AutoBeta(AutoBeta.net)11/13 Report--

On November 12, Evergrande New Energy held what is known as the largest global strategic partnership summit in the history of Evergrande Group. Xu Jiayin described the goal, planning, positioning and strategy of Evergrande New Energy vehicles. At the summit, Evergrande New Energy announced the signing of cooperation with Bosch, mainland, Delphi, Hitachi, Lear, Hyundai Mobis and other well-known enterprises.

With regard to the development and positioning of Evergrande New Energy, Xu Jiayin has also publicly stated that he wants to become the largest and most powerful new energy vehicle group in the world in 3-5 years.

However, Xu Jiayin also said frankly that Evergrande used to be engaged in real estate, and that there were no important people in car building, no technology, and no production base. Under such circumstances, it is impossible to realize Evergrande's dream of building cars from scratch.

Therefore, Xu Jiayin said that Evergrande car building is not a corner overtaking, more specifically, it should be a change of lane overtaking. To sum up, it can be summed up with five words: "Buy, buy, circle, big, good, good."

The so-called "buy and buy" is to buy back all the technology and enterprises that can be bought, but not all technologies and enterprises can buy it, so it is necessary to "cooperate" and let other enterprises share technology with Evergrande through cooperation. thus form an Evergrande circle of friends with the world's advanced automotive engineering technology, styling design, spare parts and other suppliers, while building cars requires a large pattern, strategy and large-scale. So that the quality, shape and price of the car are good.

Xu Jiayin revealed at the summit site that Evergrande's three-year investment budget for new energy vehicles is 45 billion, which is 20 billion in 2019, 15 billion in 2020 and 10 billion in 2021. Evergrande plans to have an annual production capacity of 500000 vehicles in each of the top 10 production bases in the world, with a first phase of 100000 vehicles. In the next 5 to 10 years, the annual production will reach 1 million vehicles, and in the next 10 to 15 years, the annual production will exceed 5 million vehicles. At the same time, it will also work with top sports car brand Koenigsag to produce 1000 supercars a year. It is understood that Hengchi 1, the first car of Hengda New Energy, will be officially unveiled in the first half of next year, and the full range of Hengchi products will be mass-produced one after another from 2021.

It remains to be seen whether Xu Jiayin's lofty ambitions can come true, but in recent years, Evergrande has indeed spent a lot of energy and financial resources on building cars.

In June 2018, Evergrande announced that it had joined Jia Yueting's FF and officially entered the field of new energy vehicles. However, Evergrande and Jia Yueting fell apart in less than half a year because of the dispute, and Evergrande and Jia Yueting finally parted ways at the beginning of this year.

After breaking up with Jia Yueting, Evergrande did not stop building cars. Evergrande Health acquired a 51 per cent stake in Mini Minor Limited for 930 million yuan on January 15.

NEVS acquired Saab's automotive technology patent in 2012 and established Guoneng New Energy in China in June 2015. in January 2017, Guoneng New Energy obtained the pure electric passenger vehicle production qualification approved by the National Development and Reform Commission.

In addition, Evergrande has become a major shareholder in Koenigsag with 150 million euros, and the two sides will form a joint venture dedicated to the research, development and production of the world's top new energy vehicles to produce new energy supercars.

Evergrande Group has made frequent moves since April this year, successively investing in Tianjin, Guangzhou, Zhengzhou and Nantong, with a total amount of 2.1 billion yuan. On June 29, the Evergrande New Energy Automobile Group, built by Xu Jiayin, ushered in the first mass-produced car, and Evergrande Guoneng 93 model came off the line at the Tianjin factory.

We can see that Evergrande is actually no different from the new domestic car-building powers. if there is a difference, it is that Evergrande is not short of money. from the beginning of entering the new energy automobile industry, Evergrande began to invest in shares, acquire enterprises and technology, and use land to build factories. The amount of money spent is not ordinary. It is understood that at present, among the new forces of car building in China, Lulai Motor, which has the most financing, has only 20 billion yuan. Of course, for Evergrande, any problem that can be solved with money is not a problem.

However, Evergrande Group provides absolute financial support for Evergrande New Energy carmaking, but this long-term investment, from the development experience of the industry, it will take a long time for an automobile company to break even.

It is worth noting that at present, there are many new energy vehicle companies in China. as a real estate-based Evergrande Group, although it has acquired and invested in many well-known enterprises, it is uncertain whether the final mass-produced models have sufficient advantages in all aspects.

In addition, according to data released by the China Automobile Association, car production and sales completed 2.295 million and 2.284 million respectively in October, down 1.7 per cent and 4 per cent from a year earlier. Automobile production and sales in the first 10 months were 20.444 million and 20.652 million, down 10.4% and 9.7% from the same period last year.

With the withdrawal of subsidies, policy changes and intensified market competition, the sales of new energy vehicles have declined, and car companies have also entered the knockout stage ahead of time. Nowadays, the growth rate of new energy vehicle sales in China has declined significantly, and Evergrande New Energy is still in its infancy. In the rapidly changing new energy vehicle market, will this new energy vehicle company, which is "not short of money", still be accommodated by the market a few years later?

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