When we compare Xiaopeng Motors with Nezha Motors, an interesting phenomenon emerges:
One seems to be at the peak of the wave, soaring upwards; the other appears to be dragged down, struggling to break free...
Why is it that both are new players in the automotive industry, both have had moments of glory, yet the gap between them is so vast?
After consulting several insiders, the answers they provided are quite revealing and eye-opening:
After reading this, you'll understand that there are many factors behind the scenes that we may have overlooked.
Differences in Technological Capabilities
Simply put, the core competitiveness of electric vehicles ultimately comes down to technology.
Although most consumers may not pay attention to these technical details:
What we usually notice are things like "how fast the charging is," "what the range is like," and "how smart the vehicle is," etc.
These seemingly simple factors actually hide deep technological differences that directly influence whether consumers are willing to buy.
Take Xiaopeng Motors, for example. Their "three-electric technology" (battery, motor, and electric control) is well-developed, and their energy consumption performance is excellent.
On various rankings, Xiaopeng consistently achieves high range performance, second only to Tesla.
Not only that, Xiaopeng's performance in intelligent driving is also impressive.
On many "closed roads," it can almost achieve autonomous driving, cruising hundreds of kilometers without fatigue.
On the other hand, Nezha Motors, despite having some technological accumulation, has not made a noticeable impression on consumers.
Whether it’s energy consumption, intelligence, chassis design, or handling experience, Nezha hasn't been able to provide enough recognition or excitement.
Given this, Nezha struggled to make an impact in the mid-to-high-end market.
Although it made several changes in the process, such as launching sports cars and wagon models to break market limitations and attract different consumer segments…
Due to insufficient technological accumulation, it couldn't break free from being seen as an "entry-level" brand, which led to its current situation.
Differences in Brand Influence
Most people consider cost-effectiveness when buying a car, but when prices are similar, brand appeal becomes the deciding factor.
Just like when buying a traditional fuel vehicle, many people prioritize brands like BMW, Mercedes-Benz, and Audi, right?
The same applies in the electric vehicle market.
Simply put, when we think of new energy vehicles, the first reaction is often "BYD, Xpeng, Li Auto"—these three companies have almost become synonymous with electric vehicles.
In some ways, they hold a similar position in the electric car market as "BMW, Benz, Audi" hold in the traditional car market.
Considering this, there are naturally many potential followers and customers, which translates to more clients.
Nezha Motors, however, is different.
Although it took the annual sales champion in 2022. many consumers still view it as a "low-end brand."
Selling at a lower price is one thing, but once the price rises, consumers tend to question:
"Why should I buy a Nezha when I can get a BYD, Xpeng, or Zeekr at the same price?"
After all, driving these cars out, at least you won’t be mistaken for a “ride-hailing vehicle,” right?
Because Nezha couldn’t overcome this barrier, it has faced an awkward situation:
It doesn’t make a profit at the lower price point, and its losses continue to mount. At the higher price point, it struggles for recognition, and consumers’ desire to purchase is insufficient.
As a result, this has led to the current state of affairs.
The Cash Reserve Gap
If the technological and brand influence differences mentioned earlier are the "visible" parts of the iceberg, then the cash reserves are the "base," directly determining the company's long-term development.
And on this front, the gap between Xiaopeng and Nezha is almost as vast as the difference between heaven and earth...
For Xiaopeng, mid-2024 data shows that its cash and cash equivalents, restricted cash, short-term investments, and time deposits total 37.33 billion RMB (about 5.14 billion USD).
What does this mean?
It means Xiaopeng can relatively comfortably respond to market fluctuations, such as boosting production capacity or increasing investment in technology research and development.
It even has enough resources for marketing and improving its service system!
In contrast, Nezha’s cash reserve at the end of 2023 was only 2.84 billion RMB.
Though this figure might seem considerable, in the "capital-intensive" new energy industry, 2.84 billion is practically negligible.
After all, running an automotive brand involves massive spending on R&D, production, and sales.
What’s more challenging is that this cash shortage often forces Nezha to make cautious, conservative decisions, lacking the capital for expansion and innovation.
Given the financial strain, any strategic misstep would make it incredibly difficult to recover.
Looking at Nezha’s development over the years, it has largely faltered due to "strategic missteps" and a lack of funding, leaving it in a passive position.
The destinies of Xiaopeng and Nezha are the result of market choices, as well as strategic decisions and resource investments.
From the current situation, if Nezha wants to change its fate, it needs a more precise positioning and more decisive action.
Otherwise, the time left for it may be running out.
