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Changan Automobile, which used to rank first in independent car sales, announced its results for 2018, showing that its total operating income in 2018 was 66.3 billion yuan, down 17.14 percent from the same period last year, with an operating loss of 228 million yuan, but the total net profit attributed to shareholders was 654 million yuan, down 90.8 percent from the same period last year.

Changan Automobile said the sharp drop in profits was mainly due to a decline in investment income from joint ventures. It means that joint ventures such as Changan Ford and Changan Mazda did not perform well in terms of sales last year.

From the perspective of Changan automobile independent sales and joint venture brand sales, the rapid decline in sales is the main reason, almost all of its brands have declined.

In 2018, the total sales of all Changan automobile products reached 2.138 million, down 25.58% from the same period last year. Among them, the cumulative sales of Changan independent-brand cars was 1.4997 million, down 9.8% from the same period in 2017. Changan Ford's sales halved, with only 377000 new cars sold for the year, compared with 828000 in 2017, while Changan Mazda fell nearly 30, 000 from a year earlier and sold 166000. In addition, sales of Changan PSA's DS brand are low, while Changan Suzuki's Japanese capital announced its withdrawal.

It can be seen that there is little growth in the whole brand of Changan, and the competitiveness of the product market has declined, but this phenomenon has not improved in the first quarter of 2019.

At the same time, Changan Automobile issued a forecast for the first quarter of 2019, with a loss of 1.7 billion-2.5 billion yuan, compared with a profit of 1.392 billion yuan in the same period last year. Changan Automobile believes that the decline in the overall performance of the company is mainly affected by the decline in sales.

According to the sales report, the decline in Changan cars has become more and more serious, falling 32 per cent to 448800 vehicles in the first quarter compared with the same period last year.

Chongqing Changan passenger car sales from January to March were 188800, down 26.9% from the same period last year; Changan Ford's sales plunged to only 36800, down 71.8% from the same period last year; and Changan Mazda's first-quarter sales were down 130000 from the same period last year.

China's auto market has entered a cold winter, with a continuous double-digit decline in overall sales, while Changan Automobile failed to make a rapid response, and both autonomous and joint venture cars fell sharply, resulting in a final loss of profits. Next, there are few signs of recovery in the car market, and Changan Automobile will go through a great test in 2019.

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