Evergrande Hengchi is building its own sales network

The enormous upheaval in the automotive industry can be seen in the sales networks. Savings in sales, taking the contact with the customer into your own hands, is considered the future. The potential for savings seems enormous, with a higher margin. This meets the desires of the manufacturers. Established brands are (still) struggling here.

Hengchi brand world as it should be created in the metropolises
Hengchi brand world as it should be created in the metropolises

It looks different with the newcomers.

You do not have to take any existing structures into consideration. All options are open. Sales via the Internet, stationary sales, own centers. Or rely on partners. The path that Evergrande Hengchi will take has not been clarified in detail. But the first cornerstones are known, the development of sales in China is proceeding at full speed.

Because in the second half of 2 the first electric cars will be on the road.

Evergrande is one of the largest real estate developers in China, a detail that plays a role in setting up the sales network. Because the new brand plans on a large scale and builds on its own. 36 Hengchi worlds of experience are to be created in the metropolises. In the sign of the lion, the coat of arms of Hengchi, interested parties can be advised and find out everything about the premium electric cars.

Evergrande Auto's Hengchi showroom
Evergrande Auto's Hengchi showroom

In addition to the adventure worlds, there will be 1.600 Hengchi sales outlets nationwide. The Hengchi network is supplemented by a further 3.000 authorized service centers. Evergrande builds all real estate itself and thus remains true to its original core business.

That is very big.

Even by Chinese standards. For comparison: Tesla is successful in the Chinese market. By 2022 will be predictsthat 40% of global Tesla production will find its customers in China. In China, the Americans have 103 sales outlets. Or, as a benchmark, BMW-Brilliance (BBA). In 2019 the most successful premium brand in China, and in the focus of Evergrande's claims.

The BBA network includes 1.700 bases across the country. With over 4.600 points of contact under the sign of the Hengchi lion, a distribution network more than twice as large is being created. Evergrande Hengchi basically does everything right.

Beyond electric cars and digitization, there is valid commercial wisdom. Conquering the home market before expanding abroad is one of them. The rule is from Germany - not from China. More precisely, from my grandfather.

Evergrande seems to know them.

6 thoughts on "Evergrande Hengchi is building its own sales network"

  • @Ebasli I'm afraid there are no such things anymore, or a dealer cleans up. Asking Kiel would be an idea, I'm sure there is more in the fund than you ever need.

  • @Ebasli Yes, grandfather did. He tended to do whatever came into his mind.

  • Aero-9-3 wrote elsewhere here,

    that Hengchi was already affecting him yesterday. And now a classic, old-school predatory competition based on national thinking ...

    This roughly corresponds to Sweden in 1946, when 74 years ago and shortly after WW II they set out to organize the (auto) mobility of their own population with 2 models from Saab and Volvo nationally and not leave it to foreign countries
    In addition, EVs do not need a service every few kilometers, like a combustion engine from the 1940s. I have doubts that Evergrande is on the right track here and I stick with Aero-9-3. They already look yesterday.

    Sales and service like 100 years ago fit perfectly into the picture. Let's see if the effort pays off….

    And if it should pay off, then that might say more about the degree of nationalistic mindset than about fair competition. Just a thought ...

  • And even if they puff themselves up - a purely electric car still doesn't come out of the bag for me!

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  • Tom - completely different question

    I just saw the great Grrrrrrriffin poster on the Twitter account (which I don't use). Where else can you find that today?

  • Wise saying from grandfather! And - implemented personally? 😉

    At least here in HH, the classic brands have long since earned the retailer's margin themselves. BMW, Audi, Mercedes - new car sales and workshop service only at the branches. Then take the steep prices for small repairs (known to me personally from Audi and BMW).

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