AutoBeta(AutoBeta.net)08/12 Report--

The new energy vehicle market, which has been declining for 12 months, finally ushered in an increase in sales in July this year, and the new energy business of a number of car companies temporarily ended the state of "falling". However, as once the largest domestic new energy vehicle sales company, BAIC New Energy continues to plummet.

BAIC New Energy sold only 2009 vehicles in July, down 84% from a year earlier, while sales from January to July totaled 16709 vehicles, down 78.5% from a year earlier, according to the BAIC Blue Valley report on Aug. 12.

Obviously, BAIC New Energy failed the market performance in 2020, falling far more than the entire new energy industry. According to the China Automobile Association, sales of new energy vehicles in China reached 98000 in July, an increase of 19.3% over the same period last year. Even from January to July, sales of new energy vehicles in China reached 486000, down 32.8% from the same period last year. Xu Haidong, deputy chief engineer of the China Automobile Association, also said that judging from the current development trend, new energy vehicles will maintain relatively steady growth in the second few months of this year, and the domestic new energy vehicle market is expected to sell 1.1 million units this year.

The fact that BAIC New Energy has recorded such a high decline is more telling. Some analysts believe that BAIC New Energy relies on the car-hailing and taxi market to achieve the first place in China at a time of rapid expansion, but now this part of the market is saturated, and BAIC New Energy accounts for a very small proportion of personal terminal sales. therefore, it leads to the dilemma that brand models can not be sold, and the collapse in sales can also be expected.

In 2020, BAIC has frequently changed its leadership. In July this year, BAIC New Energy appointed Liu Yu as the company manager. In June, Ma Fanglie resigned as BAIC New Energy Manager due to personal health and age, and was approved as Deputy Secretary and General Manager of BAIC New Energy Party Committee. From June 2018 to June 2020, Liu Yu served as vice president and executive deputy general manager of Beijing Hyundai Motor Co., Ltd.

In addition, at the end of July this year, BAIC officially announced that Xu Heyi, 63, was no longer secretary of the party committee and chairman of BAIC because of his age, and Jiang Deyi, former chairman of Beijing Jinyu Group Co., Ltd., took over the post. It means that BAIC has ended the 18-year era of Xu Heyi.

Under the leadership of Xu Heyi, BAIC's independent passenger car sector is relatively weak, and the new energy business has also put an end to the rising momentum. In October 2019, BAIC's independent plate was greatly integrated, BAIC New Energy and BAIC's independent traditional fuel vehicle plate merged into one to launch the BEIJING brand, while the Saab brand was strategically abandoned. Today, the BEIJING brand includes new energy business and fuel vehicle business, achieving two-line development.

The dilemma encountered by BAIC New Energy may also be the problem faced by many independent new energy companies.

According to the 2019 annual report released by BAIC Blue Valley, the company achieved an operating income of 23.589 billion yuan in 2019, an increase of 30.39 percent over the same period last year, a net profit of 92.0101 million yuan, an increase of 25.54 percent over the same period last year, and a net profit of 870 million yuan excluding non-operating profit and loss. Among them, in the non-operating profit and loss projects, including 1.04 billion yuan of government subsidies. It means that government subsidies are still an important source of profit for BAIC's new energy.

BAIC Langu pointed out in the announcement that the new energy vehicle industry is facing three pressures: first, the continuous downward pressure of the automobile market; second, the sharp decline in new energy vehicle subsidies has led to the pressure of greater market fluctuations due to lack of market confidence; third, the competitive pressure of foreign brands, new forces, and domestic traditional automobile enterprises to enter the new energy vehicle industry one after another.

At present, BAIC New Energy can only solve the dilemma of BAIC New Energy by breaking away from the car-hailing and taxi market and seeking the growth of private new energy market.

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