How should Geely, BYD and BAIC New Energy respond to sole proprietorship and joint ventures?

If you let the green teacher make a brief summary of last week, then I will use the word "stimulus", the car companies signed a contract to sign the stimulus, the industry's small draft is also stimulated.

On July 9th, local time, witnessed by the two prime ministers, Brilliance and BMW, BMW and Great Wall, Daimler and Tsinghua University, Weilai and Bosch, Ningde era and the German government of Thuringia, Volkswagen and FAW, Volkswagen and Jianghuai And SEAT have reached a cooperation agreement or memorandum of understanding and signed a contract. In just one day, the 7 major automobile cooperation projects were concentrated, and China and Germany created an “unprecedented example”.

Not only do Germans want to tap the potential of the Chinese auto market, but Americans do the same. After the Sino-US trade war started, Musk went to Shanghai and Beijing and signed a pure electric vehicle project investment agreement with Shanghai Lingang Administrative Committee and Lingang Group.

Behind the various contracting, it is the first time in the domestic auto industry. The cooperation between Jianghuai and Volkswagen has broken the iron law of “a foreign-funded car enterprise establishes two or more joint-venture car companies in China”. Volkswagen is the first. A person who eats crabs; Tesla's sole proprietorship is the first wholly foreign-owned vehicle project after the restriction of foreign-invested shares of new energy vehicles; Great Wall Motor cooperates with BMW Group, and its first product will adopt joint venture. The car company's own brand, not a foreign-owned BMW brand, is considered to be the first private joint-venture vehicle project in China.

These lively cases are all educating us. In the increasingly open auto industry, no matter who is "marriage" with anyone, or who is "out of the game" don't be too surprised, this industry has already nothing is impossible.

Although Tesla and the Shanghai factory are still under the qualification approval and the shortage of funds for construction, 2-3 years, although the first new car of Jianghuai Volkswagen is still not listed, the first products of BMW iX3 domestic and Great Wall BMW are at least It’s all two years later. The stock ratio is not a one-off event from the release to the landing. However, these do not hinder the industry from shouting “the wolf is coming”.

The first-line autonomous car companies have been cultivating in the field of new energy for many years. How do you deal with the new energy vehicles led by BYD, Geely and Beiqi New Energy? The most I read was "open, shared."

Geely: platform sharing accelerates battery business layout

On May 29, the first Longwan Forum, Li Shufu expressed concern about the industry. "Considering that China's auto industry does not have the direct competition with foreign-funded enterprises in the open market, there are only five years left for China's new energy vehicle development opportunities."

Since throwing out concerns about the industry, Li Shufu will naturally give a solution. The answer is “openness and sharing”. Li Shufu said: “Jili has an existing electric technology platform and is willing to share it with its peers” to enhance the Chinese automotive industry the overall level.

The electric technology platform mentioned here refers to a new generation of pure electric modular architecture that Geely is developing. Although the current structure is not currently on the market, there is no new product based on the framework, but Li Shufu said that It will be completed soon.

Geely spent 3-5 years, investing billions of platform architecture to share, the purpose behind it is obviously not just like Li Shufu said, in order to improve the overall level of China's auto industry, the pressure on stock ratio liberalization and tariff reduction. What is the deeper reason?

In business, of course, it is necessary to pursue profit maximization. Geely Automobile should be the "leader of China's new energy and energy-saving technology". This electric technology architecture is like the "operating system" in the mobile phone circle. The right to speak of the downstream car companies, through the sale of the system to make money.

As we all know, more than 90% of electric vehicles on the market are modified on the basis of fuel vehicles, which is the so-called "oil to electricity" model. The entire industry lacks a new electrification technology platform, and Geely is seeing this demand point in the industry.

The new power of the car may be Geely's potential customers. Most of the new forces are anxious about the lack of mature technology architecture. They are also suffering from the lack of R&D capabilities that can't be improved in the short term. If you can introduce the Geely architecture platform, put more energy on it. I am good at the innovative gameplay and marketing, and I put more energy into the mass production of products. Why not do it.

At the same time, Geely may also be a potential customer for a second- and third-tier car companies and even joint venture car companies that are weak in the new energy field. Especially under the pressure of double points, there is not much energy to invest in new energy products in the short term. Cooperation with Geely is not an unconsidered solution.

Since it advocates sharing and opening up, will Geely embrace the Ningde era or BYD battery in the field of power batteries? I am afraid not!

Recently, the Ningde era and BYD battery business have been frequently operated, and the alliance mode between power battery and car companies has been opened. Changan Automobile, Dongfeng Motor, Beiqi New Energy, and SAIC Passenger Vehicle are all involved, but there is no news about Geely Automobile.

This is obviously incompatible with Geely's car, which has a "big ambition" in the field of new energy. Not focusing on cooperation with Ningde era and BYD, Geely is going to have a big enough voice, throwing away these two giants and doing things for themselves.

As early as October 25 last year, Hongqiao Group issued a notice saying that it provided ternary lithium batteries to Zhejiang Geely for use in supporting models such as the CMA platform. After the launch of the Borui GE IPO, An Conghui said that Geely New Energy will use its own battery. According to public information, the second largest shareholder of Hongqiao Group is officially in Zhejiang Geely Holding, and most of the batteries mentioned by An Zong are likely to be This is the Hongqiao Group.

On July 3, Qianjiang Motors announced that its subsidiary Qianjiang Lithium and Geely Commercial Vehicle signed a contract, and Geely Commercial Vehicle purchased the power battery system from the company. It is estimated that the amount in 2018 will not exceed 100 million yuan. It can be seen that Geely's power battery layout is in the process of further expansion. After all, it has set a flag that its sales of pure electric and hybrid vehicles will account for 90% of its overall sales by 2020.

In short, no matter how open the outside world is open, Geely will not hand over its right to speak to the hands of BYD or Ningde. Whether it is a platform structure or a power battery field, Geely is not willing to be obedient, but be the rule maker.

BYD: From battery to platform to open to intelligent network

At the beginning of the year, Wang Chuanfu personally visited the Great Wall Xushui Factory and tested the WEYP8. At the same time, BYD and BAIC New Energy launched a BYD core auto parts promotion conference in Beijing Blue Valley, covering power battery, motor electric control and power. Cheng, automotive electronics, new energy chassis, components, body accessories...

This is considered to be BYD's closed parts system and self-produced battery system, which is gradually opening up.

At the Beijing Auto Show, which opened at the end of April, BYD released a new energy integration platform, the “e platform”. Simply put, the e platform is driven by a 3-in-1 (highly integrated motor, electronic control and transmission of the drive system), high-voltage 3-in-1 (DC-DC for high-voltage systems, charger, distribution box 3-in-1), 1 Block control module PCB board, 1 intelligent automatic rotating large screen, 1 long battery pack.

On June 26, at the BYD Tang listing conference, Wang Chuanfu proposed a more radical strategy than Li Shufu, not only "to share all the technologies of the 'e platform" with the global peers, but also open the intelligent network connection system, Dilink development Open all the execution systems and sensor systems of the car. This is considered to be an unprecedented opening in the automotive industry.

When it comes to opening up, I have to mention that BYD has a 360-degree turn in the power battery business. In 2017, BYD's power battery shipments were 7.2GWh, which was surpassed by the 12GWh Ningde era. The latter won a large number of car companies including BMW, SAIC, Beiqi New Energy, Dongfeng, Weilai, and Weimar.

In the field of power battery, the Ningde era came to the fore. The new energy vehicle market was chased by BAIC New Energy and SAIC passenger cars. Wang Chuanfu was in a hurry. These have stimulated the splitting of BYD's battery business and moved to a separate listing, stimulating Wang Chuanfu to compete in car companies, stimulating him to personally promote BYD's open and shared concept.

On March 31 this year, Shen Wei, deputy general manager of BYD's lithium battery division, publicly stated that BYD is doing the power battery stripping work. It is expected that the split will be completed by the end of 2018 or early 2019, and the independent listing will be completed in 2022-2023.

This means that BYD's power battery business will no longer have the constraints of BYD's car identity. As long as the battery price and performance are right, it can be recognized by the car companies as an independent three-party and it will compete with the Ningde era.

On July 12, BYD and Changan Automobile signed a strategic cooperation agreement to jointly establish a power battery joint venture company, focusing on the business segment of power battery production and sales. In the future, the two sides will conduct in-depth research in the fields of battery recycling and remanufacturing, battery fast charging, mobile power switching, and charging high-speed roads.

The opening proposed by Wang Chuanfu and Li Shufu is very similar. BYD emphasizes its technological advantages in the three-electric system, component system, and power battery system, while Geely highlights the advantages of its platform jointly developed with Volvo. The openness mentioned by both parties is more like a gradual release. In the field of new energy vehicles, we will introduce our own technologies and products to the B side rather than the C side.

The new energy market maximizes the "staking of the horse", standing in the upstream of the car manufacturers to do business, in order to last forever.

BAIC New Energy: Promote open sharing to a strategic height

Domestic new energy market, the best-selling pure electric vehicle brand, is not BYD, not Geely, but Beiqi New Energy. In the first six months of this year, the sales volume of BAIC New Energy's entire model was 53,598 units an increase of nearly 80% compared with the same period of last year and continued to lead the pure electric market.

BAIC New Energy is able to lead and is heavily dependent on the national low-cost car EC. However, with the implementation of the new subsidy policy, the EC180 has withdrawn from the market, and BAIC New Energy has also experienced pain. The good news is that with the launch of EX360 and EU5, Beiqi New Energy The sales structure has gradually become more reasonable.

On the road of openness and sharing, BAIC New Energy has gone even further. At the 8th Global New Energy Vehicle Conference in December last year, Zheng Gang, general manager of Beiqi New Energy, proposed that before 2025, only five multinational brands such as Volkswagen, Ford, Nissan, Mercedes-Benz, and BMW would have 141 electric vehicles in China. In the market, China's domestic new energy vehicles have to deal with unprecedented challenges. The only way out is to openly share.

Beiqi New Energy is the only car company that has upgraded “open sharing” to a strategic height so far, including, in terms of technology, the “Beijing New Energy Vehicle Technology Innovation Center” is an open platform, from intelligent network, fuel cell, Seven key technical areas such as power batteries are laid out and open; at the research and development level, the existing EH/EU/EX/EV/EC platforms and future BE21 platforms are open to the society; in terms of capital, technical innovation funds are established. The Industry Incubation Fund incubates high-quality technology and teams to nurture mature supplier resources.

Car-electricity value separation model pushes open sharing strategy to a new stage

At the beginning of July, BAIC New Energy released a “big move” to launch a business model for the separation of car and electricity value for the private car market. In short, it is to introduce a service to the private consumer market. Consumers do not need to use batteries for electric vehicles. Pay the bill, but get the battery usage right by renting.

At the press conference, Zheng Gang said that the separation of the business value of vehicle and electricity is a phased achievement in the “open sharing” strategy of BAIC New Energy. The sharing economy of private car separation can realize battery sharing, power exchange technology sharing and power station sharing.

In this mode, the user realizes battery sharing through the leasing method, without paying the battery cost, without worrying about the battery attenuation, and only paying according to the mileage. Since the battery is managed by the management company, it helps to delay battery attenuation and improve energy efficiency.

In addition to battery sharing, BAIC New Energy has introduced power-changing technology and power-changing units for open sharing across the industry, including quick-change connection systems, chassis-changing systems, battery lifecycle management technologies, quick-change battery boxes, and power-exchange network operations management. , involving 300+ technical patents.

Zheng Gang said that we solemnly promise that when the conditions are ripe, BAIC New Energy will openly share all the power stations for the whole industry. Whether it is the replacement of pure electric vehicles by BAIC New Energy Brand, as long as the technical standards meet the requirements, enjoy a power exchange service at our power station. At the same time, Beiqi New Energy will attract investment from the whole society.

Of course, the power-changing mode faces difficulties such as the difficulty in changing the profitability of the power station and the inconsistency of the battery standards of different brands and different brands.

What I have read is that Beiqi New Energy has to find another way, relying on the power exchange mode of separation of vehicle and electricity value, and strive for more market share in the increasingly fierce competition.

“Scale” is the logical basis behind openness and sharing

Both Li Shufu and Wang Chuanfu's own platform architecture, or the new power-changing technology and power station sharing of BAIC New Energy, are intended to share costs through scale. After all, compared with the car giants, or compared with the head joint ventures, the independent car companies do not have an advantage in the mass production scale.

From January to June this year, domestic automobile production and sales completed 14.085 million units and 14.066 million units respectively. Although the production and sales of new energy vehicles are the highlights, the growth rate is about 1 time, but the production and sales volume is only 413,000 and 412,000 respectively. Compared with fuel cars, it is still only a small one.

The scale of the new energy market is still too small. It is even more difficult to share the cost of large-scale energy. This is also the reason why most electric vehicles in China are “oil-to-electricity” one of the reasons.

As Li Shufu said, it is impossible to make a good car in any single fight. Geely should develop with the upstream and downstream of the industrial chain and domestic car companies.

In the future, we will see more open sharing cases. As mentioned at the beginning, there is nothing impossible in this industry. Of course, this does not mean that the competition within the autonomous car companies is no longer intensified.

For example, at the Borui GE IPO, An Conghui said that Geely aspires to be the leader of China's new energy-saving technology, which is highly coincident with BYD's Slogan “new energy vehicle leader”. Although Geely's sales in the new energy field are currently not many but look at his performance in the fuel vehicle market and the "Blue Geely Action" plan, no one will question its ambitions in the new energy field. Next, there will be more and more competition for the enclosure.

The page contains the contents of the machine translation.