AutoBeta(AutoBeta.net)09/04 Report--

On September 3, at the signing ceremony of strategic cooperation between Baoneng Group and China Central Radio and Television Station, Junming Otani, executive vice president of Baoneng Automobile Group, revealed that in addition to Qoros, Baoneng Automobile Group is planning to set up a high-end car brand. positioning will be higher than Qoros.

Baoneng Group's entry into the automotive industry began in March 2017, when Baoneng Automobile with a registered capital of 1 billion yuan was established. In December 2017, Baoneng Group announced that it would buy a 25% stake in Guanzhi Automobile for 1.6 billion yuan, officially entering the auto industry. A month later, Kenon Holdings, the parent company of Qoros, announced that Baoneng Group had invested 6.63 billion yuan to buy a 51 per cent stake in Qoros, becoming the controlling shareholder of Qoros.

However, it is also difficult to be optimistic after Baoneng Group entered the auto industry. After Baoneng Group acquired Qoros, Qoros sales increased from 15000 in 2017 to 63000 in 2018, an increase of 320% over the same period last year, but most of the new cars were "produced and sold" through Baoneng's affiliated companies. there are very few in the actual consumer market. Cumulative Qoros sales fell 64 per cent to 23000 in 2019, up from 2873 in the first half of this year.

In September, Qoros will launch the Qoros 7 model, which is different from the model on sale in appearance, interior and power, and is regarded as the key model of the brand's "back-to-back battle". On August 27th, Quan Zhi 7, a brand new model of Quan Zhi, officially opened its pre-sale, launching a total of six models with a pre-sale price range of 10.98-161800 yuan. In terms of power, Guanzhi 7 launched 1.8T and 1.6T engine configurations, of which 1.6T engine maximum power 150Kw, peak torque 280N m, 1.8T engine maximum power 170Kw, peak torque 300N m.

In addition to the Quan Zhi brand, Baoneng spent 1.63 billion yuan on Changan PSA at the end of 2019, which is owned by Baoneng Automobile's wholly-owned subsidiary Qianhai Ruizhi. In May this year, Changan PSA has formally completed the industrial and commercial change, the changed name is "Shenzhen Baoneng Automobile Co., Ltd.".

Under the influence of the superimposed epidemic situation of stock competition in the domestic automobile market, the living space of independent brands is gradually flagging. In the first seven months of this year, among the top 10 sales of domestic independent car brands, only Changan Automobile and FAW Red Flag achieved positive growth. Among the autonomous car companies that sell less than 1,000 vehicles, Baoneng Automobile (Quan Zhi / Changan PSA) is among them, with cumulative sales of only 3253 vehicles in the first seven months.

From the perspective of the pattern of the domestic market, the market concentration is increasing, the mainstream brands continue to develop upward, while the weak brands will face elimination. Perhaps because of competition, Baoneng, like its own brands such as Dongfeng, Great Wall and Geely, plans to launch a new brand for upward development, but Baoneng, which makes cars across the border, has a chance of winning remains to be seen.

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