AutoBeta(AutoBeta.net)06/01 Report--

On May 31st, FAW Red Flag released the latest sales figures, showing a cumulative sales of 118000 vehicles from January to May in 2021, an increase of 116% over the same period last year. Based on the previous data released by FAW Red Flag, FAW Red Flag sold a total of 91900 vehicles from January to April 2021, which means that FAW Red Flag sold 26100 vehicles in May this year. It is understood that this year's FAW Red Flag sales target of 400000 vehicles, so far has achieved the target of 29.5%, the remaining seven months need to complete the sales of 282000 vehicles, the pressure is not small.

Before this, many netizens questioned why the sales data published by FAW Red Flag were so complete, almost all round numbers. In fact, FAW Red Flag publishes wholesale sales data, which has a certain gap with the final sales volume reflected in the market. For example, FAW Red Flag previously reported April sales of 21900 vehicles, but according to Shanghai Insurance data, FAW Red Flag sold 17422 vehicles in April, lower than Lexus and Cadillac in the second-tier luxury brand market. It is not difficult to find that although the official data of FAW Red Flag is much higher than that of Lexus or Cadillac, it reflects that there is still a large gap in the end market. Of course, as an independent brand that has been on the verge of collapse for several times, the current market performance of FAW Red Flag is worth affirming.

For Chinese people, Red Flag is not only a famous car brand, but also a kind of feeling and memory. However, although the sales of the Red Flag brand continue to create new highs, consumers have some doubts about the brand's sales performance, thinking that it may be wholesale to dealers or online car-hailing, or enter the procurement of official cars of the relevant departments. In fact, in terms of sales in 2020, red flag brands accounted for only 1% of the travel market, 3% of government procurement and 96% of private cars. In other words, at present, it is the private car market that supports the growth of red flag brand sales.

FAW Red Flag has formed a car family composed of H5, H7 and H9, and a SUV family composed of E-HS3, HS5, HS7 and E-HS9. The product system is relatively perfect, covering a medium-and high-end consumer market of 150000-700000 yuan. Referring to the previous retail volume data of the Federation of passengers, FAW Red Flag mainly relies on Red Flag H5 and Red Flag HS5 to maintain the overall sales level. From January to April, Red Flag HS5 sales were 36867, Red Flag H5 was 25701, and Red Flag H9 was 9748. The monthly sales of other models are basically less than 1,000.

In terms of new products, the new HS5 is scheduled to launch in June, and the appearance of the new car has been adjusted, including upgrades for as many as 10 products such as front grilles and wheels. With the launch of the new HS5, the product strength is further enhanced, which is expected to help the brand achieve its annual sales target of 400000 vehicles.

Halfway through 2021, FAW Red Flag wants to achieve its sales target of 400000 vehicles this year, and 282000 vehicles in the remaining seven months, which means that monthly sales need to reach more than 40, 000 vehicles. Judging from the current market performance of the Red Flag brand, it is still under great pressure. In fact, from the perspective of the development of the automobile industry, the development time of Chinese automobile brands is far less than that of other countries, but in recent years, China's automobile market has grown rapidly, and many independent brands have firmly mastered the technology in their own hands. many overseas brands have also begun to enter China to cooperate with independent brands, which is a good start. At present, for independent brands, the most important thing is to make progress in stability, develop technology to improve competitiveness and achieve sales growth at the same time, the extreme sales target is easy to produce "grandiose" ideas.

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