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

Just entering February, the joint venture brand DPCA can't wait to release the latest figures. According to the DPCA poster, sales rose 90.2% year-on-year in January 2021, the second consecutive month of year-on-year growth, but specific sales figures have not yet been released.

DPCA released sales figures so quickly, the year-on-year increase of 90.2% seems to be good, but it does not mean that DMC has made a qualitative leap, as can be seen from only announcing the rate of growth without announcing specific sales.

According to data released by Dongfeng Motor Company, DPCA sold 3694 vehicles in January 2020, which is about 7026 in January 2021, based on a year-on-year increase of 90.2%.

Is it good to sell 7026 cars a month? Based on the current operating conditions of DPCA, this result is indeed quite good. After all, monthly sales in 2020 are basically maintained at the level of 4000-5000 vehicles.

DPCA's sales increased by 90.2% in January compared with the same period last year, mainly because the 2020 Spring Festival holiday in January, a marked reduction in the number of working days led to a significant reduction in dealers' business activities, which had a certain impact on terminal sales. So it is not surprising that most brands showed an increase in sales in January.

In addition, although the sales of DPCA reached the level of 7000 in January, the number of people entering the personal consumption market decreased significantly. DPCA previously announced that DPCA delivered 200 Dongfeng Peugeot 508L (Ctrip rental cars) to Wanyou (Xiamen) Financial Leasing Co., Ltd. on January 19, and DPCA delivered another 800 Dongfeng Fukang ES500 to Chengdu Chengtou Energy Group on January 20. It is also predictable that a number of brands, including Dragon Motors, will also grow as a result of the impact of the epidemic on the national car market in February last year. Therefore, when year-on-year sales growth has become the norm, it does not mean that DPCA has achieved a counterattack.

Looking back on the development of DPCA in the past few years, we can describe it as "falling off the altar". It is understood that after DPCA reached a sales peak of 704800 vehicles in 2015, sales continued to decline, falling by 15.2%, 36.85%, 32.89%, 55.17% and 55.74% respectively from 2016 to 2020, halving sales for two consecutive years.

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. "

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. As for the Peugeot brand, the medium-term revamped Peugeot 4008 and 5008 models will go on sale in March, and both new cars will adopt a new design approach. Dongfeng Citroen brand, plans to launch Tianyi C5 AIRCROSS annual model, C3-XR medium-term model and a new strategic model.

It can be seen from the announcement of the growth rate without the release of sales figures that DPCA also acknowledges the severe market situation it is facing, which is a far cry from the performance of hundreds of thousands of vehicles a few years ago. Therefore, DPCA still needs to face up to its situation and find out where the real problem lies. Perhaps with the support of both shareholders, DPCA has more courage to lay out its products and develop its brand. Under the blood transfusion of both Dongfeng and PSA shareholders, DPCA's road to self-rescue is not smooth, as to whether it can achieve self-redemption, the market has its own answer.

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