Even real estate developer Evergrande Group is involved in electric vehicles.
Chinese online technology companies Baidu, Xiaomi, OPPO, and Huawei have announced the production of smart electric cars, and even real estate developer Evergrande Group has ventured into electric cars, but at this year’s Shanghai Auto Show, the physical car displayed by Evergrande turned out to be a model, which was ridiculed by netizens. (By Qiao Long/Li Zhi Zhi)
This year, a boom in the production of smart cars has swept through Chinese Internet technology companies, no less intensely than the flurry of companies registering as chip manufacturing plants last year, nearly half of which ended badly. on April 19, the Polar Fox Alpha S smart luxury pure electric sedan, which applies Huawei’s smart driving technology, was unveiled at the 2021 Shanghai Auto Show. The previous January 11, Baidu announced the official formation of an intelligent car company, three months later, Baidu smart car in the Shanghai auto show debut. March 30, Xiaomi Group submitted a formal announcement to the Hong Kong Stock Exchange, into the intelligent electric car industry.
As to whether Chinese Internet companies are capable of building good quality electric cars, Commander, a finance scholar graduated from Shandong University, said in an interview with this station that a swarm of companies building cars may end up accomplishing nothing, just like last year’s chip-making.
The commander said: I think this is the Communist Party of China in an effort to seize the initiative of manufacturing, especially the key components of industry, it is still difficult to achieve self-sufficiency. Core technologies including chips, chips for cars are also difficult to produce in mainland China, China wants to really no longer rely on imports, in fact, there is still a long way to go.
After Huawei, Xiaomi, another cell phone manufacturer OPPO embarked on the road to build a car. On Wednesday (28th) OPPO responded to Beijing Business News that the company does have a plan in car interconnection, and even real estate developer Evergrande has entered the new energy car industry.
Cell phones are still stuck in the assembly stage
Ms. Yao, a businesswoman engaged in import trade in Zhejiang, said to this station that it is much more difficult to manufacture intelligent electric vehicles than cell phones, and that China’s cell phone manufacturing stays at the assembly rather than development level, and it is even less easy for real estate developers to switch production to car manufacturing.
Ms. Yao said: You see the 9 cars displayed by Evergrande in this auto show, all of them are models. I don’t think it’s possible to build a car. Cell phone factory to build a car is also difficult, the first build a car than build a cell phone is difficult. I recently learned that a friend of mine asked me to find the high precision glue from South Korea, which is the glue needed to bond the cell phone, China can not be made, not to mention the car is now this (chip is difficult to find) situation, and more difficult than making cell phones.
Last December, Evergrande has said that through international acquisition and cooperation and other modes, and the world’s top supercar Koenigsegg (Koenigsegg) and a number of German companies to join forces to manufacture the world’s most advanced cars, but this time in Shanghai Auto Show display is surprisingly nine model cars, so that visitors to the model car only shell, was found to have no suspension and braking system.
Mr. Wang, a car industry insider, told the station that the gap between China’s car manufacturing technology and that of the West is vast in terms of software.
Mr. Wang said: now OPPO cell phones are yelling to make cars, hardware basically nothing too big problem, but the software is the biggest problem. The car’s response to unexpected events, braking is the key technology for people, not to take the money can be piled up. I estimate that the car-making boom will end without a hitch.
In the face of importers domestic cars are not competitive
The People’s Daily Overseas Edition reported that in addition to high R&D costs, modern car manufacturing involves sales, administration, purchase of plant and other assets. In the case of Azera Motors, for example, the R&D expenditure in FY2020 was RMB 2.49 billion, and the selling and administrative expenses were RMB 3.932.3 million.
A review of mainland car sales websites shows that the domestic Azera ES8 electric car, which goes upscale and has a range of 580 kilometers, is considered the top equipped domestic electric car and is priced at about RMB 460,000 to 620,000.
But Tesla plans to launch the M3 electric car produced in mainland China, which is recognized to be far beyond the performance of the Azera electric car, and most of the technology and accessories are self-developed, but the price will be as low as RMB 240,000, in other words, the top domestic electric car will be completely uncompetitive.
People can’t afford to buy cars, leading to the closure of car factories
As far as the purchasing power of Chinese people for private cars is concerned, most families cannot afford to buy electric cars. Zhang Hai, a driver in Shenzhen, told the station.
Zhang Hai said: We also can’t afford to drive a small car in every family in China, a large part of the population is not rich, so I think it’s not good for us to enter the lucrative car field in the country in a flurry.
Zhang Qiang said that the current crowding of people from all walks of life on one road is like the emergence of shared bicycles in Shenzhen back then, which eventually resulted in more cars and fewer people and forced companies to shut down and close down. However, some scholars believe that many companies start car projects in order to obtain government financial subsidies, and the end result is just like the chip, the car companies “rotten”.