Internet car companies face challenges in both funding and qualifications when entering the new energy vehicle market

Internet car companies face challenges in both funding and qualifications when entering the new energy vehicle market

According to relevant national plans, the production and sales of new energy vehicles will reach 5 million by 2020. The huge new energy vehicle market has attracted many Internet car manufacturers to enter the market.

LeTV Auto's total investment to achieve mass production will require at least 40 billion to 50 billion yuan.

In 2015, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the "Management Regulations for Newly Established Pure Electric Passenger Vehicle Enterprises", which provided opportunities for Internet car manufacturing companies to land.

In the context of electrification and networking, new energy vehicles are becoming the next hot spot for Internet companies. In recent years, companies with Internet car-making ideas such as LeTV Auto, NIO, and Xiaopeng Motors have entered the car-making field that was previously dominated by traditional car companies, and entered the new energy vehicle field through capital injection. Some Internet car-making companies have made prototypes come off the "PPT" and become a reality, but for them who lack car-making experience, how to achieve profitability and when to obtain car-making qualifications are still hurdles for Internet car-making companies to overcome.

New car-making forces enter the market

Faced with the explosion of domestic new energy vehicle sales, traditional car companies have been working hard in this field, and Internet companies are also eager to try. According to data from the China Association of Automobile Manufacturers, last year, the production and sales of new energy vehicles in my country were 517,000 and 507,000 respectively, a year-on-year increase of 51.7% and 53%. According to relevant national plans, by 2020, the production and sales of new energy vehicles will reach 5 million. The huge new energy vehicle market cake has attracted Internet car manufacturers to rush into it.

For Internet companies that were previously known as "PPT" car manufacturers, they have begun to increase their efforts in new energy vehicle manufacturing in recent years, making the vision of car manufacturing a reality. In January this year, at the North American Consumer Electronics Show, the FF91 built by LeTV Auto finally debuted as a test vehicle. According to the news released by LeTV, the acceleration of the future FF91 mass-produced car will even be faster than Tesla, Bentley and Ferrari, becoming the fastest electric car in the world. The car has a powerful power of 1050 horsepower, a drag coefficient of 0.25, and an acceleration from zero to 100 kilometers in only 2.39 seconds. At the same time, the total capacity of the FF91 battery pack exceeds 130 kWh, and the driving range exceeds 700 kilometers. In addition, the car will also be a mass-produced car equipped with the world's first intelligent lifting 3D laser radar, which will realize the key technology of Level 4 autonomous driving. There are more than 30 sensors on the FF91, including cameras, radars and ultrasonic waves.

At the same time, another Internet car company, NIO, previously released the electric supercar EP9. The car has 4 high-performance motors and 4 independent gearboxes, with a maximum output power of 1,360 horsepower and a maximum torque of 1,480 Nm per wheel. The acceleration time from 0 to 200 km/h is only 7.1 seconds, and the top speed is 313 km. At this year's Shanghai Auto Show, NIO released its first electric SUV model, the ES8, with a range of 300 kilometers. The Internet car upstart Singularity Motors also set its sights on the electric SUV market and launched its first model, the IS6, and introduced many Internet functions into the car. In addition, new car-making forces such as Yuntu Auto, WM Motor, Taihang, Zhengdao, and Xiaopeng Motors have also produced prototypes to keep up with the pace of Internet car-making.

As Internet companies are increasingly involved in the field of car manufacturing, the industry generally believes that the electrification and intelligence of automobiles have become the future trend. In order to bet on new fields and expand their own businesses, Internet companies have begun to cross industries in terms of personnel and funds. Major companies have also begun to deploy and invest in different Internet car companies.

Funds are pouring in

Whether it is a traditional car company or an Internet car company, car manufacturing is undoubtedly a capital-intensive industry. Compared with traditional car companies that have already built a car manufacturing system, Internet companies that have no previous car manufacturing experience need more funds as a foundation. Seeing the future prospects of the new energy vehicle market, a lot of funds began to flow into the field of Internet car manufacturing.

LeEco Auto, which has been investing heavily in the field of car manufacturing, has been revealed by Jia Yueting, who is about to become the chairman of LeEco Auto Ecosystem and Faraday Future, that so far, LeEco Auto has invested more than 15.6 billion yuan in the project. It is reported that Jia Yueting's personal investment has reached 350 million US dollars. In the future, LeEco Auto will need at least 40 billion to 50 billion yuan in total investment to achieve mass production. At the same time, NIO has also been sought after by many capitals. Since its inception, NIO has received investment from Tencent, JD.com founder Liu Qiangdong, Autohome founder Li Xiang, Sequoia Capital, Hillhouse Capital and Shunwei Capital. So far, NIO has raised more than 1 billion US dollars. And WM Motor has also raised more than 1 billion US dollars.

Compared with LeTV Auto, NIO and others, Singularity Motors' parent company, Zhiche Youxing, has currently completed a total of approximately US$700 million in financing, with participation from No. 1 Capital and the Tongling Municipal Government of Anhui Province. Singularity Motors will build a production base in Tongling with an annual production capacity of 200,000 vehicles.

In addition, UCAR, the parent company of well-known mobile travel companies such as CAR Inc. and UCAR Private Car, recently established the UCAR Industry Fund and announced its first investment, with the Internet car company Xiaopeng Motors receiving a 2.2 billion yuan strategic investment led by UCAR. Li Hui, chairman and managing partner of UCAR Industry Fund, said: "Due to the Internet technology revolution and the automobile technology revolution, the entire automobile consumption model and automobile ecosystem are facing a reshaping. UCAR Industry Fund will focus on investing in innovative projects in the fields of new energy vehicles and upstream and downstream supporting industries, smart driving and Internet of Vehicles technology."

Funding and qualifications face double test

With companies coming out with prototypes and capital chasing after them, the prospects for Internet car manufacturing look bright. However, the sustainability of funding and the acquisition of car manufacturing qualifications are still hurdles that Internet car manufacturing companies need to overcome.

LeEco Auto, which has been increasing its investment, is currently facing a financial test. Although it has invested over 10 billion yuan, Jia Yueting has also said that "as long as another 10 billion yuan is invested, mass production can be achieved", but the industry's estimate of 40 billion to 50 billion yuan is not groundless. Currently, the Faraday Future factory being built in the United States is considered to be the first step for LeEco Auto to achieve mass production, but there are reports that the factory has been shut down due to funding problems. LeEco Auto's production base in Moganshan has a planned area of ​​about 4,300 acres and a total investment of 20 billion yuan, which also requires continued financial support.

In fact, for Internet car companies, even if they can continue to invest funds, the lack of production qualifications has become a "fatal flaw" in the process of realizing the dream of making cars.

In order to promote the development of the new energy vehicle industry, the National Development and Reform Commission and the Ministry of Industry and Information Technology jointly issued the "Management Regulations for Newly Built Pure Electric Passenger Vehicle Enterprises" in 2015, providing opportunities for Internet car manufacturing companies to land.

At present, 14 companies including BAIC New Energy, Chery New Energy, Jiangling New Energy, Yundu Automobile, Guoneng New Energy, and Qiantu Automobile have obtained the qualification to produce new energy vehicles. Among them, BAIC New Energy and Chery New Energy are new energy vehicle businesses split from traditional car companies and have traditional car company backgrounds; Qiantu Automobile and others come from the industrial chain of auto parts suppliers, and no Internet car-making company has obtained the production qualification and is still in the application stage.

At present, many of the Internet car-making companies have just started construction or are under construction of their independent factories, and can only rely on traditional car companies to start production. Industry insiders believe that the new energy vehicle production qualifications currently issued have not yet left the automotive industry ecosystem. Financial strength, production scale and product maturity are important criteria for considering whether a company has the ability to produce new energy vehicles. The uncertainty of Internet car-making companies has become one of the reasons for the obstruction of production qualifications.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.

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