AutoBeta(AutoBeta.net)04/01 Report--

According to the latest figures released by DPCA on April 1, cumulative sales in the first quarter of 2022 were 31480 vehicles, an increase of 79.49 percent over the same period in 2021. In addition, according to the sales volume announced by Dongfeng Automobile Group Co., Ltd. (hereinafter referred to as "Dongfeng Motor"), DPCA sold 20633 vehicles from January to February in 2022, that is, DPCA sold 10847 vehicles in March, an increase of 44.51% from 7506 in the same period in 2021.

Deep corner of the Dragon car, is about to usher in a major adjustment, but everything is the best arrangement. According to previous reports, Stellantis Group will adjust its business in China, and DPCA will adopt the plan of "two rooms and one hall", in which "two rooms" means that Dongfeng Peugeot will be dominated by France and Dongfeng Citroen will be dominated by China. "one hall" refers to the sharing of existing public areas such as commodity planning, technology, quality and industrial production. According to related reports, Stellantis Group and Dongfeng Motor began negotiations on equity adjustment of DFMC, with a foreign holding of 75 per cent of Dongfeng Peugeot and a 75 per cent stake in Chinese controlling shareholder Citroen, with the shares held by both parties unchanged at 50:50. However, as of press time, DPCA's plan for "two rooms and one hall" has not yet been announced.

As we all know, DPCA created a peak of 704800 vehicles in 2015, and the ambitious DPCA began to hit the million target. In order to meet the market demand, four major vehicle factories are planned and built, of which the first, second and third plants are located in Wuhan, Hubei Province. The fourth plant is located in Chengdu, Sichuan. The planned annual production capacity of these four factories is 300000, 150000, 300000 and 360000 respectively, with a total planned annual production capacity of more than 1 million vehicles. However, since then, DPCA's sales have continued to decline, falling by 15.2%, 36.85%, 32.89%, 55.17% and 55.74% respectively from 2016 to 2020, falling for five consecutive years compared with the same period last year, while halving sales for two consecutive years.

At its peak, DPCA had a planned capacity of one million, but at present, the annual sales of only 100000 vehicles are very different, and the capacity utilization is seriously insufficient, so it is imperative to deal with excess capacity. It is understood that DPCA will sell a factory in 2019, and the DPCA II plant has been officially taken over by Dongfeng Honda and will be transformed into a pure electric car factory. However, even though DPCA has only two production bases in Wuhan No. 3 and Chengdu No. 4, according to DPCA's cumulative sales of 100567 vehicles in 2021, even if DPCA's sales double in 2022, more than half of its production capacity is still idle.

The year 2022 is the 30th anniversary of the founding of DPCA, and will DPCA be able to achieve "30-year-old"? For the new year's planning, DPCA said that it will reach 170000 and challenge 200000 in 2022. After reaching 200000 vehicles, we must be stable after making a profit. In the future, we will not pursue 500000 or 700000 vehicles, but will stabilize at 300, 000 or 400, 000 vehicles, develop with high quality, and keep up with the commodities behind. From the perspective of the future, the revival of DPCA still depends on products, and according to the "Yuan +" plan, DPCA will build and launch 14 new models within 5 years to achieve a comprehensive upgrade of the product matrix.

According to Dongfeng Motor's annual results, DPCA sold a total of 100567 vehicles in 2021, up 100.07% from 50267 in 2020. By the end of 2021, Dongfeng Citroen had 186 sales outlets and 331 after-sales outlets, while Dongfeng Peugeot had 211 sales outlets and 339 after-sales outlets.

Looking back at the history of Shenlong Motor, we can see that its sales volume once exceeded that of FAW Toyota, Guangzhou Automobile Honda and other joint venture brands, and it is a real first-tier car brand. But in recent years, DPCA has failed to keep up with the pace of the times and is often criticized by consumers because of the aging product line, untimely upgrading, service and quality, while Dongfeng Renault, represented by the legal system, withdrew from the Chinese market as early as 2020. The key to the revival of French cars was finally handed over to DPCA.

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