The best SUV under 500,000 RMB, fully self-developed, equipped with LEAP3.0 six intelligent electric core technologies, Zero Run (09863) brings the arrival of the C10 King.
According to Zhitong App, on January 10th, 2024, Zero Run held its self-developed open day in Hangzhou, unveiling the LEAP3.0 six intelligent electric core technologies and explaining the essence of these technologies to users and the media through open classes. In addition, the company announced the pre-sale of its first global model, the C10, under LEAP3.0, with pre-sale prices ranging from 150,000 to 180,000 RMB for both the pure electric and extended range versions.
Zhu Jiangming, founder, chairman, and CEO of Zero Run, stated at the open day that all the core technologies of the LEAP3.0 six modules released by Zero Run have been mass-produced and are readily available, without any futures contracts. This is different from its peers, such as Xiaomi's SU7 released on January 10th, which has not achieved mass production and has not disclosed its price. It is more of a &#34;concept car&#34;. The C10 will be available for pre-order test drives in February and can be delivered in March.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20240112/1705039553917047.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image 1.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20240112/1705039553917047.png"/>
It is said that the new energy vehicle market in 2023 is &#34;exciting&#34;, but in 2024, it will be even more exciting. Models with higher performance and better value for money will be concentrated within the 300,000 RMB price range. The market will undergo accelerated reshuffling, and the brands that can survive in this price war are bound to have strong technological capabilities and self-development capabilities. Zero Run is one of the few leading new forces in the market with self-developed capabilities. After the launch of the C10, its competitive advantage will be significant, solidifying its position in the 150,000 to 200,000 RMB price range.
LEAP3.0 six technologies, Zero Run ushers in the era of software-defined cars
In the era of traditional gasoline vehicles, the three major components, namely the engine, transmission, and chassis, often determined the value due to their mature technology and serious homogeneity. In the current era of new energy vehicles, not only the three major components (battery, electronic control, and motor) are considered, but there are also higher requirements for intelligent experiences such as intelligent cabins and intelligent driving systems. Intelligent cars have become the representative of the new energy vehicle industry.
The competition in the new energy vehicle market is fierce. To stand out in the price war, it is necessary to have a greater cost advantage than competitors. Self-development in all aspects of the most important systems in cars, such as power, intelligent driving, cabins, and electronic systems, starting from the bottom, can significantly reduce costs and achieve stronger product power and risk resistance. Since its establishment in 2015, Zero Run has always adhered to the self-developed route of core technologies.
Zero Run's self-development has gone through three historic milestones, namely 2019, 2021, and 2023. The products have continuously evolved, from the first generation to the third generation of LEAP, from distributed to domain-controlled, and then to the central integrated electronic and electrical architecture. LEAP3.0 truly ushers in the era of software-defined cars.
<img src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20240112/1705039584354003.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Image 2.png" original-src="https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20240112/1705039584354003.png"/>
LEAP3.0, the six core intelligent electric technologies of ZERO RUN, include global vehicle architecture, four-leaf clover central integrated electronic and electrical architecture, new energy golden powertrain (CTC battery + oil-cooled electric drive), intelligent cockpit empowered by 8295, and intelligent driving for both urban and highway scenarios.
ZERO RUN's global vehicle architecture has a high standardization rate of 88%, covering A0-C class vehicle products. Each platform can be developed for SUVs, sedans, MPVs, and other vehicle types, compatible with the development of pure electric and extended-range products. The four-leaf clover in the electronic and electrical architecture serves as the &#34;decision-making brain&#34; and is the industry's first central supercomputing platform that integrates power domain, body domain, cockpit domain, and intelligent driving domain. The control units include left domain controller, right domain controller, and rear domain controller, providing users with frequent OTA updates and a higher level of intelligent electric vehicle experience.
In terms of the three major components of new energy power, the company showcased the self-developed CTC2.0 battery-chassis integration and the self-developed intelligent oil-cooled electric drive, which are leading in the industry in terms of technology. Compared to CTP batteries, CTC batteries have higher integration, providing higher safety, more battery layout options, and better body torsional stiffness. The oil-cooled electric drive, compared to the previous water-cooled electric drive, has advantages in reliability, comprehensive efficiency, and continuous power output capability. CTC battery + oil-cooled electric drive can be said to be an important consideration for purchasing new energy vehicles.
As for the configuration that users pursue for intelligent experience, the company showcased the self-developed intelligent cockpit, which provides a fully immersive interactive experience. The multi-level seat structure is more comfortable, and it is equipped with Qualcomm Snapdragon 8295, with AI computing power reaching 30TOPS, which is twice as powerful as the 8155 CPU. The all-round visible and interactive experience is leading in the industry. In addition, it achieves super seamless OTA updates. The self-developed intelligent driving system, equipped with 30 high-performance perception components and high computing power modules, supports full-scenario experiences in urban NAC and highway NAP. It integrates the functions of cabin, driving, and parking into one 8295 chip, and it is the first to create NAC (full-time ACC) navigation-assisted cruise control. Users only need to hold the steering wheel, and the vehicle will autonomously control the speed, recognize traffic lights, and perform U-turns, turns, and straight driving in urban scenarios without the need for manual operation. Compared to its peers, ZERO RUN's performance is more practical. Although the level of autonomous driving technology has not yet achieved complete hands-free and feet-free operation, it does not exaggerate the capabilities of autonomous driving or engage in various city-opening behaviors. However, the company's level is already at the forefront of the industry. It is worth mentioning that the C10 is the product that integrates the six technologies of LEAP3.0, marking the beginning of the industry's &#34;high value-for-money&#34; technology battle in 2024.
C10, with its high cost-performance ratio, is invincible among its peers, and its overseas strategy is poised for action.
Leapmotor has been steadily developing its technology in the field of independent research and development, and has gained recognition from consumers. It has successfully emerged as a leading brand in the new energy vehicle sector. In 2023, it ranked third with sales of 144,200 vehicles, moving from the second-tier group of new energy vehicle companies to the first-tier group. Leapmotor focuses on creating high-quality products, with each technological iteration resulting in one or two new models, such as the C11 and C01. Built on the LEAP2.0 architecture, the C11 became a popular product in the market. In 2024, the C10 adopted the LEAP3.0 architecture, and the technological iteration has also raised market expectations for this popular model.
According to the press conference, the C10 has a higher competitive advantage compared to vehicles in the same class. It offers the most comfortable and spacious rear seating area, the best space versatility, the most intelligent features, and a new generation LEAP OS that surpasses HarmonyOS in terms of visual and interactive experience. The Leapmotor Pilot3.0 intelligent driving system and hardware capabilities reach Level 3 redundancy. In terms of safety, the C10 surpasses Rolls-Royce with a torsional stiffness of 42,500 N.m/°, and AI real-time monitoring ensures the safety of the three power systems.
With the integration of six self-developed LEAP3.0 technologies, the C10, with its high cost-performance ratio, leaves no room for competition from vehicles in the same class. The price range for the extended-range version is between 151,800 and 181,800 yuan, while the price range for the pure electric version is between 155,800 and 185,800 yuan. Leapmotor aims to firmly establish its market share within the 200,000 yuan price range. In terms of competition, there are hardly any competitors at the same price level. Compared to similar configurations, the C10 offers better cost-performance than the Xiaopeng G6 and the Li Xiang L7.
Intelligent driving and safety are the two most important factors for users when purchasing a car. In terms of intelligent driving, the Leapmotor C10 supports NAC navigation-assisted cruise control and NAP high-speed intelligent navigation. It is equipped with the industry's first Qualcomm Snapdragon fourth-generation cockpit platform, which provides high computing power for the intelligent cockpit, giving Leapmotor a leading edge among new energy vehicle companies. In terms of safety, the C10 excels in vehicle body strength, pedestrian protection, and three power system safety technologies, placing it at the forefront of the industry. The use of high-performance aluminum alloy materials in the vehicle accounts for as much as 73.6%.
At the beginning of 2024, Leapmotor launched the C10, making it difficult for its competitors to resist. Xiaomi did not announce the pre-sale price at the SU7 launch event, but several other brands have held new product launch events, with prices mostly below 300,000 yuan. The introduction of the C10 will lower the price range, making it a preferred option compared to other newly launched brands.
Fortunately, apart from Xiaomi, it is expected that there will be no new &#34;new forces in car manufacturing&#34; in the future.
Zhu Jiangming said that &#34;competition&#34; is a good thing. Only through competition can new energy vehicles gain an advantage and quickly gain market share from traditional fuel vehicles. It is worth noting that the C10 is targeting the global market and will be launched in the domestic market in the first quarter of this year and in the European market in the third quarter. Zhu Jiangming said that the C10 will first enter Europe, Australia, and New Zealand, and the progress in the European market is being actively deployed. The company is expected to rely on Stellantis' global business network to accelerate the overseas market expansion of the C10.
As the industry enters the second half of the &#34;technology war,&#34; independent research and development is leading the way.
With the continuous development of the industry, users are the beneficiaries. However, for car companies, the key consideration is their capital carrying capacity. Without cost advantages or blindly expanding, they will inevitably run out of funds and be eliminated in this wave of competition. Leapmotor understands the importance of cash flow, and independent research and development gives it the initiative to reduce costs and increase efficiency. The company started comprehensive optimization of product configuration and cost in September 2022.
In the third quarter of 2023, the company achieved positive gross profit for the first quarter, with a gross profit margin of 1.2%. It also achieved self-generating cash flow from operating activities, with a net cash flow from operating activities of 1.4 billion yuan in the third quarter, and a total net inflow of 4.162 billion yuan in the second and third quarters. While competitors are experiencing expanding losses in the price war, Leapmotor is moving against the trend and improving its profitability and cash flow at a visible speed.
Zhu Jiangming said that the positive gross profit is partly due to the company's comprehensive cost control optimization in product development. In the fourth quarter of 2023, the company implemented a third round of cost reduction measures. Another reason is the significant decrease in core battery costs. In 2024, the company strives for greater improvement in cost reduction and efficiency enhancement for C11, C01, and C10. The company adheres to the principle of providing affordable and high-quality cars to users, and its product pricing is relatively friendly, with a high price-performance ratio. The confidence in independent research and development also allows for more flexibility in pricing. In the capital market, Leapmotor actively introduces industry funds and cooperative funds. The confirmed partners include international giants Stellantis and Stellantis.
The era of massive expansion with burning money has passed. The surviving car companies in the elimination round have entered the second half of the competition, relying on their technological strength. Leapmotor's self-research and self-manufacturing ratio accounts for 70% of the total vehicle cost, giving it a strong competitive edge. The launch of the C10, with several industry-first features including the first four-domain integrated central domain control, the first integrated cockpit perception, the first NAC function that does not require opening the city, and the first seamless OTA upgrade, priced below 200,000 yuan, is highly anticipated to become a popular product in the market, continuously improving profitability and bringing in net cash flow.
In fact, in addition to the C10, the second model based on the LEAP3.0 six self-developed technologies, the C16, will also be released this year. 2025 will be a big year for product launches, with five or six new models to meet market demand. In terms of distribution channels, the company is the first to adopt the &#34;1+N&#34; model in China, regionalizing dealerships to weaken competition and better explore the market. With the support of Stellantis overseas, the company is well-positioned.
LEAP3.0 products have inherent advantages over their peers in going global.
Overall, in 2024, Leap Motor's self-developed open day was full of valuable information. The management team has comprehensively popularized the iterative history of its technology and the latest LEAP3.0 six self-developed technologies to the market. As the first model to integrate multiple technologies, the C10 undoubtedly stands out among its peers and is the best SUV under 500,000 yuan. With a price range of 150,000 to 200,000 yuan, the C10 is expected to be a popular model, but deliveries will only begin in March, and significant performance growth is expected in Q2.
The new energy vehicle industry has entered the second half of the &#34;technology war.&#34; Whether Leap Motor, with its comprehensive self-developed technology, can continue to lead the industry remains to be seen. Let's wait and see.

CP00013

09863

In 2024, LEAPMOTOR released six core intelligent electric vehicle technologies for LEAP3.0 and launched the global model C10 with a pre-sale price of 150,000-180,000 yuan. With its advantage in self-developed technologies, the brand will maintain a competitive edge in the market below 300,000 yuan. The LEAP3.0 technology ushers in the era of software-defined cars, and the intelligent experience in the new energy vehicle industry has become a competitive factor. In the fiercely competitive new energy vehicle market, LEAPMOTOR is expected to stand out in the price war with its technological prowess.

Can LEAPMOTOR continue to lead in 2024 with the integration of C10 and LEAP3.0's six major technologies?