AutoBeta(AutoBeta.net)12/31 Report--

On December 30, Evergrande announced that the Hengchi 5 was in mass production and had delivered 324 vehicles to users. In addition, in order to save costs, the Group is implementing a series of cost-saving measures, including reducing the overall number of employees, arranging some employees to take a break, reducing the wages of some employees, and so on. The Group will continue to create favorable conditions for the mass production of Hengchi 5 with maximum efforts.

Hengchi is a new energy car-building project owned by Evergrande Group, dominated by Xu Jiayin, a real estate tycoon who once became the richest man in China. Xu Jiayin also spends a lot of money on car building, and under the car-building mode of "buying", "cooperation", "circle", "big" and "good", the cumulative investment has reached nearly 50 billion yuan.

However, the road for Hengchi to build cars is also very bumpy, and China Evergrande itself is facing a serious financial crisis. Data show that its total debt reached 1.97 trillion by the end of June 2021. In addition, including commercial bills issued to suppliers, there are more than 4000 billion yuan in debt payable, and Evergrande's total debt has reached 2.5 trillion yuan.

Evergrande has shown great ambition in car projects. According to Xu Jiayin's previous plan, Evergrande hopes to achieve annual production and sales of more than 1 million vehicles by 2025 and more than 5 million by 2035, and strive to become the largest and most powerful new energy vehicle group in the world. " Today, these goals seem very distant.

For China Evergrande, although it is mired in the crisis of capital chain, it has built the car anyway. On July 6th, Hengchi 5, the first production car of Hengchi New Energy, officially opened its pre-sale, and the deluxe version was pre-sold at 179000 yuan. At the press conference, Liu Yongzhao, president of Hengchi New Energy Automobile Group, praised "Hengchi 5 is the best pure electric SUV within 300000, including Bosch, mainland, Amboft, Ningde era and other well-known supply chain enterprises have participated in the production process of Hengchi 5", and said that "Hengchi big sale has become a foregone conclusion."

On October 29, Hengchi officially announced that the Hengchi 5 was officially delivered, with the first batch of 100 units. It is understood that Hengchi has laid out the first batch of delivery service centers in 19 cities, including Beijing, Tianjin, Shanghai, Guangzhou, Shenzhen, Zhengzhou, Chengdu, Chongqing and Haikou. Subsequent batches of vehicles will be delivered to car owners one after another.

For Hengchi, Evergrande owners or the most accurate potential customers. During the May Day holiday this year, Hengchi held touring exhibitions in Zhengzhou, Wuhan, Xi'an, Guangzhou, Hainan and other places. It should be noted that there are basically very large buildings in these cities, such as Hengda Yayuan in Xinxiang, Henan Province, Hengda Yujing Bay in Zhengzhou, and Hengda River Bay in Xi'an. Hengchi staff drove their cars into the community and prepared raffle gifts. "Hengchi 5 owners internal tasting activities" officially began. For Evergrande owners, living in Evergrande House and driving Evergrande does not sound at all against the law.

In order to promote the car, Hengchi has created a new way of transaction: the car needs to be paid only when it is delivered, the car can be returned and refunded within 15 days after picking up the car, and the purchase money is not transferred to the Evergrande account, but a special account of the notary office. and a 40% discount for three years. In view of the after-sales problem, Hengchi stressed at the press conference that it adopted an authorized business model and laid out 313 after-sales service outlets in 235 cities across the country. This wave of operation is undoubtedly to tell consumers: "buy Evergrande cars, rest assured."

However, although Hengchi has achieved mass production delivery, it has delivered only 324 vehicles in the two months since October 29, equivalent to about 5 per day. Compared with 37000 orders, the delivery rate of 160 vehicles per month takes 230 months to complete the orders received within half a month of pre-sale, which is definitely not possible. Therefore, for Evergrande, we can only increase production capacity to speed up the delivery process, but because of its own situation, even if production capacity is raised, Evergrande still has to consider, who should Evergrande sell its products to?

At present, the competition in the new energy vehicle industry is extremely fierce, and many multinational joint venture brands are struggling, not to mention the heavily indebted real estate cross-border car companies, while returning to the product itself, Hengchi 5 positioning compact pure electric SUV is not expensive compared with the same class of models, and the product configuration is not very poor, not to mention well-known supply chain manufacturers such as Bosch, mainland, Ambofo and Ningde era to participate in the production. However, Hengchi has not formed its own advantages. Hengchi 5's power, range, and auxiliary driving can only be regarded as regular, but it does not have many unique bright spots. Compared with BYD, Tesla and other brand products, it is difficult to show enough competitiveness. In addition, the most important thing is that China Evergrande is heavily in debt, and how to persuade consumers to buy the products of such a company is another big problem that Evergrande needs to face.

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