Recently, Baidu's automotive project, Jiyue, has encountered severe financial difficulties, with rumors suggesting that the company may face bankruptcy. In contrast, Xiaomi's automotive initiative has shown strong performance, with its stock prices continually rising, highlighting a stark difference in outcomes. This contrast has sparked widespread attention and discussion.

The Dilemma of Jiyue Automotive

Since rebranding in August 2023, Jiyue Automotive was initially seen as a promising venture; however, it has now plunged into massive debt and management chaos. Reports indicate that in October, Baidu sent auditors to investigate, discovering corruption within Jiyue's management and a total debt reaching 7 billion yuan, most of which is owed to Geely for manufacturing costs. According to supplier data, Jiyue's total outstanding payments have exceeded 800 million yuan, and these suppliers have not been satisfactorily addressed in the joint statement from Baidu and Geely.

Following a sudden announcement from Jiyue's CEO, Xia Yiping, employees began collective actions within the company, demanding resolution for social insurance and compensation issues. This chaotic situation has raised significant concerns about Jiyue's future, especially as its cooperation with Geely has grown increasingly strained. Employees faced pressure to resign within a short period, with uncertain compensation policies leading to widespread dissatisfaction and protests.

Jiyue's brand image has also suffered. Despite launching its first model, the Jiyue 01, in recent months, market response has been lukewarm, with sales falling far short of expectations. Compared to Xiaomi's products, Jiyue's marketing strategies have proven ineffective, resulting in limited brand recognition among consumers. Although Jiyue possesses considerable technological capabilities, its shortcomings in brand building and marketing have placed it at a competitive disadvantage.

Xiaomi's Path to Success

In contrast, Xiaomi's automotive project has been met with enthusiastic reception in the market. Xiaomi announced its entry into the electric vehicle (EV) sector in 2021 and quickly introduced several new models. The Xiaomi SU7 has received excellent market feedback, with competitive pricing and high product specifications, resulting in sales far exceeding those of Jiyue. Xiaomi has achieved impressive market performance in a short time, demonstrating its keen sense of emerging market trends and rapid responsiveness.

Xiaomi's success is closely tied to its strong brand influence and effective marketing strategies. The company has invested significantly in brand promotion, utilizing social media, online and offline events to engage with consumers. In contrast, while Jiyue benefits from Baidu's technical support, it lacks effective brand communication strategies, leading to lower consumer awareness of its products.

Moreover, Xiaomi has maintained clear product positioning. The company has positioned its electric vehicle models as high-performance, cost-effective smart products, attracting a large base of young consumers. Xiaomi effectively leverages its success in the smart hardware sector, integrating smart technologies and internet features into automotive design, enhancing product appeal and market competitiveness.

Reasons for Their Divergent Fates

Jiyue's failure primarily stems from internal management chaos, serious financial issues, and a lack of effective market strategy. While it possesses potential in technology and branding, it has failed to translate that potential into market competitiveness. Conversely, Xiaomi has successfully attracted consumer and investor interest by leveraging its technological expertise and brand strength.

Furthermore, Jiyue's partnerships have proven unstable, particularly its collaboration with Geely, which has deteriorated, leading to a crisis in its funding chain. In contrast, Xiaomi has ensured stability in its supply chain and market promotion through various cooperative endeavors. When launching new vehicles, Xiaomi has effectively highlighted product features and user experiences, generating strong consumer interest.

In summary, the contrasting trajectories of Baidu's Jiyue Automotive and Xiaomi's automotive project underscore the critical importance of effective management, strategic marketing, and brand strength in the highly competitive electric vehicle market.

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（Source: uSMART HK）