AutoBeta(AutoBeta.net)08/31 Report--

BAIC New Energy, which once won the first place in the field of pure electric vehicles, has suffered a slump in sales and a loss in performance. What has happened to this car company? The answer can be found out by Liu Yu, general manager of BAIC Blue Valley, in an interview with the media.

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. 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 online car-hailing and taxi markets to achieve volume at a time of rapid expansion, and there are large-scale order purchases by travel companies, so as to achieve the first place in China, but now this part of the market is saturated. BAIC New Energy accounts for a small proportion of sales in individual terminals, which leads to the dilemma that brand models cannot be sold, and the collapse in sales can also be expected.

BAIC is also aware of this. A few days ago, Liu Yu, general manager of BAIC Blue Valley, pointed out in an interview with the media that at present, BAIC Blue Valley does have a large proportion of major customers, but the proportion of private users of the company is rising rapidly. In the second half of the year, we will certainly increase our efforts in the private user market and enhance our attractiveness in the private market. "

It means that with the support of travel market and policy, BAIC new energy is rising rapidly, but the lack of development of the private market makes it unable to adapt to the current market environment, and new energy vehicles are seriously unsalable.

To make matters worse, BAIC Blue Valley suffered a big loss as sales plummeted. On August 28, BAIC Langu released its results for the first half of 2020, showing that 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 as high as 1.863 billion yuan, down 2814.98% from the same period last year.

In response to these problems, BAIC Langu said that the main tasks of operation in the second half of the year include improving marketing power, reducing costs and increasing efficiency, and deepening mechanism reform. In the second half of the year, BAIC Langu will mainly promote the ARCFOX high-end electric brand, break through the private market, and promote the public business market (including timeshare, long-term rental business, power exchange business, etc.) and so on.

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, in addition to its own business strategy, may also be a problem faced by many independent new energy enterprises at present. 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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