Ideal Auto W (02015. HK) experienced a surge from the end of February to early March and has recently declined. As of yesterday's close, Ideal Auto has accumulated a 23.02% decline.
Note: The trend of Ideal Automobile since the end of February
Ideal Automobile made another adjustment today. The company announced after hours yesterday that due to sales orders falling short of expectations, it is expected that the delivery volume of vehicles in the first quarter of 2024 will be 76000 to 78000 units, lower than the previous expectation of 100000 to 103000 units.
Note: Announcement of Ideal Automotive - W
The founder and CEO of the company, Li Xiang, stated in the announcement that there are two reasons for the downward adjustment of expectations in the first quarter: first, the rhythm issue of Ideal MEGA, and second, excessive focus on sales and competition issues.
The first issue is the rhythm of the ideal MEGA. Li Xiang pointed out that in the early stages of development, Ideal MEGA was mistakenly thought to have entered a high-speed development period from 1 to 10, but in reality, it is still in the commercial validation stage from 0 to 1. As experienced by Ideal ONE and Extended Range Electric in the early stages, Ideal MEGA and High Voltage Pure Electric must also go through this critical development starting point. To correct this strategic mistake, Ideal Automobile will adjust its pace and operate Ideal MEGA with patience and meticulous attitude.
Secondly, in the past, there was an excessive emphasis on sales and market competition, which attracted the attention of the entire team from top to bottom, thus neglecting the areas where they were originally best at - creating user value and improving business efficiency. As a result, these two areas have significantly regressed. Ideal Automobile has decided to adjust its goals, no longer simply pursuing high-speed sales growth, but pursuing a healthier and more sustainable growth model.
The performance of its new car MEGA on the market fell short of market expectations
For the MEGA mentioned in the announcement, this model, as the first pure electric MPV launched by Ideal, officially began user delivery on March 11th. However, MEGA's market performance has encountered some challenges.
Since the release of MEGA for half a month, Ideal has not publicly disclosed specific order data for MEGA and L series. Ideal Automobile once had an expectation of 3000 units of MEGA's order volume within 24 hours, but the actual performance was only half of the expectation. In the end, it received nearly 4000 units of orders within half a month after its release. At the same time, the factory has prepared a production capacity of 5000 units per month for MEGA.
Industry data shows that MEGA's large order quantity has not reached 10000, and the conversion rate from small orders to large orders is not high. After 72 hours of listing, the total order quantity is approximately 3218 units, while the number of cancellations is as high as 10297 units.
Faced with the poor sales of MEGA, CEO Li Xiang once mentioned that part of the reason for the low orders was due to "cyber attacks".
The analysis agency believes that there are multiple reasons why MEGA's order volume did not meet expectations: firstly, its price exceeding 550000 yuan is relatively high, which belongs to high-end pricing among domestic new force MPV models, but its product strength is not fully outstanding; The second reason is that its unique design leads to a polarized reputation, and not all consumers can accept this design style.