apple at this time. also fell into involution and invested a lot of money and material resources, then it is possible to reduce Apple's investment in core business electronics, and the gains may outweigh the losses.

The main thing is that after investing a lot of money and material resources, it is not always possible to get the expected return, if the return on investment is not ideal. If you don't balance investment and income well, it may damage Apple's own strength, so you must be cautious.

And the reason why Xiaomi can succeed is naturally because of the strength of Xiaomi itself. In so many years, Xiaomi has been deeply involved in the mobile phone industry for many years, with its own technical accumulation, although it has crossed over to the automotive industry, but Xiaomi's founder Lei Jun and the leaders of many car companies have a good intersection, such as Xiaopeng, ideal, Great Wall and so on. At the Xiaomi SU7 press conference, these bigwigs were all present to help, and it can be seen that they support Xiaomi cars.

Apple spent 80 billion and Evergrande spent 100 billion to build a car, why did Xiaomi, which spent 10 billion, succeed?

If you deal well with real professionals, you will naturally be able to walk more smoothly on the road of building cars. And the strategic positioning and market layout of Xiaomi car are also very reasonable, the strategic direction of Xiaomi car is "people, cars and home ecology", focusing on creating a complete ecosystem, and for so many years, Xiaomi's ecosystem has a very large user base, so these people accept Xiaomi cars, it is likely to be easier.

The success of Xiaomi Auto is inseparable from their brand influence and user base, technology research and development and innovation strength, capital and resource advantages, intelligent ecology and Internet service experience, and reasonable strategic positioning and market layout.

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