This article is reprinted translate from Gasgoo
As the world's largest auto market, China's electric vehicle manufacturers have registered as many as 486. Bloomberg quoted unnamed people on the 5th as saying that in order to avoid the re-emergence of the Internet bubble in the IT industry in 2000, Chinese policy makers are working. Consider introducing new management regulations, increasing the barriers to entry for electric vehicle manufacturing, and cultivating more sophisticated and competitive companies.
It was revealed that the new regulation would restrict start-ups looking for outsourced OEMs, and the approach is still being drafted.
In the past decade, hundreds of startups have flocked to the electric car industry, and the Chinese government wants to prevent a collapse like the Internet company 20 years ago. Bloomberg NEF expects that the scale of financing for Chinese electric vehicle manufacturers has increased to about $18 billion since 2011, but the market is in its infancy, and these startups face foreign companies like Tesla. Competition is intensifying.
China's electric vehicle startups financing for the world's forefront
According to the new management regulations being drafted, electric vehicle manufacturers who want to seek OEM production from other companies need to invest at least RMB 4 billion (US$ 580 million) in China over the past three years. The sales of pure electric passenger cars in the world are at least 15,000, and there are potential to reach billions of dollars in paid-in capital.
The new regulations also require OEM contracts to run for at least three years, producing at least 50,000 vehicles per year in the same location, and no more than two car manufacturers signing manufacturing agreements with start-up electric vehicles.
For young electric vehicle start-ups, OEM production is a fast way to build a factory without having to spend hundreds of millions of dollars on production, manufacturing, management and resource advantages of a cooperative vehicle.
While planning to set up a manufacturing plant in Beijing, Weilai Automobile has signed a joint manufacturing agreement with Anhui Jianghuai Automobile Group to produce two pure electric vehicles, ES8\ES6. Weilai Automobile began accepting orders at the end of 2017 and delivered 17,550 units as of May this year.
Xiaopeng Automobile signed a contract for production with Zhengzhou Haima Automobile and built its own factory in Zhaoqing, Guangdong. Since the delivery began in December last year, the Xiaopeng G3 has delivered 5,500 units.
In recent years, the new forces of building cars have surged, the concept of the Internet has ignited, and capital has swarmed. According to the China Association of Automobile Manufacturers, the total sales of electric vehicles in China exceeded 1 million for the first time last year, but only 4% accounted for 23.7 million passenger cars. Most electric car startups do not have complete vehicle manufacturing capabilities, and have not yet introduced the first mass production products to the market.
The new management regulations on OEM production are necessary for the healthy development of the next stage of the new energy vehicle industry. The advantages are more than disadvantages. The improvement of the threshold will inevitably put pressure on the survival of some start-ups. 486 companies will be in the law of survival of the fittest. Next, leave a truly competitive innovation force.
Original Website
http://auto.gasgoo.com/News/2019/06/110626282628I70109800C501.shtml
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