TMTPOST--The "CATL Inside" strategy was coined by the media and CATL does not have such a strategy, said Luo Jian, the general manager of CATL’s marketing division on August 10, in a response to recent media speculations on the company’s strategic direction.

The "Intel Inside" concept, introduced by Intel over thirty years ago, does not align with CATL’s current vision. CATL’s approach should be characterized as "CATL By Your Side" rather than "CATL Inside," Luo added.

The "Intel Inside" campaign, launched in 1991, marked a significant shift in marketing strategies. Intel transitioned from a B2B company to a brand with substantial consumer influence, thanks to its innovative promotional strategy.

In recent months, market watchers noticed that CATL’s official account on Bilibili displayed "CATL Inside" labels on promotional videos for several vehicles, including seven passenger cars—such as the Zhiji LS6, XPeng S7, Weimar M9, Arcfox αT, Lantu FREE, Avita 12, and the Hummer 917—and one commercial vehicle, the CRRC Smart Rail.

However, inquiries with Huawei representatives regarding the XPeng S7 and Weimar M9 clarified that these videos were merely licensed content and did not signify a formal "CATL Inside" partnership.

In contrast, the Hummer 917 and China’s Lonking vehicles explicitly featured "CATL Inside" labels. The Hummer 917, a luxury electric car, and the Lonking Dragon Year electric loader showcased these markings, signaling early adoption of the concept.

Despite this, there has been no further development on the "CATL Inside" strategy. The discrepancy between media interpretations and CATL’s actual intentions suggests that the strategy might have been misinterpreted or prematurely introduced.

A key point made by Luo is the difference in the operational contexts of Intel and CATL. Intel’s "Inside" strategy emerged during a critical phase in its history. In the early 1980s, Intel faced significant challenges but eventually revitalized its business through strategic marketing, including the creation of the "Intel Inside" campaign which became a hallmark of its brand.

However, CATL is experiencing a different set of circumstances. The company has reported a third consecutive quarter of negative revenue growth as of its 2024 mid-year report. The company’s capacity utilization has also declined from 95% in 2021 to 65.33% in the first half of 2024.

Moreover, while Intel held a dominant position in the semiconductor industry for decades, CATL’s global market share in the power battery sector stands at 37.5%, reflecting a weaker market position compared to Intel’s historical dominance.

Meanwhile, the computing industry in the 1990s was shifting towards a more collaborative and segmented model, which catapulted Intel’s rise. Conversely, the electric vehicle industry today is seeing increased vertical integration, with automakers striving for greater control over their supply chains, including battery technologies.

While CATL is not following in Intel’s footsteps, its efforts to enhance brand visibility and engage with end consumers reflect a strategic shift aimed at solidifying its market presence. The company’s focus on developing a distinctive brand identity and increasing direct consumer interaction represents a modern adaptation of strategies similar to those pioneered by Intel.

As CATL navigates this competitive landscape, its approach may offer valuable insights and serve as a reference point for the broader battery industry, balancing opportunities with the risks inherent in expanding brand influence in a rapidly evolving market.