Leapmotor COO: Cars Are Becoming Like Phones

Leapmotor COO Calls for End to 'Spec Wars' in EV Industry

Leapmotor Chief Operating Officer Xu Jun has issued a stark warning to the electric vehicle (EV) industry, comparing current automotive trends to the smartphone market's saturation of unused features. Speaking at the 2026 Future Car Pioneer Conference on May 29, Xu argued that manufacturers are engaging in a destructive 'spec war' that fails to deliver tangible value to consumers.

The core of his argument is that modern cars have become over-engineered. He suggests that just as smartphones now offer capabilities users rarely utilize, EVs are reaching a point of diminishing returns. This perspective challenges the prevailing industry narrative that bigger batteries and faster chips automatically equal better products.

Key Takeaways from the Conference

• Price Sensitivity: Consumers prioritize affordability, forcing车企 (car companies) into aggressive price wars to remain competitive.
• Diminishing Returns: The perceptual difference between 700km and 1000km range is near zero, yet costs rise exponentially.
• Feature Bloat: Similar to smartphones, approximately 50% of car features go unused by the average driver.
• Profitability Crisis: To survive price cuts, manufacturers must reduce costs without sacrificing essential user experience.
• Second Brand Delay: Plans for a secondary brand are confirmed but delayed until late 2024 or 2025.
• User-Centric Shift: The industry must pivot from selling parameter sheets to providing efficient mobility solutions.

The Cruel Reality of Price Wars

Xu Jun did not mince words regarding the financial pressures facing Chinese automakers. He described the current market environment as a 'cruel reality' where price is the primary decision factor for buyers. If a company refuses to engage in price competition, it risks losing its entire customer base to rivals who will.

This dynamic creates a paradox for profitability. Companies must lower prices to sell cars, yet they must maintain margins to survive. Xu identifies cost reduction as the only viable path forward. However, this cannot come at the expense of quality or basic functionality. The goal is to meet consumer needs while satisfying the company's financial requirements.

The implication is clear: inefficiency is no longer an option. Automakers must strip away non-essential expenditures. This mirrors broader tech industry trends where efficiency drives survival. In the West, similar pressures are seen as legacy automakers struggle with EV transition costs compared to agile startups like Tesla.

Why 'More Specs' Does Not Mean 'Better Cars'

A significant portion of Xu’s speech focused on the disconnect between technical specifications and user experience. He highlighted two specific examples where increased numbers do not translate to perceived value.

First, he addressed battery range. While marketing materials boast about 1000km ranges, the actual user benefit over 700km is negligible for most daily driving scenarios. Yet, the cost to achieve that extra range increases exponentially due to battery material expenses.

Second, he discussed computing power. Moving from 30 TOPS (Tera Operations Per Second) to 1000 TOPS offers minimal experiential improvement for standard autonomous driving tasks. The gap between high-end and mid-range performance is shrinking in terms of utility.

The Smartphone Analogy

Xu drew a direct parallel to the smartphone industry. Modern phones possess immense processing power and camera capabilities. However, studies suggest that nearly 50% of these features go unused by the average consumer. We have reached a state of over-satisfaction.

• Saturation Point: Most users do not need flagship-level specs for daily tasks.
• Cost vs. Value: Premium features add significant cost but little daily utility.
• Standardization: As features become standard, they cease to be differentiators.
• Focus Shift: Innovation should target pain points, not benchmark scores.

When every car has 'enough' power, space, and tech, parameters become merely an entry ticket. They are no longer the deciding factor in purchase decisions. The competitive edge shifts to how well the product solves real-world problems efficiently.

Redefining Value: From Parameters to Solutions

If specs are no longer the primary differentiator, what should drive innovation? Xu argues that users want a 'multi-fast-good-and-cheap' mobility solution. This phrase encapsulates a holistic approach to vehicle design. It prioritizes reliability, speed, quality, and affordability over flashy individual metrics.

This philosophy aligns with the concept of value engineering. Instead of adding features for the sake of novelty, engineers should focus on optimizing the core experience. For example, a comfortable seat massage is a nice-to-have. But when every competitor offers it, it becomes a baseline expectation rather than a luxury.

The industry must collectively rethink its definition of progress. Is progress a faster chip, or is it a cheaper, more reliable ride? Xu’s stance suggests the latter. This shift requires a cultural change within automotive R&D departments. Engineers must resist the urge to maximize benchmarks and instead optimize for user satisfaction.

Strategic Delays and Future Branding

Beyond product philosophy, Xu addressed strategic corporate moves. When asked about reports of a second brand, he remained cautious. He acknowledged the rumors but stated that the timing was not right for a public announcement.

Previous reports from Leapmotor Vice President Li Tengfei indicated that a second brand is indeed in development. The timeline suggests a reveal by the end of 2024 or early 2025, with market launch potentially occurring in mid-2025 or later. This delay may reflect the very cost-cutting strategies Xu advocated. Launching a new brand requires significant capital. In a price-war environment, conserving cash is prudent.

This strategic patience contrasts with the aggressive expansion seen in other sectors. It highlights the tension between growth ambitions and financial discipline. For investors and competitors, this signals a period of consolidation rather than rapid diversification.

Industry Context: A Global Trend

While Xu’s comments were made in the context of the Chinese EV market, the implications are global. Western automakers face similar pressures. Ford and GM have struggled with EV profitability, leading to production adjustments and pricing changes.

The 'spec war' is not unique to China. In Europe and North America, vehicles are becoming increasingly complex. This complexity drives up repair costs and insurance premiums. Consumers are beginning to push back against overly complicated interfaces and unnecessary features.

Regulatory bodies are also taking note. Efficiency standards often reward simplicity and lightweight design. Over-engineering can conflict with sustainability goals. Therefore, Xu’s call for rationality may resonate with policymakers worldwide.

What This Means for Stakeholders

For developers and engineers, this trend suggests a pivot in skill demand. Expertise in system integration and cost optimization will outweigh pure performance tuning. Software teams must focus on efficiency, ensuring that code runs smoothly on modest hardware.

For businesses, the lesson is clear: differentiate through service and reliability, not just hardware. Customer support, charging networks, and resale value are becoming key competitive advantages. Marketing messages must shift from technical jargon to practical benefits.

For consumers, this could mean better value propositions. As manufacturers cut waste, prices may stabilize or decrease. However, there is a risk that 'cost-cutting' could lead to reduced durability. Buyers must remain vigilant about build quality and long-term support.

Looking Ahead: The Next Phase of EV Evolution

The EV market is maturing. The initial phase was defined by technological demonstration. The next phase will be defined by economic sustainability. Companies that fail to balance innovation with cost control will falter.

We can expect to see a convergence in vehicle specifications. Mid-range models will offer performance comparable to today’s premium offerings. The differentiator will be software ecosystem integration and brand trust.

Leapmotor’s strategy, if executed correctly, could serve as a blueprint for the industry. By focusing on what users actually need, rather than what engineers can build, they may achieve sustainable growth. The coming years will test whether this philosophy can withstand the pressure of intense competition.

Gogo's Take

• 🔥 Why This Matters: This marks a pivotal shift from 'tech-first' to 'user-first' design in the auto industry. It validates the consumer fatigue with feature bloat and signals that future EV wins will come from operational efficiency, not just horsepower.
• ⚠️ Limitations & Risks: Aggressive cost-cutting can compromise safety and longevity. There is a fine line between 'efficient' and 'cheap.' If manufacturers cut corners on materials or software testing to lower prices, it could lead to higher recall rates and erode brand trust.
• 💡 Actionable Advice: Don't be swayed by spec sheets when buying your next EV. Focus on total cost of ownership, including insurance, maintenance, and software update policies. Compare real-world range tests rather than NEDC/CLTC figures. Watch for brands that prioritize software stability over raw computational power.