Remodeling the new pattern of ＂asking for zero＂, zero running has become the third new force to break 30 thousand cars a month.

Zero Run became the third new car-making force with a monthly delivery of 30,000 vehicles, and sold more than two Tucki in August.

On September 1st, the latest delivery data was released by Zero Car. In August 2024, it delivered 30,305 vehicles, with a year-on-year increase of over 113% and a quarter-on-quarter increase of over 37%. Among them, the family delivery of zero-run SUV accounts for over 72%, and the delivery of zero-run C16 exceeds 8,000 vehicles.

The monthly delivery volume went from the first 20,000 vehicles to the first 30,000 vehicles, and it took less than three months to run at zero speed, which quickly became the third new force to sell 30,000 vehicles a month. According to market analysis, the zero-run car is known as the "hexagonal warrior" in the price range of 150,000-200,000 yuan with its excellent comprehensive performance. In August, the delivery volume exceeded 30,000 units, which not only proved its market position, but also made the concept of "choosing a car to see zero running, with reference value" deeply rooted in people’s hearts and became the preferred brand in consumers’ minds.

Behind the continuous breakthrough in sales volume is the strategy of adhering to global self-research in zero-run technology, focusing on high product-price ratio in products, and joining hands with Stellantis in internationalization to "go out to sea in the opposite direction", forming a set of pragmatic and accurate play.

From January to August this year, the cumulative sales volume of zero-running exceeded 133,000 units. In contrast, the sales volume of Zero Run last year was 144,100 units. The cumulative sales in the first eight months of 2024 are close to the total sales in 2023. The position of zero-run cars in the popular new energy vehicle market is becoming more and more stable.

Adhere to global self-research and gain momentum for the next stage of intelligence.

The competition in the auto market is becoming increasingly fierce. Compared with other auto companies, which blindly focus on price and volume flow, Zero Run has turned its attention to user value and insisted on the return of cars as the essence of durable consumer goods and daily means of transportation.

In the view of Zhu Jiangming, the founder, chairman and CEO of Zero Run Automobile, the final automobile must be a durable consumer product and a means of transportation. It may be more advantageous to use cars as a means of transportation to do this industry. "Our brand positioning is to provide users with higher configuration, better quality, good and inexpensive products. No matter how tempting it is, how high the gross profit is or how big the space is, Zero Run will always insist on taking cars as mass consumer goods."

Adhering to the above strategy, we have created explosive products such as C01 and C11 by zero-run, which continue to sell well in various segments. In June this year, Zero Run launched the C16 flagship model based on LEAP 3.0 architecture. Cleverly combining the people-friendly price with the high-end configuration, the C16 will definitely exceed 10,000 vehicles in the first month of listing, which is a hot seller and is expected to become a weapon for further sales growth in the second half of the year.

Zero run C16. Figure/provided by the enterprise

While pursuing the ultimate price-to-price ratio, maximizing the benefits to consumers is the confidence brought by zero-run adherence to global self-research.

Since its inception, Zero Run has adhered to global self-research, and the core components that account for more than 60% of the vehicle cost are self-developed; In the field of intelligent driving, zero-running is from chip to sensing hardware, from domain control to algorithm self-research, realizing intelligent navigation based on China’s characteristic road conditions and driving habits. In 2023, the mass production of the central integrated electronic and electrical architecture with zero running and four domains in one realized the integration of cockpit and intelligent driving function of an 8295 chip.

Zero-running "four-leaf clover" central integrated electronic and electrical architecture. Figure/provided by the enterprise

With years of technical accumulation, with the continuous improvement of scale and efficiency of vehicle manufacturing, the advantage of zero-running manufacturing cost can be released to a greater extent, and the overall profit level can be improved.

In the first half of this year, Zero Run achieved an operating income of 8.85 billion yuan, up 52.2% year-on-year, and the growth rate was in the forefront of the new forces. In terms of gross profit margin, thanks to the scale effect brought by the increase in sales volume and continuous cost control, the zero-run gross profit margin in the first half of 2024 increased by 7 percentage points year-on-year, a substantial improvement. R&D expenses increased by 48% year-on-year to 1.22 billion yuan, which is ready for the next stage.

Zero Run said that this year, the relevant departments of the intelligent team will be integrated and upgraded to the Intelligent Technology Research Institute. It is planned to launch a higher-level intelligent driving and further function optimization in the second half of 2024, including the ability to open roads to point-to-point commuting and memory parking in parking lots. It is also planned to launch the urban intelligent driving function (CNAP) based on the end-to-end intelligent driving model in 2025 to continuously provide customers with a safe and comfortable high-level intelligent driving experience.

With "technology for market", the process of globalization is accelerated.

Standing at a new starting point of monthly sales of 30,000 vehicles, aiming overseas is another key point of zero running.

In October last year, Stellantis Group and Zero Run Automobile jointly announced a global strategic partnership; In May this year, Zero Run International, a joint venture between the two parties, was formally established, becoming the first reverse joint venture company in China automobile industry.

According to the cooperation agreement, the joint venture company has the exclusive right to export and sell zero-run cars to other markets outside Greater China and the exclusive right to manufacture zero-run cars locally.

Compared with other car companies’ mode of going to sea, the zero-run car has chosen a more secure, fast and efficient "light assets" mode. In this model, Zero Run, which plays the role of brand and product output, will promote globalization at the fastest speed with the help of the commercial resources of Stellantis global sales network and after-sales service system.

That is, in the market without tariff restrictions, zero-run cars will be exported directly; In the limited market, Stellantis Group will help zero-run cars to achieve local production, that is, zero-run cars export auto parts, and Stellantis Group will be responsible for assembly and production.

Compared with the joint venture era of "exchanging market for technology" of China automobile enterprises in the past, this cooperation mode has opened a new joint venture era of "exchanging technology for market". The status and influence of China’s new car-making enterprises in the global automobile industry are constantly improving, and China’s automobile industry is changing from "bringing in" to "going out".

Zero-run C10 and T03 electric vehicles are in Shanghai Port. Figure/provided by the enterprise

On July 30th, the first batch of zero-run C10 and T03 electric vehicles were sent from Shanghai Port to Europe. This is only 10 weeks after the establishment of the joint venture company.

As an important place of automobile industry, Europe has always been regarded as a high potential market for the export of new energy vehicles, which helps to enhance the brand image. It is of special significance to cooperate with Stellantis Group to lay out the European market in the current more complicated and changeable automobile sea environment.

According to the plan, Zero Run International will also launch zero run cars in nine European markets in September this year, and plans to expand a total of 200 sales outlets including Stellantis & You network before the end of the year; March into Asia-Pacific, Middle East, Africa and South America in the fourth quarter; The first product B10 of the new platform will be unveiled at the Paris Motor Show.

Under the innovative mode, the joint venture and cooperation between Zero Run and Stellantis Group is rapidly advancing in an efficient way. In the industry’s view, Zero Run has built a brand-new and unique development model of the industry, that is, relying on the China market, expanding new business growth points, and achieving breakthroughs in overseas vehicle sales and outsourcing of core components of Sanpower.

Commitment to increase holdings, reflecting the car-making long-term doctrine.

"We hope that enterprises can go further, instead of making money and cashing in for a while. This is not my original intention, but building enterprises into global car companies." When talking about why we don’t reduce or transfer the shares of Zero Run Auto, Zhu Jiangming, founder, chairman and CEO of Zero Run Auto, once said.

On the evening of August 26th, Zero Run announced that Zhu Jiangming and Fu Liquan, a concerted action person, planned to increase their holdings of H shares in the company within the next six months, with an increase of no more than RMB 300 million. On August 30th, according to reliable information, Zhu Jiangming and Fu Liquan, a concerted action person, had increased their holdings of 5,068,500 shares by the last trading day, amounting to about HK$ 102 million.

According to industry analysts, corporate executives and shareholders holding more shares in their own companies usually mean that they are optimistic about the future development of the company, and also send a signal to the market that the management believes that the value of the company is undervalued by the market, thus supporting the company’s share price through practical actions.

Zero-run all models. Figure/provided by the enterprise

Such a large amount of firm holdings of stocks also shows the confidence and commitment of the founders and major shareholders to the long-term development of zero-run cars.

On November 1, last year, Zero Run Automobile announced on the Hong Kong Stock Exchange that Zhu Jiangming, his spouses Liu Yunzhen, Fu Liquan and his spouse Chen Ailing voluntarily promised not to transfer or reduce their shares in the company in any way in the next 10 years from the date of this announcement.

Judging from the time limit, it is common for shareholders of listed companies not to reduce their holdings at present. The commitment period is mostly from 6 months to 1 year, but there are not many cases in which the commitment period is as long as 10 years. The voluntary increase in holdings of retail shareholders will not only enhance the sustained and stable development of the company, but also further boost investor confidence and jointly invest in medium and long-term value with the actual controllers.

Zhu Jiangming proved his long-term commitment to the car-making industry with practical actions.

After the news of overweight was released, the share price of Zero Run Auto opened higher on August 27th, with the highest intraday increase exceeding 6%. According to industry insiders, as a "hexagonal warrior" focusing on the mid-end market, the market positioning of zero-running cars is accurate and the subsequent growth potential is huge. For investors, the steady development and broad market prospects of zero-run cars are undoubtedly an investment target worthy of attention.

It is foreseeable that with the continuous improvement of the zero-run product matrix and the increasing confidence in the investment market, its performance will be promoted to a new level.

Text/Liu Chang Editor Wang Jinyu Proofread Lin Zhao