AutoBeta(AutoBeta.net)06/15 Report--

In the first five months of this year, SAIC's sales did not outperform the market, which brought a lot of pressure. in the face of doubts from shareholders, Chen Hong, chairman of SAIC, said at the shareholders' meeting that the performance of striving to win this year was really not good some time ago. I also hope that shareholders can give encouragement and not always throw cold water on it.

SAIC is facing great challenges. In the past, as the largest automobile group in China, it is under tremendous development pressure under the influence of the overall decline of the car market and the epidemic. SAIC's performance was slightly disappointed when several car companies and the car body car market recovered in May.

Affected by the epidemic, SAIC sold only 679000 vehicles in the first quarter, a decline of 55.71%. Compared with SAIC, the sales volume of FAW, Changan Automobile and Dongfeng Motor decreased by only 22.56%, 32.12% and 46.36%. SAIC, as the largest automobile group in China, also had the highest decline.

As SAIC's sales and performance have declined again and again, SAIC has attracted the attention of senior officials in Shanghai and issued special instructions requiring SAIC to study the existing problems, including brand, quality and sales. Shanghai relevant departments will increase support for SAIC's nine major brands and a number of new cars.

After the domestic epidemic was effectively brought under control, China's auto market began to recover, and sales of car companies returned to growth in April and May, while SAIC sales did not turn positive until May, and group shareholders questioned SAIC more and more. Retail sales in the domestic narrow passenger car market rose 1.8 per cent to 1.609 million vehicles in May, while SAIC sales fell 1.63 per cent to 473100 vehicles, with SAIC's performance slightly slower compared with other large car companies, according to the data.

SAIC-Volkswagen is the main sales force of SAIC, becoming the biggest decline among the top 10 auto companies with a 14.93% drop in May. According to the market performance analysis of the previous five months, SAIC-Volkswagen's decline was as high as 43.26%, with sales of only 434000 vehicles, a decrease of 330000 vehicles compared with the same period last year. Chen Hong said that SAIC Volkswagen's sales have been squeezed to some extent, but the Volkswagen brand is still the brand with the highest market share and will improve the company's performance after the new products are launched.

SAIC GM sold 136000 vehicles that month, and on the premise of overall market growth, SAIC GM fell 3.6 per cent from a year earlier. SAIC GM is expected to see a rebound in monthly sales, thanks to the launch of four-cylinder versions of its popular models, centralized updates of a number of models, and the launch of a new Cadillac CT4. However, from January to May sales, SAIC GM is still a large decline, reaching 38.68%, more than the decline of the overall market.

Due to market pressure, SAIC has previously implemented a number of rescue measures. In April this year, all the models under Auto Skoda were officially reduced, the brand and product positioning were downgraded, and the price dropped by 24500 yuan. In May, five major enterprises under the SAIC Group held offline promotional activities, with car prices as low as 50% discount, offering 50% discount on car purchase, free of purchase tax, low down payment and other concessions, giving some benefits to consumers, and small profits and quick sales promote the recovery of sales.

With the continuation of the cold winter of the car market and the increasing strength of competitors, SAIC has encountered huge market challenges. SAIC wants to achieve sales growth through "price for volume", but the price system and brand reputation will also be hit.

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