Set sail1992

Chapter 1392 Zhang Qihang's Inspiration

It doesn't matter if you don't understand. Director Jiang directly asked Zhang Qihang: "Xiao Zhang, do you mean that as long as the production scale is large enough, your mild hybrid system can reduce the cost to around 5000 yuan?"

"Yes leader."

Director Jiang asked again: "If you calculate it this way, the cost of a car equipped with your mild hybrid system should be higher than before, right?"

"Yes," Zhang Qihang nodded, "That's right."

Seeing that Zhang Qihang agreed with what he said, Director Jiang directly asked the question in his mind: "Then why can you make the extended-range hybrid model of deep hybrid and oil-electric vehicles the same price?"

As soon as Director Jiang said this, Deputy Director Kang and the others around him all looked at Zhang Qihang.

The same question arises in everyone's mind: Yes, the technology of Huateng Group's extended-range hybrid system is more complex and the cost should be higher. Then why can Huateng Group achieve "same price for oil and electricity", while the cost of automatic transmission models will increase by several thousand after adding such a 48V/52V mild hybrid system?

This doesn't make sense logically.

Zhang Qihang smiled and said, "Leader, you are right. According to normal logic, the same model of the same brand and configuration, if the cost is arranged from low to high, it must be manual transmission, automatic transmission, mild hybrid and heavy hybrid. However, our Huateng Group can achieve the same price for gasoline and electric vehicles with the same configuration. This is indeed a bit incomprehensible."

"Yes," Director Jiang nodded and said sincerely, "Comrade Qihang, I can't understand how you did it."

"It's actually very simple. We just chose a lower profit margin per bike and chose to make a little less money than other competitors."

"..."

As soon as Zhang Qihang finished speaking, everyone was stunned.

  Just now, various possibilities flashed through everyone's mind, but no one expected Zhang Qihang to give such an answer: The reason why their Huateng Group can achieve the same price for oil and electricity is because they chose a lower profit margin per vehicle?

Deputy Director Kang frowned, not understanding: "This... Xiao Zhang, why are you doing this? Is there any company that thinks it doesn't make enough money?"

Others also nodded, feeling that it was a bit incomprehensible that Huateng Group chose to proactively reduce its profit margin when there was little external pressure.

Zhang Qihang said a little embarrassedly: "Leader, you may think that our Excelle has been the sales champion in the domestic compact car field for several consecutive months, suppressing the joint venture brands. But if you look at the sales of Excelle half a year ago, you will find that at that time, Excelle's sales had fallen out of the top five, and the sales volume fluctuated greatly, and sometimes fell out of the top ten."

  Is that so?

Why were the sales of Haima Kaiyue so bad half a year ago?

Why don't I have any impression of it?

Deputy Director Kang couldn't remember clearly for a moment, but since Zhang Qihang said so, it must have been like that at the time, right?

He nodded and motioned Zhang Qihang to continue - now he was even more curious.

"You know, Excelle and Sylphy are our leading models in the compact car market and mid-size car market respectively, but our replacement Excelle has not completed testing. If we rush to launch the new generation of Excelle, no one can guarantee that the car will not have problems. So the question before us at that time was: How can we stabilize sales before the new generation of Excelle is launched?" At this point, Zhang Qihang sighed: "At that time, we were under great pressure. In order to stabilize sales and increase sales, we thought of many ways, but the results were not very ideal.

In the end, we decided to bet on hybrid power, but at that time the hybrid version of Excelle was much more expensive than the automatic Excelle.

  How to do?

Finally, after discussing with Secretary Lao Feng, I decided to take a gamble. Since the hybrid version of Excelle is too expensive, I will lower the price to the same as the automatic version. Then there will definitely be people who will buy it, right?

The final result is what you have seen. The sales of Excelle suddenly increased, and it has been firmly occupying the top spot in the compact car sales list since the second month. In fact, because more customers went to our brand's 4S stores, the sales of several products under our group also increased.

  As for the question you are curious about, I can answer it for you now:

Because sales volume has increased, our costs have been further reduced;

Previously, the cost of the hybrid system was high because sales were not high. Now that the sales of the hybrid version of Excelle have increased, the purchase volume of the hybrid system has increased, and the cost of the entire system has dropped rapidly.

The hybrid system is produced by our group's integrated circuit design and research and development center. As the purchase volume of hybrid system-related accessories increases, the integrated circuit design and research and development center has greater bargaining power with suppliers, which has reduced the cost of other products and increased profits.

At the same time, we are also a battery supplier: one of the shareholders of BYD Group, and we can also get a part of the battery dividends;

Coupled with the increase in sales of other models...

The final result is that although the profit margin of Excelle per vehicle has indeed dropped a lot, taking into account various miscellaneous factors and the cascading effects, the decline in Excelle's overall profit margin is actually not that much and is still acceptable."

"..."

After listening to Zhang Qihang's words, Deputy Director Kang, Director Jiang and the others around him were all silent.

  Although Zhang Qihang spoke modestly, everyone understood clearly: Huateng Industrial Group traded a decrease in the profit per vehicle of the Excelle model for an increase in the total profit of the entire group and an improvement in the profit margin. Huateng Group simply won!

After figuring this out, Director Jiang nodded slightly: "Now I understand what you said. It seems that your operating model has its reasons for success, but other car companies can't imitate it."

After that, he brought the topic back to the previous one: "Xiao Zhang, so if other car companies want to use this mild hybrid system, they can only bear the cost of rising costs?"

After all, what he cares most about is to quickly promote and popularize Huateng Group's 48V/52V hybrid system. Once this is accomplished, it will be of great benefit to him and the department he is in charge of.

Zhang Qihang responded: "In the short term, the cost of a bicycle will definitely increase, but from a long-term perspective and on a larger scale, I'm afraid the cost will actually decrease."

Director Jiang seemed to be thinking about something. He thought of the example Zhang Qihang had just given.

Then he looked at Deputy Director Kang and said: If that's the case, then this matter really needs to be carefully considered.

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PS: Sorry guys, I have some plans tonight, so there is only this chapter tonight.