OPINION : What is the fallout from the Jiyue Auto collapse

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The Rise and Fall of Jiyue Auto

Jiyue Auto was founded in 2017 by a group of former employees of BYD, one of China’s largest and most successful electric vehicle (EV) manufacturers. The company’s founders had a vision to create a high-performance EV brand that could compete with the likes of Tesla and other established players in the market. Key features of Jiyue Auto’s products included: + High-performance electric motors + Advanced battery technology + Sleek and stylish designs + Competitive pricing

The Market and Competition

The Chinese car market is highly competitive, with numerous players vying for market share. Jiyue Auto’s entry into the market was seen as a significant development, as it brought a new player with a unique value proposition to the table. Key factors that contributed to Jiyue Auto’s success: + Strong partnerships with suppliers and manufacturers + Access to advanced technology and resources + Aggressive marketing and sales strategies

  • Key challenges that Jiyue Auto faced:
  • + Intense competition from established players + High production costs and limited economies of scale + Regulatory hurdles and compliance issues

    The Collapse of Jiyue Auto

    Despite its promising start, Jiyue Auto faced significant challenges that ultimately led to its collapse.

    The Initial Rejection

    The initial rejection was not surprising, as the Jiyue 07 is a 2007 model, and its age is a significant factor in determining its value. Cars from this era are often considered old and may not be as desirable as newer models. However, Han Lu was not deterred by the initial rejection and decided to continue his search.

    The Research Phase

    To determine the value of his car, Han Lu conducted extensive research. He consulted various online forums, car enthusiast websites, and social media groups to gather information about the Jiyue 07. He also contacted local car dealerships and private sellers to get their opinions on the car’s value. Some of the key findings from Han Lu’s research include:

  • The Jiyue 07 is a Chinese-made car with a 6L engine and a 5-speed manual transmission. The car has a relatively low mileage of 80,000 kilometers. The Jiyue 07 has a reputation for being reliable and fuel-efficient. The car’s condition is generally good, with some minor scratches and dents. ## The Negotiation Phase
  • The Negotiation Phase

    With a better understanding of the car’s value, Han Lu began negotiating with potential buyers. He started by contacting local car dealerships and offering them the car at a price of 200,000 yuan (29,600 USD). However, most dealerships rejected his offer, citing that the car was too old and not worth the investment.

    Uncertainty hits high-end vehicles hard.

    The Uncertainty Plaguing Jiyue Auto

    Jiyue Auto, a Chinese electric vehicle manufacturer, has been facing significant uncertainty in recent times. The company’s financial struggles and production issues have led to a significant decrease in the value of its vehicles.

    The HiPhi X: A High-Value Vehicle

    The HiPhi X, a flagship model of Jiyue Auto, has been a subject of interest due to its high-performance capabilities and advanced features. However, the recent report suggests that a high-value vehicle may be the result of the uncertainty plaguing Jiyue Auto. The 2021 model year HiPhi X founders edition, with only 27,000 kilometers on the clock, was recently valued at 200,000 yuan (approximately 27,500 USD). This valuation is a significant decrease from the original price of the vehicle, which was reportedly around 400,000 yuan (approximately 55,000 USD). The decrease in value is attributed to the uncertainty plaguing Jiyue Auto, which has led to a decrease in consumer confidence and a subsequent decrease in demand for the company’s vehicles.

    The Impact of Uncertainty on Vehicle Value

    The uncertainty plaguing Jiyue Auto has had a significant impact on the value of its vehicles. The recent report highlights the decrease in value of the HiPhi X, which is a flagship model of the company.

    The Impact of the Crisis on Neta

    The crisis has already had a significant impact on Neta’s sales, with the company’s revenue plummeting by 30% in the last quarter. This decline is not only a concern for the company’s financial health but also a warning sign for the broader market. As the crisis deepens, Neta’s stock price has also taken a hit, falling by 20% in the past month. Key statistics: + Revenue decline: 30% + Stock price decline: 20% + Potential buyer hesitation: due to fear of company going bust

    The Role of the Crisis in Shaping Neta’s Future

    The crisis has exposed weaknesses in Neta’s business model, highlighting the need for significant changes to ensure the company’s long-term survival.

    The Chinese auto manufacturer, Geely, has been a major player in the global automotive industry for several years, while Baidu, the Chinese search engine giant, has been a dominant force in the digital landscape. Their joint venture, Geely Baidu Auto, was established in 2017 to develop and manufacture electric vehicles.

    The Rise of Geely Baidu Auto

    In 2020, Geely Baidu Auto announced its first electric vehicle, the Geely Baidu Binyue, which was a significant milestone in the company’s history.

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