AutoBeta(AutoBeta.net)06/16 Report--

On June 15, Baoneng Group held a signing ceremony of strategic cooperation agreement with Guangzhou Development Zone. Baoneng New Energy Automobile Group is headquartered in Guangzhou Development Zone to establish a new energy headquarters base integrating manufacturing, R & D and operation. State-owned enterprises in Guangzhou Development Zone will strategically invest 12 billion yuan in Baoneng New Energy Automobile Group. in the future, the two sides will join hands to build a global first-class new energy automobile group with international competitiveness.

It is nothing new for local governments to invest in new energy car manufacturing enterprises, and Hefei's investment in Lulai Automobile is a classic example. At a time of crisis when the capital chain broke in 2019, strategic investors such as Hefei Construction Investment Holdings (Group) Co., Ltd., China Investment Investment Management Co., Ltd., and Anhui High-tech Industry Investment Co., Ltd., invested 11.26 billion yuan in NIO China, and strategic investors will hold a total of 24.1% of the shares. Since then, the share price of Xilai has risen all the way, surpassing the market capitalization of many traditional carmakers. "Hefei has really made a lot of money in terms of investment," Yu Aihua, member of the standing Committee of the Anhui Provincial CPC Committee and secretary of the Hefei Municipal CPC Committee, said in a recent interview with CCTV.

Whether the investment in Baoneng Automobile in Guangzhou Development Zone can replicate the success of Hefei remains to be seen. According to data, Baoneng Group began to enter the automotive industry in March 2017 and bought a 51% stake in Guanzhi Automobile in early 2018, becoming the controlling shareholder of Qoros Automobile. However, Baoneng did not perform well after taking over Qoros, rising 320 per cent year-on-year to 63000 in 2018, falling rapidly to 21900 in 2019 and just 14600 in 2020. According to the Federation of passengers, there were only 4603 Qoros from January to May this year, which is not only a month's sales of a mainstream model.

In September 2020, Qoros launched the Qoros 7 model, and the new car has been improved in appearance, interior and power to varying degrees, which is regarded as the key model of Qoros. However, judging from the current market performance of Qoros, it has not been able to complete the "sustenance" of Qoros. It is understood that Qoros will launch its first pure electric drive model, Qoros REV3, in August, and the first iREV SUV Qoros REV5 in September. However, in the market environment of stock competition, it is even more difficult for new cars to reverse the market situation of Qoros.

It is worth mentioning that Baoneng Automobile will also launch a new high-end brand, to Standard Kwai Lai and Tesla. In October this year, Baoneng will launch a new high-end brand, and the first pure electric model will be launched this year, positioned as pure electric medium-sized SUV, based on Baoneng's new large-scale pure electric platform, and the first pure electric product of Standard Kilai and Tesla.

In the fuel vehicle market, Qoros basically has no possibility of development and growth. Under the background of the accelerated development of new energy vehicles, Qoros will speed up the launch of new energy products, and Baoneng will also squeeze into this track by launching new high-end brands. However, in the context of national car-building, in the market environment of stock competition, can Quan Zhi Automobile / Baoneng Motor find a way out? The market will give the answer.

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