The Window Period Is About To Close: What Will The New Force Of Car Making Live On?

China's car market has been warming for two consecutive months, but the new energy vehicle market is still lingering low. According to the China Automotive Industry Association, sales of new energy vehicles were only 82 thousand in May this year, down 23.5% from the same period last year. In the first May, 289 thousand new energy vehicles were sold, with a drop of 38.7%.

Behind the gloom, Tesla is thriving. In May, Model 3 sold more than 10000 vehicles in single month sales, ranking first in the domestic new energy vehicle sales and leaving its rivals behind. According to the data of the Federation, the sales volume of Tesla Model 3 in May was 11 thousand and 100, which is almost 3 times that of the second ranking model of Guangzhou automobile new energy Aion S.

Under the influence of the new crown pneumonia epidemic, the re shuffling of China's new energy vehicle market has accelerated. Tesla's rapid growth is also accelerating the closure of the time window for China's new car manufacturing force.

Entering the 2020, the new force of car building has entered the crossroads of life and death. Many new car makers, such as Bo County, Sai Lin, and so on, have been on the verge of extinction. They have been postponed repeatedly, such as beateng, singularity, skyline, and so on. The head enterprises, such as Wei Lai, Xiaopeng, ideal and Wei Ma, who have not yet formed hematopoiesis, are also struggling ahead under the bad financing environment.

Windows being closed

In June 13th, Huang Ximing, founder and general manager of Bo county automobile, issued an open letter, which indicated that Bo county automobile had encountered serious operational difficulties and caused real losses and adverse effects to the development of employees, shareholders, suppliers, local governments and partners.

He said the company has decided to reposition the company's business model. In the current stage, we must actively cooperate with other companies and strive to create positive cash flow with the achievements and products that the company has already formed.

Since its establishment in 2016, the first product of Bo county automobile still stays at the stage of "near mass production". Prior to that, Bo county decided to set up a joint venture with FAW Xiali, Tianjin Bo County, to solve the problem of car qualification. However, because of the slow arrival of funds in Bo County, the cooperation between FAW Xiali and Bo county has reached a deadlock. In his open letter, Huang Ximing did not mention the future of Tianjin's Bo county.

"Dystocia" is not only Bo county. According to the monthly data of the Federation, in May this year, only 8 new car manufacturers, including Wei Lai, ideal, Wei Ma, Xiaopeng, United, new special, National Smart, and leading, sold new cars. In twenty-first Century, after combing the economic report reporters, it was discovered that among the more than 50 new forces in China, there are only 10 listed products.

Prior to this, in the industry's high degree of injecting a high degree of worship, singularity, skyline, new cars have not yet been listed, and the industry is worried about their prospects. For the new cars that are not yet listed on the market, there is little time left for them.

"Finally, we can only run 3-5 out of the battlefield of the new force of car making. Therefore, they need to rush to the beach and push the products to the market as soon as possible, and at the same time form their own differentiation." In June 15th, Zheng Yun, Roland Begg's senior partner and vice president of Greater China, said in an interview with an economic reporter in twenty-first Century.

He believes that the new force of several cars on the head has slowly entered a stable period. Wei Lai, ideal and Xiaopeng have produced good products and formed their own characteristics. "Wei Lai's products, brands and services are doing well. Xiaopeng's modeling, intelligence and ideal ONE cut into the large SUV market have their own characteristics. Zheng Yun said.

It is worth noting that Wei Lai ES6 and ideal ONE have entered the top ten of electric vehicle sales for several consecutive months. Several companies have also welcomed good news in recent years. Wei Lai's headquarters in China has settled down in Hefei and won the new financing of the local government. Xiaopeng motor has just won the production qualification. Xiaopeng P7 will soon be produced in Zhaoqing factory.

From another point of view, the rise of Tesla sales has also played an exemplary role in the leading role of electric vehicles. It has promoted the popularity of electric vehicles among consumers. This has also placed confidence in high-end and mid end Wei Lai and Xiaopeng, which has enhanced market potential.

How to live under the shortage of money

"Money shortage" will become the straw that will crush the new force of car making. Whether it is Burke, Sai Lin, or Bai Teng, singularity and other companies, the biggest problem that restricts them is capital shortage. In 2020, under the influence of the new crown pneumonia epidemic situation, the new force of car manufacturing was plunged into a worse financing environment.

At the same time, after this year's market judgement, the enthusiasm of capital for new car has been concentrated on a few head enterprises. For such a capital intensive industry such as car making, the new force of the two or three line car manufacturing is no longer the same as that year, and "PPT" is obviously not convincing enough.

Zheng Yun said that the interest of pure market capitals is decreasing in the new force of car making. If we want to raise funds, we can only see whether there are any traditional host factories interested in them or local governments' investment in industrial planning.

Of course, even if the new force of the car's head has not yet formed the ability of hematopoiesis, the funds are not abundant. Even if we just get the new financing, we can't afford to burn money like before.

In 2019, the ideal car and Xiaopeng automobile have clearly revealed the signal to seek overseas IPO through the VIE structure.

In May 14th, there were many industrial and commercial changes in the ideal vehicle operator, Beijing car and home Information Technology Co., Ltd., with 18 investors and 3 directors withdrawing. The registered capital was reduced from about 730 million yuan to about 430 million yuan. Starting last December, the 47 shareholders of Xiaopeng automobile main body of Guangzhou orange line Intelligent Vehicle Technology Co., Ltd. will pledge all the shares, and the pledged persons are Guangdong Xiaopeng Automotive Technology Co., Ltd. In May of this year, more than half of the shareholders were changed, and a total of 27 shareholders withdrew.

The two move is to prepare for building the VIE architecture.

Earlier, it was reported that Xiaopeng car plans to go to the US IPO in the three quarter of this year. However, Xiaopeng automobile responded that it would not comment on market rumors. "According to the current economic situation and the situation of China's stock market, it is not realistic to go to the US market in the three quarter of this year," Xiaopeng automobile insiders told reporters.

There are auto industry insiders say that the environment for listing stocks to the US is bad at this stage, and NASDAQ is no longer the best choice for Chinese innovation companies. In contrast, the risk of going to Hong Kong is lower.

Of course, listing is a double-edged sword. After the listing of Wei Lai, the stock price has been difficult to break through. It is worth considering for the ideal and Xiaopeng.

It is worth noting that in April 30th this year, the ideal car in a spring communication conference, the ideal car founder Li Xiang said that the ideal car last month has achieved positive cash flow, and will continue to maintain positive cash flow. "At present, the fund is in good condition and there is no need to rely on external blood transfusion." Li Xiang said.

Of course, car manufacturing is a heavy capital investment. The new force of car manufacturing needs continuous development, and more capital is needed to maintain the development and launch of the following models and expand the market scale.

"The new force of the car making needs to make solid products and make the quantity to be able to better live, not just rely on the innovation of business mode." On June 15th, Cui Dongshu, Secretary General of the National Federation of the Hong Kong Federation of trade unions, told reporters.

Although China's new energy vehicle market is still at a low ebb, it has huge market potential in the long run. The most urgent task for all the new drivers of the car industry is to live.

"This year's challenge is indeed great. It tests the ability of resource allocation behind enterprises to help them stay for a while. At the same time, the new force of car manufacturing needs to optimize the business mode to improve its efficiency. Zheng Yun said.

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