Following the chip “great leap forward” after the domestic electric car “great leap forward” as the arrow in the string

Chinese Internet technology companies Baidu, Xiaomi, OPPO and Huawei have announced the production of smart electric cars, and even real estate developer Evergrande Group has gotten involved in 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.

This year, a wave of smart car production, sweeping China’s Internet technology companies, its intensity is no less than last year, many companies swarmed to register as a chip manufacturing plant, of which nearly half are rotten end. April 19, the application of Huawei intelligent driving technology of the pole Fox Alpha S intelligent luxury pure electric sedan debut 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 flurry of companies building cars may end up accomplishing nothing, just like last year’s chip-making.

“I think this is China’s efforts to seize the initiative in manufacturing, especially the key components of industry, it is still difficult to achieve self-sufficiency. Core technologies including chips, chips for cars China is also difficult to produce, China wants to really no longer rely on imports, in fact, there is still a long way to go.”

Following Huawei, Xiaomi, another cell phone manufacturer OPPO embarked on the road to build a car. On Wednesday (28th) OPPO responded to Beijing Business News reporter that the company does have a layout in car interconnection, even the real estate developer Evergrande also entered the new energy car industry.

Cell phones still remain in the assembly stage on barely producing smart cars

Ms. Yao, a businesswoman engaged in import trade in Zhejiang, told the station that it is much harder to manufacture smart electric cars 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. She said.

“The nine cars you see Evergrande showing out at this auto show are all models. I don’t think it’s possible to build a car. It is also difficult for cell phone factories to build cars, the first building cars is more difficult than building cell phones. I recently learned that a friend of mine asked me to find the high precision glue from South Korea, that is, the glue needed to bond the cell phone, China also can not be made, not to mention that making a car is now this (chip hard to find) situation, and harder than making a cell phone.”

Last December, Evergrande has said that through international acquisition and cooperation and other modes, and the world’s top supercar Koenigsegg, powertrain giant Germany a number of enterprises to join forces to manufacture the world’s advanced cars, however, this time in the Shanghai Auto Show display is surprisingly 9 model cars, so that visitors fell, the model car only shell, was found to have no suspension and brake system to move.

Mr. Wang, a car industry insider, told the station that the gap between China’s car manufacturing technology and that of the West in terms of software is vast.

“Now OPPO cell phones are yelling to make cars, hardware is basically nothing too big, 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 reckon 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 also involves sales, administration, purchase of plant and other assets. In the case of Azera Motors, for example, R&D expenditures for FY2020 were 2.49 billion yuan and selling and administrative expenses were 3.932.3 billion yuan.

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, the performance is recognized far beyond the Azera electric car, and most of the technology and accessories are self-developed, but the price will be as low as 240,000 RMB, in other words, the domestic top 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.

“We also can’t afford to have every family in China drive a small car, and a large part of the population is not well off, so I don’t think it’s good that we have a flurry of people in the country entering the lucrative car sector.”

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 ended up with more cars and fewer people, forcing 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 like chips, car companies “rotten”.