In the fiercely competitive domestic market of new energy vehicles, where both sales and CEOs are in fierce competition, JISHI is evidently a rather unconventional brand.
JISHI does not target the mass market but instead introduces the JISHI 01, priced around 300,000 RMB, focusing on outdoor scenarios. For the current JISHI 01, a monthly sale of a few hundred units is already a commendable achievement.
From an external perspective, JISHI seems to have a weak brand presence and low product sales, appearing as a brand lingering on the fringes of the mainstream market with not very vigorous vitality. However, internal management at JISHI holds different views.
At the Guangzhou Auto Show, opening on November 15th, we interviewed Bian Yuan, Head of the JISHI Auto Product Marketing Center, and Yu Wentao, Head of JISHI Auto Product Planning, regarding some of JISHI’s current development issues.
In their view, JISHI has long surpassed its darkest hour and is gradually beginning to thrive.
On one hand, JISHI has penetrated the Middle East and markets along the Belt and Road Initiative, gaining more market opportunities; on the other hand, JISHI’s finances remain healthy and stable, with investors optimistic about JISHI’s potential, thus JISHI still retains a lifeline to withstand market shocks.
Overall, 2024 will not only continue to present challenges in the domestic market but also represent a year for aggressive market expansion overseas—a year where JISHI will face numerous challenges while continuing to seize new opportunities.
Below are the main contents of the interview, edited without altering the original meaning:
Q: In today’s fiercely competitive market, how does JISHI, as a niche brand, instill confidence in consumers?
A: Starting this year, the CEO has tasked us with a core initiative—establishing consumer confidence in the brand.
From the outside, the survival of the company may not be clear, yet our subsequent financing remains quite healthy and stable. By next year, we intend to demonstrate this directly through product initiatives. Meanwhile, we cannot be isolated or ignore users’ concerns; we must be accountable to shareholders, existing car owners, and potential customers.
In addition, if you look at the sales curve of JISHI 01, our darkest times are actually behind us. Our network expansion, overseas channel development, and user maintenance are progressing orderly. Since August, we have been steadily achieving monthly sales of 500-600 units, and the sales curve is undoubtedly on the rise. We aim to stabilize monthly sales figures at four digits by next year.
Last year, our sales in the UAE market were about 500 units, and next year, we expect it to reach 1,000-2,000 units. What does this mean? The JISHI 01 is priced at $70,000 in the UAE, with the entire market’s annual sales being 300,000 units. Our segment might only account for 30,000 or 20,000 vehicles; if we can capture one-fifth or one-sixth of this market, you can imagine the significance.
We don’t overly concern ourselves with outside distractions, but we have the duty to consistently communicate positive news and confidence.
Q: For JISHI, is a monthly sales figure of four digits the survival threshold?
A: We currently have a team of 1,200 people, with 300 frontline sales personnel. Our efficiency ratio is a miracle in the industry, always striving to create maximum value with the minimum workforce.Thus, for JISHI, the critical threshold may be a monthly sales volume of 1,200-1,500 units.
Regarding profit, it’s undeniable that competition in the domestic market is fierce. However, unlike other car manufacturers, we resist price drops under sales pressure to protect our car owners and brand.
While maintaining basic profit requirements domestically, the overseas market currently provides our primary profit source.
Q: Does JISHI have any new financing plans?
A: Cooperation with our external financiers, the Weiqiao Venture Group, is progressing well. There is a possibility of Weiqiao considering further investment, especially if we expand effectively in affluent overseas markets.
Q: What adjustments did JISHI make to emerge from its darkest times?
A: In facing challenges, our founders immersed themselves in the business to deeply understand current issues and mobilize the company for introspection and adjustment.
This adjustment involves painful processes, but we prefer to remain silent until we achieve results. We are confident that we can overcome challenges like successful predecessor companies.
Q: Are there plans for strategic adjustments or iterations in JISHI’s brand or product positioning?
A: Our goal is to become the leading outdoor brand in the EV niche, not just domestically but globally.
Regarding products, amidst market changes and competitor iterations, domestic car manufacturers continually produce new models, following any emerging product or brand.
However, we introspect: What should we create? Who do we aim to attract? What do these people want?
We need a positive understanding of these issues to refine our products before introducing them to consumers, rather than merely chasing sales trends.
The JISHI 01 primarily aims at outdoor living, thus considered niche, amid trends focusing on smart, electric family vehicles.
However, we analyze big data. For instance, regarding smart driving: how many truly benefit from it? Among sold models, how often is ADAS genuinely utilized? Is smart driving prevalent only in mega-cities or also in smaller regions? We ponder these questions to decide whom to serve.
Q: What are the top three reasons why consumers buy JISHI vehicles?
A: First, the design. Some might view JISHI 01’s elements as homage. We don’t shy away from this because evolving upon good ideas reflects our understanding of products and automobiles, which is perfectly acceptable.The second is mechanical quality, and the third is outdoor living.
Q: What is the user recommendation ratio for Jishi 01?
A: Over 50%. One of our owners in Yinchuan has personally recommended and facilitated nearly 20 car purchases.
When our delivery volume reaches the first 10,000, we will report back. Achieving 10,000 in this competitive environment, with this pricing and our pursuit of profit, is not an easy task.
Q: Is Jishi prioritizing domestic or international development in the future?
A: We are advancing on both fronts. The Chinese market is like a global fitness center; once we’ve trained here, we’re ready for any competition abroad. Domestically, we are steadfastly investing resources, including R&D.
As for overseas expansion, our first phase focus is twofold: the Middle East and the Belt and Road countries, with the Middle East taking precedence. By this month, we have covered all countries and core cities of the Arabian Peninsula, and Kazakhstan in Central Asia is set to request over a thousand vehicles from us next year.
Therefore, I’ve told my team that we need to consider post-2027 development. In my view, survival won’t be our main concern; we’ll be focusing on development.
Presently, the overseas sales ratio is less than one-third. Next year, it could move toward 40% or even 50%. Once the overseas market is established, firstly, we’ll have more resources to support the domestic market, and secondly, we’ll gain greater influence to bolster it. Although these are currently unpredictable, what we do know is that we already have over 10,000 orders overseas.
Q: Are international users highly interested in Jishi 01’s screen or smart features?
A: Almost no one pays attention to that. They attribute more importance to the mechanical aspects. It’s fundamentally a car, and having smart features is a bonus.
Q: Has Jishi considered partnerships in smart cabins?
A: People drive a lot, but perhaps only use less than 20% of smart cabin features. So sometimes, it’s just a trend. Just like a few years ago when phone makers were focused on benchmarking performance scores, but who cares about that now? The buzz has faded. It’s the same with cars; you can watch Tencent Video on either 8295 or 8155, so why the need to play games in the car?
These are merely means, and when everyone rushes in, they can become ends in themselves. That’s misguided. We need to stay composed.
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.