AutoBeta(AutoBeta.net)08/14 Report--

Since the beginning of July, it has been a traditional off-season in the domestic auto market, but this is not the case from the sales performance frequently announced by car companies recently. According to the 13 listed car companies that are the first to disclose the latest sales data, except for marginalized brands, the market has experienced double-digit year-on-year growth, among which Changan Automobile has become the highest growth company with a growth trend of nearly 40% in July, and has become one of the few car companies to go against the trend throughout the year.

Since the impact of the epidemic in February this year, the domestic auto market has experienced an unprecedented trough. With the gradual recovery of the auto market, China's auto market has achieved month-on-month growth for four consecutive months, but since July is the traditional off-season for car sales, even if July still maintains a strong year-on-year growth trend, the momentum of month-on-month growth has been interrupted.

Judging from the sales volume of 13 listed car companies in China, except for Haima Automobile, which is on the edge of the market, and BAIC New Energy, which is affected by the new energy market environment, many other car companies have achieved year-on-year growth, of which 9 have achieved double-digit growth, it can be said that the growth trend is still obvious.

Although SAIC, as the largest automobile company in China, still has the highest sales volume in China, with a cumulative sales volume of 455600 vehicles in July, its growth performance is somewhat unsatisfactory, achieving only a year-on-year increase of 4%. This undoubtedly lags behind the 7.9% year-on-year growth of the domestic passenger car market in July.

Specifically, in July this year, the performance of SAIC-Volkswagen and SAIC passenger cars is still lower than that of last year, and it continues to decline from the same period last year, which needs further boost. SAIC-GM achieved a slight year-on-year increase in July, with a turning point compared with the previous six months. SAIC-GM Wuling and SAIC Chase have shown year-on-year growth for many months in a row.

FAW Group ranked behind SAIC in July, thanks to its many best-selling joint venture brands, all of which helped FAW become one of the group car companies with a growing trend, with a year-on-year increase of 23.2% and a cumulative monthly sales of 322500 vehicles.

Passenger cars benefited from the growth of its joint venture brands such as FAW-Volkswagen, FAW-Toyota and FAW-Mazda, among which FAW-Toyota had the greatest growth momentum, reaching 40% year-on-year growth in July, followed by FAW-Volkswagen and FAW-Mazda up 1.2%. As a brand under FAW Group, FAW Red Flag is undoubtedly the biggest winner. Although the volume is still small, it doubled again in July after months of growth, an increase of 98.8% over the same period last year, which undoubtedly boosted the confidence of FAW Group.

Among Dongfeng Automobile, GAC GROUP and Changan Automobile, which are both mainstream car companies in China, Changan Automobile became the best performing car company in July, achieving a year-on-year growth of 38.5% in July, slightly better than the 16.8% growth of GAC GROUP and 10.8% of Dongfeng Automobile.

Unlike GAC GROUP, the growth of Dongfeng Motor and Changan Automobile in July became the biggest growth engine under the group. Among them, Changan independent brand achieved year-on-year growth of 50%, while Changan Ford and Changan Mazda grew by 20.2% and 3.1% respectively.

With the exception of Dongfeng's own brands, Dongfeng Nissan, Dongfeng Honda and Dongfeng Yueda Kia all maintained growth of less than 20 per cent, slightly less than their own brands.

In contrast, GAC GROUP's own brand only achieved single-digit growth, while Guangzhou Auto Toyota and Guangzhou Automobile Honda helped Guangzhou Auto pull up Guangzhou Auto Fick and Guangzhou Automobile Mitsubishi, which have been in decline. It finally achieved an increase of 16.4% in July compared with the same period last year.

Geely and Great Wall, as proprietary brands, also performed strongly in July, with Geely selling 105218 new cars in July, up 15% from a year earlier, while Great Wall sold 78339 in July, up 30% from a year earlier. although Great Wall is slightly better than Geely this month, their annual sales and sales targets are pretty much the same. However, both of them have more intensive new car launches in the second half of the year, so they are still full of confidence in the market in the second half of the year.

For example, in addition to the recent launch of the Euler White Cat, the Great Wall will usher in three powerful models, namely, the third generation Harvard H6, the Harvard Dog and the WEY Tank 300.

Compared with overall sales, other independent brands also showed strong growth in July, including 14.2% growth for Chery, 33.6% for Jianghuai Motor and 17.4% for Jiangling Motor. In addition, BYD, which is dominated by new energy, finally stopped falling in July, with a slight increase of 1.3% in July.

Overall, looking back at the data of a number of automobile groups mentioned above, we can see that although the growth trend of joint venture brands is still strong, the performance of self-owned brands is significantly better than that of joint venture brands. According to data, retail sales in the domestic passenger car market reached 1.597 million in July, an increase of 7.7% over the same period last year and the strongest positive growth since May 2018. Sales of self-branded passenger cars in July were 585000, up 4.5 per cent from a year earlier, with a market share of 35.1 per cent, up 1.7 per cent from June. Therefore, according to industry analysis, this is also due to the acceleration of the launch of new products from independent brands since the second quarter, gradually realizing the reversal of monthly sales.

But in any case, as the car market enters the second half and the market performance in recent months, the market makes us feel the signs of recovery are strengthening. Therefore, according to the analysis of the Federation, although the car market lost a lot of sales in the first half of the year due to factors such as the epidemic, the strong trend at the beginning of the third quarter undoubtedly gave the industry more confidence in picking up in the second half of the year.

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