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GAC GROUP's sales fell sharply, Honda was the worst.

2024-06-25 Update From: AutoBeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)06/09 Report--

GAC GROUP released the latest production and sales KuaiBao on June 7, showing that GAC GROUP's car sales in May were 156500, down 25.33% from a year earlier. It is understood that this is GAC GROUP's fifth month of year-on-year decline, that is, year-on-year decline since 2024, including 10.18% in January, 38.96% in February, 22.62% in March and 24.78% in April. By the end of May, GAC GROUP had sold 699500 vehicles this year, down 24.51 per cent from the same period last year.

In May, all of GAC GROUP's brands declined, especially in the joint venture camp, which faced tremendous sales pressure. Among them, Guangzhou Auto Honda was 31900 vehicles in May, down 41.31% from the same period last year, making it the group's biggest brand decline, with cumulative sales of 173900 vehicles this year, down 24.30% from the same period last year. In addition, GAC Toyota's performance was not optimistic, with sales of 61100 vehicles in May, down 17.00% from a year earlier, while cumulative sales from January to May were 265900, down 27.26% from a year earlier. Even so, the joint venture brand is still GAC GROUP's main source of sales. According to Automotive Industry concern statistics, GAC Toyota and GAC Honda account for 62.97% of the group's total sales, but with the strengthening of their own brands, the share of joint venture brands in the group has shrunk, and their fuel vehicle market has been eroded by the new energy vehicle market.

The performance of joint venture brands is mediocre, while the performance of new energy vehicles is more general. In May, GAC's Aian sales were 30400, down 32.21% from a year earlier, second only to Guangzhou Auto Honda, with cumulative sales of 100600 vehicles from January to May, down 38.71% from a year earlier, making it the group's biggest decline. It is understood that GAC Aian sales target of 700000 vehicles in 2024, and by May to achieve the target sales of 14%, the next seven months sales need to stabilize at more than 85000 vehicles, great pressure.

Under the circumstances that the overall business development is not as expected, GAC EA still undertakes the important task of invigorating the group's assets. In March this year, GAC Ean spent 2 billion to acquire GAC-Mitsubishi assets and plans to turn its plant into a production base with an annual production capacity of 200000 vehicles. This is after GAC Fick, GAC Ean once again "incorporated" the assets of the group joint venture company.

Today's sales are far from reaching the height expected by GAC Ean. In the past few years, relying on low-cost models, GAC Eian has occupied almost half of the ride-hailing market. AION S and AION Y have brought huge growth to GAC Ean, while its original main brand, high-end Eian LX, only sells about 100 cars a month, and the independent release of high-end brand Haopin has a low sense of existence and has also failed to become a new growth point.

The decline of joint venture brands and the head-on catch-up of independent brands have become the truest portrayal of China's automobile market, and it also reveals the awkward position of joint venture brands in the domestic market. Previously, joint venture brands have dominated the Chinese car market for more than 20 years, and Chinese car brands have no choice, but now independent brands have gradually become the target for global car companies to catch up. Whether it is Honda Toyota with a joint venture brand or Ian with its own brand, behind the decline in sales is the "onslaught" of other independent brands in the market.

Recently, at the 2024 China Automobile Chongqing Forum, Zeng Qinghong, chairman of GAC GROUP, expressed his views on the current internal competition faced by the automobile industry and the development trend of new energy vehicles. He stressed that the automobile industry should adhere to long-term doctrine and avoid falling into an endless price war. At the same time, when the proportion of pure electricity of new energy vehicles reaches 50%, the policy of "equal power of oil and electricity" should be promoted to promote fair competition in the market and sustainable development of the industry. Zeng Qinghong pointed out: at present, the phenomenon of "inner volume" in the automobile industry is serious, and many enterprises are caught in a price war for market share, which not only harms the profitability of enterprises, but also poses a threat to the healthy development of the industry as a whole. He stressed that the purpose of enterprises is to make profits and contribute to the country and society, including the creation of job opportunities and the payment of taxes. Therefore, the automobile industry needs to have overall vision and a long-term vision to avoid falling into the quagmire of short-term interests.

It is worth mentioning that GAC GROUP and Changan Automobile signed a strategic cooperation framework agreement in Chongqing on June 6. the two sides adhere to the principles of complementary advantages and mutual benefit. Strategic cooperation will be carried out in the areas of common platform and technology, industrial chain ecology, international business and industrial funds to jointly enhance the core competitiveness of China's automobile industry. It is understood that at present, the two sides have only expressed the intention of strategic cooperation, which will be carried out around the above-mentioned areas, but no specific projects have yet been landed. Although it is only to reach a framework for cooperation, cooperation is of great significance to the senior levels of both sides.

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