“Zero Run” Lived Longer Than “One Year”
This is the sentence that the founder and CEO of Zero Run Technology, Zhu Jiangming, heard in 2018.
Today, not only has Zero Run survived, but Zhu Jiangming has also won an award.
On January 13, 2022, the founder, chairman, and CEO of Zero Run Technology, Zhu Jiangming, was awarded the title of “Top Ten Zhejiang Business Celebrities of the Year 2021”. The gold content of this title is high. Before Zhu Jiangming, it was played by Zhejiang entrepreneurs such as Jack Ma, Zong Qinghou, and Li Shufu, who played important roles in China’s private economy over the past 20 years.
Behind this title is Zero Run’s impressive performance in the field of new energy vehicles in 2021.
In 2015, Zero Run Technology was established. At the same time, new forces in car manufacturing such as NIO, Ideanomics, XPeng Motors, and WM Motor were established. However, these are only successful companies that we remember. Think about the nearly 100 new energy car manufacturing companies such as Byton, Qidian, Youxia, LeEco, Guojin, and QianTu, that quietly exited the competition.
Zero Run survived in this battle and delivered an impressive performance in 2021 with “cumulative deliveries exceeding 43,000 vehicles, and 7,807 deliveries in December”. Achieving such results is not easy. It also piqued my interest: what has Zero Run relied on?
Self-Research in All Fields
At the beginning of 2021, Zero Run’s T03 only sold about 2,000 units per month. Affected by the supply chain, the delivery volume of the T03 remained at 4-5 thousand units per month in 2021. Many people believe that selling a small car for 60,000-70,000 yuan is normal. After all, it is cheap.
In fact, the polarization of the pure electric car market is very serious, it is a typical dumbbell-shaped market. Below 100,000 Yuan is precisely where the competition in the pure electric market is fierce. Moreover, limited by costs, pure electric vehicles below 100,000 Yuan hardly have any differentiated strategies to implement.
However, Zero Run’s T03 is different. Compared with the same grade, the T03 has better power and endurance, and even comes with Level 2 assisted driving. In this price range, models with assisted driving are rare.
The best product in the same price range is also the best competitive power. So where does this competitive power come from? Higher specification, lower price, does the company not make money? Obviously, this is not in line with commercial logic.
Zero Run’s core competitiveness comes from “self-research in all fields”.In the era of electric vehicles, self-developed technology has become a hot topic, as it is a new track without the technological barriers that exist in the fuel era. Most new players will bring up the topic of self-development, such as NIO’s self-developed three-electric system, XPeng’s self-developed intelligent system, and so on. However, “Leapmotor” (ZERO RUNNER) has taken the self-development process to a more thorough level.
As you may have noticed, Leapmotor’s core competitiveness lies in “all-around self-development” rather than the “full-stack self-development” that we usually say. Wu Cun, Vice President of Leapmotor Technology, has explained the “all-around self-development” process: “Our all-around self-development is an integrated self-development of hardware and software, the circuit board, structure, software, and operating system are all developed by ourselves.”
So, what are the benefits of doing this?
To put it more directly in terms of products, let’s take the T03 as an example. The 70,000 RMB model is equipped with an 80 kW motor, while other models in the same price range, such as the Eura Cat and Chery Little Ant, use motors of about 30-55 kW. There is also a detail that the headlights of Leapmotor C11 are also self-developed, which can save 600 RMB in cost compared to outsourcing. Of course, the benefits of self-development are not just lower costs.
Leapmotor’s soon-to-be-mass-produced variable-architecture oil-cooled motor can be flat or slanted, making it more convenient for interior layout. This motor was designed for the C11 performance version with a dual-motor front compartment layout. In other words, if Leapmotor feels that the motor is not easy to place, they will redesign it. This is also the biggest advantage of self-development. Similarly, the reason why NIO ET7 uses a 300 kW motor after the rear is also because it is tailored to their own needs.
In terms of intelligence, the results of Leapmotor’s self-development are gradually being reflected. Leapmotor enables the T03, which costs less than 100,000 RMB, to experience driving assistance and intelligent parking, and the C11 is equipped with driving assistance as standard across the entire model range. Through subsequent OTA upgrades, it can achieve high-speed navigation assistance and other functions. Don’t forget, the starting price of Leapmotor C11 is less than 160,000 RMB.
Speaking of the intelligent driving system of Leapmotor C11, the chips behind it are also worth mentioning. Unlike other car manufacturers that purchase from Mobileye and NVIDIA, C11 uses two self-developed Lingxun 01 chips, which support 8.4 TOPS of computing power, enabling C11 to have L2+ level intelligent driving assistance.In addition, the advantage of LEAP’s self-developed chips and algorithms is that it is no longer constrained by external suppliers. For instance, companies like NIO and the 2020 Ideal ONE adopt the Mobileye EyeQ4 visual chip which has relatively closed hardware and software solutions, leading to extremely slow iteration.
To support the self-development process, over 60% of LEAP’s technical team are responsible for rapid response to market needs. For example, the C11 was launched on September 28, 2020, and delivered on October 22, with the basic Lane Centering function of L2 level ADAS pushed out by December 31. It is known that LEAP has already set up an L4 autonomous driving algorithm team.
Research and development started from the birth of LEAP Technology, and today it has come to fruition. However, the self-development process has caused LEAP to wait for 6 years. On July 15, 2021, with the first T03 vehicle officially produced in Jinhua Factory, LEAP has truly realized its fully integrated self-research, self-manufacture, sales, and service value chain.
It can be said that LEAP has already passed through the most difficult 0-1 stage of self-development and manufacturing, and what follows is the rapid development phase of 1-10.
Accelerating the Era
On July 15, 2021, LEAP Automotive ushered in the largest release conference since its inception, the release conference for LEAP Automotive 2.0 strategies.
In this conference, LEAP Technology CEO Zhu Jiangming unveiled LEAP Automotive 2.0 strategies. From three aspects of technology, product, and user strategies, he demonstrated the LEAP’s five-year plan for the future.
In terms of the products, according to Zhu Jiangming, “we are going to build the strongest product line of new powers in the next five years.”
After the accumulation of technology, the rapid expansion of the product is inevitable, but what still attracts me most is the technology aspect.
LEAP has set the following goals for the next 5 years in its 2.0 strategy:
- CBC battery + body integration solution
- 800 V high-voltage platform, SiC power module, and new motor with power of 300 kW
- Laser radar production
- Achieving fully automated driving technology under all scenarios# Leap Power System
The intelligent cockpit realizes AI emotional interaction, AI self-learning, and active service functions.
Let’s talk about the CBC battery that will meet us soon. The CBC battery + body integration plan is expected to be mass-produced as early as the third quarter of 2022, and will most likely be installed on the ZERO C01.
CBC stands for “cell body chassis,” which integrates the battery with the vehicle body to reduce the number of parts and improve space utilization. The body and battery structure complement each other, improving the battery’s ability to withstand impacts and the body’s torsional stiffness.
In terms of data, the battery compartment space utilization rate is increased by 10%, the overall body torsional stiffness is increased by 25%, and the chassis becomes thinner, creating more space inside the car and ground clearance.
In addition, in the 2021 Guangzhou Auto Show, Zeropark brought some innovative LEAP POWER “upgraded” intelligent power technology.
The goal of the LEAP POWER “upgraded” intelligent power technology is to make the electric drive and battery systems more intelligent and efficient. By optimizing the software of the hardware such as the electric drive and battery, it can automatically distribute power by perceiving the terrain, and it supports OTA throughout the entire lifecycle.
At the 2.0 strategic conference, Zhu Jiangming directly put his WeChat QR code on the big screen, indicating that Zeropark will no longer be low-key, and the company hopes to make its brand better known.
In terms of user needs, Zeropark will also collect, organize, and adopt user feedback and suggestions. For example, based on user feedback, C11 added front row double-layer glass as standard and the optional front row seat ventilation function in the package without changing the price.
In terms of sales channels, at the end of 2021, Zeropark’s first batch of direct sales delivery centers were put into use in Beijing and Hangzhou to improve delivery efficiency while providing vehicle guarantees. The company also plans to continue to lay out diversified channels in many cities in the future.
Apart from the domestic market, Zeropark is also interested in the overseas market.In December 2021, the Leapmotor T03 received the European Union’s Whole Vehicle Type Approval (WVTA) for small-scale production, meaning the T03 is now permitted for sale in the European market and can be officially registered and licensed in EU countries.
You might wonder if the T03 will be accepted or not. However, I searched on YouTube and found a video of the Leapmotor T03, which has been viewed 220,000 times. If you read the comments, you will find that the most popular comment is “We need cars like this.”
Obviously, even international consumers value the cost-effectiveness of products. In 2022, the Leapmotor T03 will enter the European market, and Leapmotor will definitely have more models going abroad to bring more cost-effective products to overseas consumers.
After experiencing the accumulation from 0 to 1, Leapmotor was able to make a rapid leap from 1 to 10. We only see today but not the “tragic situation” when Leapmotor was first founded.
The founder of Leapmotor, Zhu Jiangming, comes from Dahua Technology, a security industry leader. When Leapmotor was just founded, he was questioned, “You don’t know cars. Why do you make cars?” and the goal of “Surpassing Tesla in the intelligent field within three years” was also spread throughout the industry.
As Zhu Jiangming said, “Not being seen is because of not knowing enough.” Perhaps we should talk about Zhu Jiangming himself.
Tech Enthusiast
Zhu Jiangming graduated from Zhejiang University with a major in electronic technology in 1990 and worked at a school-operated factory in Zhejiang Electronic Industry School. However, two years later, he resigned and embarked on his entrepreneurial path.
In 1993, Zhu Jiangming and Fu Liquan founded Dahua Technology with 5,000 yuan, and he became the CTO. In 1999, Dahua entered the security field by chance. In 2002, Zhu led the team to independently develop an 8-channel embedded DVR, becoming the unique product in the security industry, and Dahua entered a period of rapid development.
In 2012, Dahua released the HDCVI high-definition composite video interface standard with completely independent intellectual property rights. By 2021, 50% of standard cameras worldwide adopted the HDCVI standard.
And all of these have laid the foundation for Zhu Jiangming’s next venture.The founders of new energy vehicle startups have a genetic predisposition towards having a crucial role in product development. Li Xiang, founder of Li Auto, who previously founded Autohome, played a critical role in the success of Li ONE. Similarly, He XPeng, founder of Xpeng Motors, who previously created the UC Browser, always prioritizes intelligence in the development of his vehicles.
Coming from a technical background, Zhu Jiangming decided to start Leapmotor with a focus on technology as well.
Starting from scratch in the automotive industry is undoubtedly a tough task. After all, the competition in the new energy vehicle market is fierce, and while others may use existing technology to develop their cars, Leapmotor had to start from scratch.
As Zhu Jiangming said, “Not being favored gave us the chance to work hard in silence,” but Leapmotor did not give up despite its low profile. Eventually, with the development of the T03, Leapmotor began to find its place in the new energy market.
Although it started slowly, Leapmotor is now accelerating. The release of the C11 marked a turning point for the company, which has already produced more than 4,021 vehicles in under two months, even in the face of supply chain constraints. Despite the limited production capacity, Leapmotor even offered electric card benefits for far-sighted orders to alleviate production pressures.
Capital naturally recognizes the potential of Leapmotor. In 2021, Leapmotor raised more than 10 billion RMB, including from China International Capital Corporation (CICC), CITIC Securities, and Hangzhou State-Owned Assets Supervision and Administration Commission. Besides Leapmotor, there are only six other new electric vehicle companies that have raised more than 10 billion RMB, including NIO, NIO, Xpeng, Li Auto, WM Motor, and Horizon.
“Our starting point is to make luxury vehicles affordable to everyone.” This is a statement that Zhu Jiangming frequently repeated. Leapmotor is indeed working hard to make this goal a reality.
From being questioned seven years ago to standing on stage as a recognized player in the automotive industry, Leapmotor has made itself different, enabling consumers to enjoy its excellent products. Its initial market disadvantage has given Leapmotor an advantage in its long-term development.
In conclusion, Leapmotor’s current progress is in line with the saying “broad-based yet refined, accumulatively developed yet launched thinly.”
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.