AutoBeta(AutoBeta.net)01/08 Report--

On January 8, Changan Automobile officially announced its production and sales in 2019. Data show that in December 2019, Changan automobile production and sales were 197039 and 193716 respectively, an increase of 83.52% and 30.98% respectively over the same period last year; and the cumulative production and sales of Changan automobile in 2019 were 1797429 and 1759971 respectively, down 10.08% and 15.16% respectively.

Among them, Changan independent brands (Chongqing Changan, Hebei Changan, Hefei Changan) accumulated sales of 849552 vehicles in 2019, down 7.84% from the same period last year; Changan Ford sold 183987 vehicles in 2019, down 51.30% from the same period last year; Changan Mazda sold 133608 vehicles in 2019, down 19.66% from the same period last year.

In terms of SUV models, Changan Automobile sales mainly come from the hot sales of CS75 series, CS35 series and CS55 series models. Changan CS75 series sales reached 28620 in December last year, an increase of 287.5% over the same period last year; Changan CS35 series sales reached 16389 in December last year, up 20.8% from a year earlier; in addition, Changan CS55 series sales reached 11148 in December last year, an increase of 32% over the same period last year.

In terms of cars, the Changan Yiyou series sold 10325 cars in December, an increase of 97.9 percent over the same period last year. It is worth mentioning that the runaway Plus made its debut in December last year. The new car uses a new design language with 1.4T and 1.6L engines and is expected to go on sale in March this year.

Although Changan Automobile achieved year-on-year sales growth in December, it still showed a decline in sales for the whole year, largely due to a decline in sales of joint venture brands, with Changan Ford having the biggest decline.

Judging from Changan Ford's sales in recent years, Changan Ford's sales have been declining since 2017, with total sales of 812000 vehicles in 2017, down 14% from the same period last year, 378000 vehicles in 2018, down 54% from the same period last year, and total sales of 184000 vehicles in 2019, down 51% from the same period last year. However, as Ford accelerates its layout in the Chinese market, Changan Ford's sales are picking up.

Changan Automobile, as one of the domestic independent automobile enterprises, the government does not forget to support it even if its sales continue to decline. On December 18, 2019, Changan Automobile received 30 million yuan of special funds for industry and information technology from Chongqing Jiangbei District Finance payment Center in 2019, and encouraged R & D investment of 42.25 million yuan, totaling 72.25 million yuan. Changan Automobile received 213 million yuan from the stable post of Chongqing Jiangbei District Employment and Talent Service Bureau.

While Changan Automobile is supported by the government, its own profit situation is not optimistic. According to Changan Automobile's financial report, the cumulative revenue of Changan Automobile in the first three quarters of 2019 was 45.115 billion yuan, down 9.5 percent from the same period last year, while the net profit belonging to shareholders of listed companies was-2.66 billion yuan, a decrease of 328.83 percent compared with the same period last year.

In the case of declining sales and performance of Changan Automobile, Changan Motor chose to sell its 50% stake in Changan Peugeot Citroen and currently reached a transfer agreement with Shenzhen Qianhai Ruizhi. Changan Automobile is speeding up the divestiture of its PSA stake in Changan. Industrial and commercial changes are expected to be reached within 2020. After Changan Automobile sold its stake in Changan PSA, after deducting the book loss of Changan PSA in 2019, Changan Automobile is expected to make an investment income of 1.352 billion yuan.

Industry insiders said that Changan Automobile will improve the performance of listed companies after divesting lossmaking assets. With the independence of Changan Automobile and the gradual warming of Changan Ford plate in 2019, Changan Automobile will usher in the operating inflection point in 2020.

The overall sales of Changan Automobile is in a state of decline in 2019, but there are not many products to rely on. In 2020, Changan Automobile is still facing great challenges. Changan Automobile needs continuous improvement and can be warmed up in the cold car market in 2020 through the research and development of brand-new technologies and product updates.

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