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GAC-NIO: Hardware comprehensive profit is not higher than 1%

From:Internet Info Agency 2020-08-26 16:05:01

Last week, Liao Bing, founder and CEO of GAC NIO, gave a public speech in Beijing. In this speech, Liao Bing stated that GAC-NIO is the first intelligent travel ecosystem service company integrating software and hardware. At the same time, Liao Bing also released the GAC-NIO "Hardware + AI OS + Ecological Service Member" business model and GAC -NIO Eco Service Member.

What kind of company is GAC-NIO?

In this speech, Liao Bing first clarified the brand positioning of GAC-NIO. GAC-NIO neither belongs to GAC nor NIO, but is a completely independent automobile brand, which is the two hundred billion yuan of GAC-NIO. A combination of first-class enterprises, GAC-NIO is a master of GAC Group's manufacturing skills and technical reserves and NIO's innovative service concept.

At the same time, in Liao Bing’s view, nowadays, consumers are paying more and more attention to intelligent travel experience when buying cars. Based on the continuous iteration of user value needs, GAC-NIO has proposed a new business model of "hardware + AI OS + ecological service members”. Liao Bing said that GAC-NIO is positioned as the world's first intelligent travel ecosystem service company integrating software and hardware.

Ecological service model is the "break" between GAC-NIO and traditional hardware profit model

At present, the profitability of traditional automobile manufacturers is still based on the hardware profit model, and the new business model proposed by GAC-NIO will fully "break" with the traditional hardware profit model. Liao Bing made a promise on the spot: The comprehensive profit margin of the hardware is not higher than 1%. If there is any excess, all the excess will be returned to the user.

To this end, Liao Bing also announced the BOM material list of HYCAN 007, including interior and exterior trim, chassis and body, intelligent network connection, as well as research and testing fees, manufacturing fees, logistics fees, etc., covering all more than 70 suppliers of vehicle manufacturing. Name and purchase price. According to calculations, the hardware cost of the HYCAN 007 TOP version is 300,000 yuan, while the subsidized price is 303,000 yuan, and the profit is only 3,000 yuan.

Profit from "software + service" and promote the first ecological service member in the automotive industry

If you don't make money from hardware, how can GAC-NIO make a profit? Liao Bing believes that "software + service" will become a new profit model for GAC-NIO.

GAC-NIO has newly released the CAN AI OS intelligent vehicle linkage service system, which is a system with the proactive ability to provide users with intelligent travel services. It includes multiple service modules such as multimedia system, intelligent driving assistance system, AI intelligent car networking, vital signs monitoring, etc., creating a closed loop of intelligent travel experience.

In the future, CAN AI OS can realize more intelligent interactive experiences such as voice, gestures, AR, VR, etc., and realize active services such as intelligent content recommendation, automatic travel planning, scene-based reminders, and customized services for users based on user behaviors. Seamless smart travel services. It is understood that the newly released CAN AI OS will provide an OTA upgrade at 14:00 on September 10th.

In terms of services, GAC-NIO proposed the "SUV" ecological service membership plan, which includes three membership service levels: Smart, Ultra, and Value. Smart service includes free warranty, lifetime OTA upgrade, unlimited data, free home charging pile installation and other services, Ultra service adds 6 insurances, free maintenance, free replacement of vulnerable parts and other services, Value service adds third-party VIP and other value-added services Travel services such as services, airport high-speed railway station VIP lounges, airport free parking, fast security check and other travel services, in addition to GAC-NIO mall reward points. It is understood that from August 20th to September 9th, new and old car owners can enjoy the event price, including 1 yuan to buy the right to use the rights of S members for life.


Profit from "software + service", hardware does not make money. Does this sentence look familiar? That's right, this coincides with the development of the consumer electronics field in recent years, and Xiaomi Lei Jun even put forward the promise that "Xiaomi's hardware comprehensive net interest rate will never exceed 5%". In fact, the software + service profit model has gradually penetrated into various hardware fields in recent years. It is better that Apple has gradually built an integrated service platform for content, audio and video, and games on the basis of "hardware + OS." A new business format that makes profit from services.

With Internet people building cars across borders and the injection of Internet thinking into the automotive field, the profit model of "software + service" has also entered the automotive industry, the most representative being Tesla and NIO cars. In terms of traditional car companies, BMW announced not long ago that it will embed hardware in the new 5 series, and users can pay to unlock software functions. BMW has taken the pace of transformation. The new business model of GAC-NIO be a verification of a new profit model and a challenge to the traditional profit model. Although the success of this business model is still unknown, the author agrees with what Liao Bing said, which is also worthy of consideration by all auto industry practitioners, that is, “the era will eliminate auto companies that focus on hardware, and intelligent ecological services will start a new era of automobiles."

Editor:Bai Yunpeng