AutoBeta(AutoBeta.net)09/05 Report--

SAIC released the latest sales figures, showing that total car sales in August were 504236, down 3.57 per cent from 486858 in the same period last year. The cumulative vehicle sales from January to August were 3010910, down 22.08 per cent from 3863948 in the same period last year.

SAIC has grown for three months in a row since June, but the current situation for its "profit cow" brands SAIC Volkswagen and SAIC GM is not optimistic, with the two brands falling to varying degrees in August. Based on this, SAIC's sales volume still fell by 20% in the previous August.

In 2020, SAIC-Volkswagen sales have declined for eight consecutive months compared with the same period last year, even if the car market recovery failed to achieve sales growth, coupled with the traditional off-season in August, SAIC-Volkswagen's decline further expanded. SAIC-Volkswagen sales fell 3.97 per cent to 145000 in August and 29.53 per cent to 856385 in the previous month.

SAIC Volkswagen sales decline has become the norm, in addition to the reasons for the market recession, there is also a certain relationship with Volkswagen products, Passat poor performance impact on brand reputation and corporate reputation, as well as Skoda brand marginalization of the market, marketing promotion and product strategy have affected Volkswagen sales. Due to the pressure of sales performance brought by the market, SAIC Volkswagen Skoda has reduced its entire range of models, and some SAIC-Volkswagen models have launched programs such as 50% discount, price concessions, cost subsidies, purchase tax-free, zero down payment, and so on, which have promoted the growth of sales to a certain extent, but the output is still weak.

SAIC GM's sales fell again after becoming a regular employee in July, falling 3.37 per cent to 129262 in August and 26.05 per cent to 798235 in the previous month. It is pointed out that SAIC GM has paid a price for its "price for volume" market strategy in recent years, which has led to internal friction among Buick, Chevrolet and Cadillac, resulting in a decline in brand premium and market competitiveness.

At present, SAIC GM accelerates the progress of product launch and makes compromises to the market in terms of product strategy. A number of main Buick and Chevrolet cars have launched four-cylinder naturally aspirated models to solve the dilemma that there are only three-cylinder engines for consumers to choose from.

SAIC GM Wuling's monthly sales were higher than the same period, with August sales up 16.54 per cent to 148000 vehicles and cumulative sales falling 17.46 per cent from January to August to 80BE90 40s. According to the data, SAIC GM Wuling overtook SAIC Volkswagen to become the highest-selling brand under SAIC Group, while cumulative sales surpassed SAIC GM. In the passenger car sector, as the MPV market is not as expected, Wuling and Baojun brands are also seeking brand upgrading and transformation, while developing the mini electric vehicle market.

In terms of independent brands, SAIC passenger car sales fell 1.21 per cent to 50426 in August and 17.32 per cent to 342902 from January to August, while SAIC Datong sales rose 28.47 per cent to 16707 and 15.44 per cent to 100255.

SAIC is the leader of the domestic automobile industry. With the recovery of the market, the rhythm of SAIC is gradually returning to normal. However, SAIC's current operating situation is not optimistic, with operating income falling 25.39% to 271.52 billion yuan and net profit down 39.01% to 8.394 billion yuan in the first half of the year.

With the continuation of the cold winter of the car market and the increasing strength of competitors, SAIC has encountered huge market challenges. SAIC Volkswagen and SAIC General Motors want to achieve sales growth through "price for volume". But the price system and brand reputation will also be hit.

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