AutoBeta(AutoBeta.net)03/29 Report--

When a company seeks to transform or increase revenue through other means, it means that the industry has experienced the most difficult situation.

China's auto market, which has experienced two consecutive years of decline, was expected to bottom out in 2020, but a sudden pneumonia epidemic disrupted the industry's normal rhythm. Car sales in China have fallen by an unprecedented 80 per cent, with only 310,000 vehicles sold in February, falling back to 2005 levels, according to the China Automobile Association. In the face of this situation, many automobile enterprises have changed their production.

Following the beginning of this year, due to the epidemic caused by the shortage of masks and the conversion of Wuling cars, and was exposed to the conversion of "snail powder." On March 26, Weibo exposed a photo of SAIC GM Wuling brand snail powder. In the picture, a similar self-heating portable lunch box package was written with five big characters: "Wuling brand snail powder." And this operation does not let netizens sigh, Wuling car world really do not understand.

It is worth noting that some media statistics Wuling car this sale of "snail powder", in some well-known online stores sales volume has reached more than 1 million units, cumulative evaluation of more than 300,000, more in micro bo there are 60 million people in micro bo appeal snail powder delivery situation, at present pre-sale period has been scheduled to April.

For this reason, there are also media interviews with Wuling automobile insiders learned that Wuling automobile production snail powder has this matter, and the insider revealed that this operation or Wuling a senior responsible. According to the person in charge, the "conversion" snail powder is precisely because during the epidemic, most products out of stock only have the idea. Although Wuling Automobile has such an intention, it is not sold as a finished product as claimed by the outside world.

In addition, the person in charge also mentioned that although Wuling's cross-border is very large, Wuling should be cautious while maintaining the tenet of "what the people need, Wuling will make what". Unlike mask production, this production will take place in cooperation with local qualified food producers, and if feasible, Wuling will not be a short-term move once it gets involved in the food industry.

As for why "snail powder" is made, it is precisely because the birthplace of "snail powder" is located in Liuzhou, Guangxi. According to the data of SAIC GM Wuling, it is a large-scale Sino-foreign joint venture automobile company jointly established by Shanghai Automobile Group Co., Ltd., American General Motors Company and Guangxi Automobile Group Co., Ltd.(formerly Liuzhou Wuling Automobile Co., Ltd.).

In addition to Wuling's production mask and snail powder, BYD and Dongfeng Yueda Kia and other automobile enterprises have recently "converted" medical substances, among which BYD Automobile Company has added R & D, production and sales of disinfectant products within its business scope on February 5. Dongfeng Yueda Kia recently said that it will officially mass-produce KN95 masks from April 8, and will give priority to Dongfeng Yueda Kia customers, dealers, suppliers, shareholders and employees after mass production.

In fact, from the behavior of many automobile enterprises that changed production masks before, the output is enough and does not rule out the sale situation, which also means that BYD and Kia and other automobile enterprises are realizing revenue through more ways under the current predicament. After all, under the environment of automobile market decline, some scarce substances are easier to sell than automobile enterprises.

The current global epidemic outbreak has caused many overseas automobile enterprises and parts enterprises to stop production. Even though China has effectively controlled the epidemic situation and completed the resumption of production, some automobile enterprises that may adopt overseas parts will also be implicated. After all, as thousands of parts and components are composed of automobiles, it is inevitable that some parts and components will originate from overseas. Once one part cannot be assembled, the whole vehicle will enter a standstill state, resulting in automobile output unable to keep up. Sales are bound to languish.

Therefore, some industry believes that if the current situation is more severe, car enterprises through the "sideline" income to profit, will also help enterprises achieve a balance. After all, in the current situation, nothing is easier to sell than a necessity.

Although sales of Wuling cars have been declining since 2019, since March this year, Wuling cars have exceeded 6000 on that day, gradually returning to last year's level. In 2019, the cumulative sales volume of SAIC GM Wuling was 987,863 vehicles, down 24.9% year-on-year.

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