The LEAPMOTOR C16 commences its presale today.
The LEAPMOTOR C16, a 6-seater SUV, carries the powerful Qualcomm Snapdragon 8295 Smart Cockpit, an 800V Silicon Carbide platform, and a 15.6-inch rear entertainment screen, among others. In essence, the LEAPMOTOR C16 remains a wonderfully equipped vehicle, with the LEAPMOTOR company assuring that a full-scale price isn’t crossing the 200k yuan threshold.
As for the LEAPMOTOR C16, LEAPMOTOR is certainly brimming with confidence and ambition. After the unveiling, Zhu Jiangming, the chairman of LEAPMOTOR, and others expressed their views on the C16 and the current industry trend.
Below is the main content of the group interview that we edited without changing its essence:
Q: The all-electric C16 comes standard with 800 V, is it because the cost of 800 V has reduced or due to other reasons?
Since technology is advancing rapidly, the cost of 800V high voltage has decreased as it gets used more frequently in various vehicle products. However, the cost of 800V is expected to reach the level of 400V platform in another one to two years.
Q: Why has LEAPMOTOR introduced a 6 seater SUV?
We observed that the prices for 6 seater SUVs are usually above 250,000 yuan, be it fuel-driven or all-electric, with prices leaning toward the higher end and even inclusive of a premium. However, in the sub-200k market segment, we haven’t seen any excellent 6-seater SUVs that can meet customers’ needs.
Compared to the Alfa that I bought with an added premium three years ago, all of our configurations are higher. But since we do not have air suspension, there’s still a slight gap compared to LI’s configuration.
We take pride in making a 6-seater SUV under 200k with superior pricing and higher configurations. The intelligent configurations particularly surpass those of traditional vehicles costing 500k or even 1 million. Even the 6-seated Highlander costs somewhere around 250k to 300k plus.
I believe the C16 will certainly be welcomed by our users. As the country promotes having more children, it will undoubtedly cater to the needs of families for outings or larger households.
Q: What is LEAPMOTOR’s application strategy for large models?
Our clover architecture is extremely flexible. LEAPMOTOR has the capability to effectively utilize the neural network resources on the 8295 platform. Consequently, we have integrated several functions, making it easy for us to partner with third parties and promptly load large language models onto our 8295 platform.
We have already applied this set of technology in our models. For instance, we brought together the smart drive and cockpit as one in the C10 model, realized on a single chip.
Q: From where does LEAPMOTOR derive its confidence to emerge as the winner in the sub-200k market?At LEAPMOTOR, our focus is on the price interval of 100,000 to 200,000 which gives us the advantage of concentrating all of our resources.
The brand identity would face conflicts if it aims to cover high-end categories above 300,000 and affordable ones between 100,000 to 200,000. It might also cause a dispersion of efforts. Initially targeting the high-end market and then transitioning to the medium-range might impact the former, making high prices unattainable.
In terms of cost control, strategies for vehicles above 300,000 and between 100,000 to 200,000 differ significantly. Hence, it is crucial to stay focused and excel in a specific segment.
Q: What is the scale of LEAPMOTOR’s autonomous driving team?
We have a team of 300 for autonomous driving.
Q: How does LEAPMOTOR balance team scale and efficiency in autonomous driving?
Technological advancement is a process. The current gap is not extensive; we can say that LEAPMOTOR is a follower in autonomous driving strategy. Despite not having the largest investment, we ensure we are not falling behind, keep up effectively, and even achieve some innovation in specific areas.
Q: Both C10 and C16 have the same wheelbase, but the former has two rows while the latter three. How is space optimized for the latter?
You can experience it for yourself; our C16 has better space than the Toyota Highlander and also fares well compared to the LI L8. The entire layout is extraordinarily flexible due to our self-developed batteries and electric drive system.
For instance, we designed a rear flipping battery and placed the electrical distribution components within the battery pack. So, unlike many vehicles, there are no protrusions or platforms for the third row. Even though the wheelbase of C16 is 2,825 mm, the space provided surpasses many cars with a 2.95 m wheelbase. The third-row seating is better than many above 300,000 vehicles.
Q: What is the reason for LEAPMOTOR’s financial growth?
First, the quality of our vehicles, which users generally find faultless. Second, the pricing has been on point. Post the launch in March last year, our pricing remained almost unchanged and received user endorsement.
Of utmost importance is that every product is priced close to its cost. The cost structure of LEAPMOTOR is more favourable compared to others. This is due to our comprehensive self-development, with around 60% of our core parts being self-developed. In comparison, our competitors operate at a loss, while we maintain a modest profit.
Q: What are LEAPMOTOR’s expansion and localization plans for foreign markets?
The future advantage of LEAPMOTOR lies in overseas markets. Our collaboration with the Stellantis group is progressing swiftly. Our overseas team and executive team are exceptional and are all in place. Our overseas market is segmented into four main areas—Europe, South America, Central and Eastern Europe, Middle East, Africa and the Asia-Pacific, developing simultaneously.
We establish dealer networks and service networks locally. With more than 10,000 dealers from the Stellantis group, we can assure the quickest and highest-quality expansion overseas.
This is not just a trade-oriented overseas expansion but creating a local service system based on Stellantis group’s services. This strategy would significantly benefit our users and instil confidence in the use of LEAPMOTOR’s products.Therefore, I anticipate that next year will be a plentiful harvest for us overseas. This year, we’re just setting off to establish our team and systems. Additionally, our product finished certification in the third quarter. Hence, our product did not commence full-fledged overseas sales until the fourth quarter. I believe the following year will be a bountiful one for LEAPMOTOR.
Q: Does LEAPMOTOR’s product strategy involve learning from LI’s model?
If we’re talking about learning from benchmarks, we observe all the excellent ones, all competitor vehicles, not necessarily direct competitors. We learn from their merits. However, looking at the product strategy, our release time is somewhat concurrent with LI. In other words, the entire vehicle’s development cycle is over two to three years. It was impossible for us to have known their product design from two or three years ago. Their L6’s market release was even later than our C10. Our C16’s current delivery time is in June; which was planned and initiated two or three years ago.
Hence, looking at the entire product planning, we can only say that there is some overlap in some aspects, such as future family travel. In reality, we didn’t draw much from their product planning.
Q: What contribution does LEAPMOTOR’s development mode make to the industry?
As a newcomer, LEAPMOTOR might apply some concepts or ideas or rhythms from the electronics industry to the automotive industry.
Q: LEAPMOTOR has three SUV models in the 10-20 thousand market segment. How do you differentiate these three SUV models?
We hope to start with the C Series. Currently, we have C10, C11, and the newly launched C16 in the C Series. These three vehicles are based around 15 thousand, with some higher or lower options.
Next year, we plan to introduce vehicles with 10 thousand as the median price, such as the A Series. Our A12 is also an SUV, with 10 thousand as the median price. In the future, we will have vehicles with 20 thousand as the median price, which is the D Series.
We hope that the C Series will solidify this year, and we can become the leaders in the 10-20 thousand price segment. Then, we can expand to lower and higher ends, laying out our complete strategy.
If you pay attention, you might have noticed that in recent weeks, after our C10 was delivered, it’s basically a cycle of C10 and C11 taking turns being dominant. On one hand, C10 brings us a good store traffic, and on the other hand, once customers arrive in the store, they can choose between C10 and C11 according to their needs.
Q: There’s a sentiment now that the current Chinese automobile industry has reached the finals. What is the core competitiveness of LEAPMOTOR to enter the finals or win the competition?
Mainly two aspects: focus and progress. We produce products from 10 to 20 thousand, sequentially and progressively. Second, we want to center on technology, thoroughly and robustly establish a platform, making our products more competitive. We aim to produce the highest-priced products, meaning under the same configuration, our price is the lowest; under the same price, our configuration is higher. We want all users to perceive that buying LEAPMOTOR products is thusly so.Q: Will there be a five-seat version of the C16?
While the platform of the C16 allows for a five-seat configuration, we currently do not have plans for such a model in our established product lineup. If there is a market for it, however, we can swiftly initiate the production of this demand.
Q: Since XiaoMi entered the game, a fierce public opinion and traffic war among car companies has erupted, which includes established vehicle giants joining the fray. What is your take on this industry trend? Do you have any plans for live streaming in the near future?
I’m not Lei Jun or Yu Chengdong, and I don’t possess their level of influence or the accompanying high profile. As such, I would rather focus on honing my technical skills and striving for excellence in this field. Regardless of how well-known or obscure a product might be, I firmly believe that its quality will always speak for itself, and therefore, we should concentrate on perfecting our expertise.
Indeed, I’m not cut out for live streaming due to the large audience it requires. My goal is to produce high-quality products for our brand. That said, I could host a live stream on entrepreneurial insights, as I’ve had several successful startups and could share how to build a car and create technology. However, creating a highly entertaining and big-hit live stream is beyond my capability.
Q: What measures is LEAPMOTOR taking in response to the price war?
Market maturity often results in price wars—it’s an inevitable reality of doing business. Ultimately, a company’s survival depends on its competitive edge; those lacking it will inevitably be ousted from the market.
Throughout the years, LEAPMOTOR has been advancing step by step, slowly but surely moving up in the ranks. We make consistent yearly progress without taking excessive risks, which reflects the prudent approach that defines our brand.
We’ve also formed numerous partnerships. For instance, our collaboration with Stellantis, who invested in LEAPMOTOR last year, is a significant move. This cooperation is likely to accelerate LEAPMOTOR’s entire process, bolstering our strength when entering both domestic and foreign markets. Focusing on the domestic market, we aim for LEAPMOTOR to steadily advance. As part of this process, we’re gradually building stronger capabilities across various areas, including network channel construction, retail sales and services, and market promotion capacity. We plan to fight this as a battle of attrition, improving each element yearly.
Regarding foreign markets, we’re mostly relying on the influence of the Stelantis group over the entire global market. We’re also preparing a wider array of products for overseas markets and have comprehensive plans for future vehicle models there. Our product quantity and the positioning of each product will also become increasingly clear. By targeting both domestic and foreign markets, we hope the parts section can cooperate with more car companies to ensure a brighter future for LEAPMOTOR.
This article is a translation by AI of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.