AutoBeta(AutoBeta.net)11/04 Report--

According to data from the China Automobile Association, automobile production and sales completed 18.149 million and 18.371 million respectively from January to September, down 11.4% and 10.3% respectively compared with the same period last year.

China's automobile production and marketing in the depressed environment, FAW Group's production and marketing has also been affected to a certain extent. From January to September, FAW Group's automobile production and sales were 2.41 million and 2.461 million respectively, down 3.4 per cent and 3.7 per cent from the same period last year.

At the third China Enterprise Reform and Development Forum, Xu Liuping, chairman of China first Automobile Group Co., Ltd., said that although China's passenger car market has achieved negative growth for 18 consecutive months, because the Chinese market is strong enough, even if it has dropped by 10%. But for FAW, profits have increased considerably. FAW accounts for 12% of the market, as long as its competitiveness is strong enough, it should not have an impact on enterprises.

However, FAW Group's independent brands are growing against the trend, especially the FAW Red Flag brand, which Xu Liuping attaches particular importance to.

Xu Liuping said: at present, there is a red flag and liberation under the one steam flag, as well as many brands and industries, but in this process, the red flag is still placed in the most important position.

Since Xu Liuping was transferred to FAW Group, he has carried out a series of reforms to FAW, paying special attention to the development of FAW Red Flag, which is directly independent from FAW cars and directly operated by FAW Group.

The key to the development of FAW Red Flag has four aspects: positioning, innovation, quality and service. Xu Liuping said that the definition of the Red Flag brand is the high-end crowd, so there must be high quality in terms of quality. Once there are any problems in quality, we must respond in time to highlight the service guarantee of the Red Flag brand. On the other hand, it is necessary to take the global lead in technology in order to attract consumers.

Judging from the sales data in recent months, the sales of FAW Red Flag has indeed increased a lot, with monthly sales of more than 10,000 vehicles.

In August this year, FAW Red Flag exceeded 10,000 vehicles for the first time, up 203% from the same period last year; in September, FAW Red Flag sold 11570 new cars, up 188% from the same period last year; in October, FAW Red Flag sold 11880 vehicles, up 188% from the same period last year; and from January to October 2019, the cumulative sales of Red Flag reached 75520, up 217% from 23800 in the same period last year.

So far, the brand has continued to grow positively for 20 consecutive months. With two months to go before the end of 2019, with this growth trend, Red Flag should have no problem achieving its annual sales target of 100000 vehicles this year.

FAW Group insiders believe that the reason why Red Flag has made such a brilliant achievement this year is first of all Xu Liuping's support for the Red Flag brand after entering FAW, followed by the repositioning of the product brand, and finally the innovation in marketing.

On January 8, 2018, the new red flag of FAW Group issued a new strategy: it will move towards the goal of selling 100000 units in 2020, 300000 units in 2025 and 500000 units in 2035.

Under Xu Liuping's strategy of supporting the Red Flag brand with the strength of the whole group, Red Flag has indeed improved and is no longer a brand that exists in name only. Now the domestic car market environment is in the doldrums, independent brands have been greatly affected, red flag brand sales growth, is also one of the few bright spots.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat