On May 18, 2020, the ministry of industry and information technology issued the 332nd batch of announcement on road motor vehicle manufacturing enterprises and products, in which the former guangdong fudi automobile co., ltd. was officially renamed zhaoqing xiaopeng new energy investment co., LTD. So far, xiaopeng will bid farewell to OEM in the future and realize self-production.

One, production ban OEM, xiaopeng early layout

1. For the sake of production capacity

According to incomplete statistics, there were more than 50 new-power automobile enterprises emerging in 2019, among which less than half of them were able to deliver vehicles. Most of them have not yet achieved mass production, and only 4 new-power enterprises with sales of more than 10,000 have achieved mass production. The echelon classification is relatively obvious. As can be seen from the following figure, the proportion of new force automobile enterprises that can realize delivery is less than 50%. The first model of xiaopeng automobile, G3, sold 16,609 units in total in the whole year, and the insurance volume was 14,191 units, ranking the third in the sales ranking of new power of car making, and the result was still satisfactory.

Meanwhile, the situation of haima automobile, which is the OEM of xiaopeng automobile, is getting worse. In 2019, haima automobile sold only 29,456 units in total, down 56.41% year on year. Haima cars, which are at the edge of the market, may be delisted in 2020 as a result of the epidemic. Xiaopeng chose to obtain the production qualification at this time, maybe also to avoid the market risk caused by the possible shortage of production capacity in the future.

On March 19, 2020, the legal representative of guangdong fudi automobile co., ltd. was changed to xia heng, and the 100% controlling shareholder of the company was zhaoqing xiaopeng new energy investment co., LTD. According to public information, ford automobile has a production capacity of 100,000 units and three models, but its annual sales volume in 2019 is less than 500 units, resulting in severe overcapacity. Xiaopeng, in the form of acquisition, obtained the production qualification of ford motor.

New power makes cars, and new power makes them

On this basis, xiaopeng zhaoqing factory started construction in December 2017, and completed the full capping in September 2019, and started preparing for the small-batch trial production of xiaopeng P7 project vehicle. All the signs show that xiaopeng has been ready to get rid of the production capacity of the contract.

2. For financial reasons

The choice of OEM means that there is a high cost of OEM. According to public information, ideal automobile acquired the production qualification through the acquisition of chongqing lifan at a cost of 650 million yuan. Baitang acquired the faw hually qualification with one yuan, but it had to assume 800 million yuan of debt and 54.62 million yuan of employee compensation, which was equal to 850 million yuan for obtaining the qualification. Nextev claimed that it had paid 604 million yuan to jianghuai automobile as of December 31, 2019. Xiaopeng did not disclose how much it actually paid, but according to market conditions, it will add a lot of costs. In particular, affected by the epidemic this year, car companies are taking measures to reduce costs and increase efficiency. The cost issue will also be one of the reasons for xiaopeng to consider making its own cars.

Second, the car model is gradually clear, self-production or will become a new force car enterprise new ideas

Since 2015, new forces have kept emerging. In addition to obtaining the "dual qualification", OEM has become the common choice for early new-force automobile companies to carry out light equipment and quickly occupy the market. However, as the car companies gradually become clear about the model of car making, OEM has become a production burden. In addition to the new power car companies mentioned above, they not only have to pay OEM fees, but also have to bear the factory losses caused by poor sales.

According to the official public information of nextev, it signed ES6 and EC6 manufacturing cooperation agreements with jianghuai in April 2019 and March 2020, respectively, promising that in the first 36 months after the production starts on April 10, 2018, if any operating loss occurs at the anhui hefei manufacturing plant, nextev will bear the operating loss of jianghuai automobile company. Xiaopeng automobile will deliver 16,600 units in 2019, while haima automobile has an annual production capacity of 50,000 units, with a capacity utilization rate of only 33.2%. It is conceivable that the remaining part will be compensated for losses.

In addition, under the OEM model, it is difficult for new-power automobile companies to fully control the production efficiency and product quality. After obtaining the production qualification, automobile enterprises can not only control product quality and grasp the production pace, but also enhance the social recognition of automobile brands, which is also conducive to the future product production and promotion of automobile enterprises.

Third, self-production also needs to recognize their own strength

In addition to the production qualification, the car also needs a lot of financial support. The new power car companies initially raised money for Internet companies and had no experience in building cars. In 2019, the total amount of financing of 11 new power automobile enterprises led by nexv reached 27.259 billion yuan, but the amount of financing decreased significantly compared with that of 2018. Entering 2020, the new energy vehicle market is facing a severe situation. The sales volume dropped sharply in the first four months of this year. It is difficult for traditional automobile companies to turn the corner. The overall downturn in the auto market, coupled with the impact of the epidemic, has made it even more difficult for new-power auto companies to obtain financing.

In terms of policy, in April 2020, the ministry of industry and information technology organized the drafting of the decision (draft for comments) on the revision of the > regulations on the administration of new energy vehicle manufacturers and product access. Draft further easing barriers to entry new energy automobile production enterprises and products, including access to delete the application of new energy automobile production enterprises related to the requirements of design and development capability, it made in technical level reduces the demand for car companies, but from the market level, for enterprise comprehensive strength requirements is relatively high. For new-power car manufacturers, it is difficult to maintain competitiveness in the automobile industry in the long run if they only make innovations in design and marketing concepts, but do not make breakthroughs in key automobile manufacturing links or key parts.

In terms of profitability, including nextev, xiaopeng and other head car companies, the new power car companies are still in a state of living beyond their means. Nextev reported a loss of 11.296 billion yuan in 2019, up to 17.2%. In the future, on the basis of self-sufficiency, new-power automobile companies need to focus on technology research and development in order to cope with market competition. In the future, the competition will be more fierce, and the key to profitability is to overcome core technical problems.