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Recently, the second factory of Zhejiang Hezhong New Energy Automobile Co., Ltd. officially started construction in Yichun. According to the company's plan, the plant project has a total investment of 5 billion yuan and is expected to be put into production by the end of 2020, reaching an annual production capacity of 100000 vehicles.

However, in order to spend money to build factories to increase production capacity, on the one hand is the current situation of dismal sales. According to the relevant survey, the only models currently on sale are the N01, which was founded in 2014, and only 1111 cars were sold in 2018, according to data. As of April this year, Nezha N01 sold only 4000 vehicles.

In order to understand the production of Hezhong cars, the reporter came to the Hezhong Automobile Factory in Tongxiang City, Zhejiang Province. the workers of the factory said that the production of the workshop was not busy. Only 100 cars were produced last month and had a holiday of more than 10 days. In this regard, United Motor did not give any explanation.

According to the inquiry, Hezhong Automobile was established in Tongxiang City, Zhejiang Province in October 2014, with a registered capital of 626 million yuan, and obtained the production qualification of pure electric passenger vehicles approved by the Development and Reform Commission and the Ministry of Industry and Information Technology. After obtaining the dual qualification, its first model, the N01, was officially launched in November 2018, with a subsidized price of 59800 to 69800 yuan.

Subsequently, during the Shanghai International Auto Show in April 2019, Hezhong Automobile accelerated the launch of the second concept car, Eurake 02, and released the pre-sale price of the second mass-produced model Hezhong U. After comprehensive subsidies, the official prices of the four models are: 150000 yuan for 400U, 170000 yuan for 520U, 190000 yuan for 520U and 210000 yuan for cool four-wheel drive version.

Although UMC has released a large number of new models, it is currently the only N01 model on sale, and the sales performance is not good, it does not seem to be "United". Zhang Yong, president of United Motor, has revealed that as of April 2019, Nezhong N01 sales were about 4000 vehicles.

Ren Wanfu, an auto analyst, said that Hechong Automobile is targeting small new energy vehicles with mileage range, and the qualification of the small new energy vehicle market is shrinking at present. In addition, the main buyers of new energy vehicles are generally in first-tier cities or restricted cities, where consumers have a certain purchasing power, instead of spending 100000 yuan on a car with a range of 400km. I am not willing to spend 70, 000 yuan on a car with a mileage of only 200 to 300 kilometers.

It is worth noting that even though Hezhong Motor's current sales are not high, it was announced on June 27th this year that it would officially start the construction of a second factory in Yichun, which is located in the heart of Asia's "lithium capital". The total investment of the project is 5 billion yuan, covering an area of 500000 square meters, with a planned annual output of 100000 vehicles.

Hezhong Automobile said publicly that Luozi Yichun is to quickly respond to diversified and personalized changes in the consumer market of smart electric vehicles, and to ensure the sustainable development of enterprises in the field of mobile travel in the future.

However, it has recently been reported that seven of the 18 new energy vehicles invested in Xiaomu in Jiangxi have not started since the contract was announced, while more than half of the 11 projects have not started on schedule. Industry insiders said that many enterprises are the slogan of building cars at a discount, and they will take land in the future.

In Ren Wanfu's view, the geographical location of Jiangxi Province plays an important role in the development of automobile supporting enterprises. the local government drives a lot of preferential terms, and under the trend of preferential conditions, Hezhong Motor is considering to take land to build a factory. In fact, if there is no preferential policy, it is very difficult to invest in building a factory, let alone make a profit, without the financial situation of the new forces of car building.

According to the financing situation of Hezhong Motor, round B investment of 3 billion yuan has been completed, led by the government industry fund. So far, Hezhong Automobile has raised a total of more than 7 billion yuan.

Not only for the new forces of car building, 7 billion yuan is far from enough, whether it is large-scale mass production and delivery, new car development, or platform construction, late publicity, etc., all need a steady stream of financial support. In comparison, the financing amount of new car-making enterprises such as NIO, Weimar, Xiaopeng and other new forces has already exceeded 10 billion yuan.

Enterprise investigation shows that NIO Motor received a strategic investment of 10 billion yuan on May 28, 2019, with previous financing, the total amount has exceeded 20 billion yuan; as of October 26, 2018, Weima Motor has received a total of six financing, the total financing has approached 20 billion yuan; as of August 2, 2018, the cumulative financing amount of Xiaopeng Motor has also exceeded 10 billion yuan.

The severity of the automobile market in 2019 is a big test for both independent brands and joint venture brands, and whether the new force of car building, as another force, can pass the test in the second half of the year is still unknown, but in the current severe market environment, it is bound to eliminate the enterprises that "fish in troubled waters", leaving those who can go up against the current.

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