Xu Jiayin selling cars is more important than selling houses

Author 丨 Yang Jing

Responsible editor 丨 Xu Jinkai

Editor 丨Zhu Jinbin

"Without sales, it's impossible to get out of trouble and pay off debts."

At the recent monthly work meeting of the group held by Evergrande, Xu Jiayin, chairman of the board of directors of Evergrande Group, made this sentence very loudly. Evergrande Group, which is mainly based on real estate, has deeply realized the importance of sales in the marketing of commercial housing. Since Evergrande fell into a liquidity crisis, it has opened round after round of "selling and selling" to save itself.

Debts of more than 2 trillion yuan are a time bomb for Evergrande Group. Reducing equity, real estate promotion, selling personal assets, in order to return funds, Xu Jiayin used all the ways that can be realized. The performance of selling a house of 3.09 billion yuan in April can see the consumer's recognition of Evergrande, which also makes Xu Jiayin regain confidence.

In addition, unlike other real estate developers who are in prison, in addition to selling houses, Evergrande has another product that can be sold, that is, new energy vehicles. Evergrande New Energy, which was originally "bought and bought" by Xujia Printing at a large price, will also usher in the sales period after passing the stage of testing, rolling off the production line and mass production.

"The recovery of sales is too important and too important for Evergrande, for the owners, for upstream and downstream partners, and for all creditors." Escaping from the declining real estate industry and moving towards the vibrant new energy track may be where Xu Jiayin can really see the dawn.

Channel first

Evergrande has said that it will gradually withdraw from real estate development in the future, and new energy vehicles and related businesses will become the company's new focus in the future. Evergrande's new energy automobile industry, which has invested more than 50 billion yuan in four years, finally completed the mass production of the first model Hengchi 5 in April this year and obtained a sales license.

In China, there are no more than the following ways of automobile sales, dealer model, agent system, direct operation model, new retail and so on. Among them, the traditional car companies are mainly dealer models, but with the reform of electric vehicle companies in recent years, they have also begun to test the waters to the direct operation model and the agent model, that is to say, these car sales models can coexist.

As early as 2018, Evergrande Group took a stake in Guanghui Group, China's largest automobile dealer group, and with its operational capabilities and channel capabilities, it will certainly give Significant help to the sales of Evergrande Automobile. However, two years later, Evergrande transferred the equity of Guanghui, on the grounds that it would focus on its core business and achieve long-term stable and healthy development.

Regardless of the previous behavior, for the current Evergrande Automobile, if it wants to withdraw funds in the short term and keep up with the pace of development of the new energy vehicle market as soon as possible, it is necessary to find a model for selling cars quickly. Of course, it is also possible to use multiple modes at the same time to accumulate small quantities.

Judging from the information previously revealed, Evergrande Automobile has decided to expand sales through the agency system and online car-hailing. In hengchi's channel planning, Evergrande Automobile Hengchi brand is currently recruiting authorized agents in 18 cities such as Beijing, Shanghai, Guangzhou and Shenzhen.

Hengchi Automobile's requirements for this sales model are order-based sales, asset-light operation; the exhibition hall is small and refined, located in the automobile business circle; unified retail prices and ensuring sales profits. The specific requirements of Hengchi Automobile for the qualification of agents include the registered capital of the registered company not less than 5 million yuan; the exhibition hall area is 200-300 square meters, and the exhibition area area is greater than 150 square meters.

As Hengchi Automobile itself said, these conditions are to let the agents agree with the business philosophy of Hengchi Automobile and have confidence in long-term development. In fact, these requirements are similar to the channel development model of new car manufacturers now, whether it is for new car brands or newly joined dealers, there is no need to pay large operating costs in the early stage.

There is also a lower cost is the online car model, some time ago, Evergrande New Energy Vehicle Investment Holding Group Co., Ltd. indirectly wholly owned the Hengchi Guorui New Energy Vehicle Sales (Beijing) Co., Ltd. was formally established. Its business scope not only includes vehicle sales, second-hand car distribution, but also includes online reservation taxi business services.

As we all know, in the past few years, the sales growth of new energy vehicles has been driven more by B-end platforms such as taxis and online ride-hailing. In particular, car companies layout travel companies, and a large number of their new energy vehicle orders are digested by their travel platforms to create sales. Baoneng, which also crossed over the border car before, has a good example of its linkage cloud platform.

Many people say that since a Xilis can be placed in the Huawei store, why can't the Evergrande sales center put a Hengchi? Indeed, if Evergrande wants to, it has more powerful channel capabilities than Huawei. Moreover, the consumption power of the home buyers is not worse than that of Huawei's products, which is also a rarer and outstanding resource of Evergrande Automobile than other automobile brands.

But then again, for the current Evergrande Automobile, production and sales is not difficult, the important thing is whether consumers can believe in Hengchi Automobile's products like Evergrande Real Estate recovery. This is the same for any emerging car brand, the first product can be recognized by consumers, determining the future fate of the car brand.

Internal and external troubles

Therefore, Hengchi 5, the first model of Evergrande new energy vehicles, must be a hit. Last month, Xu Jiayin led the management team to appear at The Evergrande Center in Guangzhou and experienced Hengchi 5 in an "all-round" way. After the staff introduced some functions such as human-computer interaction and voice control of Hengchi 5, Xu Jiayin couldn't help but praise one after another, saying "Beautiful! It's beautiful! ”

According to the data previously declared by the Ministry of Industry and Information Technology, the length, width and height dimensions of Hengchi 5 models are 4725mm, 1925mm and 1688mm, the wheelbase is 2780mm, the maximum power is 150kW, and the CLTC has a comprehensive endurance of 602km. Other configurations are also up-to-date, including AR enhanced navigation and L2.5+ level intelligent driver assistance features.

It can be seen that Hengchi 5 is a compact pure electric SUV with good configuration, in this market segment, there is no shortage of hot products such as BYD Song PLUS EV, Volkswagen ID.4 series, as well as well-known AION Y and WM EX5 and other models, but Evergrande Auto internal hopes that Hengchi 5 and Audi Q3, BMW X1 and other models to compete.

Previously, Evergrande officially released a questionnaire suggesting that the pricing range of Hengchi 5 may be in the range of 150,000-240,000 yuan. If the current Evergrande Automobile is no longer as arrogant as before, it can pragmatically set the price at 150,000-180,000 yuan. It can not only explore the mainstream A-class electric vehicle market, but also cross the level to attack the joint venture brand electric vehicle position.

At present, in the compact electric vehicle market, in addition to BYD's thriving, and AION encroaching on a part of the market, there is no competitive electric products. Therefore, as long as Evergrande Automobile is fierce enough, it has the opportunity to open up a piece of its own market share in this blue ocean. Of course, the premise is that the product quality of Hengchi 5 must pass.

For a long time, the automotive industry has always held a skeptical attitude towards Evergrande New Energy's first product. In particular, Evergrande has put forward the slogan of "three months of hard work" several times, which has led many people to believe that this is a model that rushed out of work, and its reliability has yet to be tested by the market. However, as far as the results of the previous media to experience the exhibition car, the evaluation of Hengchi 5 is still good.

In fact, in a Hengchi franchise store in Guangzhou, Hengchi 5 opened a blind activity, and some netizens have already decided on Hengchi 5. It is reported that in the 10 hours of blind booking, the order of Hengchi 5 reached 50,000 vehicles. If calculated at a price of 150,000 yuan per vehicle, Evergrande will receive 7.5 billion yuan in revenue by delivering these 50,000 vehicles.

However, it is most appropriate to describe Evergrande with a fateful path, this year affected by the epidemic, chip shortages, raw material rises, supply chain ruptures, logistics obstruction and other problems are becoming more and more serious, China's auto industry suffered a "darkest moment". Even strong auto brand manufacturers are difficult to get parts resources, not to mention the emerging Evergrande Automobile.

Although Evergrande has long completed the layout of the whole industry chain from vehicle research and development and manufacturing, powertrain, power battery, smart charging to automobile sales through a series of international mergers and acquisitions and cooperation. But "a car is made up of more than 10,000 parts, and not a single part can be produced", once the supplier cuts off supply, even if there is money, there is no way.

The Guangzhou government working group let Xu Jiayin see hope, and the slow sales of real estate made Xu Jiayin see hope. But in the second business of new energy vehicles, Xu Jiayin stumbled. This year's tragic environment of the automobile industry has added a bit of gloom, but I don't know if Boss Xu can continue to survive this time.