Paul Gong: So my second question is regarding your interesting comment on the GPT application into the smart vehicles. Can you give us kind of some example of how do you imagine such kind of technologies to be used in the long term in the smart vehicles? And if so, shall we pay for some kind of technology royalty or kind of technology servicing fee on that?
He Xiaopeng: Thank you for your question. Now definitely, ChatGPT and related AI technologies will provide a lot of values for our midterm and long-term development. Now when we look at autonomous driving technology or capabilities, the lower level or medium level kind of autonomous driving technology always face the conundrum of being not smart enough as human drivers because cars definitely can be very capable as a driving vehicle; but in terms of decision making, a lot of it comes down to the intelligence level. So the fact that the ChatGPT AI technology allows on-premise deployment as well as cloud and connection will actually be a catalyst in terms of the development of autonomous driving technology all the way from Level 4 to Level 5.
Now in terms of the potential fee or cost of dropping the technology, first of all, we will look at the near-term application in the software side, which will be much sooner than its application on the hardware side because it’s application in the hardware, we’re talking about integrating the software together with the hardware, which is quite a different story from just applying it on the software side. And we mainly will look at some of the key areas, for example, education and also document processing, language processing, et cetera. And definitely, we expect to see a lot of variations of related ChatGPT technology in China, and we will select the right partners for XPeng in the future according to our developmental pathway. And right now, we are in conversation actually with a lot of potential partners.
And the — in regards to the potential cost, we believe it’s quite minimal.
Operator: Next question comes from Bin Wang of Credit Suisse.
Bin Wang: I have actually got two questions. Number one is about your cost reduction. You mentioned about 25% cut in the vehicle component cost, which is very amazing. Can you give me more detail about how you can achieve that? For example, will you use — integrate die-casting to the cost cutting? It is very important. The second question is about G9. G9 actually has been doing not good recently, but previously, you were seeing G9 volume be even higher than P7. How you can maintain G9 sales momentum and what’s your maintenance status for G9?
He Xiaopeng: Yes. Specifically speaking, the cost restructuring target of 25% is not amazing per se, but it definitely indicates that in the past, we definitely — still we’re not doing good enough. There’s still a lot of room improvement in terms of cost reduction. And right now, we are seeing multiple ways to actually reduce our cost of manufacturing and overall production. For example, as you mentioned, we have some new technologies in our hardware, the integrated stamping techniques that can help us to reduce the cost of manufacturing. And also in terms of pack of the whole vehicle as well, we have some viable methodology that can help us to reduce the cost by about 50% to 60%. In addition to that, in terms of the overall chip and battery, we are now employing or adopting the whole vehicle platform engineering technique that can also help us to drive down costs.
