AutoBeta(AutoBeta.net)09/13 Report--

On September 13, the Information Office of the State Council (referred to as the "State New Office") held a press conference on "promoting the construction of a network power to help build a moderately prosperous society in an all-round way". At the press conference, Minister of Industry and Information Technology Xiao Yaqing said, "at present, the number of new energy vehicle enterprises is too large and scattered, encourage mergers and reorganization of enterprises to become bigger and stronger, and further improve the degree of industrial concentration."

Xiao Yaqing said that on the whole, the development of new energy vehicles in China is in a period of accelerated development. "at present, there is a high enthusiasm for the development of new energy vehicles, which has a great promotion to the development of new energy vehicles, but we should also see the characteristics of high technological content of new energy vehicles, so resources should be concentrated in the market as much as possible to avoid dispersion."

According to Tianyan survey data, up to now, there are 198 new energy vehicle manufacturing enterprises in China, of which 150 are registered between 2018 and 2020. If the business scope is extended to the relevant industrial chain, as of September this year, there are more than 332000 new energy vehicle-related enterprises registered in China. According to the regional distribution, Shandong has the largest number of new energy related automobile enterprises, reaching more than 38000, followed by Guangdong, with 37000 new energy vehicle related enterprises; Jiangsu, Henan and Zhejiang have 29000, 20, 000 and 18000 new energy vehicle related enterprises respectively.

Although there are many new energy vehicle companies in China, few of them can be concerned by the market. According to the latest data released by the Federation of passengers, sales of new energy vehicles in August 2021 were 250000, an increase of 168.0% over the same period last year and 12.3% month-on-month. Among them, car companies with sales of more than 10,000 vehicles include BYD, Tesla, SAIC GM Wuling, SAIC passenger cars and GAC Ean, which account for 58 per cent of the new energy vehicle market. The development of the new power of car-building in the market, such as Lulai Automobile, ideal Automobile, Xiaopeng Automobile, Naxi Automobile and Zero running car, continued to make progress, with sales accounting for 13.5% of the total market share in August. Of course, in addition to the above car companies, such as Changan Automobile, Euler Motor and so on also have a certain status.

In this context, more and more new energy vehicle companies have difficulties in operation, hovering at the edge of the market, including Ranger, Future, Boxun, Sailin, Baiteng and other car manufacturing companies have failed one after another. Weima, Aichi, Yundu and other car brands have achieved mass production and delivery, but the development prospect in the market is not considerable.

Perhaps, as the Minister of Industry and Information Technology said, "mergers and acquisitions become bigger and stronger" may increase the possibility of survival in the market. Since the beginning of this year, many technology companies have entered the market to build cars, and Baidu United Geely and 360 Union cars can be regarded as a way to merge and build cars. Some time ago, the relevant leaders of the Jilin Provincial CPC Committee met with Lei Jun, founder, chairman and CEO of Xiaomi Group and his party in Changchun. During their stay in Jilin, Lei Jun and his entourage also went to China FAW for in-depth docking talks on cooperation matters. Although the way Xiaomi uses to build cars is still unknown, the merger and reorganization and stock competition of new energy vehicle enterprises have become more and more obvious.

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