AutoBeta(AutoBeta.net)12/13 Report--

According to data released by the China Automobile Association, from January to November this year, German, Japanese, American and Korean passenger cars accounted for 24.3%, 21.6%, 9.1% and 4.5% of China's market share, respectively, with legal system having the lowest market share, with only 0.6% of the domestic market share, down more than half compared with the same period in 2018.

At present, the legal brands in the domestic market mainly include Dongfeng Peugeot brand and Dongfeng Citroen brand of DPCA, DS brand of Changan PSA and Renault brand of Dongfeng Renault, but from the performance of these brands in the domestic market, they can only be described in one word-"miserable".

The Dragon Motor is in crisis.

DPCA is a joint venture between Dongfeng Motor and Peugeot Citroen, which includes two brands, Dongfeng Peugeot and Peugeot Citroen.

DPCA's sales from 2012 to 2015 were high, with sales of 440000, 550000, 704000 and 704800 respectively. However, sales of DPCA have declined sharply since 2016, with sales of 600200, 434000 and 253000 respectively from 2016 to 2018. From January to October this year, the cumulative sales of DPCA were only 109900, down 54.0 per cent from the same period last year.

In the face of the continued decline in sales, DPCA has also made a remedy. In order to save operating costs, DPCA closed a factory in Wuhan and sold its second plant in Wuhan, leaving Wuhan No. 3 plant and Chengdu plant to continue production and operation. In addition, DPCA will lay off staff across the board, with plans to reduce the number of employees from 8000 to 5500 by 2019 and to 4000 by 2020.

In September this year, DPCA issued a "yuan" recovery plan. Through the efforts of Peiyuan, Guyuan and Tuoyuan, the overall sales reached 400000 vehicles, but for now, the "yuan" recovery plan does not seem to be effective for DPCA.

In order to promote the loop of Dongfeng Peugeot and Dongfeng Citroen brands, in early October, DPCA officially opened its first dual-brand 4S store in Jiaozuo, Henan Province. The store can sell both Dongfeng Peugeot and Dongfeng Citroen models at the same time, but the two brand showrooms have their own entrances and exits to remain relatively independent.

The PSA Group said it had stated publicly many times that "We want to stay in China and absolutely do not want to leave China. This belief is very firm." However, if the sales volume of DPCA continues to decline, then DPCA will lose a lot of operating profit and is likely to follow in the footsteps of Guangzhou Peugeot.

DPCA or PSA Group's second failed project in China. In 1997, Guangzhou Peugeot, which was founded by PSA Group and Qoros Motor, lost 3 billion yuan due to poor management, and finally declared bankruptcy.

Chang'an PSA was abandoned by both.

Changan PSA, a joint venture between PSA and Changan Automobile, is also in operational difficulties when DMC is in a crisis of survival.

Changan PSA, founded in 2011, mainly produces and sells high-end DS brands in the Chinese market.

Data show that Changan PSA sales of the DS brand reached a peak of 27000 vehicles in 2014 and 2015. I thought DS would be able to grow by leaps and bounds, but DS sales began to fall sharply in 2016, with cumulative sales of only 16000 vehicles, compared with 6088 in 2017 and 5478 in 2018.

In 2019, the decline of DS brand sales has become more and more serious. From January to November 2019, DS sold 2044 vehicles in China, of which only 9 were sold in November, which is on the verge of delisting.

The continuous decline in DS brand sales has led to a substantial loss in Changan PSA profits. Changan PSA lost 870 million yuan in 2018, Changan PSA lost 200 million yuan in the first three quarters of 2019, and now Changan PSA has a cumulative loss of 2.455 billion yuan.

In this case, the two companies have sold this encumbrance. On November 29th, PSA Group plans to sell its 50 per cent stake in Changan PSA. On the same day, Changan Automobile also officially listed on the Chongqing United property Exchange, selling its 50% stake in Changan PSA, which has not yet appeared, but PSA Group confirmed that Baoneng Group may acquire Changan PSA, Baoneng Group has not made a relevant response.

Although the DS brand is facing a survival crisis in China, PSA Group said that after Changan PSA is acquired, the DS brand will still be produced in Shenzhen and DS will not withdraw from the Chinese market.

The development of DS brand in China is bumpy and tortuous, for the dissolution of Changan PSA and the current situation of DS brand, it may be expected in the eyes of many people.

Dongfeng Renault sales slump

Dongfeng Renault also encountered a survival crisis in China. Dongfeng Renault is a joint venture brand established by Dongfeng Motor and Renault Group in 2013. Dongfeng Renault developed later than other car brands. In 2016, Dongfeng Renault launched two domestic SUV models, Correa and Coreao, which sold 36500 vehicles that year and 72000 in 2017.

However, the good times did not last long. Dongfeng Renault sales declined sharply in 2018, with sales of only 50100 vehicles that year, and even worse in 2019. Dongfeng Renault sold a total of 13137 vehicles from January to October, down 72.3% from the same period last year.

Renault is one of the French brands with a long history, but it is not "smooth" after entering the Chinese market, mainly due to the low awareness of the Renault brand in the domestic market, the lack of product power and quality, and the slow iteration of product renewal. coupled with the development of Volkswagen, Toyota, Honda and other auto brands in China, it is not surprising that Renault sales have dropped sharply.

At present, the car market is in the cold winter season, and joint venture car companies are having a hard time in the domestic market. under such circumstances, if we can change the development strategy, adjust the positioning of the brand and meet the needs of consumers, perhaps these brands will be able to survive the cold winter and develop.

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