SHANGHAI, July 2, 2021 /PRNewswire/ -- With the evolving
landscape of the global automotive industry, Cango Inc. (NYSE:
CANG) ("Cango" or the "Company") is issuing a bi-monthly industry
insight called "CANGO Auto View" to bring readers, drivers and
passengers up to speed with what's on offer in the automobile
market, what trends are emerging, and what holes need to be
plugged.
Below is an article from the Company's 3rd edition for
February 2021.
The capital world has summed it up best: Tesla is an iPhone on
wheels.
With the iPhone and smartphones in general, the world has seen
countless revolutions in business and investment success stories,
with fortunes amassed overnight. And as a metaphor, the "iPhone on
wheels" can be read three ways – first, cars will transform from
luxury items to fast consumables, second, as with Tesla, the auto
industry will enter the new energy era, and finally, the maturing
of smart vehicles will usher in an era of smart mobility that
encompasses the entire auto industry.
In November 2020, the General
Office of the State Council issued the New Energy Vehicle
Industry Development Plan 2021-2035, according to which, pure
EVs will have become mainstream in terms of new car sales by 2035.
Growing from annual sales of less than 10,000 vehicles to more than
one million, China's smart vehicle
industry is heading towards the medium and advanced phases of
development, setting off another boom in the capital
market.
As a matter of fact, since 2014, China's smart vehicle brands have frequently
raised funds, and many internet-era celebrity entrepreneurs have
been harboring a "carmaking dream." Over the years, emerging
carmakers have raised funds in billions, constantly setting new
records. In 2020, US-listed Nio, Li
Auto and Xpeng, for the first time, saw a significant rise
in their stock prices and exponential growth in market
value.
On the other hand, in relation to Tesla's ambitious goal to
deliver 500,000 vehicles every year, (Tesla delivered close to
320,000 vehicles over the first three quarters of 2020 globally,)
emerging carmakers have scored impressively. Take November 2020 for example, Nio delivered
5,291 vehicles, Li Auto 4,646 and Xpeng 4,224. It was an amazing feat, especially in
a year severely impacted by the pandemic. As 2020 turned into 2021,
the price of Tesla Model Y was reduced by more than 150,000 yuan, leading to a phenomenal 100,000
orders being placed on a single day.
More importantly, smart vehicles are triggering changes in the
industry. Brand, manufacturing, channel, technology, finance,
logistics, consumption and lifestyle choices are all undergoing
multidimensional shifts, which will, in turn, are driving strong
investment momentum.
Mobility platform services
Based on CPCA data, Chinese indigenous brands are the main
driver in domestic smart vehicle sales. Even though the 4S model is
still the primary auto sales model at the moment. Many local brands
in China are engaging in extensive
sales model innovation and investment and have invested in a large
number of new models such as auto supermarket, brand experience
store, service center and community store. Moreover, while setting
up new offline outlets, a lot of smart vehicle manufacturers are
expanding online collaborations with e-merchants such as Meituan,
JD and Tmall and exploration of multiple sales formats including
online appointment, offline experience, partnership system and
online direct sales.
In addition, the mobility market is one of the most important
sales channels for smart vehicles. As the mobility market expands
further, more and more smart vehicle manufacturers are investing in
incubating their own auto mobility platforms. According to
incomplete statistics, over recent years, automakers have set up a
large number of mobility companies including 01zhuanche,
CAO CAO, SAIC Mobility, T3 Go, OLE,
Youpeng CX and Ruqi
Mobility.
Behind the carmakers' investment in building mobility platforms,
their logic for auto sales is similar to that of traditional taxi
leasing companies, namely, larger scale and better standardization.
In particular, platforms providing clearly defined services and
covering multiple cities across the nation will become an important
choice in the future for new energy carmakers in digesting
production capacity.
Of course, sales volume aside, with the entire auto industry
undergoing changes, the identity of a pure-play carmaker will no
longer meet the company's development needs. Transforming into
mobility service providers is the main direction for auto
companies, and how to deploy in the mobility field is an important
step in the transformation.
It is worth noting that after the previous years' rapid
expansion, China's shared mobility
industry has been faced with many hurdles amid a lack of
coordinated development with urban planning and regulatory
policies. Fewer funding activities were reported in 2020, even
though the overall funding scale exceeded 10
billion yuan. Having
been continuously tested by the market, almost all the main
mobility platforms currently in the market feature unique business
logic and breakthrough ideas as well as strong capital, heavy
traffic and secured OEMs, as they await the next big
bang.
On the other hand, the continuously deepening collaboration
between carmakers and mobility platforms has extended into
manufacturing. On November 16, 2020,
the D1, which was jointly designed and developed by DiDi and BYD,
was officially released. As the first electric car in China created specifically for shared
mobility, the D1 has fully factored in the needs of drivers,
passengers, asset companies and operating companies in its
exteriors and interiors, software and hardware configuration,
performance and safety, and cost of purchase and use. In other
words, all its pain points have been soothed one by
one.
According to DiDi founder and CEO Cheng Wei, the D1 is the first
vehicle that charges by kilometer instead of by the entire vehicle.
The D1's design was based on enhancing the utilization rate of the
vehicle and fully considered the "mileage cost" of the vehicle,
that is, the cost of the vehicle from the moment it leaves the
factory to the end of its life, which includes cost per kilometer
and depreciation of parts.
With a new distribution channel, a new consumption model and new
financial products, this collaboration by DiDi may have just paved
the way for a sustainable "OEM + mobility platform" model. The next
explosive growth for mobility platforms is worth looking forward
to.
About Cango Inc.
Cango Inc. (NYSE: CANG) is a leading automotive transaction
service platform in China
connecting dealers, financial institutions, car buyers, and other
industry participants. Founded in 2010 by a group of pioneers in
China's automotive finance
industry, the Company is headquartered in Shanghai and engages car buyers through a
nationwide dealer network. The Company's services primarily consist
of automotive financing facilitation, car trading transactions, and
after-market services facilitation. By utilizing its competitive
advantages in technology, data insights, and cloud-based
infrastructure, Cango is able to connect its platform participants
while bringing them a premium user experience. Cango's platform
model puts it in a unique position to add value for its platform
participants and business partners as the automotive and mobility
markets in China continue to grow
and evolve. For more information, please visit:
www.cangoonline.com.
Media Contact:
Juliet Ye
Cango Inc.
Tel: +86 21 3183 5088 ext.5581
Email: pr@cangoonline.com
Twitter: https://twitter.com/Cango_Group
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SOURCE Cango Inc.