AutoBeta(AutoBeta.net)01/20 Report--

According to the China Automobile Association, the production and sales of passenger cars in China completed 21.36 million and 21.444 million respectively in 2019, down 9.2% and 9.6% respectively from the same period last year. According to the major automobile department markets announced by the China Automobile Association, the market share of self-branded passenger cars still ranks first, but the market share has fallen below 40%.

It turns out that 2018 is not the most difficult year for the car market. 2019 continues the downward trend of the car market, and a number of car companies have been weak in the past year. A total of 8.407 million Chinese brand passenger cars were sold in 2019, down 15.8 percent from the same period last year, accounting for 39.2 percent of the total passenger car sales, down 2.9 percent from the same period last year.

According to the top 15 ranking of Chinese brand passenger car sales released by the China Automobile Association in 2019, only four car companies have achieved year-on-year growth in sales, namely Great Wall, Chery, FAW and Shaanxi Automobile.

Among the top five Chinese car companies by sales, SAIC, Geely, Changan and Dongfeng Motor declined to varying degrees, and the only one that achieved year-on-year growth was Great Wall Motor.

Sales data show that SAIC's cumulative sales in 2019 were 2.544 million, down 13.6% from the same period last year; Geely's cumulative sales in 2019 were 1.364 million, down 10.5% from the same period last year; and Changan's cumulative sales in 2019 were 1.331 million, down 11.2% from the same period last year

The cumulative sales of Great Wall cars reached 1.06 million in 2019, an increase of 0.7% over the same period last year. Although the growth rate is only 0.7%, the 0.7% growth is still commendable for car companies that survive in the cold winter of the market.

The increase in sales of Great Wall is mainly due to the continued output of the Harvard brand. Among them, the best-selling model is the Harvard H6, which sold 386400 vehicles in 2019.

The top 5-10 car companies by sales are Beijing Automobile, Chery Automobile, FAW Group, BYD Automobile and Jianghuai Automobile. Among the above car companies, Chery Automobile and FAW Group have achieved proportional growth in sales.

The cumulative sales of cars in Beijing in 2019 were 951000, down 11.9% from the same period last year; BYD's cumulative sales in 2019 were 463000, down 7.7% from the same period last year; and Jianghuai Automobile sales in 2019 were 417000, down 9.8% from the same period last year.

Chery used to be one of the top three independent brand car companies in China, but judging from the performance in recent years, the sales situation is not optimistic. However, in an unusually difficult year in 2019, Chery's cumulative sales rose 3.2 per cent year-on-year to 691000 vehicles. In terms of specific models, Ruihu 8 sold 116500 vehicles in the whole year; Erize series sold 124500 vehicles in the whole year, up 11.8% from the same period last year; and Ruihu 5x sold 61200 vehicles in the whole year, an increase of 12.6% over the same period last year.

FAW Group sold a total of 584000 vehicles in 2019, an increase of 7.5% over the same period last year. It is not surprising that FAW Group was able to achieve year-on-year sales growth, mainly due to the continued growth of Red Flag brand sales. Under the "cold winter" of the car market, Red Flag brand production and sales both broke through the 100000 mark, laying the foundation for Chinese brands in 2020. Xu Liuping said that Red Flag sales will exceed 200000 vehicles in 2020.

The 11th-15th Chinese car companies by sales are GAC GROUP, Sinotruk, brilliance Automobile, Shaanxi Automobile and Zhongtai Automobile, of which GAC GROUP and Zhongtai Automobile are the worst.

GAC GROUP's cumulative sales in 2019 were only 394000, down 26% from a year earlier. According to GAC GROUP's reported sales, GAC MOTOR sold 384600 vehicles, down 28.14% from the same period in 2018. GAC MOTOR suffered a serious decline in 2019. As GAC GROUP's own brand, he relied too much on Chuanqi GS4 sales, especially before the GS4 replacement, sales were very low, and it was only after the replacement that sales returned to the level of 10,000 vehicles.

Zhongtai Motors has seen the biggest decline in sales among the 15 own-brand car companies, with cumulative sales of 153000 vehicles in 2019, down 40.1 per cent from a year earlier, according to data.

Zhongtai Automobile was once a well-known established car company in China, but it was actually a car company that started by imitating Porsche, but because it did not form its own advantages, Zhongtai Motors was eventually marginalized. The living condition of Zhongtai Automobile entering 2019 is worrying. Internal layoffs, factory shutdowns, dealerships without cars to sell and even the risk of bankruptcy at the end of the year have even been exposed. Zhongtai Automobile, which is on the edge of the market, has encountered great difficulties in its operation. Due to the broken capital chain, Zhongtai Automobile has owed payments to more than a dozen suppliers, and a number of suppliers have sued Zhongtai Automobile to the court for repayment.

The grim situation of the automobile market in 2019 is obvious to all, and the sales volume of many car companies have declined in the cold winter market. Entering 2020, the grim situation of the automobile market still continues. In the new year, how to break the situation has become a difficult problem for many independent brands. In the highly competitive market environment, the major automobile companies are facing great challenges.

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