From knock-off old-man's electric vehicles to industrial giant

Chapter 53: One leans towards business, the other towards sports.
the next day.

"Mr. Xu, with the local government subsidies in Luzhou, 50% of the local retention portion of value-added tax and income tax for the first three years has been returned. Based on an average annual revenue of one billion, that's a return of 25 million..."

"In addition, our production license for electric agricultural sightseeing vehicles has also been issued at the same time."

CFO Liang Shou-zhuo brought some good news.

Currently, Xingchen's annual revenue has already exceeded one billion yuan. Regarding the local government's tax exemption subsidy, they applied to the local authorities as early as when the vehicles were launched and sold.

The local government subsidies were delayed for about six months, but they have finally been disbursed today.

In addition, there is a formal factory production license for "electric agricultural sightseeing transport vehicles".

That's right.

"Star 01" and "Star 02" were actually produced under the guise of agricultural sightseeing vehicles.

In this way, whether it's factory production or driving on the road, it's considered to be included in the "Provincial Agricultural Machinery Subsidy Catalog," allowing them to enjoy the corresponding subsidies without being stopped and fined by the provincial traffic management department.

In other words, this region within the province can be considered to be moving towards "pseudo-formalization".

Even if it's not in the fields, as long as it's not a traffic violation, they'll turn a blind eye and just give a verbal warning.

This can be seen as a manifestation of the saying "the higher authorities have policies, and the local governments have countermeasures."

As long as the central government does not issue a document that "explicitly requires the prohibition and elimination of non-compliant vehicle models," local protectionism will not fail.

Initially, the Luzhou local government did not pay much attention to it, treating it as just an ordinary electric vehicle manufacturer.

However, as the factory's market share and revenue grew rapidly, their attitude quickly made a complete 180-degree turn.

joke.

Who would want to go against a company that generates significant local GDP?

Given Xingchen Factory's current status, it could easily apply for "new energy technology upgrade" subsidies if it were to replace its factory buildings with new equipment, and it could also easily obtain low-interest bank loans and cheap land if it were to expand its factory and acquire development land.

"Mr. Xu, there's one more thing. For the vehicles that are already listed in the 'Provincial Agricultural Machinery Subsidy Catalog,' we've applied for purchase subsidies. The local government can subsidize 1,000 yuan per vehicle, and our company will subsidize an additional 500 yuan per vehicle. This means that for consumers, buying a vehicle within the province is now 1500 yuan cheaper than before!"

If the above only represents general corporate benefits...

This last point is undoubtedly a clear "goodwill gesture".

As long as you can generate GDP, you're the most important person to local governments!
Although they are not officially licensed car manufacturers, how much less revenue do they generate compared to small and medium-sized car companies?
Xu Yi nodded after listening and immediately asked:

"Have you given any hints about the application for car manufacturing qualifications?"

In fact, given Luzhou's conditions, supporting facilities for the new energy industry are also being developed, and the local presence of a large battery factory like Guoxuan High-Tech makes it quite well-developed.

Liang Shouzhou shook his head: "They still say they support it, but they haven't made any clear statements."

This means that the Luzhou region did not have absolute certainty.

To know.

Even 20 years ago, only Shandong Guojin was able to obtain both independent new energy vehicle manufacturing qualifications.

Clearly, there are significant differences between the two regions in terms of policy environment and resources.

and.

JAC Motors already operates in Luzhou.

Continuing to apply for the second independent qualification in the province is very difficult, and even with subsequent support, it is impossible to invest 100% of the resources.

Previously, Xu Yi had met with the relevant leaders once, and after going through some procedures, he had basically ascertained their intentions.

This is just a reconfirmation to see if there's any hope.

Xu Yi: "What about Shan Dong's side?"

"All the applications for subsidies and tax exemptions have been submitted, and all the relevant preferential treatments will be provided... As for applying for independent vehicle manufacturing qualifications, we spent some effort to obtain some definite information through local internal channels," Liang Shouzhou replied.

"Oh?! How so?"

“If the local production of new energy vehicles reaches an annual sales volume of over 70,000 units, or if we invest in and build an Industry 4.0 factory with an annual production capacity of 200,000 units, and bring in local urban investment groups as shareholders, we should be able to start operations,” Liang Shouzhuo said.

Compared to Luzhou, the attitudes from within Shandong Province are significantly more optimistic.

Upon hearing this, Xu Yi's eyes lit up immediately: "The requirements are so lenient?!"

Liang Shouzhou: "This annual sales volume is for new energy vehicles priced above 100,000 yuan. Although our entry into the microcar market is also considered a new energy vehicle with roadworthiness qualifications, the price is low. It may be easier to operate if we reach an annual sales volume of 100,000. With the prerequisites in place, the city investment group will invest and obtain policy resources. Then, it will be a natural thing to apply for independent vehicle manufacturing qualifications."

After listening, Xu Yi pondered in his heart.

In fact, according to his prediction, it might be difficult to obtain independent qualifications through joint operations with local authorities, since it involves selling microcars.

But unexpectedly, the requirement could be met with annual sales of around 100,000 units.

Come to think of it, in the current new energy vehicle market, the number of car companies that can achieve annual sales of more than 5 new energy vehicles can actually be counted on two hands.

Even the most powerful BYD only produced 300,000 units.

The subsequent investment and large-scale follow-up by local urban investment groups simply strengthens the connection between the two parties.

Once you have this relationship, it means that the local government fully recognizes you, and various local resources will be given priority to you.

From now on, you'll be the local government's most "favored" child!

but--

To reach that point, you first need to have the recognized strength.

Like the previous Guojin Group, which was just a shell factory, it could not generate GDP for the local area. Even if it had some connections in the local area, it was difficult to get the support of the local government.

Speaking of it.

Liang Shouzhou seemed to have recalled something unsettling.

His lips twitched slightly:

"In addition, after we moved the production line of Xingchen 01 here, the local urban-rural fringe area purchased an additional 3,000 Xingchen 01 units under the guise of unit procurement."

Hear this.

Xu Yi was also slightly dumbfounded, "Uh—? Company procurement?! It's not appropriate for a suburban area to do this, it's a government unit after all..."

Liang Shouzhou took a deep breath and said, "We're using the purchase list for agricultural machinery transport vehicles, and we've added a cargo bed to the trunk."

Xu Yi: "..."

I'm starting to lose my composure.

Is this okay? ?

That's right.

It's such an exaggeration.

In Luzhou, they offer subsidies for car purchases, which is fine.

Who would have thought.

When they arrived at Shandong, they insisted on getting their "old man's car" into the company's procurement process.

That's why Shandong is known as the largest birthplace of agricultural machinery and recreational vehicles for the elderly in the country.

Look at how lenient their policies are.

The style is a bit rough, but for a new manufacturer like them, isn't that a good thing?

In this era of rising new energy giants, as long as you can demonstrate sufficient potential, local governments will undoubtedly be willing to invest heavily.

When it comes to a "ten-year plan" like developing the province's GDP and upgrading industries, all unspoken rules and vested interests must give way.

only.

The way of betting varies slightly from the level of local industrial chain development to the style of geopolitical policies.

in conclusion.

In the early days, Luzhou had a relatively formal layout for the new energy supply chain, and its resources and support were "business-oriented".

On the other hand, Shandong takes a more rugged approach, with more rural-urban fringe areas, leaning more towards pragmatism, and a style that is "more sporty".

……

(End of this chapter)