AutoBeta(AutoBeta.net)08/28 Report--

On the evening of August 27, BAIC Blue Valley released its results for the first half of 2020. According to the financial report, BAIC Langu achieved operating income of 3.112 billion yuan in the first half of the year, down 68.94% from the same period last year. The net loss attributed to shareholders of listed companies was 1.863 billion yuan, a year-on-year drop of 2,814.98 percent.

As for the reason why net profit changed from profit to loss, BAIC Blue Valley said that affected by the COVID-19 epidemic, BAIC's new energy sales fell sharply, resulting in a sharp drop in revenue and net profit. It said that in the first half of 2020, due to force majeure factors such as the global COVID-19 epidemic, the new energy vehicle market showed a significant decline. According to the China Association of Automobile Manufacturers, domestic sales of new energy vehicles were 393000, down 37.4 percent from the same period last year. Among them, the middle and low-end electric vehicle market and taxi, ride-hailing and other operating electric vehicles declined significantly, which is the main market of BAIC new energy, BAIC new energy is facing a severe test.

According to the latest data released by BAIC Blue Valley, BAIC's cumulative new energy sales in the first half of this year were 14700, down 77.44 per cent from the same period last year. Prior to this, BAIC New Energy won the title of new energy vehicle sales for many years in a row, but since the decline of new energy subsidies in June 2019, BAIC's new energy sales have declined for a time, and showed tremendous sales pressure during the epidemic. BAIC New Energy has been surpassed by Tesla, BYD, GAC NE and other car companies in the first half of the year.

As a new energy vehicle company founded in 2009, it has been implementing a single-brand strategy, its products are mainly cost-effective models, and achieved good sales results in the new energy vehicle dividend period. At present, BAIC New Energy has lost its former luster.

According to some analysts, 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 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 be expected.

At present, BAIC New Energy is also accelerating to enter the middle and high-end market. As the first high-end model of BAIC New Energy "product upgrade, brand upgrade" strategy, ARCFOX α T will be listed within this year. As the only high-end brand in the independent section, BAIC has high hopes, as to how the ARCFOX sales are still waiting for the market test.

However, it can be foreseen that in the face of traditional car companies accelerating the layout of the new energy field, domestic car brands and the impact of Tesla on the market, BAIC New Energy will lose market share in the future period of time is inevitable. 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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