SHANGHAI, July 16,
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.
For smart vehicles, the density of charging stations and battery
swap stations in cities is undoubtedly one of the important
elements for development. The existence of sufficient charging
stations will immediately ease users' after-purchase concerns.
Public information shows that thanks to strong policy guidance,
2015 saw a huge capital influx, and companies started frantic
expansion in order to secure funding. However, poor operation and
receding capital left many companies treading the fine line between
profit and loss. At the same time, a small user base made it
difficult to achieve scale as measured by traffic volume.
Investment institutions, therefore, became more cautious. According
to initial statistics, funding for charging stations in 2019 was
reduced by about 50% from that of 2016.
Since 2020, the siphon effect caused by new infrastructure
building and continuous improvement of operating models have been
attracting new players onto the new energy vehicle charging station
track. It is evident that a small number of leaders will soon
receive a new round of massive funding, and enhancing profitability
through optimizing operations will be the key to stimulating a new
round of funding.
At present, there are only a handful of platforms that are still
vital and continuing to expand through funding. Many companies have
announced withdrawal from the charging station market and perished
in the darkest moment before dawn.
One successful company is TELD. A wholly-owned subsidiary of
TGOOD, it is mainly engaged in the construction and operation of
new energy vehicle charging networks and value-added internet
services. Established in 2016 with joint investment from TGOOD and
China Development Bank International Investment Ltd., it announced
in January 2020 that it had received
1.35 billion yuan in strategic
investment from multiple funds and enterprises.
Alpark is another success story. Established in 2015, it
provides three-in-one solutions and product services for parking,
driving and charging, and has since launched AIpark City smart
urban parking management system, AIpark One smart parking garage
management system, AIpark Sky Eye, AIpark APP and other series of
products.
Its development is also more aligned with the capital logic of
the internet platform. Since receiving the A round of funding in
2017, it has also obtained investment from well-known investment
institutions including Gaorong Capital and CICC Capital, and has
completed in 2020 a total of four rounds of funding (C, C+, D and
D+).
On the other hand, while the charging station model is ripe for
exponential growth, other models have been developing rapidly as
well. In August 2020, Nio set up
Wuhan Weineng Battery. Users no longer need to buy any battery pack
during car purchase. They can instead choose to rent battery packs
of different capacities based on their actual usage needs and pay
monthly service fees. And they can enjoy the same battery swap and
flexible battery upgrading services as users who have purchased
battery packs.
Wuhan Weineng Battery lost no time in announcing that it had
obtained investment of 200 million
yuan. CATL had initiated this investment, and Guotai Junan
Securities and Hubei Science and Technology Investment Group had
followed. Another round of investment exceeding 100 million yuan was led by Guotai Junan
Securities with followers including CATL, FutureX Capital, Three
Gorges Capital Holdings Co., Ltd. and other investment
institutions.
In addition, Volkswagen has come up with the idea of a mobile
charging robot. At the end of 2019, it went public with this idea
for the first time and produced a prototype one year later. It also
expressed the wish to soon replace charging infrastructure with
innovative solutions since electric vehicles are rapidly becoming
popular. "With this robot," said Mark Möller, Head of Development
at Volkswagen Group Components, "we can turn almost every parking
garage into an electric one without having to burden ourselves with
any complicated renovation of the electric power
infrastructure."
It is safe to say that with the continuous development of smart
vehicles, the continuous increase of their market share and their
rapid adoption by consumers, outstanding enterprises will burst
upon the scene for different scenarios, different habits and
different fields. Changes of varying degrees are likely to take
place in consumption, application, aftermarket, channels, new
materials and other areas, bringing with them more and more
opportunities for innovation.
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.