Recently, Ideal Auto released its Q2 2024 performance report.
According to financial report data, Ideal Auto delivered a total of 108581 new cars in the second quarter, a year-on-year increase of 25.5%. The revenue for the second quarter was 31.7 billion yuan, a year-on-year increase of 10.6%.
At the performance meeting, Li Xiang, the founder, chairman, and CEO of Ideal Auto, stated that Hongmeng Zhixing is Ideal's strongest competitor in the market, and the company will continue to coexist healthily in the long term. In the future, the company will continue to learn from Huawei's technology research and development system and management system.
During the interview, Li Xiang also revealed that a pure electric SUV based on an 800V high-voltage architecture will be released in 2025.
Smart driving drives sales, observe robotaxi
According to the financial report, the revenue from car sales was 30.3 billion yuan, a year-on-year increase of 8.4%, lower than the company's total revenue growth rate of 10.6% and lower than the car sales growth rate of 25.5%. The revenue from other sales and services was RMB 1.4 billion, an increase of 99.6% compared to RMB 681 million in the same period last year, and a slight decrease of 1.7% compared to the previous quarter.
Although Ideal Auto's adjusted net profit was 1.5 billion yuan, a year-on-year decrease of 44.9%, it still maintained a gross profit margin of 19.5%.
Ideal Auto stated that the increase in vehicle deliveries was mainly offset by a decrease in average selling prices due to changes in product combinations and pricing strategies. It is reported that the proportion of low-priced models of Ideal Automobile L6 in total sales has increased, which has lowered the average bicycle price. In the second quarter of this year, Ideal Automobile's bicycle revenue was 279000 yuan, compared to 323000 yuan in the same period last year and 302000 yuan in the previous quarter.
Li Tie, CFO of Ideal Auto, stated that the company is confident in achieving a vehicle gross profit of 19% in the third quarter, with an overall gross profit exceeding 20%.
Ideal Auto's R&D expenses are 3 billion yuan, slightly lower than the previous quarter, and 10% of its revenue will be invested in the development of core technologies such as intelligent driving, intelligent space, intelligent electric vehicles, and vehicle safety.
At the performance meeting, Li Xiang stated that in July, he pushed image free NOA to 240000 AD Max users, received positive feedback from users, and drove the growth of order volume. The proportion of AD Max orders for various vehicle models is increasing, especially for models priced over 300000 yuan, where the proportion of orders for AD Max is close to 70%
Ma Donghui, co-founder, executive director, and president of Ideal Auto, added, "We expect to open a 10000 person test of the end-to-end+VLM intelligent driving system in September. Regarding robotaxi, we believe that after L4 level autonomous driving is implemented, the demand for taxis and ride hailing services will greatly decrease, so this market still needs more time to observe
Initially, Li Xiang announced in February 2024 that he would increase his sales target for 2024 to 800000 vehicles and hoped to achieve the "number one luxury car brand sales in the Chinese market" that year.
According to this goal, Ideal Auto delivered a total of 240000 vehicles in July, only achieving 30% of the delivery target. Ideal officially lowered its annual sales guidance from 800000 vehicles to 56-6400 thousand vehicles in March.
At the performance meeting, Zou Liangjun, Senior Vice President of Ideal Automobile, revealed that if the passenger car market develops healthily in the second half of this year, he is confident in completing the delivery of 500000 cars for the whole year.
The pure electric SUV is currently undergoing testing and will be launched next year
Ideal Motors launched its first pure electric MPV model, the Ideal Mega, on March 1, 2024. This model is built on an 800V pure high voltage platform, equipped with a Kirin 5C battery pack and an ideal 5C supercharging station, which can achieve a range of 500 kilometers after 12 minutes of charging.
Since its launch, there has been some controversy surrounding its exterior design. Only in March, the Ideal Mega received 3229 orders, which then began to decline to 1145 in April, and has remained stable at around 600 in recent months.
Since its launch in April, the Ideal L6 has seen a steady increase in sales, with monthly sales exceeding 20000 units in June and July, becoming a popular product in the price range of 200000 to 300000 yuan.
Previously, Li Xiang admitted to misjudging the industry development trend and summarized two main reasons. The first is the rhythm issue of Ideal MEGA; The second issue is an excessive focus on sales and competition.
At the performance meeting, Li Xiang emphasized that for pure electric SUVs, two issues need to be addressed: one is the product's styling design, and the other is the ability to provide users with over 2000 supercharging stations when delivering pure electric products. We hope to enter the first tier of high-end pure electric products in about two years
Ma Donghui added that Ideal Automobile will launch multiple 800V high-voltage platform pure electric models next year, equipped with self-developed core components. Currently, the overall progress of research and development is normal, and multiple small-scale prototype production, testing, and performance testing have been completed. The factory building has been completed, and we are confident that we can ensure the delivery of the pure electric vehicle model as planned