AutoBeta(AutoBeta.net)01/02 Report--

Recently, the joint venture brand Shenlong Motors released the latest figures, sales in December 2020 increased by 15.8% compared with the same period last year, achieving year-on-year growth for the first time in 30 months.

The first increase in sales in 30 months is indeed great news for DPCA and a good start for follow-up development, but it is hard to say whether DPCA is going to counterattack.

According to data released by Dongfeng Motor Company, DPCA sold 5524 vehicles in December 2019, 43870 in November 2020, and 15.8% year-on-year sales in December 2020. based on this calculation, DPCA sold about 6400 vehicles in December and just over 50, 000 in 2020. Is this kind of sales record good? No, it's not really good, but for DPCA, this is the best result this year.

According to official sources, Dragon Motor increased 27.9% month-on-month in September, 28.6% in October, 18.4% in November and 12.9% in December. Not surprisingly, DPCA will see a sustained year-on-year increase in sales in the first half of this year, not because of how attractive its products are to consumers, but because of the low sales base of last year's epidemic. In this case, most car companies will show significant year-on-year growth in the first half of the year, including Dragon Motors.

Therefore, the year-on-year increase in sales does not mean that DPCA has achieved a counterattack, which is just an illusion. In the past few years, the life of DPCA has become more and more difficult. After reaching a sales peak of 704800 in 2015, DPCA's sales have continued to decline, falling by 30% in 2018 and 55% in 2019, respectively. DPCA's sales have halved again under the influence of the epidemic and the market.

In September 2019, DPCA launched a "yuan" recovery plan to change its persistently sluggish sales and performance, but the pace of DMC in Wuhan was disrupted by the 2020 epidemic, and the decline in sales of its two brands continued to expand.

At a critical juncture, Dragon Motors announced a major personnel change. After the communication between the shareholders and the party committee of Dongfeng Company, Chen Bin became the general manager of DPCA. Chen Bin said, "the Dragon is on the brink of life and death, and this cannot be avoided." Neither Dongfeng nor Peugeot Citroen can afford to lose this battle, and we have now begun to make substantial moves. "

Then, both shareholders also give some support to DPCA to ensure the future development of DMC. According to the official Wechat release of PSA Group, 130 million yuan will be invested in brand image special support every year from 2020 to 2022, and 81 million yuan will be invested in brand special support from 2023 to 2037.

On October 24, 2020, DPCA announced the "Yuan +" plan at the Cultural Festival, including product, marketing, service and operation. DPCA said it would launch 14 new models in the next five years for the Chinese market and consumer demand, of which Dongfeng Peugeot 4008 and 5008 mid-term revamped models were launched in March, while other models did not disclose specific plans.

Perhaps with the support of both shareholders, DPCA has more courage to lay out its products and develop its brand. But even with blood transfusions from both Dongfeng and PSA, DPCA's road to self-rescue is not smooth, and the market has its own answer as to whether it can achieve self-redemption.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat