China Hai Electric: New Energy Car dealer climbed from “pit”

“Other new energy car dealers fell into the pit,” Li Jinyong said.

For ten years in the rapid growth of new energy vehicles, new energy car dealers lived, and there are not many people who make money, and there are a lot of big loss.

One of them, only selling electric vehicles, over four years of climbing, is ushered in harvest season: 7,000 electric vehicles in 2020, an annual sales increased by 30%; agency brand, more clearly concentrated to Chery New energy and Great Wall Euler two brands; for their own advantages and disadvantages, as well as the current opportunities, it is more clear.

Looking back over the past four years, China-Hai Electric founder, Chairman Li Jinyong Chen, they are not lucky than other new energy car dealers, and the tuition fees do not pay less. However, the experience of the traditional car dealer industry in the 10-year, plus the practice of this year, and he has led the medium sea electric, explored a professional new energy car dealer’s operation road.

China-Hai Electric founder, Chairman Li Jinyong

On January 20th, “Electric Vehicle Observer” visited China Hai Electric, and Li Jinyong Interview. How to choose a proxy brand, agency model, how to achieve the maximum interests of enterprises and employees, fast profit, and prepare for the future of electricization, his heart already has an answer.


Well optimistic about new energy vehicles: from abandonment politics to independent entrepreneurship

Before entering the car circle, Li Jinyong worked in the local construction committee for several years.

In 1996, he decided to abandon the government and gave birth to one of the largest auto dealers. At the time, the largest car dealers in China, the Pang Dafang Group predecessors, the East China Major Trade Group, engaged in human resources and sales business, and was responsible for Shijiazhuang, Xingtai Regional sales management.

In 2004, the Subaru brand entered the Chinese market, and Yan Dongma trade became one of the general agents of Subaru. Li Jinyong went to Beijing to serve as General Manager of Zhongshi Subaru Motor Sales Co., Ltd. In 2013, the huge group and Subaru car established the joint venture Subaru, Li Jinyong continued to serve as the Chinese representative.

Li Jinyong in the period of Subaru China

One year later, Li Jinyong returned to the President of the Group. The following year, he left the house and began to start business.

What do you do in business? Li Jinyong did not choose the most familiar fuel-saving dealer.

In the view of Li Jinyong, the China Automotive Industry, Especially the Fuil Train Market has undergone more than ten years of rapid development. By 2015, the high-speed development of dividends began to recession. For car dealers, the high profit era has passed. In fact, from 2013, many dealers have to face the situation of losses.

“The fuel car market in more than a decade ago is a resource market. If there is a car source, it can be profitable, build a new store. You can recover the cost in 2016. When it is officially started in 2016, the previous resources have been passed.” He analyzed .

In addition, Li Jinyong believes that even if you start a business, you will have a huge cost of the new store. If you compete with old dealers with business for many years, it is difficult to win.

Li Jinyong will pay attention to the new energy auto market.

After leaving the huge, Li Jinyong examined the low-speed electric vehicle market in Shandong and Henan. The low-speed electric vehicle is in the local area, so that he feels deep.

On the one hand, he is clear that the low-speed electric vehicle is in the gray zone prescribed by the law, regardless of the dealer or manufacturers, there is no compliance problem, and the low-speed car without license is also impossible to legalize. On the other hand, he realized that the people had such recognition of low-speed electric vehicles to prove that this market has huge potential and value.

In the words of Li Jinyong, “The low-speed electric vehicle (hot sale) is today, it is the tomorrow of the high-speed electric vehicle.”

After half a year, in 2016, Li Jinyong officially established China-Hai Electric, and clarified the choice of the agent brand – the new energy independent brand of independent brands, especially the A00-level pure electric, similar to the legal combination of the card Low speed electric vehicle.


The only chance – the new energy independent brand of independent brands

As a dealer specializing in selling new energy vehicles, China Hai Electric can choose a joint venture brand or choose an independent brand. But in Li Jinyong, only the new energy independent brand of independent brands is the only opportunity for China-sea electric – at least.

Zhonghai Electric 4S shop

Li Jinyong analyzed that in the current new energy car market, regardless of the joint venture brand, it is still a self-brand, if new energy and fuel type “mix and match” sales, usually new energy models are not sold. The reason is mainly two.

First, these new energy models of these “mixing” are mostly oil-to-ray models. It is the product of the high subsidy era, and it is more product to get subsidies quickly, quickly launch the product of the market. Consumers’ models have low accepted models of oil, especially if the quality of the fuel truck is bad, and the electric vehicle based on this change is naturally no one to buy.

Second, if the new energy models and fuel vehicles are sold in the 4S shop of the same dealer, the initiative of the distributor sells electric vehicles is weaker. Especially if the fuel car of this brand is selling well, it is easier to negatively affect the sales of electric vehicles. Many joint venture brands are facing this situation.

Li Jinyong is aiming at the new energy independent brand of independent brands, which is in that such brands are independent of the original fuel carrier, which will not pass the old brand’s historical baggage to consumers. More importantly, these brands have been launched, mostly based on electric vehicles developed in new platforms, which is higher than consumers. In addition, China-Hai Electric will not choose to have a large number of business layout at B-terminal electric car brands. In Li Jinyong, such a brand itself has a large customer department, manufacturers and B-terminal customers directly docking. Dealers have almost no role, and of course, they cannot make money by selling B-terminal users. Therefore, the sales of CDMs must be concentrated in the C-terminal market.

In the past four years, Li Jinyong tried to have done a lot of brands, such as Jianghuai, Cheetah, Zhongtai, Yunxia, ​​Xinte, and I have encountered 4S stores, but the electric car of the agency brand can not be launched, or subsidizes one Survey, the original hot model sells the problem. In his words, “other new energy car dealers fell in the pit, I also fell.”

After several years of practice, the key targets of Li Jinyong are locked on two brands of Great Wall Eule and Chery New Energy – the new energy independent brand of independent brands, the newly developed electric vehicle exclusive platform, mainly for C-terminal users, A00 The electric vehicle is mainly in line with Li Jinyong’s brand and model standard for China-sea electric.

At present, Zhonghai Electric has built a total of 6 Euler 4S shop in Beijing, Tianjin and Tangshan. Chery new energy has 3 stores, and BYD E Net has a shop in Tangshan. Euler has become a strategic brand of Central China, 6 store sales account for about 8% of Oura’s national sales.

It turns out that Li Jinyong’s choice is correct.

Source: number of people

In 2020, private electric vehicles sold in China’s new energy passenger car market. Among them, A00-level pure electric has become one of the key driving power of this market, while the sales performance of Euler and Chery new energy is very bright. In that year, Euler R1 and Chery EQ were suspended from 446 million, respectively, respectively, second only to the champion macro Mini EV.

Li Jinyong introduced that it is because of the brand choice, since 2020, China Hai Electric has ended the loss of three consecutive years, and it began to achieve profitability, and other dealers who franchised new energy vehicles, there are not many examples. In 2020, China-Hai Electric sold 7,000 electric vehicles, Li Jinyong expects that sales will also increase by 30% -40% in 2021.


Future: Financing, digital transformation, preparation for new forces

At present, the brand of China-Hai Electric Agency is a new energy independent brand of traditional independent brands, but Li Jinyong is more than this.

2020, Tesla, Yulai, Ideal, Xiaopeng and other new-selling car companies showed outstanding people in the new energy car market, but these brands basically adopted direct mode, rarely introduced a proxy distributor.

However, in Li Jinyong, the next stage, with the increase in production and sales, it is also possible to use the dealer’s franchise model. Their first choice must be a dealer with high degree of new energy, and China Hai Electric is such a dealer, the most opportunity to get a proxy opportunity.

“If the future new forces began to accept the dealer mode, others have the opportunity, I have the opportunity, even if I don’t let go of the dealer model, I will do my current thing.” Li Jinyong said.

Li Jinlong said that professional new energy car dealers is the key to Zhonghai Electric energy to win the opponent in the next round of competition, and it is also necessary for capital favors.

He believes that 2020 is a turning point in China’s new energy auto market. Today, there will be no more people suspect that the prospect of new energy cars. From investment logically, the upper and lower resensants must invest, and the most worthy investment in the field of investment institutions and sales channels is China-Hai Electric, and the market is profound, and the dealer with clear positioning.

In June 2018, Zhonghai Electric announced the completion of 30 million yuan pre-A round financing, and this round of financing was submitted by Junsheng’s capital leadership, gaining investment, purple venture capital and hydraulic capital. Li Jinyong introduced that since the end of 2020, there have been many investment institutions to contact, asking China-Hai Electric financing plans.

According to the plan, 2021 and 2022, China Hai Electric will introduce at least a new round of financing. Li Jinlong said that although China Hai Electric does not lack of money, even if it does not finance, the money is also enough, but this kind of Central China-Hai Electric, which has been expanded to expand the scale, expand its brand, is a matter of Zhonghai Electric.

In addition, in the marketing method, from 2018, China Hai Electric starts layout digital transformation, which is intended to help dealers solve the problem of digital operations.

New Civil APP

At present, this digital operation plan named “New Car” has been basically mature, and China Hai Electric is using this set of programs, refined management of private domain users, better service users, and improve user viscosity.

Li Jinyong introduced that the dealer relying on the cost of third-party drafts, and the “new car” operation is similar to the nail office, small dealers can trial, larger dealers, or special needs The dealer needs to charge a certain fee, and the core is to help realize digital operation at low cost and reduce user traffic.

When China Hai Electric is established, China’s new energy automotive industry is in the near future, under the action of high subsidies, products close to the real consumer market are rare, dealers or difficult to make profits, or rely on subsidy refund to make money. For example, Li Jinyong said that under the deformed market that pursues subsidies, the dealer actually does not benefit, and it is difficult to continue to develop. In the view of Li Jinyong, compared with the previous year, China’s new energy auto market has been relatively marketized. According to his judgment, with the subsidy exit, double-point policy blessing and car company product strategy adjustment, 2021 will become a year of breakthrough in China’s electric vehicle market.

In a more rational, healthy new energy automotive market, such as medium-sea electric energy car dealers will benefit more.

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