Chapter 763: The Birth of a New Auto Giant

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The industrial layout of Huanyu Group is relatively simple. The main industries are located in the Yangtze River Basin. Especially at the current stage, when the main business is exporting, it is an inevitable choice to go along the river and the coast.

Last year was also a year of great development for Huanyu Group. The originally planned production capacity of 6 million vehicles was not enough at all. The sales volume was very high, both at home and abroad.

Among them, their passenger cars are particularly eye-catching. The original production capacity was only 2 million units. At that time, they thought they might not be able to sell them. Facts have proved that their estimation was completely wrong.

Seeing a market where supply exceeds demand, they had to desperately expand production capacity. Now their annual production capacity of passenger cars has reached 10 million units, and 6 million units were sold last year.

Including freight cars, passenger cars and special vehicles, the total has just exceeded the 10 million mark, which is an iconic figure.

It shows that Huanyu Group has grown into a super giant in the automotive field in just over a year, and it should be regarded as the fastest growing automotive company in the world.

Among them, the domestic performance is very impressive, with a total of 6 million sold, including 2 million passenger cars, and most of the rest are trucks, passenger vehicles and special vehicles.

Exported vehicles are basically passenger vehicles, and the export sales volume is 4 million. It is not easy to achieve such a result in the sphere of influence of many auto giants.

The average unit price of non-passenger vehicles is the highest, with an average unit price of 500,000 yuan. This business alone has brought 2 trillion yuan in revenue to Huanyu Group.

There is a relatively large gap between domestic and foreign prices of passenger cars. The domestic price of the same model is generally about 20% lower. This is based on the FOB price. If it is based on the terminal price, the gap will be even greater.

The average price of domestic passenger cars is 150,000 yuan, and a total of 2 million units have been sold, creating a revenue of 300 billion yuan for Huanyu Group.

The average FOB price of exported passenger cars was 250,000 yuan, and a total of 4 million units were sold, creating a revenue of 1 trillion yuan for Huanyu Group.

That is to say, in terms of the automobile business, Huanyu Group obtained a total revenue of 3.3 trillion yuan last year, becoming the largest automobile company in the country in one fell swoop.

No one expected that such an automobile company with such potential for development would suddenly appear in a city like Wuhu, which is very surprising.

my country's auto industry is generally located in key cities. If the law of natural development is followed, auto giants should also be born in these cities. Wuhu is definitely not ranked.

What surprised Ye Zishu was that domestic car sales were so high. He was not surprised by the sales of non-passenger vehicles. After all, the economy is developing so fast.

It is normal for vehicles to be in high demand for production.

It's just that I didn't expect that there are still many people who have the money to buy passenger vehicles. These are pure consumables, unlike other vehicles that are production tools.

In fact, in such a large country, it is very normal to have this sales volume. There are three main reasons: the first is that the price of Huanyu Group's cars is very cheap, and the average price of 150,000 cars is not expensive.

Those who are rich will buy a car worth about 200,000 yuan, and those who have no money will buy a car worth about 120,000 yuan. The quality is definitely much better than that of a joint venture car, and the price is also cheaper.

The second is that after so many years of reform and opening up, a group of rich people have actually been born in China, especially in the past, people with a little courage and connections can make money.

Ye Zishu doesn't know how many small bosses there are in the country, but just his high-paid employees can buy a car with one or two years' salary. The total number is not small, and there are still millions of them.

The third is the obvious technological advantage. The technology of domestic joint venture cars is outdated, and although Huanyu Group's low-end models use not many advanced technologies, it is enough to beat joint venture cars.

Even if they get their base camp, they can still have an advantage. For domestic consumers, buying such a car is the most cost-effective, and everyone knows how to choose.

Now their overall production capacity has expanded to 12 million vehicles. For them, this year's sales pressure is still quite high, and they hope that the domestic market will explode.

Regardless of the fact that 4 million vehicles were sold in overseas markets last year, it is not so easy to go further. Other giants will definitely take targeted measures.

Although they do not have self-driving technology, traditional car technology is not bad, and they are still competitive with the latest achievements.

Perhaps because they knew that a head-on contest would not give them an absolute advantage, they chose to compete with the Huanyu Group at home, leading the war to the Huanyu Group's old nest.

According to intelligence, they have raised the level of domestic partners one after another, preparing to bring out the latest models to cooperate with joint ventures, the purpose is self-evident.

One is that Huanyu Group's domestic sales are good, which shows that the domestic auto market has already started, and there is no reason for them not to come in to snatch it up. It's just that it is difficult to snatch the market with the previous technology, and they must come up with the latest models.

The second is to let Huanyu Group take care of one thing and lose another, and involve Huanyu Group's energy in the domestic market, which can reduce the pressure on the international market. The drama of besieging Wei and saving Zhao is very skillful.

Huanyu Group is not unprepared. They will launch new models this year and will use new technologies, such as car navigation, front windshield display technology, smart technology and so on.

As long as Phoenix Technology can do a good job in electronic navigation maps, car navigation technology will not be difficult. Combining with the current automatic driving, it can achieve the effect of one plus one greater than two.

The combination of front windshield display technology and intelligent technology will give car users a completely different feeling, and it will definitely improve the car experience to a higher level.

Car navigation technology is not unique to Huanyu Group. If these car companies purchase it, they can also buy it. It is not exclusive to Huanyu Group. It can only be a time difference.

The front windshield display technology belongs to Huanyu Group's exclusive technology, and the difficulty is much more difficult than that of car navigation technology, and it will not be overcome in a short time.

Let alone intelligent technology, although it is not the exclusive technology of Huanyu Group, but it will not be sold to the industrial system of Ye Zishu, which can be regarded as adding weight to Huanyu Group's victory.

In addition to traditional fuel or gasoline-electric hybrid models, they also plan to launch pure electric models this year to test the market response. If the response is good, the production capacity will be greatly adjusted.

Compared with traditional fuel vehicles, pure electric vehicles are more suitable for cooperation with intelligent technology, and have lower energy consumption. Compared with fuel vehicles, they are more environmentally friendly.

It’s just that they are currently using lithium batteries, which are relatively expensive. Ye Zishu has no plans to provide more advanced battery technology, and we will wait until the development of electric vehicles.

Another business of Huanyu Group is the battery business. It achieved good results the year before last, and it also achieved extraordinary results last year. The overall revenue reached 700 billion yuan, an increase of 75%.

The main growth comes from battery demand for consumer electronics and solar power storage demand. The main customer of the former is Qinglong Technology Company, and the main demand of the latter is Kirin Energy Industry Group.

The storage batteries used in solar power generation are all nickel-metal hydride batteries. The purpose is to stabilize the current and make the grid current more stable. It also acts as a power collector.

In addition to these two fields, their market shares in other fields are also getting higher and higher, and the overall growth has increased, but it is very difficult to achieve explosive growth. After all, the current market share is not low.

If you want to continue to develop, you must rapidly increase the market size of batteries. At present, there are only two areas that have made great achievements, that is, electric vehicle batteries and solar batteries.

Although Kirin Energy Industrial Group does not need too many batteries because they dislike the high cost, it is more cost-effective to convert electrical energy into fuel for chemical storage.

But this kind of technology will not be exported. From the perspective of the global market, the market demand for solar batteries is very large. If the cost of electricity storage is solved, the solar power generation industry will also develop rapidly.

If you want to use storage batteries on a large scale in the field of solar power generation, the single storage cost per kilowatt-hour of electricity should not be higher than 0.5 yuan. If it is too high, there will be no market.

Because if it is combined with solar power generation equipment, the price of 1 kilowatt-hour has exceeded 1 yuan, and the power generation company still has to make money, and the electricity price to the user will be higher.

Once the price of electricity exceeds the affordability of users, there will not be much market. Even if you pay attention to environmental protection, you will not be able to return to the primitive society, so cost performance is very important.

Now if the lithium-ion battery of Huanyu Group is calculated, the price per kWh is as high as 2 yuan, and the lithium iron phosphate battery is cheaper, but it has reached 1.5 yuan.

Such a price can still beat other battery manufacturers in the international market. It can be seen that their cost is higher, and it is not easy to reduce the price by more than three times.

To achieve this, first of all, the raw materials must be cheap and not easily monopolized by others. The distribution of resources is relatively wide and cannot be too concentrated.

So the more suitable materials are sodium and aluminum. These two materials are abundant in reserves, widely distributed, cheap and not easy to be monopolized, and there will be no artificial price control.

The second is to have excellent technology that can increase energy density while ensuring safety, and the overall manufacturing cost should not be too high, which is also one of the difficulties.

But for Ye Zishu, these are not difficult problems. What he considers is not cost and technical issues, but whether it is cost-effective to do so and what changes it will bring.

The reason why I didn’t do this before is that I don’t want to affect the current world energy structure too much. Although I do make more money in this way, other energy sources such as coal, oil, and natural gas will be difficult to do.

And these energy industries are very important to many countries. If the market demand decreases, these countries will not make money, which will also affect the sales of other products under his banner.

The energy industry affects the whole body, and it needs to be considered carefully. It should not affect the global economic cycle too much, otherwise it will lead to global economic disorder and eventually hurt itself.

Therefore, new energy can only be used as a supplement. No matter how low the cost of its subsidiary is, the price must be raised to maintain the comparative advantage of other energy sources. This situation will last for a long time.

Although his industries are developing like a raging fire, and the export scale is also huge, in fact, these are all new industries, and there are not too many vested interests, otherwise it would definitely not be as easy as it is now.

Of course, it is impossible for us to develop without harming the interests of others. This is impossible. We just need to control a certain degree and try to achieve a win-win situation.

Thinking of this, Ye Zishu decided to wait and see how the electric vehicle market is going, let alone solar power storage, everything has to be weighed against the pros and cons, obviously the harm outweighs the benefit at the moment.

Especially when many domestic preparations are not in place, if too many national interests are mobilized, the consequences are really hard to say, and the possible losses may be greater than the benefits gained.

Putting the two together, Huanyu Group’s revenue last year was 4 trillion yuan, with an overall net profit margin of 30%, which was a lot higher than before, and its net profit was 1.2 trillion yuan.

Ye Zishu didn't plan to ask them to hand over their profits, because they have a lot of investment plans this year. Shipbuilding, airplane building, and maglev building are all expensive businesses. It is necessary to reserve more funds.

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