The latest financial report released by Ideal Auto shows that in 2024, Ideal Auto's revenue will be 144.5 billion yuan, a year-on-year increase of 16.6%. The revenue growth is due to the increase in sales. In 2024, Ideal delivered 500,508 vehicles, a year-on-year increase of 33.1%. Vehicle sales revenue was 138.5 billion yuan, an increase of 15.2% from 2023.
On March 16, 2025, in Haikou, Hainan, consumers visited Ideal Auto’s first pure electric model MEGA.
At present, Ideal has firmly held the top spot in sales of new energy brands above RMB 200,000 in China. This performance is mainly due to the strategic focus on extended-range models. The L series models contributed 97% of the sales for the whole year.
However, behind the revenue growth, Ideal Auto is facing a situation where the average selling price of its vehicles has decreased, offsetting part of the revenue and gross profit margin decline.
In 2024, the gross profit margin of Ideal Vehicle Sales Business will be 19.8%, and 21.5% in 2023; the company's overall gross profit margin will be 20.5%, and 22.2% in 2023.
Its decline in gross profit margin has led to a decline in net profit. In 2024, Ideal Auto's net profit was 8 billion yuan, a year-on-year decrease of 31.9%. According to analysis, the decline in Ideal's gross profit margin is directly related to the "price war". In response to market competition, Ideal has reduced the price of L series and MEGA models by 18,000-30,000 yuan. At the same time, the first pure electric MPV Ideal MEGA sold only 12,200 units throughout the year due to controversial styling and insufficient charging network, far below expectations, and R&D and marketing investment failed to convert into revenue.
In addition, the company's selling, general and administrative expenses were RMB 12.2 billion, an increase of 25.2% from RMB 9.8 billion in 2023.
In 2025, Ideal Auto will continue to develop its pure electric vehicle business, which it is not good at. In terms of products, it plans to launch a new pure electric SUV i8 and build 2,500 supercharging stations to avoid the energy replenishment anxiety that MEGA encountered before. If the launch of this pure electric model still fails to bring "icing on the cake" to Ideal, Ideal Auto's revenue growth will be difficult to sustain.
