Evergrande Auto receives production license for Hengchi 5 LX
Evergrande Auto dares a fresh start and finally gets the production license for Hengchi 5 LX. As early as November 2021, Chinese media reported on the licenses granted. Then in December disappeared both Hengchi 5 LX types surprisingly from the official MIIT lists. The background remained in the dark, the chaos around the Evergrande real estate division had probably become too intense for the authorities.
Production license for Hengchi 5 LX
Without licenses, the start of production was the same as Evergrande in January celebrated twice, totally worthless. Because without a license there is no sale to customers and meaningless production. Last Friday, the MIIT reported the surprising release for both Hengchi 5 LX versions (HDE6470BEVA1F and HDE6470BEVA0F). This clears the way for Evergrande Auto on the Chinese market.
For the Hengchi brand, it is perhaps the decisive moment. If production starts, the quality is right and all the software features of the electric cars are available, a lot has been gained. If sales work and the brand can inspire customers in the next few months, then Evergrande Auto will also be of interest to investors.
Trust in Evergrande Auto?
So far there has been no sign of a new start on the stock exchange. On the contrary. The stock (HK 0708) was unimpressed and investors appear to have little confidence in the new car brand. Perhaps the crisis in the Evergrande real estate division has eroded the group's image too much. How Chinese customers react if they buy an Evergrande car could be an insightful experience.
In the background, Hengchi 6, Evergrande's second electric car, which is said to be ready for production, is already waiting. A license does not yet exist and it is also not clear whether the suppliers are willing to manufacture the components in large quantities. The next few months will be exciting. The electric car market in China is highly competitive. Newcomer Hengchi competes against NIO, Xpeng, Tesla and Geely and many more brands.
Competition has the edge
Especially the innovative brands like Geely (with the sub-brand Zeekr) or Xpeng are a lot further than Hengchi. Xpeng is already present in Sweden and has secured the support of the Bilia Group. Then last week the next big coup from Xpeng. Together with the Emil Frey Group starts sales in the Netherlands. Or, to put it more precisely, the conquest of the European markets by Chinese newcomers is already underway, while Hengchi's gears are still crunching enormously.
Concentrated information & the big picture
This is written very succinctly and precisely, and yet the license granted is virtuously woven into an image of the big picture. About the lead of the Chinese competitors.
I don't care about the Hengchi brand at all, but the writing style and the information around it alone make every article worth reading. Hengchi is like a hanger. Backgrounds and surroundings are often more exciting for me than the fate of the brand or a discussion about one of its models. Using Hengchi as an example, Tom crystallizes a lot of information. It's really good journalism and it's always a pleasure for me for that reason alone.
I no longer feel the need to discuss the design, pros and cons of a Hengchi 5 LX. I heard the best answer today. I briskly asked/assumed the driver of a 900 in a parking lot that he would certainly like to sell his car. The AW?
A laugh and the following words: "Good joke."
Perfect.
You can have different opinions about the design... but at first glance I would say:
The vehicle "still" has exterior mirrors!
The e-Honda does it more innovatively...
It remains to be seen whether the supposed advantage of a repair still has an effect.
So the Hengchi 5 does not trigger a buying stimulus for me.
I don't like the design either. With regard to the exterior mirrors, however, I suspect that cameras instead of exterior mirrors are not yet permitted in China.
A quick googling didn't bring up any legal information in this regard, but apparently Honda China doesn't offer vehicles with cameras instead of exterior mirrors, which I take as supporting evidence for my assumption.
image and sales figures. Why buy a Henshi5? Are there special ingredients, skills that other manufacturers cannot offer? The design isn't really a strong point of the car.
E-SUV the ninth!
In addition, a manufacturer who is not particularly trustworthy. What will happen in 1,2,3 years if problems or warranty claims arise? Do you still have a contact person?
The question of what will happen in a few years has to be asked of all Chinese newcomers. Most companies are significantly younger than 10 years.
But as a Saab driver you can get by without a manufacturer 😉
Well then NEVS will be used and not sold... I'm curious how the first independent test reports will turn out. Is there something like that in China like ADAC, Stiftung Warentest, etc.??...or is it all done by Alibaba?
There is also an NCAP assessment (C-NCAP) in China and also an Insurance Association Assessment (C-IASI).
Since it is a question of the market, one can also assume a certain independence of the valuations, since the economy in China is not as regulated as politics and society.
Of course, this could change again in the future and probably has less to do with our ideas of independence.