In the current hot new energy vehicle manufacturing industry, the biggest pressure on most new power car companies comes from funds. In the car-making process of real estate tycoon Evergrande Group, there has never been any financial worries, but car-making is still not easy for Evergrande.

Evergrande, which started to get involved in the field of new energy vehicles in 2018, has strong financial strength. Based on this, Evergrande is determined to build cars and has set the goal of "becoming the world's largest and most powerful company within 3-5 years." The goal of becoming the strongest new energy vehicle group. However, now that the three-year period has passed halfway, Evergrande's car-making journey is obviously not smooth sailing, and the delivery of the first car is still far away.

Behind the "buy, buy, buy" trend: the slow process of car manufacturing

As a company that started in real estate, although Evergrande has capital, it is a "layman" in the automotive industry. Evergrande's first attempt at cross-border car manufacturing was to join hands with Jia Yueting's Faraday Future. However, this cooperation did not last long and eventually broke down at the end of 2018 due to disputes over decision-making rights.

After the failure of the cooperation with Jia Yueting, the wealthy Evergrande Group decided to set up its own business. As Xu Jiayin, chairman of Evergrande's board of directors, said, it started "buy, buy, buy, join, join, circle, and big". Great, great, great” road.

In January 2019, Evergrande Health spent US$930 million (approximately RMB 6.55 billion) to acquire 51 shares of National Electric Vehicle Sweden Co., Ltd. (NEVS) and obtained a majority of board seats. In January of the same year, Evergrande invested 150 million euros (approximately RMB 1.15 billion) in Koenigsegg, and spent US$150 million (approximately RMB 1.01 billion) to establish a joint venture project company with Koenigsegg, which was authorized to use Koenigsegg. SEG's technology patents and brands. In the following six months, Evergrande also made frequent investments, spending 1.56 billion to acquire 58.07 shares of power battery company Shanghai Canai New Energy, acquire 70 shares of Hubei Tate Electromechanical, and fully own the Dutch wheel hub motor company e- Traction, invested in the British Protean wheel hub motor company.

On June 10 this year, Evergrande Health, which already held 82.4% of the shares, once again spent US$379.5 million to complete the acquisition of the remaining shares of NEVS. At this point, NEVS became a wholly-owned subsidiary of Evergrande Health.

Under the channel of using money to solve problems, the combination of the entire industry chain is not a problem, but for Evergrande, a cross-border car manufacturer, the problem is how to integrate after the acquisition.

Looking at Evergrande’s current car-building process, it can be said that it is far from its goals. In June last year, Evergrande built its first model, the Guoneng 93, based on Guoneng's existing models and platforms. The design and platform of this car are too traditional, and it has not been delivered so far. Evergrande also admitted that National Energy 93 was more about giving investors an explanation.

According to Evergrande’s plan, its model Hengchi No. 1 was originally planned to be unveiled in the first half of this year. However, the only known information about this car is the application pictures, and product parameters and other information have not yet been released.

Compared with the slow progress in car manufacturing, Evergrande Group has gained more from the land in this car manufacturing game.

There is a lot of land on the road to building cars

Since Evergrande started building cars, it has owned a number of new energy subsidiaries with holdings and shares, which is very important for the development of new businesses. Not surprisingly, what arouses doubts is that Evergrande’s car-making business has subsidiaries specializing in real estate development.

According to statistics, Evergrande’s automobile business segment has at least 37 subsidiaries that can carry out real estate development and operations. In 2019, the companies under the Evergrande Automobile Segment acquired 7.34 million square meters of land, including approximately 3.38 million square meters of residential or commercial land and approximately 3.98 million square meters of industrial land, with a total cost of 15.645 billion.

These lands are crucial to Evergrande Group, a leading real estate company. A well-known real estate analyst said that although real estate developers can currently obtain land through normal bidding, auctions and listings, the cost is high and competition is fierce. However, “with the introduction of industries, we can get better land acquisition opportunities.

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This is indeed the case. The land obtained by Evergrande in the new energy automobile industry is basically sold at the lowest price, and there are many good land parcels.

This model This has inevitably caused people to question Evergrande's actions as "named as building cars, but actually enclosing land." According to the analysis of an executive with experience in both the real estate and automobile industries, this model of Evergrande can be called. The 2.0 version of the China Fortune Land Development Model focuses on land.

The so-called China Fortune Land Development Model refers to China Fortune Land Development’s industrial new city operation and development model. Under this model, China Fortune Land Development and local governments. Signing an exclusive park hosting sharing agreement, China Land Development will be responsible for the planning, construction, investment and post-maintenance work, and the government will earn income through tax collection and land sales, and the income will be shared with China Land Development.

According to the agreement. Executives said that Evergrande’s model is more efficient, and it is more popular with local governments to bring capital and industry in.

Evergrande also has an interpretation of this model, according to Caixin. Group President Xia Haijun once said at an analyst communication meeting that Evergrande will establish a model when negotiating with local governments, including the expected losses from local investment and construction of factories, job opportunities and tax revenue growth brought by the automobile industry. Based on this model Local governments are required to provide supporting housing and living land. Xia believes that this is the core competitiveness of Evergrande in the development of the automobile field, which "is not available in other automobile manufacturers."

At the analysis meeting, Xia Haijun said. It is also said that China Evergrande will launch a "buy a house and get a car free" in the future to drive real estate sales.

The determination and slogan of Evergrande Group to invest heavily in the new energy automobile industry is not untrue, but from now on. From the perspective of Evergrande's car-making process, the real estate sector has been heavily integrated into the car-making operation. In terms of energy investment, Evergrande's car-making process, which already has a full industry chain and capital support, is really slow compared to car-making. , Evergrande has also become more sophisticated in enclosing land.

This article is from the author of Autohome Chejiahao and does not represent the views and positions of Autohome