2024 is a year of contradictions in the automotive market.

In this year, Changan Automobile Chairman Zhu Huarong's statement that "in the next five years, there may only be five domestic car companies left in China" is being further verified. Gaohe Automobile collapsed at the beginning of the year, and Nezha Automobile suddenly exploded, followed closely by Jiyue Automobile

That is to say, in the fourth quarter of this year, Zero Run Automobile achieved a net profit conversion to positive, one year ahead of its single quarter net profit conversion target, becoming the second enterprise among new car making forces to achieve profitability. At the same time, the company's gross profit margin for the quarter reached a historic high of 13.3%.

In 2024, the total delivery of automobiles by Zero Run reached 294000 units, a year-on-year increase of 103.8%, and the annual sales volume remained among the top three among new car brands. The annual revenue was 32.16 billion yuan, a year-on-year increase of 92%, and the annual gross profit margin also increased by 7.9 percentage points compared to the same period last year.

In 2025, good news will come again.

On April 9th, Zero Run Motors announced that its cumulative delivery volume exceeded 700000 units. In the past three months, Leapmotor delivered 37000 units, ranking first among new forces, with a year-on-year growth of over 154%.

On one hand, there is poor management and liquidation, and on the other hand, there is a shift from losses to profits and a positive attitude.

In the bloody and cruel automobile market, Zero Run cars have repeatedly brought good news. What insights do they have for car enthusiasts?

Inspiration 1: Adhere to comprehensive self research

Zero Run seems to be very happy, indicating that Zero Run was prepared early, "said Zhu Jiangming, founder and chairman of Zero Run Automotive, in an interview with EO Automotive.

Cao Li, Senior Vice President of Leapmotor, attributed Leapmotor's ability to "happily roll up" to its full domain self-developed technology. Public information shows that the core electronic components and high value-added components independently developed by Leapmotor account for 65% of the total vehicle cost.

Doubling market value, 60 billion yuan Zero Run wins sales crown

(Source/Zero Run Car)

On the one hand, through platformization and integration strategies, different car models can share as many components as possible to reduce costs.

For example, the LEAP technology architecture created by Zero Run is based on the "Four Leaf Clover" central integrated electronic and electrical architecture, which integrates global safety/design standards, CTC 2.0 technology, a comprehensive 800V high-voltage silicon carbide fast charging platform, advanced intelligent driving, and intelligent cockpit systems to provide a complete set of intelligent electric vehicle technology solutions. It can be applied to various models of Zero Run cars.

Zhu Jiangming also mentioned in a previous speech that through comprehensive self-developed technology, Zero Run can achieve intelligent driving with one 8295 chip, while also supporting multiple functions in the intelligent cockpit, which reduces the number of onboard chips and thus reduces costs.

On the other hand, the self-developed and self manufactured Zero Run cars also help to share as many components as possible among their different models, thereby achieving synergistic efficiency.

There is an 88% component sharing rate among B-series models Zhu Jiangming revealed. The high component sharing rate helps Zero Run Automobile to quickly iterate and update its models, and also enables Zero Run Automobile to release three models, B10, B01, and B05, successively within 2025, adding more bullets to its product line.

Inspiration 2: Control investment and maintain strategic focus

Although Ideal Auto has long been known as the "stingy factory", in reality, Zhu Jiangming and Li Xiang are equally skilled in this aspect.

Doubling market value, 60 billion yuan Zero Run wins sales crown

In terms of specific amounts, Zero Run Motors has undoubtedly invested the least in sales, administration, and research and development in the past two years among these new car making forces. However, due to the varying revenue of each company, this comparison is not objective.

From the values of sales administrative expenses as a percentage of total revenue and R&D as a percentage of total revenue, it can be seen that whether in 2023 or 2024, Ideal Auto has been very restrained in its sales, administrative, and R&D expenses, and these expenses as a percentage of revenue are the lowest among these new car manufacturing forces.

Next is Zero Run Motors, which has been striving to control its sales and administrative expenses within 15% of its operating revenue in the past two years, and its research and development investment has also been controlled at around 10% of its total revenue.

Compared to others, NIO and Xiaopeng Motors seem to have squandered a lot.

In fact, the continuous control of R&D expenses by Zero Run Motors is not due to being stingy, but rather due to its strategic focus on differentiation.

On the one hand, as a co-founder of Dahua Corporation, Zhu Jiangming, an engineer, has a deep understanding of how to create high-quality and cost-effective hardware during the car manufacturing process. In addition, it also has a certain accumulation of supply chain resources before car manufacturing, which can greatly control the cost of hardware construction for its car manufacturing.

On the other hand, in its early days, Zero Run Motors always claimed to be a "follower" of the development of intelligent driving technology. From the past, it can also be seen that Zero Run did not vigorously develop intelligent driving technology like car companies such as Xiaopeng Motors.

Our investment in Zero Run (intelligent driving) is relatively benign, "Zhu Jiangming explained." Every generation of technological progress requires huge human, material, and financial resources. In the early days, advanced intelligent driving mainly focused on high-precision maps and rule control solutions. It can be seen that even with a large amount of computing and research and development efforts, the intelligent driving system still has problems such as insufficient anthropomorphism and mechanical driving experience

So, in the early stages of the development of intelligent driving technology, Zero Run Motors did not increase investment in intelligent driving technology and was eager to become one of the top performers on the track. Instead, they avoided excessive investment in technology fields that were not yet clear, and waited until the technical roadmap gradually became clear before making efforts.

We believe that now the technology roadmap (end-to-end intelligent driving solution) is basically clear, and it is suitable for large-scale investment. By the end of 2024, the Zero Run intelligent driving team will have more than 500 people in just the algorithm part. Currently, Zero Run has sufficient ability to support the development of end-to-end intelligent driving in the future, "Zhu Jiangming told Yiou Automobile." We will achieve the point-to-point logistics function of the B10 intelligent driving version when it is delivered, achieve the city NOA function in the third quarter, and next year the intelligent driving system will have the intelligent driving ability from parking space to parking space

We believe that Zero Run Intelligent Driving can enter the first tier of the industry this year, "said Zhu Jiangming.

Inspiration 3: Step on the formula of "extended range+SUV" popular products accurately

Another advantage of Zero Run cars is that they have hit the hit formula of "extended range+SUV".

From the perspective of the performance of the extended range vehicle itself, the extended range model solves the pain point of range replenishment for long-distance travel of pure electric vehicles through the form of "oil electric complementarity", while also conforming to the trend of China's new energy development.

From the changes in sales of Zero Run cars themselves, we can also see the empowerment that extended range cars bring to Zero Run cars. In the first quarter of 2023, the first extended range model of Zero Run Automobile, Zero Run C11 Extended Range, was launched. Afterwards, the sales of Zero Run cars skyrocketed like riding on a rocket.

Doubling market value, 60 billion yuan Zero Run wins sales crown

The popularity of extended range vehicles has also been verified by the market. According to data from the China Association of Automobile Manufacturers, the sales volume of new energy vehicles in the market reached 10.899 million units in 2024, of which 1.167 million were extended range vehicles, a year-on-year increase of 78.7%, which is greater than that of plug-in hybrid and pure electric vehicles.

Doubling market value, 60 billion yuan Zero Run wins sales crown

Extended range electric vehicles are not advanced enough, it's nonsense! "Said Yu Chengdong, Executive Director of Huawei, Chairman of Terminal BG, and Chairman of Intelligent Automotive Solutions BU, publicly.

Huawei Intelligent Car BU is a loyal supporter of range extender. The WENJIE M7, jointly developed with SAIC, is a mid to large range extender SUV. The new WENJIE M7 was released in September 2023 and was widely popular in the market, with orders exceeding 30000 in the first month and over 80000 in the second month.

In addition, from the beginning of its establishment, Ideal Automobile chose the extended range route. With the help of the "extended range+SUV" model mode, Ideal Automobile also took the lead in turning losses into profits among new car making forces. In 2024, Ideal Automobile will achieve an annual delivery of 500000 vehicles, with a cumulative delivery volume exceeding 1.13 million vehicles over the years.

The popularity of extended range vehicles in the market is undoubtedly the greatest affirmation of the extended range route.

Inspiration 4: Actively expand the circle of friends at home and abroad

Opening the friend circle of Zero Run Motors, one cannot help but marvel at the strength of its core strategic partners.

Externally, Zero Run Motors has partnered with European giant Stellantis Group; Internally, Zero Run Motors has formed a partnership with FAW Group, the "eldest son of the Republic". This dual wheel drive model of "global resource grafting+deep integration of domestic industrial chains" has helped Zero Run Automobile build a unique cooperative ecosystem.

In October 2023, Leapmotor officially announced a strategic partnership with Stellantis Group, which invested approximately 1.5 billion euros to acquire a 20% stake in Leapmotor. In addition, both parties plan to jointly establish a joint venture called "Zero Run International", in which Zero Run Automotive and Stellantis respectively own 49% and 51% of the equity.

This cooperation helps Zero Run Auto borrow Stellantis' "ship" to go global, avoid the high risks of its self built channels, and quickly penetrate the European and American markets with the latter's brand endorsement and channel network. Stellantis Group can also leverage the self-developed capabilities of Leapmotor to accelerate the intelligent electrification transformation of its brands and increase its influence in China.

The cooperation with FAW is also a win-win situation.

In 2025, China FAW and Leapmotor held a signing ceremony for the Memorandum of Understanding on Strategic Cooperation in Changchun. According to official sources, FAW and Leapmotor will engage in strategic cooperation from two dimensions:

One is for both parties to fully leverage their respective technological accumulation in the research and development field, jointly carry out joint development of new energy passenger vehicles and component cooperation, and jointly enhance product competitiveness through the integration of their technologies;

The second is for both parties to further explore the feasibility of deepening capital cooperation, through which both parties can achieve full industry chain resource synergy.

We will also explore cooperation with platforms in the future, "Zhu Jiangming said in a previous interview with reporters.

For FAW Group, it can leverage the technology of Zero Run Motors in the field of new energy intelligence to accelerate the transformation of its brands towards electric intelligence; For Leapmotor, the state-owned background of FAW Group will help it expand its competitiveness in policy sensitive markets, and at the same time, cooperation in parts can also enhance Leapmotor's ability to resist risks.

As of 2024, Zero Run has obtained designated projects for 10 automotive component companies, mainly from Sino foreign joint venture car companies and foreign-funded car companies.

Expanding the scale of components can be used in more host factories to share development costs, "said Zhu Jiangming.

Through the selection of Zero Run He's strategic partners, we can see its wisdom of "making good friends". Cooperating with FAW Group to assist Zero Run in solving bottlenecks such as large-scale delivery and financial resources; Collaborating with Stellantis will help Leapmotor explore overseas markets and increase its visibility.

Inspiration 5: Improve channel construction and actively layout the sinking market

For Leapmotor, channel construction also has a positive driving effect on its domestic and international sales growth.

In China, from the perspective of channel regional layout, Zero Run adheres to the "1+N" model, which means one regional center with 4S service functions, supplemented by multiple shopping malls or city exhibition halls within the region. Regional centers can provide one-stop services such as vehicle display, sales, and after-sales, while supermarkets or city showrooms can better connect with consumers, enhance brand awareness, and improve product sales

In 2024, the new retail model of Zero Run Automobile, which is mainly based on dealers and supplemented by direct sales, has been preliminarily established. This retail model forms a "combination fist" - it can control the image stores in the core business district and leverage local car dealers to tap into the local market.

At the same time, Zero Run is implementing the strategy of "surrounding cities from rural areas", continuously accelerating the coverage of blank cities, and at the same time accelerating the pace of sinking into county-level markets.

Further popularization of new energy vehicles in the private sector will inevitably lead to the development of third - and fourth tier cities, "said Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers. He believes that new energy vehicles have greater potential for popularization in county and township markets than in big cities. At present, the popularity and sales proportion of new energy vehicles are high in big cities, and promoting the development of new energy vehicles in small and medium-sized cities, counties and townships is an inevitable trend

According to data from the China Association of Automobile Manufacturers, the penetration rate of new energy in third - and fourth tier cities will increase by 18% year-on-year in 2024. The increase in penetration rate of new energy in the sinking market indicates that the public is gradually accepting new energy vehicles. At the same time, there is still a lot of room for development in the sinking market. Both product pricing and sales channel layout of Zero Run cars conform to this trend.

As of the end of 2024, Zero Run has established 695 sales stores and 427 service stores in China, covering 264 cities. Zhu Jiangming stated that by 2025, the number of Zero Run car service stores will exceed 600, and "in the future, service will also become the new business card of Zero Run brand".

Overseas, Zero Run Motors has leveraged the dealer resources of its major shareholder Stellantis, accumulating over 400 dealer channels. In 2024, Zero Run Company will export 14000 units overseas, with a sales target of over 50000 units in the overseas market by 2025, forming a channel scale of over 550.

conclusion

In March 2025, Zero Run Motors surpassed its strong competitors such as Ideal Motors and Xiaopeng Motors with a monthly sales volume of 37000 units, becoming the new force brand sales champion of the month.

Through its self-developed technology platform, Zero Run Automotive has optimized its research and development efficiency and cost control; In the trend of pursuing advanced intelligent driving in the industry, Zero Run has demonstrated differentiated strategic determination, avoiding excessive investment in technology fields with low marginal benefits and improving the return on investment in research and development; Step on the popular formula of "extended range+SUV" and accurately capture more market share with Zero Run; Continuously improving the circle of friends has helped Zero Run Automotive strengthen its supply chain risk resistance capabilities and accelerate market penetration through its global network of partners; Comprehensive channel construction also helps Zero Run reach more people.

This series of strategic actions together outline a clear path for Zero Run from product to technology, and then to market layout, which are also five important inspirations for the automotive industry from Zero Run Automotive.