Author | Su Peng
Recently, the topic of NEV manufacturers "fleeing from CATL" has become increasingly heated.
The underlying reason is not complex: the power battery pack accounts for approximately 30%–40% of the vehicle's total manufacturing cost (BOM), making it the most expensive single component.
However, the intensifying price war continues to squeeze profit margins in the automotive industry. According to data from the China Passenger Car Association (CPCA), monthly profits in September 2026 were only CNY 14.2 billion, a sharp year-on-year drop of 68%, with sales profit margins falling as low as 1.4%.
Rough estimates indicate that the average profit per vehicle is merely CNY 464.
When OEMs cannot earn more from the sales end, they are forced to cut costs on the production side.
Industry insiders previously told Future Auto Daily that for batteries of the same specification, second-tier suppliers offer prices 10%–20% lower than CATL.
For instance, CALB quotes prices approximately 10%–15% lower than CATL, which translates to a savings of about CNY 3,000–5,000 per vehicle.
Faced with an average profit of less than CNY 500, a cost-saving potential nearly ten times that amount is the most tempting prize in the price war.
Consequently, we see automakers going to extreme lengths to cut costs by developing proprietary batteries and introducing second or even third suppliers.
But let us not forget the market's simplest logic remains constant: cost and quality are always equivalent.
CATL CTO Gao Huan did not deny the market's concerns regarding high battery prices.
"Batteries are safety-critical components in vehicles. R&D validation must maintain a cautious attitude. Continuous investment in R&D is aimed at delivering safer, more reliable, and longer-lasting products," Gao Huan added.
Many second-tier battery manufacturers can offer price differences of several thousand yuan, but few mention that CATL's annual R&D investment is 5–10 times that of its second-tier peers. This gap in investment ultimately manifests in the battery's safety redundancy, lifespan calibration, and reliability under extreme conditions.
CATL's "high premium" has already resonated in the consumer market.
The secondary market provides the most direct vote: For the same model and similar condition/mileage, versions equipped with CATL batteries often command premiums ranging from several thousand yuan and exhibit better liquidity.
"There is no need to explain; just tell them (users) it is a CATL battery," a used car dealer told Future Auto Daily.
A grim reality is that current automakers, focused on cutting costs, have little time to consider the residual value of their products in the secondary market.
Ultimately, the cost of this battery premium shifts from the production side to individual consumers.
Given the average replacement frequency of electric vehicles being around six years, this may not be a good thing.
Luckily, some automakers are still willing to absorb the battery premium for consumers, such as IM Motors.
On October 29, the IM LS8 NEO Pure Electric officially opened pre-sales, offering two models: 93 Max+ and 103 Max+, with pre-sale equity prices starting from CNY 249,800.
Notably, both models are equipped with CATL batteries.
"From the user's perspective, the battery is the component most cared about by pure EV owners. Choosing a top-tier supplier essentially leverages the quality system of mature large enterprises to provide users with safety assurance," said Xiang Jiao, CTO of IM Motors, in an interview with Future Auto Daily.
The collaboration between IM Motors and CATL is not simply about taking off-the-shelf cells and installing them directly into the vehicle.
For the LS8 NEO, IM Motors collaborated with CATL to conduct multiple vehicle-level coordinated optimizations for two battery solutions.
The two battery orientations are clear: The 93kWh Gold High-Efficiency LFP targets cost-performance ratio. A common issue with LFP models is inaccurate SOC estimation. This version reduces the estimation error from the industry-common 5%-8% to 2%-3%, addressing the pain point of "inflated" range during winter or low-battery conditions.
Based on family-use data accumulated by IM Motors, both parties jointly refined charge-discharge strategies, finding a balance between fast charging, battery life, and safety. Power output no longer jumps abruptly, and energy recovery is smoother. Additionally, FIC technology helps slow battery aging, with related solutions having passed a 250,000 km durability test.
The 103kWh Monocrystalline Super Energy Battery follows a high-density path. Features like zero-gravity seats, full smart driving suites, and cockpit hardware increase vehicle weight. Higher energy density allows for better control of overall vehicle weight distribution, enabling the Lingxi chassis to perform optimally.
Xu Yin, Deputy General Manager of IM Motors, summarized this collaboration as "Letting professionals do professional work."
Beyond the battery, the LS8 NEO is the only model in the CNY 250,000 segment to feature a full-drive-by-wire chassis as standard across all trims. It also integrates the latest IM AD ZETA assisted driving system, fully adapted to Momenta's World Model.
In short, this system employs model technology with an L4-level R&D background to empower current L2-level assisted driving.
CATL battery packs, full drive-by-wire chassis, and Momenta's World Model—these core technologies for electric vehicles correspond to significant costs. With these "three-piece sets," emerging EV makers typically price their products at the CNY 500,000 level.
So why can IM Motors achieve this at half the price?
This is supported by SAIC Motor's 70 years of automotive manufacturing heritage.
As early as 2017, SAIC Motor formed joint ventures with CATL, becoming lighthouse partners—SAIC Times and Times SAIC. These two battery factories supply PACKs and cells for IM Motors.
CATL possesses top-tier battery technology, while SAIC, as a major manufacturer with 70 years of accumulation, holds the best vehicle integration technology.
Meanwhile, SAIC Motor initiated drive-by-wire technology R&D in 2018, undergoing over 10,000 tests and validations. It is currently the only complete vehicle enterprise in the industry mastering the full chain of drive-by-wire technology.
Momenta needs no further elaboration. SAIC Motor is one of Momenta's largest institutional investors, forming a deep capital-level bond. IM Motors was also among Momenta's earliest founding lighthouse partners.
Currently, many automakers use vertical integration of the supply chain for cost control, whereas IM Motors, backed by SAIC Motor, has deeply bonded directly with top-tier suppliers.
This strategy achieves cost reduction while simultaneously providing quality assurance.
"The first keyword of SAIC Motor's 70-year philosophy is long-termism," Xu Yin summarized.
The following is a transcript of the Q&A session with Xu Yin (Deputy GM of IM Motors), Xiang Jiao (CTO of IM Motors), and Gao Huan (CTO of CATL), conducted by media including Future Auto Daily (edited for brevity):
Q: Why choose to launch the IM LS8 Pure Electric version at this specific node? How does this vehicle plan to make breakthroughs in the CNY 250,000-level pure electric SUV market?
Xu Yin: In April this year, IM Motors took the lead in launching the LS8 Range-Extended version, equipped with the Super Stellar Large Battery. After nearly half a year of market validation, it received favorable reputation and user recognition, with many users expressing anticipation for the pure electric version.
At the same time, the market environment has changed significantly: competition in the range-extended segment has intensified with volatility, while the pure electric market shows signs of recovery and growth. Based on user needs and market rhythm, IM Motors顺势 launched the LS8 Pure Electric version.
The CNY 250,000 level is the core competitive interval for domestic pure electric SUVs and a key price segment considered by consumers.
This model highlights the core label of "Dual Giant Manufacturer Selection," relying on SAIC Motor's 70 years of vehicle manufacturing accumulation and CATL's leading battery technology and safety standards. The drive-by-wire chassis and power battery form differentiated support through two core hardware components.
In terms of product, three core highlights constitute competitiveness: First, the full drive-by-wire chassis upgrades safety capabilities while optimizing daily driving comfort;
Second, partnering with Momenta to implement the Physical AI World Model, bringing physical AI technology onboard;
Third, balancing comfort and luxury configurations, featuring latex rear seats, B&O audio, and driver mechanical massage seats. The entire vehicle excels in space, performance, and intelligence, leveraging the combined capabilities of SAIC and CATL to provide users with a stable and reliable experience.
Q: Currently, many automakers choose full-stack self-development of batteries, while others partner with top-tier suppliers. What considerations lie behind the LS8 NEO Pure Electric version equipping CATL batteries as standard across all trims?
Xiang Jiao: At this stage, there are diverse discussions on battery R&D routes in the industry. IM Motors' core approach prioritizes providing users with stable, predictable, and reliable experiences, adhering to the principle of "letting professionals do professional work."
From the user's perspective, the battery is the component most cared about by pure EV owners. Choosing a top-tier supplier essentially leverages the quality system of mature large enterprises to provide users with safety assurance.
CATL has maintained the global number one position in power battery market share for nine consecutive years, with cumulative cell shipments exceeding 1 billion units and installation scale approaching 30 million vehicles. Its cell defect rate reaches PPB levels. Relying on massive real-world testing and R&D data, CATL has profound accumulation in cell formulation, structural design, and BMS management systems.
The battery paired with the LS8 has undergone rigorous validation, completing 250,000 km of road testing in extreme scenarios such as the Sichuan-Tibet Highway and Mohe. Post-disassembly, the battery capacity retention rate remains at 90%, and it has successfully passed multiple high-intensity safety tests.
Simultaneously, the relationship between IM Motors and CATL is not a simple buyer-seller dynamic but aims to achieve a synergistic effect of "1+1 > 2."
Since 2017, both parties have co-built joint venture factories. The SAIC Times and Times SAIC plants stably supply cells and PACK products, representing a deeply bonded lighthouse partnership.
CATL outputs top-tier battery technology, while SAIC leverages its vehicle integration advantages. Through whole-domain thermal management and vehicle tuning capabilities, they fully release battery performance, jointly optimizing structural safety and energy efficiency.
Top-tier battery technology combined with mature vehicle integration capabilities ensures research and quality standards are controlled by dual giant manufacturers. We consistently believe that while a single entity can advance projects quickly, multi-party synergy goes further. Integrating high-quality industry resources to deliver a stable user experience is the ultimate core competency.
Q: CATL conducts adaptation collaborations with multiple automakers. For this specific LS8 NEO, what customized adjustments were made at the battery, motor, and thermal management levels to guarantee range and energy consumption performance?
Gao Huan: CATL and SAIC have a deep history of cooperation, conducting joint development based on respective strengths. SAIC possesses decades of vehicle engineering experience, while CATL relies on massive battery data accumulated from 30 million installed vehicles. On the LS8 NEO, we provided two battery solutions and completed targeted coordinated optimizations.
The first is the 93-degree Gold High-Efficiency LFP battery, focusing on high cost-performance. Addressing the common issue of inaccurate state-of-charge (SOC) estimation in LFP models, this optimization doubled the SOC estimation accuracy. While the industry norm is 5%-8%, the new vehicle achieves 2%-3%, significantly improving issues of inflated range display in winter and low-battery conditions. The displayed charge aligns closely with actual usable mileage, avoiding user range anxiety.
Secondly, based on extensive family-user scenario data accumulated by IM Motors, both parties jointly optimized charge-discharge control algorithms. While ensuring fast-charging capability, they balanced battery safety and lifespan. Battery power output moved away from step-like sudden changes, resulting in smoother curves, and energy recovery efficiency improved synchronously.
Combined with iterative updates to thermal management and energy consumption algorithms, FIC technology suppresses side reactions during battery storage, extending service life. All optimization solutions are accompanied by rigorous testing. Battery samples that completed the 250,000 km durability verification continue to be tracked and inspected to ensure reliability.
The second solution is the 103-degree Monocrystalline Super Energy Battery, focusing on higher energy density. The vehicle features zero-gravity seats, a full cockpit, and smart driving hardware, increasing overall weight. This battery controls vehicle weight by enhancing energy density, coordinating with the Lingxi chassis to unlock the chassis's handling potential.
Q: CATL batteries have relatively high costs. Where do these high costs manifest, and what is the value return for users? How does this collaboration mode with IM Motors differ? In the traditional fuel era, engines and transmissions were core big-ticket items; now batteries have become a core consideration for users when purchasing cars. How do you view this change?
Gao Huan: CATL's battery pricing is relatively higher, primarily stemming from long-term, substantial R&D investment.
The company's cumulative R&D investment exceeds CNY 100 billion, holding over 60,000 patents, with patent volume continuing to grow.
The power battery industry has far from entered a technological stagnation phase; new technologies continue to iterate. Domestic NEV penetration rates are approaching 70%, and the industry focus is shifting from pursuing energy density growth speed to safety, quality, and durability.
Batteries are safety-critical components in vehicles. R&D validation must maintain a cautious attitude. Continuous investment in R&D is aimed at delivering safer, more reliable, and longer-lasting products.
This collaboration with IM Motors is a deep co-creation model. Teams from both sides engaged in long-term alignment, repeatedly refining and negotiating product indicators.
During development, IM Motors proposed very high technical requirements: demanding that the 93-degree battery match the weight level of the 103-degree battery; within the ultra-fast charging solution, constrained by the vehicle's cooling allocation, internal resistance needed to be further reduced. The entire development process involved repeated trade-offs between performance, safety, lifespan, energy density, environmental adaptability, and cost.
Different automakers choose differentiated paths based on their own strategies. Implemented on the IM LS8, a large five-seat pure electric flagship, this solution represents a quality choice backed by dual giant manufacturers.
Q: Recently, IM Motors has had a dense pace of new vehicle launches. What is the underlying product thinking? Are there future product plans, and how do you judge the auto market next year?
Xu Yin: When announcing the NEXT・2028 strategy at the Chengdu Auto Show, IM Motors revealed three pure electric products. The L6, LS6, and LS8 together form the "668 Super Pure Electric Family."
The three models share an underlying technology platform, featuring standard full drive-by-wire chassis, comfortable cockpit configurations, and the Momenta Physical AI World Model, but targeting different user groups:
The L6 targets young first-time buyers, emphasizing driving fun; the LS6 aims at young families of three, suitable for family travel; the LS8 positions itself as a large five-seat flagship, targeting consumers who value spaciousness and luxury comfort.
Future product plans will not be disclosed in detail for now, but a brand-new product will appear in November.
Regarding market trends, domestic NEV sales dropped by approximately 20% in the first nine months of this year. We judge that the market is expected to stabilize gradually next year, with pressure likely continuing in the first quarter. The window for recovery will probably open in the second half of next year through year-end, with the market environment further repairing in 2027.
Q: The new vehicle features natural latex seats. Compared to traditional seats, what improvements are offered? Is the cost increase significant?
Xiang Jiao: The "Three Electrics" (battery, motor, control) and chassis are hardcore technologies, but driving and riding comfort is also a key direction for IM Motors' efforts, which we call the "Comfort Revolution."
IM Motors has previously implemented NASA-standard zero-gravity seats, 4D mechanical massage seats, and Le Corbusier electric recliners. This time, we added natural latex rear seats, hoping to bring home-grade latex seating sensation into the car.
Meeting automotive standards with natural latex material is highly difficult. The project took over 400 days to tackle. Natural latex is prone to aging and powdering, heavily affected by temperature, requiring high/low temperature and long-duration durability assessments.
The final version achieved three major breakthroughs: First, durability meets standards, adapting to a wide temperature range of -30°C to 80°C. After 1,000 hours of high-temperature durability testing, permanent deformation is less than 0.9%;
Second, skin-friendly healthiness. Processed through multiple washing steps, odor and breathability indicators meet Class A maternal and infant standards;
Third, stability and controllability. Natural raw materials inherently have large batch fluctuations. The team completed over 500 test calibrations to stabilize mass-production quality. Raw materials are sourced from natural rubber forests in Xishuangbanna, where a single rubber tree yields only 2 kg of latex annually. Users are welcome to visit stores to personally experience the seat quality.
Q: The full drive-by-wire chassis is chosen as standard equipment across all trims rather than a high-end option. What considerations drove this decision? Beyond smaller turning radii, what generational upgrade value does this technology offer?
Xiang Jiao: The core selling points of fuel vehicles are the engine and chassis. For new energy vehicles, the core lies in the Three Electrics, battery, and digital drive-by-wire chassis. IM Motors began implementing steer-by-wire and full drive-by-wire chassis with the LS9, subsequently rolling it out to the LS8 Range-Extended, L6, and LS6 models.
Universalizing the drive-by-wire chassis is a core part of the NEXT・2028 strategy. Standardizing and downgrading flagship-level capabilities is IM Motors' R&D philosophy.
For large SUVs like the LS8 with a length exceeding 5 meters, the value of the drive-by-wire chassis is particularly prominent.
First is flexibility. The vehicle's turning radius is only 4.85 meters, allowing U-turns with half a turn of the steering wheel, achieving "large-car space, small-car agility," and solving the pain point of inconvenient steering for large-size SUVs.
Second is safety capability. This system features triple redundancy, supporting whole-vehicle coordinated control. The aviation-grade safety design concept significantly enhances stability under fault conditions. In extreme scenarios like four-wheel blowouts or split-friction surfaces, body stability is maintained, protecting family users inside. Simultaneously, the system offers multiple steering ratio and feel calibrations, adapting to different driving habits.
The choice to make it standard across all trims stems from two aspects: On one hand, driving quality and行车 safety are user necessities and fundamental capabilities that should not be sold at a premium;
On the other hand, SAIC started forward-looking R&D on steer-by-wire in 2018. Over 8 years, completing more than 10,000 tests, it achieved self-developed white-box core technology, breaking overseas black-box monopolies in the chassis field. Combined with SAIC's mature supply chain system, cost control is realized.
Essentially, this reflects IM Motors' product sincerity: providing the safety baseline, driving necessities, and flagship-level core technology to every user.
Q: IM Motors insists on rear-wheel-drive format. From the LS6 to the current Super Rear-Wheel Drive, what technical iterations have occurred? Will rear-wheel drive remain a long-term technical route?
Xiang Jiao: Continuing from the previous point, IM Motors has consistently strived to make chassis technology industry-leading. There is a saying among users: "If you trust the chassis, trust IM Motors' chassis."
Starting with the digital chassis, we utilized digital chassis coordination, including rear-wheel steering, braking, and drive coordination, to create the Super Rear-Wheel Drive solution. Sports cars and performance vehicles generally adopt rear-wheel layouts due to excellent power foundations, but traditional rear-wheel drives have shortcomings in stability.
IM Motors' solution relies on digital chassis regulation to make the stability of rear-wheel-drive vehicles comparable to four-wheel drive, with power performance matching sports cars.
The new generation chassis has upgraded to evolve into a full drive-by-wire chassis. Front-wheel steering becomes wire-controlled, paired with rear-wheel steering, achieving four-wheel wire-coordinated control.
Extreme condition tests shown at the launch event, such as blowouts, split-friction surface docking, and ice-starting, are intuitive demonstrations of this system's capability: retaining the advantages of rear-wheel drive while stabilizing body posture and enhancing safety boundaries through digital coordinated control. On the technical route of drive-by-wire chassis, IM Motors will continue to deepen and iterate, solidifying its chassis advantage.
Q: Attention shifts from batteries to smart driving and back to batteries. Is this a trend or a new change? Will it lead to battery involution (intense competition)? What is the most intuitive difference for users between the 93-degree and 103-degree batteries?
Xu Yin: "Leave professional matters to professionals." The first keyword of SAIC Motor's 70-year manufacturing philosophy is long-termism.
Whether for batteries or cars, the primary underlying logic is safety, and safety is a matter of long-termism.
SAIC Motor has always held reverence for safety. As mentioned by Xiang Jiao regarding the full drive-by-wire chassis, we began developing it in 2018. It is not a sudden black tech appearing today but has been iterating continuously. We have always held reverence for safety.
Why persist with deep collaboration with CATL?
It is about leaving professional matters to professionals. CATL has very high requirements for safety and technical standards. Our market research shows that when buying cars, safety is always the first concern for users.
Cars can have different prices, but users' demands for safety are identical—whether buying a car worth CNY 50,000, 100,000, 200,000, or 300,000, the safety requirement is the same.
Since its inception, IM Motors has adhered to "seriously building cars, building good tech cars." We hope users keep our cars not just for 1, 2, or 3 years, but for 5, 10, or even longer.
We will not compromise on safety. Long-term cooperation with CATL improves batteries, products, and chassis, ultimately ensuring consumers buy with peace of mind and use with confidence.
Gao Huan: CATL and IM Motors are deep strategic partners who have walked the path together. We attend every launch event. I went on stage this year, so people might feel we pay more attention now, but in reality, it is the same.
Why must we attach importance? Because the battery accounts for 30% to 40% of the total vehicle cost; moreover, the car is a durable item, lasting 8, 10, or even 12 to 15 years. We want the battery to be safe and reliable, and this premise is the underlying logic of CATL's quality.
I just mentioned 70 years of manufacturing accumulation. The underlying logic is also safety and reliability. The underlying genes of both parties are perfectly aligned. So we are not using batteries for narrative purposes, but using "safety and reliability" for narrative purposes.
Regarding recent voices in the market, we firmly stick to our practices. Battery technology is far from maturity or plateau. We are constantly investing and innovating, whether in chemical systems, structures, electronic/electrical architectures, or ecosystem innovations like battery swapping. We explore these deeply with IM Motors.
This is why IM Motors persists in using CATL batteries—professionals doing professional work, deep cooperation, and breaking down barriers.
They share their manufacturing experience and user insights with us, while we open up our process data and underlying logic to them. Coordination from vehicle to battery ensures not only that the product is good when built but also good throughout use; not only that one battery is good, but that billions of subsequent cells must also be good to ensure more vehicles achieve safety, reliability, and long lifespan.