AutoBeta(AutoBeta.net)08/01 Report--

On the evening of July 31, FAW Red Flag released the latest data showing that cumulative sales from January to July exceeded 170600 vehicles, an increase of 95 per cent over the same period last year. Combining the previous data released by FAW Red Flag, FAW Red Flag sold a total of 145000 vehicles in the first half of the year, which means that FAW Red Flag sold 25600 vehicles in July this year, down 5.2% from 27000 in June and up 46.3% from 17500 in July 2020. It is understood that this year's FAW Red Flag sales target of 400000 vehicles, so far has achieved the target of 42.65%, the remaining five months need to complete the sales of 230000 vehicles, the pressure is not small.

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 sold 27000 vehicles in June, but according to terminal retail data released by the China Automobile Center, the retail volume of the Red Flag brand in June was 20516, which was lower than that of Tesla's 28530, Cadillac's 20813 and Lexus's 20604. It ranks seventh among luxury brands. However, as an independent brand that has been on the verge of delisting for several times, the current market performance of FAW Red Flag is worth affirming. It is understood that today is also the 63rd anniversary of Red Flag. On August 1, 1958, China's first "Red Flag" premium car was born.

Although FAW Red Flag has a good performance in the market, the sales distribution of products is not balanced. FAW Red Flag has formed a car family composed of H5, H7 and H9, and a SUV family composed of E-HS3, HS5, HS7, E-HS9 and E-QM5. The product system is relatively perfect, covering a medium-and high-end consumer market of 150000-700000 yuan. Referring to the retail volume data of the Federation of passengers, FAW Red Flag mainly relies on Red Flag H5 and Red Flag HS5 to maintain overall sales, with cumulative sales of the two models reaching 35429 and 53041 respectively in the first half of the year. As for the high-end Red Flag H9, its current sales are basically maintained at the level of about 2000, with cumulative sales of 13614 in the first half of the year.

On June 22, FAW Hongqi also launched Red Flag E-QM5, and the new car launched three models, namely, the flag-sharing version, Didi version and T3 version, all priced at 239800 yuan. It is worth mentioning that the car is only sold in the high-end online ride-hailing market, not for individual sales. In addition, Red Flag recently launched the official version of Red Flag H9, which, as its name suggests, is only for procurement in the official market and sells for 429800 yuan (the price purchased by the government is 379800 yuan). In terms of power, the new car carries a 2.5T turbocharged V6 engine with a maximum power of 276 horsepower, matching a seven-speed double-clutch transmission.

From cars to SUV, from traditional fuel vehicles to new energy vehicles, from mid-range passenger cars to high-end passenger cars, from the personal market to the online car-hailing market, Red Flag cars have covered all areas of car use, which is where Red Flag Automobile has made the most obvious progress in recent years. From the perspective of market performance, Red Flag brand has indeed made some achievements, but it is facing a lot of problems, and there is still a big gap between Hongqi brand and domestic luxury brands, whether in technology, word-of-mouth or products.

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