AutoBeta(AutoBeta.net)08/02 Report--

Just after July, two car companies released sales figures, namely FAW Toyota and FAW Red Flag. Of course, the two car companies are eager to announce sales, but also on the premise of gratifying results, sales rose sharply in July.

New car sales reached 79000 in July, up 40 per cent from a year earlier and down 4 per cent from a month earlier, according to official FAW-Toyota figures. From January to July this year, FAW Toyota sold 430000 vehicles, accounting for 4.7 per cent of the market, up 0.8 per cent from the same period last year.

During the epidemic in the first half of 2020, market activities and car consumption were restricted, resulting in a sharp decline in car sales. Gradually getting rid of the impact of the epidemic in the second quarter, the sales of a number of car companies recovered quickly and returned to proportional growth at the end of the first half of the year. Among them, FAW Toyota's cumulative sales in the first half of the year have increased by 0.7% over the same period last year.

FAW Toyota has carried out in-depth adjustment of its product line in recent years, eliminating old fuel vehicle products, including Crown, Prado and other models, which have completely stopped production and withdrawn from the market in China, thus focusing on new models and new energy products. At present, the results show that it has certain results.

From January to July specific model analysis, Carola, Asian Dragon and RAV4 Rongfang become the main sales force. Among them, the Corolla sold 32184 units in July, with a cumulative sales volume of 185000 units in the previous July; Asian Dragon sold 12898 units in July, with a cumulative sales volume of 59416 units in the previous July; and RAV4 Rongfang sold 19181 units in July, with a cumulative sales of 98474 units.

According to the plan, FAW Toyota will add 1 factory, 3 capacity increase and improvement projects and 10 new models in the future. The new product range includes sedans, SUV and MPV,SUV models, including Hanlanda's "sister model", the all-new Harrier, Corolla Cross, RAV4 PHEV and an all-electric SUV; sedan. There will be Carola long wheelbase models; MPV models will have Sienna.

In April this year, Toyota and FAW of China decided to reorganize the management system of the joint venture FAW Toyota. Tianjin FAW Toyota Motor Co., Ltd. (TFTM) became the overall enterprise of FAW Toyota, while other FAW Toyota vehicle and engine manufacturers were included. FAW Toyota said that the purpose of this restructuring is to achieve the best production system, improve resource and strategic efficiency, and then enhance competitiveness through TFTM's unified management of production enterprises, so as to cope with China's rapidly changing market environment. At the same time, make the reporting process clearer, and strive to strengthen the management of enterprises and accelerate decision-making.

Another car company that took the lead in announcing July sales is FAW Red Flag. The latest sales figures released by FAW Hongqi show that sales in July were 17500, up 99 per cent from a year earlier. Cumulative sales from January to July reached 87500, up 108 per cent from a year earlier, while meeting the annual sales target of 200000.

At present, Hongqi brand product line is mainly in the mid-market, including H5, H7, HS5, HS7, E-HS3 five mass production models. Among them, the Hongqi H5 has just been updated, and the new Hongqi H5 costs 14.58-190800 yuan. The new car adds a 1.5T engine + 7-speed double clutch gearbox, while the 1.8T model adds a 48V light mixing system that matches a six-speed manual self-integrated gearbox.

In the second half of the year, Red Flag will also launch Red Flag H9 flagship sedan, Red Flag HS7 2.0T model, full-size pure electric SUV E-HS9 and other new cars to further enrich its mid-and high-end product line. Among them, the Red Flag H9 is scheduled to go on sale in August, with an official pre-sale of 33-600000 yuan. The new car is located as a medium and large sedan, providing 2.0T+48V light mixing system and 3.0T V6 mechanical supercharging.

Judging from the development in the past three years, the Red Flag brand has achieved a leap from 3000 to 30, 000 vehicles, and then to 100000 vehicles in 2019, which is a successful transformation for the brand. Next, the Red Flag brand will mainly focus on the mid-and high-end market and really challenge the luxury brand, but the development prospect is still very uncertain.

In the future planning, Xu Liuping, chairman of FAW Group, once proposed that the Red Flag brand should achieve the goal of 400000 vehicles by 2022 and 1 million in the future. From the point of view of the industry, it is not easy for the Red Flag brand to break through in the large-scale market.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat