On March 14, Evergrande Automobile's first product, Hengchi 5, appeared in the list of "Announcement of Road Motor Vehicle Manufacturers and Products" (Batch 353) released by the Ministry of Industry and Information Technology, obtained sales qualifications, and is expected to be officially listed as soon as the second quarter.
As a well-known real estate enterprise in China, when Evergrande announced its entry into the automotive industry, it received the support of many investors, and its stock once surpassed BYD, becoming the car company with the highest market value in China. However, Heng Automobile has not come up with a product for a long time, and it is difficult to release Hengchi 5, and it has not been able to put into mass production.
As a result of this situation, many investors gave up continuing to support Evergrande Automobile, and the market value of Evergrande Automobile also plummeted, from nearly HK$700 billion at one time to HK$33.5 billion today. Evergrande Automobile must give investors an account in order to regain their support.
Internal sources broke the news that at the beginning of this year, Evergrande Automobile has held a first car off the production line ceremony to confirm that the product can be mass-produced. Now that Hengchi 5 has obtained a sales license, it is estimated that it is really going to be listed for sale. However, the question is, how many people will buy the Hengchi 5, which is only online now?
After electric vehicles have become a popular industry, there are too many companies that have crossed the line, and the competition between car companies is very exaggerated. In addition to the old car companies, only Weilai, Ideal, Xiaopeng and Nezha performed well among the new domestic car-making forces, which is because they entered the game earlier. Evergrande Automobile entered the game too late, the product is not necessarily better than BYD, Wei Xiaoli and other car companies, even if Hengchi 5 is online, I am afraid it will be difficult to achieve high sales.
Xilis is the model of Evergrande Automobile, when Xilis climbed the high branch of Huawei, it became famous in China, but the smart SF5 launched did not sell much, and it was temporarily discontinued. The new car M5 is also very popular, but the order is far from being comparable to Wei Xiaoli. Cars are different from mobile phone digital, buy back are planned to use about 10 years, is definitely the old brand more reliable.
Evergrande Automobile is also facing such a dilemma, initially with Evergrande real estate to accumulate a wave of popularity, but the product launch is too late, the popularity quickly lost. According to the current situation, the market value of Evergrande Automobile is basically unlikely to return to the peak period.
Evergrande Automobile, which is expected to launch its products this year, is in such a difficult situation, what should Xiaomi and Apple, which are expected to release cars in 3 to 5 years, do? For them, giving up now and reducing some losses may be the best policy.