China beverage giant Wahaha said to join car-building game

Shanghai (Gasgoo)- Hangzhou Wahaha Group (hereinafter referred to as Wahaha), the Chinese largest beverage producer, reportedly intends to enter the car-building business.

Wahaha set up a new subsidiary called Zhejiang Deqing Wahaha Technology Innovation Center Co.,Ltd on August 27, according to China's National Enterprise Credit Information Public System. With a registered capital of RMB 50 million, the new company's business scope extends to cover such areas as next-generation information technology, sensor technology, advanced facility manufacturing, NEV and intelligent vehicle technology, new materials, energy conservation and environmental protection materials as well as biology engineering, etc.

The “NEV and intelligent vehicle technology” within the business scope does catch the eye of the automobile industry. As a traditional beverage maker whose products became the childhood memory for a great number of Chinese, it is truly a huge cross-industry move for Wahaha to build cars.

The NEV and intelligent industries has been developing rather quickly in China as tech companies and automakers make headway in these areas, including the startups like NIO and XPENG Motors, the household appliances makers like LeEco, GREE, as well as the real estate companies like Baoneng Group, Evergrande Group and Wanda Group.

The analysts from the Gasgoo Auto Research Institute forecast that the annual outputs of new energy passenger vehicles (only referring to BEV and PHEV) are expected to be increased to 1.745 million units in 2020, to 3.938 million units in 2023 and to 6.493 million in 2025, with a series of favorable NEV regulations and policies released in succession.

However, a remark below the business scope says that the business cannot be formally operated unless it was approved by relevant governmental departments. It is still too early to judge conclusively whether Wahaha could really make a car.