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Ean plummeted! GAC Group's mid-year report card released

2024-07-18 Update From: AutoBeta NAV: AutoBeta > News >


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GAC GROUP released his report card on mid-year sales on July 6. Data show that GAC GROUP sold a total of 863000 vehicles from January to June 2024, down 25.79% from the same period last year, of which 164100 new energy vehicles were sold, down 30.61% from the same period last year. GAC GROUP's sales in June 2024 were 163500, down 30.77% from the same period last year. It is understood that this is GAC GROUP's sixth month of sales decline compared with the same period last year, that is, since 2024, the decline has been significantly larger than in previous months, of which sales of new energy vehicles were 32500, down 38.25% from the same period last year.

In June, all of GAC GROUP's brands declined, especially in the joint venture camp, which faced tremendous sales pressure. Among them, Guangzhou Auto Honda was 34400 vehicles in June, down 43.34% from the same period last year, making it the group's biggest decline brand, with cumulative sales of 207900 vehicles this year, down 28.28% from the same period last year. In addition, GAC Toyota's performance was not optimistic, with sales of 70000 vehicles in June, down 19.64% from a year earlier, while cumulative sales in the first half of the year were 336000, down 25.80% from a year earlier. The decline was narrower than in May.

In the context of the acceleration of internal price and configuration of independent new energy brands, Japanese cars are being frustrated in an all-round way. Once upon a time, Japanese cars were well known by consumers for their reputation of "fuel saving and durable". At one time, the share of the Chinese market remained above 25%, even reaching 30% at its peak. However, under the wave of electrification, the economy of Japanese cars has been greatly weakened, fuel vehicles are becoming more and more difficult to sell, and the electric cars launched have almost no sound in the market, and sales have fallen again and again. Not long ago, it was revealed that GAC Honda had launched a round of layoffs involving 1700 people, accounting for 14 per cent of the total workforce. It is worth mentioning that GAC Honda offered a relatively generous compensation package for layoffs, compensation for "Nintendo 21.8" compensation, many veteran employees took the initiative to sign up for layoffs, hoping to take this opportunity to "retire" ahead of time.

Even so, the joint venture brand is still GAC GROUP's main source of sales. According to Automotive Industry concern, Guangzhou Auto Toyota and Guangzhou Auto Honda account for 63.2% of the group's total sales. With the strengthening of the independent sector, the share of joint venture brands in the group has shrunk, and its fuel vehicle market has been eroded by the new energy vehicle market.

It is worth mentioning that the performance of joint venture brands is average, and the performance of new energy vehicles is also indescribable. As GAC GROUP's new energy brand, GAC Ean New Energy sold 25700 vehicles in June, down 42.92% from a year earlier, second only to Guangzhou Auto Honda in a single month, while cumulative sales in the first half of the year were 126300, down 39.65% from the same period last year. It is the group's biggest decline brand. It is understood that GAC Ean sales have declined for five months in a row, while GAC EAN sales target is 700000 vehicles in 2024, while 18% of the target sales are completed by June, and the next seven months sales need to be stable at more than 95000 vehicles, under great pressure. it's almost impossible.

GAC Ean, formerly known as GAC NE, was founded in July 2017. after its launch, it was highly expected by GAC GROUP, and its sales continued to rise for many years. At the 2020 Guangzhou Auto Show, Guangzhou Auto Eian announced its independence and changed its name from GAC NE Automobile Co., Ltd. to Guangqi Ean New Energy Automobile Co., Ltd. At the same time, GAC Ean announced that the brand renovated, using a more flattened design of the "G" mark, the inner ring using "AION blue" hue, in order to highlight the electric identity. In 2023, GAC Security sold 380000 vehicles a year, an increase of 77.02% over the same period last year. It is worth mentioning that most of this sales growth is supported by the ride-hailing market. GAC Eian is known as the "king of ride-hailing". The AION S and AION Y models of 12-150000 yuan have become the first choice for ride-hailing. As a result, GAC Ean quickly occupied the ride-hailing market. However, with the gradual saturation of the ride-hailing market, GAC Ean faces the challenge of declining sales. After entering 2024, under the background of accelerating the internal price and configuration of the major independent brands, GAC Ean began to turn sharply, and in the case of sluggish sales, there were all kinds of adverse news such as layoffs and termination of contracts with fresh students.

As one of the Gemini stars on the road of GAC GROUP's new energy transformation, GAC MOTOR carries the technological transformation of plug-in hybrid models, while Ian is responsible for pure electricity transformation. In 2010, GAC GROUP launched Chuanqi brand, relying on the resources of the joint venture brand, launched a variety of products, but with the transformation of intelligence and electrification, GAC GROUP poured more resources into GAC Ean. GAC MOTOR's positioning in the process of external competition and internal resource coordination is becoming more and more awkward, and the challenges are growing day by day. In the first half of the year, GAC MOTOR sold a total of 188900 vehicles, an increase of 0.44% over the same period last year. It was the only brand in the group to achieve growth, of which 32800 vehicles were sold in June, down 20.29% from the same period last year.

GAC Hino and Hechuang, which was classified as "other" by GAC GROUP, sold only 611 vehicles in June, down 72.56 per cent from a year earlier, with cumulative sales of 3897 in the first half, down 82.98 per cent from a year earlier.

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.

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