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“A few years ago, in the eyes of many people, Hezhong could not survive. It turns out that Hezhong survived, and The development is very stable.” Recently, the co-founder and CEO of Hezhong Company Zhang Yong was interviewed by the reporter of”Daily Business News” Shi said that in recent years, Hezhong has been increasing investment in technology, trying to do a good job in products and technology.

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Zhang Yong, co-founder and CEO of Hezhong (photo source:image provided by the company)

Currently, there are two models of Hezhong on the market, namely Nezha N01 and Nezha U. According to data, Nezha’s cumulative sales from January to July this year were 6,018 vehicles, a year-on-year increase of 15%.

In Zhang Yong’s view, Hezhong has passed the most difficult moment and entered a period of fast pace. But Zhang Yong is not satisfied with the sales data.”This growth rate has not yet reached the pass line compared to the sales target set by us internally.” Zhang Yong told reporters that in 2020, Hezhong’s annual sales target is about 20,000 vehicles, doubling the previous year’s basis.

It is worth noting that while making products and enhancing comprehensive competitiveness, Hezhong is also accelerating the pace of external financing. According to Zhang Yong, Hezhong is also accelerating the IPO process while starting the C round of financing.

The new model is benchmarked against Xiaopeng P7

Although the cumulative sales in the first 7 months of this year have increased significantly, the sales of Nezha cars from June to July have been compared There has been a decline. Among them, in June, Nezha Automobile’s main model Nezha N01 sales fell 16.36%month-on-month.

Zhang Yong believes that this is mainly because the company is preparing for the launch of Nezha Automobile’s third mass-produced model Nezha V, which has affected the sales of the first two models.”The transformation of the production line in the same factory has a greater impact on the production of the other two models.” Zhang Yong said that with the completion of the production line upgrade and transformation, starting from September, Nezha Automobile’s new car sales will increase. Rise.

According to the plan, Nezha V will be officially unveiled in the third quarter of this year and will be put on the market in the fourth quarter. At the same time, Nezha Automobile will also launch a new concept car Eureka 03, positioned as a pure electric luxury four-door coupe, directly against Xiaopeng P7.

It is worth noting that although the Eureka 03 is the standard Xiaopeng P7, the price will be lower than this model.”Hezhong aims at the new energy vehicle market within 200,000 yuan and makes popular products.” Zhang Yong said that Hezhong’s channels will sink as much as possible to serve ordinary consumers.

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Image source:Photo courtesy of the enterprise

Under this strategy, the price of Nezha Automobile’s mass-produced models is less than 200,000 yuan. For example, the starting price of the 2020 Nezha N01 is 66,800 yuan after the comprehensive subsidy; the price range after the Nezha U subsidy is 139,800 to 199,800 yuan; the price of the Nezha V that will be launched soon will be less than 100,000 yuan.

In Zhang Yong’s view, the biggest difference between Hezhong and Weilai, Xiaopeng, Ideal and other car companies is that the channel sinks more obviously.”For Hezhong, this is not only a shortcoming, but also our strength.” Zhang Yong believes that the number of channels for the Nezha auto brand is now small, and its reputation in the private market is low, which is not conducive to improving its presence in the private market. Share. In the third, fourth, and fifth-tier cities, Hezhong’s brand awareness is relatively higher.

At present, Hezhong is accelerating the layout of marketing channels, especially the construction of direct stores in first- and second-tier cities.”In the past two years, Hezhong has devoted all its energy to polishing products and accelerating its channel layout in third to fifth tier cities, neglecting product promotion and brand promotion in first and second tier cities.” Zhang Yong said since the end of 2019 At the beginning, the company realized that it would speed up the channel layout and promotion in first- and second-tier cities.

According to the plan, within this year, Hezhong plans to build 50 to 60 directly-operated stores or supermarket stores in first- and second-tier cities. By the end of 2021, the number of channels under Hezhong is expected to reach 500.

C round of financing of 3 billion yuan and impact on the Sci-tech Innovation Board in 2021

At the product level, Hezhong’s new product is planned to be 4 new cars in 5 years. In this regard, Zhang Yong explained that Hezhong insists on the product line of”less but fine”.

Currently, Hezhong currently has two pure electric development platforms, and only two models are planned for each platform. Among them, one platform produces models of less than 100,000 yuan, and the other platform produces models of 100,000 to 200,000 yuan.”During the period, we will upgrade existing models.” Zhang Yong said, Hezhong’s rhythm is one in two years, a major change in three years.

According to Zhang Yong, Hezhong’s new car sales will reach 300,000 to 400,000 by 2025. In order to meet the sales planning needs of its models, Hezhong’s second plant will also be put into production soon. In June 2019, Hezhong started the construction of an all-ecological smart factory in Yichun, with a total investment of 5 billion yuan and a planned annual production capacity of 100,000 vehicles.

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Image source:Photograph.com

“The development of auto companies requires a lot of money. The more money, the better.” Zhang Yong admitted that with more money, the company Only then can we invest more in product and technology research and development, accelerate the layout of marketing channels and expand brand promotion.

To this end, Hezhong officially launched the C round of financing.”The company is in the C round of financing, and the goal is to complete the financing of 3 billion yuan within this year. In the C round of financing, we hope that the company’s equity structure can be more diversified, and financing objects include industrial funds, financial investors, etc.” Zhang Yong Said that the current C round of financing is progressing relatively smoothly, and some companies have entered the due diligence stage.

In order to seek more sources of funds, after Weilai, Ideal, and Xiaopeng completed IPOs one after another, Hezhong also announced the official launch of the sci-tech innovation board listing, hoping to be successfully listed in 2021.

Daily Economic News