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

Chapter 83 The Restless City Capital Group
Zibo City Capital Group.

Li Yiguang, as the head of a local state-owned enterprise, has been having a lot of headaches lately.

The daily work of the City Capital Group mainly revolves around asset operation, industrial investment, and urban services.

The "medium- and long-term strategy" formulated a few years ago already set the tone for the transformation of traditional industries and the development of emerging industries.

Industrial upgrading is a must!

Otherwise, we won't be able to retain talent, and without supporting industries and supply chains, local tax revenue and other aspects will not improve.

Besides.

The City Capital Group is also responsible for asset operation and industrial investment, promoting local economic development.

Since the word "operation" is involved, the rate of return must be considered.

just.

The performance and returns over the past few years have been truly appalling.

The first two years can be described as the "growing pains" of traditional industries transforming.

But after several years of "growing pains," what have been the actual results?

Of the key local enterprises that have been supported in recent years, very few are truly competitive.

In the eyes of provincial leaders, he received the evaluation of "not outstanding performance," which was quite tactful.

At least they didn't point fingers and say that their city assets had "poor operational capabilities."

This situation is also related to the sluggish industrial chain and the political and business environment and atmosphere cultivated locally over the years.

some things.

It may not exist subjectively, but it may exist objectively.

To this, Li Yiguang could only say...

We've done our best to help any company that shows any hope of turning things around.

As a local committee member, he still harbored aspirations for advancement.

Furthermore, even without other ambitions, making the pie bigger and stronger is better than letting it die in the womb.

Unfortunately, such opportunities are becoming increasingly rare.

On the table, there was a "Plan for Promoting the New Energy Vehicle Industry Cluster in the City".

Previously, a Xingchen Automobile factory that had settled in the area through investment promotion caught his attention.

To be precise, it should be said that initially, they did not attach much importance to it. The other party started in the elderly entertainment industry, and they offered corresponding support and preferential conditions based on their capital and scale.

But later on, the company's performance was quite surprising.

After taking over the affiliated factory of Guojin Group and carrying out asset restructuring, it immediately started a two-pronged development. In just a few months, it has shown amazing potential, with remarkable ability to connect with and integrate the supply chain. It has created hundreds of jobs and generated a lot of tax revenue in the local area, and launched an independently developed new energy vehicle.

They immediately sent an "invitation to connect," but a meeting date has not yet been set.

Since rebuilding the factory, Xingchen Motors has not made any public statements regarding its intention to expand production capacity or build new R&D and production bases.

So Li Yiguang pulled out this "Plan for Promoting the New Energy Vehicle Industry Cluster in the City".

Without a doubt, Xingchen Automotive is not the same incompetent company as Guojin Group, which fraudulently obtained subsidies and qualifications.

Moreover, they have considerable ambitions.

If the qualification requirement is not met, the next step is to apply for an independent vehicle manufacturing qualification.

This road is difficult to build, and most importantly, it consumes a lot of local resources.

This is what Li Yiguang is hesitating about.

Should we go all in?
……

"Boss, we've received a response from Xingchen Motors regarding their intention to connect. Also, according to local tax statistics, Xingchen Motors' revenue this month has exceeded 100 million yuan, and their car sales and insurance registration data have reached nearly 5,000 units!"

Just then, a uniformed man walked in to report, looking extremely excited.

Hear this.

Li Yiguang was completely shocked!
"Goodness, you've been waiting for me here!"

What does 5,000 units mean?!

Previously, Xingchen Motors reused the factory buildings of Guojin Group, which can be considered as revitalizing existing assets. However, many people are not optimistic about the company's ability to manufacture cars, given its background in making electric vehicles for the elderly.

It's not uncommon for people to use feints to fraudulently obtain subsidies or qualifications.

Plus.

The higher authorities have already issued public notices. Even though the sales of electric vehicles for the elderly are currently quite high, how long this market penetration can last and whether it is worthwhile to invest in the new industrial cluster are still open to discussion.

And these "old man's cars" don't even have any core technology!

but now.

Li Yiguang is no longer sleepy!

Support!

We absolutely must give them strong support!!

Support will be provided to key enterprises of the year!

Anyone who opposes industrial upgrading is jeopardizing their own bright future!

……

The meeting between the two parties was arranged at the Xingchen Automobile production base.

Li Yiguang and his entourage went straight to the point, using the pretext of visiting the production base's industrial chain and technology to begin the handover and negotiations.

"Distinguished leaders, this is our new energy vehicle production line. Apart from the battery pack, which is sourced from the supply chain, 70% of the components for the entire vehicle are developed and produced by us, including the core components such as the motor and electronic control system."

Even the power battery packs for new energy vehicles are packaged on our own production lines, and we have considerable reserves of battery technology..."

Xu Yi led both teams on a tour of the production base.

These technological strengths are usually presented by the R&D manager, but he can now recite them so fluently, which is rare among entrepreneurs.

When Xingchen Motors talked about having core reserves of electric drive technology, they said...

The eyes of the team from Chengzi all lit up.

In addition to Li Yiguang, the main leader, the delegation included the vice general manager in charge of industrial investment, the general manager of the city's asset operation department, and a new energy industry technology expert hired by the city's asset management company.

"Well... no matter what kind of leader, they all serve the people. To put it bluntly, Chengzi also serves enterprises and the local area. President Xu is young and promising, and he has made great contributions to local industries by boosting employment and tax revenue," Li Yiguang said.

After the tour, he couldn't stop smiling.

The current production base has been renovated and is completely different from the previous Guojin Group production line. The overall structure has been upgraded, and with the addition of semi-automated production equipment, robotic arms, and well-organized workers, the workshops responsible for the production and assembly of the three electrical components give it a precise and orderly feel.

These things are obvious at a glance.

It's impossible to fake.

This is clearly incomparable to some automakers that entered the market halfway through and fraudulently obtained subsidies.

After touring the factory and seeing its production capacity and technology, they exchanged a few polite words.

Both parties went to the conference room to rest.

After sitting down and drinking a couple of sips of tea.

Then Xu Yi got down to business.

"The biggest problem right now is that we don't have an independent qualification to manufacture new energy vehicles. The Star Mini is just our first product at Star Auto..."

The goal is to take the top spot in the entire microcar market.

This applies not only to the new energy vehicle sector, but to the entire sector of microcars that do not differentiate between hybrid and electric vehicles.

In fact, we have already reached this point in the field of unlicensed microcars. Although they are not in the same category, the price difference is not that big, the audience conversion rate is very high, and young people are also very receptive.

……

Most importantly, we will have a second car and a third car in the future.

Our future annual sales target for Xingchen Motors is to exceed 200,000 to 300,000 units.

Xu Yi started making empty promises.

...

It's not really a case of making empty promises.

Don't be fooled by the fact that the total annual sales of new energy vehicles in China are less than one million units. His claim of annual sales exceeding 300,000 units is quite alarming.

But in another six months to a year, the growth rate could increase by 200% to 300%.

The market share of gasoline-powered vehicles will continue to shrink until their penetration rate exceeds 50%.

The total annual sales volume of cars in China is currently 20 million units.

Even if we don't reach a 50% penetration rate, just 30% would be a huge market share of six million units.

Moreover, the total volume of domestically produced cars, both domestically and in exports, has been growing rapidly in recent years.

……

(End of this chapter)