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

BAIC new energy vehicle sales continue to plummet. Even if China's new energy vehicle market recovers and grows in August, the former new energy giant has frequently encountered the embarrassing plight of a huge decline.

According to the latest BAIC Blue Valley report, BAIC New Energy sold 2132 new cars in August, down 80 per cent from a year earlier to 18841 vehicles from January to August, down 78.68 per cent from a year earlier.

BAIC New Energy, which has fallen by as much as 80%, has been completely out of touch with the overall market. According to the latest data from the Federation of passengers, China's new energy narrow passenger car sales in August were 93000, up 12.3% from the previous month and 46.3% from the same period last year, achieving two consecutive months of sales growth. The cumulative sales volume was 490000, down 28.5% from the same period last year.

It means that BAIC New Energy, once the top seller of pure electric vehicles in China, accounted for only 2.3% of the market in August.

The sudden collapse of BAIC's new energy sales is closely related to the company's development strategy. At first, driven by the policy, the new energy vehicle market rose rapidly, while BAIC Xinneng devoted itself to expanding the online car-hailing, taxi and travel markets without paying attention to the development of individual end-user sales, which is now saturated. BAIC New Energy accounts for a small proportion of personal terminal sales, which leads to the plight of brand car sales, and the collapse in sales can be expected. Some analysts pointed out that "BAIC has a lot of sales volume purchased by travel companies, and the development of travel companies basically stagnated in the first half of this year, which greatly affected BAIC Blue Valley."

Liu Yu, general manager of BAIC Blue Valley, also 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. "

The collapse in sales comes at a time when BAIC New Energy is also losing money. BAIC Langu's results for the first half of 2020 showed that BAIC Langu achieved operating income of 3.112 billion yuan in the first half, down 68.94% from the same period last year, while 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 view of the current situation of the company, BAIC Langu said that the main tasks of 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.

Only by breaking away from the travel market and seeking the growth of the private user market, BAIC New Energy can break through the current difficulties.

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