Big tech is set to "harvest" as they enter the market?

The Lantu FREE+, an SUV that users have "advised to come out," is becoming a key player for Lantu Auto to achieve its "comeback."

On July 12th, the "new work" of Lantu Automobile, which has been four years in the making, the Lantu FREE+, was officially launched in the market. With a starting price of 219,900 yuan, it comes standard with Huawei's Qian Kun ADS 4.0 and HarmonyOS cockpit 5, making it a mid-to-large SUV product. The surprises are truly overwhelming. Lantu Automobile CEO Lu Fang boldly declared at the launch event that it is the best-driving Chinese SUV. "We do not simply pile on configurations. New energy vehicles should not just be like refrigerators, color TVs, or big sofas; they must also bring driving pleasure to users," Lu Fang emphasized. The Lantu FREE+ is designed for users who genuinely love driving and are passionate about cars.

Image source: Lantu Automobile

The results also prove that Lantu Automobile's market prediction was quite successful. Official information shows that after the launch of the Lantu FREE+, over 10,000 orders were locked in just 15 minutes.

Lantu is on the right path.

Lantu is the core vehicle for Dongfeng Group's transformation into high-end new energy, and its development trajectory reflects a typical path for Chinese brands in their pursuit of higher status—starting from brand cultivation to user accumulation, and then to scale expansion.

In mid-2020, the Dongfeng Group officially named its high-end new energy brand project, which had been incubating internally for some time, as Lantu. At that time, the domestic new energy market was already showing a fierce competition, with new car manufacturers paving their own paths and traditional car enterprises also joining the fray. The battle of the "new" had already begun, with both "new and old forces" showcasing their "muscles" in the new era trend.

Lantu Automotive needed to undertake not only the task of Dongfeng Motor's transition to new energy but also to bear the significant responsibility of pushing Dongfeng's independent business to break through. In other words, through the Lantu project, Dongfeng Motor aimed to fulfill the historical mission of "overtaking on a curve" for its independent brand business. With time being tight and tasks heavy, Lantu benefited from abundant resources by leveraging the support of Dongfeng Group, resulting in a rapid brand development process. About a year after the brand launch, Lantu's first model, the Lantu FREE, was officially launched in the market, and the company announced a product plan to release at least one new vehicle per year, aiming to quickly establish a comprehensive product lineup covering the SUV, MPV, and sedan segments.

The ideals are lofty, but the initial market expansion of the Lantu brand has fallen short of expectations. In 2021, the newly launched Lantu FREE model had a lackluster sales performance, failing to exceed 10,000 units for the entire year. In 2022, the Lantu Dreamer was also introduced to the market, but the overall annual sales of the Lantu brand amounted to less than 20,000 units. By 2023, the situation improved somewhat, with Lantu Auto achieving a breakthrough of 50,000 units in annual sales. However, during this stage, many leading domestic new energy vehicle brands were already selling over 50,000 units monthly.

After entering 2024, Lantu Automobile has experienced a wave of intensive new product launches, with multiple new cars such as Lantu FREE 318, the all-new Lantu Dreamer, and Lantu Zhiyin being successively launched. The product layout of Lantu Automobile continues to improve, and the market scale has also seen a significant increase. Especially in the second half of 2024, the Lantu brand achieved a monthly sales record of over 10,000 units for several consecutive months, with total annual sales approaching 90,000 units.

By 2025, the situation is even more promising, with cumulative sales surpassing 50,000 units in the first half of the year. The upgraded MPV product, Lantu Dreamer, has achieved deep integration with Huawei, and its popularity has skyrocketed, temporarily securing the top sales position in the domestic high-end new energy MPV market.

Image source: Lantu Automobile

Clearly, after crossing the initial stage of brand cultivation, with strong product capabilities and a relatively complete product lineup, as well as the continuous deepening of cooperation with Huawei, Lantu Motors has gradually established a foothold in the domestic new energy market. Now, with the more "Huawei" Lantu FREE+ entering the market and achieving the remarkable feat of over 10,000 orders locked in just 15 minutes after its launch, looking back at the sales target of 200,000 units set by Lantu Motors at the beginning of the year seems not impossible.

Image source: Lantu Automobile

Can Lantu really complete the market "harvest"?

At the end of last year, Dreamer achieved a "star-level" market performance with monthly sales exceeding 10,000 units. Although sales have recently declined, they have basically stabilized at an average of several thousand units per month, making it one of the leaders in the high-end new energy MPV market.

Can the Lantu FREE+ similarly achieve a rise above its competitors and break through the overall pattern of the domestic mid-to-large-sized new energy SUV segment?

It must be said that from a technical perspective, the Lantu FREE+ indeed demonstrates considerable competitiveness.

Firstly, it is of course reflected in the cooperation between Lantu and Huawei in the field of intelligence, which has made new breakthroughs. The Lantu FREE+ is equipped with Huawei's QianKun ADS 4.0 system as standard across the entire lineup. According to official information, this system has comprehensively upgraded the WEWA architecture and is equipped with a total of 29 sensors, including one 192-line lidar and three 4D millimeter-wave radars, significantly enhancing overall environmental perception capabilities.

A comparison can be made based on three key indicators. Compared to the ADS 3.0 system, the QianKun ADS 4.0 has reduced decision-to-braking delay by 50%, allowing the vehicle to respond more quickly to emergencies and effectively avoid accidents; traffic efficiency has increased by 20%, while system redundancy has decreased by 30%, enhancing the system's stability and reliability. It achieves functions such as urban NCA, highway NCA, parking space to parking space P2P 2.0, and full-scene parking assistance, providing users with a comprehensive driving assistance experience for all road conditions, all weather, and all scenarios. More importantly, in terms of advanced driving assistance and comprehensive functionality, the Lantu FREE+ is already a leader in its class, and with a competitive starting price of 219,900 yuan, it further highlights the cost-performance advantage of the new vehicle.

Image source: Lantu Automobile

The of HarmonyOS 5 has brought a qualitative change to the cabin experience of the Lantu FREE+. The intelligent voice assistant supports multiple intentions in one sentence and continuous dialogue, making the interaction between users and the car's system smoother; mobile navigation, audio, and calls can be seamlessly transferred to the car system, while the super desktop allows rich mobile applications to be accessed with just one touch, achieving deep integration between the smartphone and the car system.

The smart cockpit experience of the Lantu FREE+ has unique advantages even when compared to other products in the "Huawei system," and it can better meet users' strong demand for intelligent travel.

In terms of chassis technology, the Lantu FREE+ also has notable highlights. It is worth mentioning that to enhance the product competitiveness of the Lantu FREE+, Lantu Automotive has invested 500 million yuan in research and development, completing over 1,000 detailed improvements. The Lantu FREE+ is equipped with a leading full aluminum chassis in its class, and utilizes the only double wishbone four-ball joint independent front suspension and H-arm multi-link rear suspension in its class, as well as an upgraded EDC variable magic carpet suspension.

The EDC variable magic carpet suspension can anticipate road conditions in advance and actively adjust the stiffness of the suspension, ensuring that the vehicle remains stable and does not sway when cornering, comfortable and non-jarring on bumpy roads, and stable without dizziness during braking. The driving experience will be fully upgraded. The Lantu FREE+ also features a class-leading 100mm stroke air suspension, allowing for low welcome mode, high-speed stability, and off-road lift, all with a one-button switch, further enhancing driving convenience and comfort.

The Lantu FREE+ has also played with "creative designs" in terms of emotional value. Lantu Automobile's CBO and General Manager of the Sales Company, Shao Mingfeng, stated in an interview: "Sincerity is the best traffic password. Lantu does not chase trends or create gimmicks; in addition to product competitiveness, we will also impress users through service and experience, using strength to create a hit product."

Image source: Lantu Automobile

The Lantu FREE+ brings a unique driving experience, and the emergence of the "Lanting Mode" is undoubtedly a highlight. In this mode, the Lantu FREE+ can achieve a deep integration of real mechanical sound simulation and human-machine interaction. The vehicle can simulate the sounds of different supercars through its onboard audio system. This sound is not random noise; instead, it dynamically adjusts the sound frequency based on the acceleration G-force. Combined with the feeling of being pushed back in the seat, the roar of the engine, and a dedicated UI interface, it provides users with a supercar-like driving experience and passion, stimulating the latent desire for driving control in drivers.

Of course, for a mid-to-large SUV, comfort features such as "refrigerators, TVs, and large sofas" are essential. In the Lantu FREE+, these comfort features are standard. Additionally, the car is equipped with ventilated and heated seats for all, front seat massage, a queen passenger seat, and rear seats with 12° electric adjustment, all without exception. The purpose is clear: the Lantu FREE+ aims not only to serve as a means of transportation but also to allow users to experience the higher emotional value and satisfaction brought by a mobile living space.

Image source: Lantu Automobile

The competitiveness of the Lantu FREE+ is promising and is expected to drive Lantu Auto to achieve new market performance by 2025. However, for Lantu Auto, in the process of pursuing product innovation and market share conversion, it cannot overlook the challenges posed by an unclear profitability cycle. Lu Fang also admitted in an interview, "The initial investment in R&D, production, and marketing costs will take time to recover."

The automotive industry requires significant upfront investment, as developing new technologies, building production facilities, and conducting extensive marketing activities consume a large amount of capital. When sales have not yet reached a sufficient scale, these costs are difficult to effectively distribute in the short term, which inevitably leads to considerable profit pressure. For the new car Lantu FREE+, bringing Huawei's higher-tier ADS 4.0 system down to the 200,000 yuan market enhances the product's competitiveness, but it also inevitably brings greater cost control pressure. While ensuring product quality and technological advancement, how to reduce costs and achieve profitability is a problem that Lantu Automotive needs to address further in the future.

If Lantu FREE+ really becomes a blockbuster, the channel pressure on Lantu Automobile will surely increase day by day. With the rapid growth of orders, the existing channel capacity of Lantu Automobile will first be put to the test. Moreover, for Lantu Automobile, which has already shaped itself as a user-oriented brand, ensuring service quality amidst the continuous expansion of market scale is also a significant challenge. According to Shao Mingfeng, the number of terminal staff needs to increase by 20%-30%, and the number of stores should expand from the current nearly 400 to around 700.

In addition, it is an undeniable fact that there is some overlap in market positioning between the Lantu FREE+ and other "Huawei system" products. Currently, many "Huawei system" products are competing for market share in the mid-to-high-end new energy vehicle sector. In the context of increasingly serious homogenization competition in the domestic new energy market, how to highlight its product features and brand value to attract consumer attention and purchases will be a new challenge that Lantu FREE+ must face in the future.

Summary:

In summarizing the reasons for the continued good market performance of the Lantu Dreamer and Lantu FREE+, multiple executives from Lantu have repeatedly emphasized, "We listen to advice. When users give you advice, it actually shows that they still care about you and pay attention to you." Lu Fang stated that this is a very difficult task. "Since users are willing to advise, we must listen to their advice. Lantu is a user-oriented technology enterprise, and it is a company that achieves mutual success and grows together with users. Lantu needs to meet users' needs according to their ideas."

It is precisely because of "listening to advice" that Lantu has established a market strategy of valuing value over price, and this state-owned enterprise background new energy brand has begun to break the shackles of traditional enterprises by adopting a user-centric approach. Although there is still a distance to true success, as Lantu Automotive continues to move forward step by step, it has also shown the domestic automotive market another possibility beyond new forces—anchoring on users, large manufacturers can also traverse long cycles.