Chinese car companies are once again leading the way in the new energy vehicle race!
On October 26th, Zero Run Motors officially announced a strategic partnership with Stellantis Group, one of the world's largest travel companies. Stellantis Group plans to invest approximately 1.5 billion euros to acquire approximately 20% equity in Zero Motor and secure two seats on the board, becoming an important shareholder of Zero Motor.
In addition, both parties will establish a joint venture called "Leapmotor International" in a ratio of 51% to 49%. The joint venture company will have the exclusive right to export and sell to all other markets worldwide, except for the Greater China region, as well as the exclusive right to manufacture Zero Run automotive products locally.
At present, the competition in the new energy vehicle market is extremely fierce, and to break through, one must have an eye and a pattern. In the cooperation between Zero Run Automobile and Stellantis Group, openness and win-win always revolve around it.
A Different Journey to the Sea
At a time when new forces in car manufacturing are exploring overseas tracks, Zero Run has embarked on a sufficiently broad and unprecedented journey to sea.
At present, most of the automobile companies that are conducting overseas business mainly focus on exports, and their sales and service networks are also cooperating with local distributors. In the selection of sea routes, Zero Run cars did not follow the trend. The cooperation between Zero Run Automobile and Stellantis Group has achieved a global cooperation model between the world's leading automakers and new Chinese automakers, which will be the first in the industry.
As the best global conglomerate, Stellantis has 14 automotive brands, including Citroen and Peugeot, with customers in over 130 countries worldwide and manufacturing operations in over 30 countries. Whether it is efficiency, products, services, or sales and service networks, Stellantis Group has the advantages of globalization.
As a new force enterprise in the automotive industry leading in technology, Zero Run Automobile adheres to comprehensive self research and has excellent competitive advantages. In 2022, Zero Run Automobile achieved the delivery of 111000 new energy vehicles, ranking among the first tier of China's new car manufacturing forces. Through the joint creation of "Zero Run International" with Stellantis Group, Zero Run Motors can quickly achieve the landing of overseas businesses based on Stellantis' mature layout in the global market, further enhance Zero Run Motors' sales and reputation in the international market, and bring high-quality Chinese new energy vehicle experiences to global users.
Importantly, through the global network built by Stellantis Group, Zero Run can reduce the adaptation cost of "localization" after going abroad. It can be well integrated with local production and sales models, and can also quickly grasp the preferences and tendencies of local users for products, making it easier for Zero Run Motors to optimize their products, thereby making Zero Run Motors' export more smooth. Relying on Stellantis' mature network, the response speed of the overseas service, sales and other networks of Zero Run Motors will show an efficient level, thereby enhancing Zero Run Motors' competitiveness in the international market.
It is understood that the joint venture of "Zero Run International" will begin its export business in the second half of 2024. It can be foreseen that the future journey of Zero Run cars to the sea will start from the European market and expand globally along the commercial map of Stellantis Group. The comprehensive global network and leading product advantages have become the core advantages of Zero Run's journey to the sea.
Regarding the 51%: 49% equity ratio of Stellantis Group and Zero Run Automobile in "Zero Run International", some may question Zero Run's loss of independence and integrity in this cooperation. It is precisely this proportion that reflects the shrewdness behind the Zhejiang businessmen.
As the saying goes, giving is what gives. Zero running cars not only see this clearly, but also do it thoroughly. If you want your partner to unleash their maximum strength, you need to give them enough trust. Only in this way can both parties wholeheartedly use their respective strengths and resources to help each other. Both independent and open, it is the courage demonstrated by Zero Run Automobile in this cooperation. Maintaining consistent independence is something that Zero Runner will not change now or in the future. Providing sufficient openness and inclusiveness to partners can enable Zero Run Motors to quickly possess the strength to compete comprehensively in overseas markets.
Complementary advantages lead to a win-win situation
According to data from the China Association of Automobile Manufacturers, from 2015 to 2022, China's production and sales of new energy vehicles have been ranked first in the world for eight consecutive years. The increasing export data of new energy vehicles in China means that the international recognition of Chinese brands is constantly increasing. In the first half of the year, China exported 2.14 million vehicles, a year-on-year increase of 75.7%, including 534000 new energy vehicles exported, a year-on-year increase of 160%; China's automobile export volume surpasses Japan, ranking first in the world.
Behind the continuous expansion of export business, the contribution of China's new forces in car manufacturing is indispensable. Its unique product characteristics meet consumers' diverse choices. Leading new car manufacturing forces such as Zero Run have distinct technological advantages and become the backbone of China's new energy vehicle market.
Founded in 2015, Zero Run Automobile has been adhering to comprehensive self research since its establishment. This year, Zero Run Motors launched a fully self-developed platform: LEAP3.0. LEAP3.0 technology is based on the central integrated electronic and electrical architecture of the "Four Leaf Grass", integrating global safety/design standards, CTC2.0 technology, new oil cooled electric drive technology, advanced intelligent driving, and cabin systems to provide a complete set of intelligent electric vehicle technology solutions. It represents the most comprehensive core technology layout of intelligent electric vehicles and has become a leading representative of intelligent electric technology in the industry.
As the most profitable and globally integrated group in the world, Stellantis Group has injected 1.5 billion euros into this cooperation. Zero Run Motors will use this funds to improve research and development, sales, and services, thereby amplifying Zero Run Motors' scale advantage in global self research, accelerating the development of global markets and the Chinese market. The intelligent electric technology advantages of Zero Run cars will also feed back Stellantis Group and accelerate its electrification process.
Stellantis mentioned in the "Dare Forward 2030" strategic plan that by 2030, all passenger cars sold by the group in Europe will be pure electric vehicles, and 50% of passenger cars and light trucks sold in the United States will be pure electric vehicles. The cooperation with Zero Run Automobile will help accelerate the achievement of its electrification goals.
It is worth mentioning that in 2022, Stellantis Group sold over 6 million cars globally, achieving a net revenue of 179.6 billion euros and a net profit of 16.8 billion euros. The adjusted operating profit margin is 13%, which is a testament to its global sales and operational capabilities. The addition of Zero Run Automobile can leverage the sales capabilities of Stellantis Group to expand its global market share. In terms of products, Zero Run Motors will launch five more global products in the next two years. Next year, Zero Run's first global product, C10, will be launched in multiple global markets. Thus supplementing Stellantis Group's products and technology in the 150000 to 200000 market.
Zero Run and Stellantis have overlapping business advantages in various fields, achieving synergy and win-win results. This is more specifically reflected in the future planning of Zero Run International.
The joint venture company's Zero Run international marketing and service vehicles are all under the Zero Run brand, and there is no one selling or serving other Stellantis 14 brands of cars under the Zero Run brand. At the same time, Zero Run Motors will also rely on Stellantis Group's information network to understand the preferences of local consumers and provide a rich and diverse range of products. The comprehensive and convenient after-sales service required by global users of Zero Run Automobile is provided by Stellantis Group. Thanks to Stellantis Group's global maintenance technology network, users can easily access after-sales service, which helps to enhance Zero Run's service reputation and brand image overseas.
Summary: In this era of globalization, win-win cooperation and common development are inevitable choices. The strategic cooperation between Zero Run Automobile and Stellantis Group is a new example of the globalization of the automotive industry. The injection of Chinese car companies by top global car groups is a signal of continued optimism towards China's new energy vehicles. Zero Run Automobile has achieved the export of its products and technology overseas. On the basis of mutual trust, both parties of the cooperation have achieved 1+1> The synergistic effect of 2 has created a new case for Chinese car companies going overseas.