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In mid-July, it was reported that Xinte Automobile's new car-making factory project located in Gui 'an New District had stopped construction, which caused market attention.

On July 27, CEO of Xinte Automobile Xianyue said that its Gui 'an factory has indeed been shut down at present, mainly because Changjiang Automobile has encountered difficulties in capital, and the state has changed the production qualification management of passenger cars, so the new energy project in Gui' an New District is also in a suspended state, and there is no way to produce Xinte Automobile again.

Xinte Automobile is a member of the new force of car building. Its full name is Gui 'an New District Xinte Electric Automobile Industry Co., Ltd., which was established in September 2017. At present, the model under Xinte Automobile is A0 pure electric vehicle DEV1, and the price after subsidy is within 80,000 yuan. The first batch of this model was officially launched in Changchun Factory of FAW Car in September 2018.

Zhong Shi, an auto industry analyst, said that with the subsidy decline, the new energy industry ushered in reshuffle, and the first to be squeezed out may be manufacturers with small capital and weak products. If enterprises can continue to provide high-quality products and accelerate technological innovation, they should not panic in the face of any storm.

As for the factory of Xinte Automobile in Guizhou, the first introduction is that the annual production capacity of the factory is 200,000 vehicles, which are distributed to 50,000 Xinte automobiles. The remaining production capacity planning is mainly Changjiang Automobile.

However, Changjiang Automobile has been exposed to problems such as salary arrears, shutdown and default on supplier loans this year. Changjiang Automobile also said that it encountered difficulties in funding. It is found from Sky Eye that there are 107 risks of Changjiang Automobile itself, 59 of which are court announcements, mainly due to disputes over sales contracts.

In addition, Xianyue also said that because of the new local automobile production policy, Changjiang Automobile encountered difficulties in development, and Changjiang Automobile did not obtain the production qualification of passenger cars, so the new energy projects in Gui 'an New District are also in a suspended state. However, the trial production workshop stopped after completing the trial production of the previous model DEV, and is currently upgrading and transforming to prepare for the trial production of subsequent models.

However, Xinte Automobile said that although the factory shutdown had a certain impact on the construction plan of Xinte Automobile, the overall production plan did not affect it, and said that Xinte Automobile would not invest heavy assets to build factories in the short term, but adopted the operation mode of "OEM + light assets".

Compared with Wei Lai, Wei Ma, etc., Xinte Company was founded later, but it moved quickly. The first car was launched eight months after its establishment, delivery began in 11 months and 4000 vehicles were delivered in 2018. According to official data released at the time, the number of dealer orders after the launch of new cars exceeded 44,000.

This also gives the new team greater confidence. In 2019, they set a delivery target of 40,000 vehicles. According to the official disclosure, its internal product break-even point, initially set at about 20,000 units, and plans to achieve before the third quarter.

But reality poured cold water on it. In the first half of 2019, the total sales volume of Xinte cars was 1343, and it showed a downward trend every month, according to the Federation. Together with 4000 vehicles delivered in 2018, the total number of new special vehicles delivered to the market is only about 5300. This also means that the first half of the year only achieved 3% of the full year target.

With sales falling short of expectations, ensuring cash flow has become a top priority. Recently, Xinte Automobile announced that it will seek B+ round financing, which will be mainly used for product research and development.

Zhong Shi, an auto industry analyst, said that most manufacturers are currently testing travel to avoid being eliminated in the next wave and preparing for the next capital market; but it is difficult to see who can finally break out of the siege at first.

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