Evergrande Auto is the most valuable manufacturer in China
It is worth taking a quick look at China at the end of the week. Significant, perhaps historical things have happened there in the last few days. Evergrande Auto presented 6 prototypes and the Hong Kong stock exchange burst into jubilation. In any case, expectations are huge, which is also reflected in the share price.
6 prototypes that are now being tested and a promised start of production of Hengchi 1 in the second half of 2021. There are 8 more models in the pipeline, making 14 so that more series than Tesla has at the start.
Evergrande Auto is number 1 in China.
The share price soared to 34,80 Hong Kong dollars (HKD) and has been hovering around that range since then. The rate, which was around HKD 7 in February, has multiplied since then. With a market value of around € 32 billion, Evergrande Auto leaves companies like SAIC and BYD behind without having sold a single car. According to national media, Evergrande is the most valuable Car manufacturer in the country, roughly on par with BMW. However, the people of Munich sell a lot of cars.
The bet on the further development is of course speculative. Naturally. Just as the Tesla share and its rise into ever new spheres is also speculative. It remains to be seen whether Evergrande Auto will meet expectations. However, never before has a Chinese company been so aggressively active in the automotive industry as we are currently experiencing.
Buy stocks, leave them alone, reap dream returns in 5 or 10 years? Maybe. If you have play money and good nerves, you could consider it as a challenge.
But this is about cars.
Not about stocks. A look at the hardware is always interesting, even in the age of digitization. Evergrande Auto has an official film about the 6 prototypes v.pp.com released. The clip is of course not intended for the international environment, but for the Chinese market. But it gives a first impression of the design of Hengchi 1 and the other models. It does this better than the previously published computer pictures do.
From the second half of 2021, pre-series production could also start in Trollhättan. Maybe only 22, we'll see. Much is still in its infancy and, despite all the ambitions, remains speculative. Like the share price.
In connection with Trollhättan it should be interesting how the relationship between Evergrande and NEVS will be shaped in the future. Will the NEVS lettering be replaced by an EVERGRANDE lettering and what NEVS was, will Evergrande Europe?
Or will NEVS become a sub-brand of Evergrande with its own, more European profile? In the latter case, there could then be 'Europeanized' versions of NEVS 'Evergrande vehicles. It remains to be seen whether this only affects colors and equipment, or whether there will also be adjustments to design and technology.
The question still arises as to whether all of the NEVS developments by Evergrande have already been disposed of or whether they will come onto the market under the NEVS logo after all.
In China, too, there are probably customers who tend to buy Chinese and those who prefer a foreign product, for whatever reason. Therefore, NEVS could make sense as a sub-brand.
On the other hand, the nature of the Evergrande performance suggests that you do not suffer from a lack of self-confidence and want to see your own name mentioned in line with the greats in the world.
If that really should be the strategy for global presence and the models are to be sold as world cars, they will probably not work equally well in every market. Or, alternatively, a differentiation via the NEVS sub-brand.
The type of Evergrande-NEVS relationship can also depend on how the trade conflict between China and the USA develops and how the dispute over Hong Kong ends.
In the end, as is so often the case, there is no choice but to wait and see how it will come.
@ Tom (driving old Saabs),
this is now (I think) the 4th teaser / the 4th mention of the "new car" / new entry ...
I've been as excited for a long time as the springs on a broken axle on a mogul slope. Is it a 900 convertible or even one of the charming “Streamliner” with 2-stroke or V4? Or, or, right?
It's like Advent in childhood.
When the 5th burns ...
Christmas feelings at 36 degrees in the shade. Only Saab and Tom can do that.
Tom - Perspectives of the Blog
Exactly this mixture of reports about the care or restoration of our Saabs, new great promotions, reports on the background of Saab and from history on the one hand - and neutral reports on innovations in the automotive sector, alternative drives, start-ups, etc. with a reference to Trollcity on the other hand: that's what makes the blog so worth reading! Great, objective journalism that does not uncritically join the general glorification of e-cars - regardless of their cross-financing, waste of energy in production, the origin of the electricity and numerous other problems - but reports in a differentiated manner, illuminates the background and sometimes conveys different approaches. And all of this on a “voluntary” basis! Thank you so much!
Great and please keep it up! (Even if I wonder how you can even do that besides the job.)
Tom - the Saab story is really history ...
Yes, that's probably true, unfortunately unfortunately. Interesting when you compare that to articles on the blog from previous years. There it was said, even when it was NEVS long ago, when the production of our Saabs starts again, etc. ... Nobody dared to think about the really final end and certainly not to say.
But then more and more years and more and more (negative) facts were created and the automotive development goes in a completely different direction. Yes, then you have to become a realist at some point. 🙁 On the other hand: Saab was way ahead of its time, especially when it came to projects with alternative drives. With the right people you could still make something of it today.
BUT: These people are not with NEVS (where part of the rights and patents are dormant, right? And the other part is rotten at GM). So what are we as Saab fans interested in Evergrande? Majority owner of NEVS - that's the only connection to Saab, isn't it? And with that, holders of ten year old (or older) rights to 9-3? Does this feed the hope that something very tiny will be found in the Hengchi models?
Hand on heart: Would one of us die-hard Saab fans buy a Hengchi? Because you hope to discover some line, some switch that is reminiscent of Saab? For my part, certainly not.
I prefer to take care of my real Saabs and very late at night I dream of the wonderful drawing of the last Saab concept for the Canrio, very futuristic and beautiful, of course with BioPower-Hybrid, or the Phoenix model, and fly through one with it Corona-free world to Sweden ...
In principle correct. The blog's mission has long been fulfilled, Saab history. There was no rebirth and 2011 was far too long ago.
What remains? Hope? No. Interest? Yes.
Just see what will become of Trollhättan and the plant. At least stay tuned for a while. The takeover of NEVS by Evergrande will be completed in September. The prospects for the Swedes? Let's see, no forecast.
Driving and maintaining old Saabs? In any case. Soon there will be a multi-part about buying such a vehicle - with all the risks and side effects. Will be exciting.
But, you have to say: I can't just write about old cars. I have always emphasized and is too little perspective for me in the medium term.
I definitely don't want Chinese Saabs either (as is well known, they are anything but democratic and with questionable working conditions, environmental issues, etc., but also for many other reasons) - then I could buy a Volvo right away ... 😉
I can think of several examples where horrific “re-editions” took place under a formerly glorious name of a dead car brand. In any case, I don't need that - and it would posthumously mess up the great Saab legacy.
Still an interesting report, thank you very much!
The share “goes through the roof” (as with Tesla), just no car built (as with Tesla, back then ...), China learns quickly, that's well known. Whether this is the “right” (economic) route remains to be seen for the time being.
Grain, among others, is traded speculatively: with a bet / speculation on the next year or the next harvest. The "system question" arises for me ... It's not about "play money", but who and under what conditions creates any "values" ...
Despite everything: the report was (again) objectively exciting. Thanks Tom.
@ Black Swede (amateurs at work),
that is exactly the exciting question of who is at work and how and what interests are pursuing ...
They certainly aren't idiots. We know that much. But what role do the Chinese state, its state-loyal and state-supporting media and personal relationships from Evergrande play in politics and even embezzlement?
I found it exciting that the so-called “debut” of 6 new vehicles without technical data, without interiors and with sometimes questionable exterior designs (a Hengchi 1 with rims that looked like MacGeiz hubcaps) was apparently a purely national event in front of inclined, exclusively national and system-compatible media representatives who celebrated Evergrande and the Chinese People's Republic in unison.
Do I want a new Saab from this system and from this nation? Definitely not! ! !
Today's article, with its objective sobriety, gives us readers the greatest possible scope for our own interpretations. But even with a lot of imagination, I can't see a Saab from Evergrande in this scope ...
Saab is Saab. They are all already built. And if there were more new ones, then please not from Evergrande.
It's cool ... The studies (concepts) look interesting in the movie. The question is what is a show and what will be a series? And before someone asks: I don't (yet) drive a Saab. But it's currently my favorite car blog here.
Written objectively, soberly and critically, objectively getting to the heart of the matter ...
I can't think of anything to do that. Except that it's damn good journalism - here on a Saab and fan blog and then on a voluntary basis! ! !
Chapeau and thanks. This is great cinema. It's always a pleasure to read and find out more here.
How do you (Tom) manage to deliver so excellently again and again and at this frequency? Really good question, right?
It becomes clear: no amateurs at work. Evergrande wants a lot more than NEVS. German manufacturers should take this seriously. Because that could be a challenge. Exciting story.
Oh yes: Evergrande - bring back Saab right away.
The Chinese tendency to form sub-brands is pronounced. One indication is that Evergrande Auto launched “Hengchi”. It couldn't be the only brand. You have seen a few attempts in recent years, Borgward is a prominent example.
But Saab? Sure, you can dream. But this story is really history.
…crazy! not a product on the market but a favorite. Well maybe something nice comes onto the market, let's wait and see, ... maybe they'll buy the brand name SAAB for Europe ... and later the remnants of GM ...
It's good that my SAABe still have free kilometers and I can wait in peace! 🙂