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BAIC new energy sales and performance fell off a cliff, although the overall car market and new energy vehicle market are clearly recovering, but BAIC new energy life is not easy.

A few days ago, BAIC Blue Valley New Energy released a report for the third quarter of 2020, saying that the company's revenue in the first three quarters was 3.922 billion yuan, down 78.16 percent from a year earlier, and its net profit loss reached 2.884 billion yuan, compared with a loss of 313 million yuan in the same period last year. In the net profit after deducting non-operating profit and loss, BAIC Langu's net loss is as high as 3.1 billion yuan.

The substantial loss in performance is mainly due to the decline in sales. BAIC New Energy sold 2245 vehicles in September, down 77.57 per cent from 10009 in the same period last year, while cumulative sales in the first nine months were 21086, down 78.57 per cent from 98382 in the same period last year, according to the report.

BAIC New Energy has developed rapidly in the past few years, and its sales increased from 20, 000 in 2015 to 150000 in 2019, becoming the number one in the domestic pure electricity market for seven consecutive years. Today, BAIC's new energy sales have plummeted by 80%, which is completely out of touch with the overall market. According to the latest data from the Federation of passengers, sales of new energy narrow passenger vehicles in September were 111000, up 84.2% from a year earlier and 18.5% from a month earlier, while cumulative sales were 601000, down 19.3% from a year earlier.

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 in the online car-hailing, taxi and travel markets, paying no attention to the development of individual end-user sales, but now this part of the market has gradually become 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."

Some people in the industry believe that, "BAIC New Energy is the beneficiary of the era of high subsidies for new energy vehicles. With the passage of time, consumers have higher and higher requirements for new energy models." including new requirements for intelligent, fashionable appearance, space and so on. At present, the models launched by BAIC New Energy are relatively traditional, which results in a lack of product power. "

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. "

BAIC New Energy is trying to boost sales through high-end brands. In October, the first production car of the ARCFOX polar fox brand of BAIC New Energy was officially launched, focusing on the medium-and high-end pure electric vehicle market. The first mass-produced model of the ARCFOX polar fox brand is the new SUV--ARCFOX α T, with five models in three battery life versions, with NEDC mileage of 480km, 600km and 653km respectively, with a subsidised price range of 24.19-319900 yuan.

At present, the market share of high-end new energy models represented by Tesla and Ulai Automobile is increasing. BAIC New Energy was missing in the high-end market in the past, and its newly launched high-end brand ARCFOX has not yet been certified in the market, while the concentration of high-end models to head enterprises is becoming more and more obvious. Sales and performance continue to decline, BAIC New Energy is still facing greater difficulties in the market.

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