Building a car could be the next strategic opportunity for the group car

Author: Less words

Facts have proved that the enthusiasm for new energy vehicles has not yet dissipated. In 2021, new players who enter the car and cross the line of car building are coming, and entering 2022, a new round of car-making movement may have begun.

On the evening of January 5, TC.NASDAQ, a leading domestic auto trading and service platform, announced that it had officially established a strategic plan for new electric vehicles, including design, R&D and manufacturing teams, and expanded its business to electric vehicle manufacturing.

According to the content of the announcement, Tuanche not only wants to build an electric vehicle brand, but even to expand its business to a relatively large business, from the automotive e-commerce platform to the field of automobile manufacturing.

According to public information, Tuanche.com is an automobile e-commerce platform established in 2010, and its main business is also to lay out a new retail strategy around the automobile trading scene, including the nationwide development of large-scale Huimin Tuan car festival activities, automobile sales, new energy vehicle sales, etc. That is to say, the group car that previously managed the car sales business is now going to go down to build a car.

What kind of new car-making force is Tuanche?

As a leading participant in the field of automotive e-commerce, Tuanche has been active in the automotive new retail front. On November 20, 2018, Tuanche was listed on the NASDAQ, becoming the first new retail stock of automobiles listed in the United States in China.

But today's group car urgently needs an opportunity to break the situation, to start the capital road and performance growth that is not too long to cheer up, obviously, car building may be a better way.

Looking at the valuation of new energy vehicle companies in the capital market, the temptation to bet on future travel has been highlighted, according to the latest global car company market value ranking compiled by relevant institutions, the top ten car companies on the list of new energy car companies Tesla, BYD and Rivian have stood out in a number of traditional car giants such as Toyota and Volkswagen, and Tesla even rode the dust with a market value of more than 1 trillion US dollars.

Therefore, there is reason to believe that the incoming electric vehicle will also have a positive effect on the group car in the capital market.

Why did the group car start to choose to build a car? In the field of investment, there are three metaphors for cross-border competition, one is to use one's own inferior horse to race with other people's good horses in one's own home; the other is to use one's own horse to race with other people's horses in one's own home, regardless of whether it is up or down or win or lose; the third is to use one's own good horse to race with other people's inferior horses in other people's homes.

As a participant in the retail end of the car, Tuanche has a relatively deep understanding of this. In the announcement on January 5, Wen Wei, CEO of Tuanche, said: "With the active promotion of policies, the accelerated construction of the foundation and the improvement of related technical facilities, people recognize the rapid development of electric vehicles. ”

To a certain extent, the entry of the group car is to keep up with the development trend, and the car gene of the group car does not exist in the production and manufacturing end, but in terms of user demand. In other words, if you sell a car for ten years, will you still not know what kind of car consumers want? As Wen Wei said at the 2016 Beijing Auto Show, electric vehicles are a better entrance for automotive e-commerce.

Some institutions predict that the automobile industry will become China's largest industry, at present, China already has the world's most complete automotive electronics industry chain, which is tantamount to the most fertile soil for the development of electric vehicles, China's electric vehicles are very likely to help China's automobile industry to achieve curve overtaking.

In November 2021, the penetration rate of new energy vehicles in the Chinese market exceeded 20%, which has initially formed a market scale, and the consumption of new energy vehicles will be further expanded, and there is still plenty of room for improvement in the capacity utilization rate of new energy vehicles of major domestic car companies. China's electric vehicles will also run all over the world like Chinese-made smartphones.

The mid-range market may be the stage for group cars

Since you choose to build a car in the next game, how should the group car break through in the fierce competition and the market where the masters are like clouds?

After many rounds of reshuffling in the market, the models of new energy vehicle companies that remain in the market are still relatively abundant. Among the low-end entry-level electric vehicles, Wuling Hongguang MINI EV, Changan Ben e-star National Edition, Chery QQ Ice Cream, etc. already have a certain market influence, but the profit margin of such models is very limited, and it is not the source of profit for corresponding car companies.

In the high-end electric vehicle market, it is a place where players gather. Most of the new domestic car-making forces take this as a starting point, and Weilai, Ideal, Xiaopeng, Gaohe, and Qianye are all models positioned in the high-end market. Independent brands, international first-line car companies also intend to seize the high ground in the process of transformation and win higher profit margins. But the high-end market also means a longer investment cycle, and for the ever-changing electric vehicle market, later delivery times mean greater competitive pressure.

However, now it seems that in the price range of about 150,000 yuan, there is still a huge market space. According to statistics, in the first three quarters of 2021, consumer car purchase costs, less than 150,000 accounted for more than 50%, 150,000-250,000 accounted for 24.46%, more than 250,000 models accounted for a quarter. New energy vehicles have been promoted so far, the relatively high cost of car purchase has not shown a strong attraction, often hundreds of thousands of people to buy a high-end brand electric vehicle, coupled with higher maintenance costs, obviously not ordinary consumer groups can afford, and low-end electric vehicle models can not meet the needs of some consumers.

Therefore, the mid-end market may be a place where tuanche can show its skills, and tuanche will also contribute to reducing the cost of electric vehicles in China.

Ten years after selling cars, the group drivers have the real needs of users

CEO Wen Wei said in the announcement that Tuanche uses the emerging business model and the huge user group of long-term network operations to give back to the future electric vehicle business with a sales network covering the first line of the country to the county, as well as independent sales capabilities. By effectively combining existing platforms with car-related design, collaborative research and production teams, coupled with in-depth collaboration with other potential partners, Tuanche will surely occupy an important position in the future electric vehicle market.

The "consumer demand" in hand is an important chip for the group car. Compared to the cold PPT, nothing is more convincing than "the market really needs it".

At present, there are a number of valuable resources in the market, while major manufacturers expand the production capacity of new energy vehicles, the capacity utilization rate is still in a gap period, and the group car has long been dealing with manufacturers and consumer groups, and will also accumulate some partners.

Cooperation is a more suitable choice for the current selection of group cars. In addition to new car-making players such as group cars, there are also some players who can build cars and are forced to stop building cars due to lack of fresh blood.

Although the group car has not announced the specific details of the car construction, the group car said in the announcement that the group car is now in public discussion with potential strategic partners. For tuanche, car manufacturing is an important strategic planning, whether it can be revitalized in the capital market and expand new paths for business development is the real purpose of this strategy.