AutoBeta(AutoBeta.net)07/30 Report--

The outbreak of the epidemic in the first half of the year disrupted the pace of operation, and a number of car companies reported a decline in sales in the first half of the year. In the second half of the year, some car companies began to adjust their targets according to the sales situation. It is understood that before, including the Great Wall, Guangzhou Automobile, Changan and other car companies lowered their sales targets for 2020, from the completion rate of the sales targets of the major car companies in the first half of the year, there is still great pressure to complete the annual sales task.

In mid-March, Great Wall announced that it would lower its sales target for 2020, becoming the first car company to adjust its sales due to the impact of the epidemic.

According to the latest restricted stock and stock option incentive plan for 2020 released by Great Wall Motor, it revised the performance evaluation target of the equity incentive plan, reducing its sales target to 1.02 million vehicles in 2020 from the previous 1.11 million vehicles, and its net profit to 4.05 billion yuan from the previous 4.7 billion yuan.

As of the first half of the year, Great Wall Motor sold a total of 395097 vehicles, down 19.95 percent from the same period last year and achieving 38.7 percent of the set sales target. Of these, sales of the Harvard brand fell 25.69 per cent to 262216, the WEY brand fell 43.18 per cent to 26639 and the Euler brand fell 65.07 per cent to 9436.

GAC GROUP is the second car company whose sales target has been lowered by Guanxuan. On March 16, Zeng Qinghong, chairman of GAC GROUP, said through an online press conference that the continued outbreak of the new type of pneumonia had brought production to a standstill, and GAC lowered its forecast for car sales this year from 8 per cent to about 3 per cent.

It is understood that GAC GROUP's cumulative sales reached 2.06 million vehicles in 2019, and the original plan was to increase sales by 8 per cent (that is, 2.22 million vehicles) in 2020. Due to the epidemic, GAC GROUP's sales volume dropped sharply in the first two months, and GAC GROUP will drop from 8 per cent growth to 3 per cent (2.12 million vehicles).

Data show that GAC GROUP sold 824579 vehicles in the first half of this year, down 17.51 percent from 999560 in the same period last year, and only 38.9 percent of the new sales target.

Compared with Great Wall Motor and GAC GROUP, Changan Automobile's sales target has been adjusted by a larger margin. According to the "third Entrepreneurship" plan released by Changan Automobile in 2017, the sales target for 2020 is 4 million vehicles. In early 2020, Changan Automobile said it would strive to achieve its annual sales target of more than 1.91 million vehicles, which means that Changan Automobile sales target has dropped by nearly 50%.

The cumulative sales of Changan Automobile in the first half of the year was 830992, up 1.3 per cent from a year earlier. Changan Automobile has been able to grow against the trend, mainly due to the growth of sales in its own sector and the continued boost from Changan Mazda and Changan Ford. The sections of Changan Group may continue to pick up in the second half of the year, but it will not be easy to achieve the target of 1.91 million vehicles, which currently accounts for only 43.5 per cent of the sales target.

Dongfeng Yueda Kia also recently decided to lower its annual sales target to 270000 vehicles from the 10 per cent growth target set at the beginning of the year (289000 in 2019 and 10 per cent in 2020).

According to the latest figures, Dongfeng Yueda Kia sold 113000 vehicles in the first half of this year, reaching 41.8 per cent of its annual sales target. Although the car market is still full of uncertainties in the second half of the year, if growth continues in the second half of the year, the annual sales target is still likely to be achieved.

In the face of the overall "downward" environment of the car market, it is reasonable for car companies to lower their sales targets, although some car companies have indicated that they will not lower their sales targets, but judging from the current situation, there is still a lot of pressure to achieve the goal. Even if it recovers better in the second half of the year, the Chinese car market is expected to fall by about 10 per cent, according to the China Automobile Association.

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