And the other question is about the overseas market. I’m really curious about your specific plans into the expansion into the Indonesia or Thailand market, you mentioned just now. I’m wondering, like how do you view the market potential? And how do you view that your product competitiveness in this market? Thank you.
Yan Li: Yes. So, let me address the first one with the medium €“ mid-to-premium market one. So, in terms of €“ I think my view on this one is, kind of like a less optimistic in the sense that I think the medium to premium market, I would imagine it actually would grow slightly slower. I don’t think it will grow faster than the market average. It will grow either slower or maybe just on par. The issue being that when you’re looking at this entire market growth in China, a lot of consumer demand growth, and a lot are actually through basically industry players doing price competition, which we already observed in Q1 this year, basically major competitors slashing prices on most of our entry-level product around RMB 2,000 or less.
So that actually €“ that price competition and really shooting for basically slashing price to drive the volume, that has always been sort of the case for this industry. So, I think that’s actually, to some time, fuel the market growth. So from that point of view, I think the mid-to-premium market, I don’t think it will grow faster than average market, but having said that, it’s €“ we still €“ is still a lot of room for us to gain that market, right? Because if you look at last year, we only did about 700,000 units. And the year before, we actually did about 980,000 units all in the same segment. The drop of about units because of the lithium price went up, we had to increase our €“ some of our entry product, and it was the pricing auto market, right?
And €“ but that doesn’t mean this mid-to-premium market doesn’t exist. I think the market €“ this market €“ mid-to-premium market is still exist in terms of at least 8 million units plus. So, for us, basically the mid-end to the premium, premium part like at least like 2 million to 3 million, and mid and at least, I think, 5 million to 6 million units. So for us, only last year’s 700,000 units were still small percentage. So, we’re less concerned about how fast the overall market grows, but more focused on whether we can have a competitive product. But we know we can have like a great design product, but it has to be price competitive in that market as well. I think that addressed your first question. I think can you repeat on your second question on the Southeast Asia market, which I didn’t recall down clearly.
Alice Ma: Okay. Thank you. My second question about the entrance of the Indonesia or Thailand market. You mentioned that €“ I think you mentioned in your introduction that you will leverage the battery swap with the local partners into this market. And I’m wondering like how do you see the market potential in the Southeast Asia market? And how do you view your product advantage for competitiveness? Thank You.
Yan Li: Yes. Thanks. So, I think €“ so we’ve been talking about South Asian market for at least for a few years. The entire market was huge. It’s about €“ they do about 20 million €“ or I think, 18 million to 20 million of petrol scooters or petrol motorcycles for the €“ on an annual basis, right? I think Indonesia was at least 6 million units and Thailand, Malaysia, everything. And I think in the past, what’s happening is that market, there is basically electric moped or electric motorcycles from price point of view, it’s too pricey for that consumer market. So, there is €“ it’s difficult to find an entry point. We were able to gain about 60% growth last year. But still, we’re talking about small numbers, less than 10,000 units.
