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A few days ago, GAC GROUP released a report card on July sales. Data show that GAC GROUP sold 141200 vehicles in July 2024, down 25.37 percent from the same period last year, including 33900 new energy vehicles, down 32.15 percent from the same period last year, and GAC GROUP's sales from January to July 2024 were 1.0042 million, down 15.83 percent from the same period last year. It is understood that this is GAC GROUP's seventh month of year-on-year decline in sales, that is, year-on-year decline since 2024.

In July, all of GAC GROUP's brands declined, especially in the new energy vehicle sector, which is facing tremendous sales pressure. Among them, Guangzhou Auto Honda sold 33300 vehicles in July, down 20.80% from a year earlier, and cumulative sales for the year were 241200, down 27.34% from a year earlier, narrowing the decline compared with the previous June. In addition, GAC Toyota's performance was not optimistic, with sales of 53600 vehicles in July, down 23.43 per cent from a year earlier, while cumulative sales from January to July were 389600, down 25.48 per cent from a year earlier.

Retail data show that in July, GAC Honda only had more than 10,000 Accord vehicles, compared with 8435 for Haoying and 4834 for styling, while GAC Toyota had more than 10,000 models, namely Faraday, Camry and Wellanda. among them, the Camry is 13179.

In the past, Japanese cars have become the first choice for Chinese people to buy cars because of their high value preservation rate, high fuel economy and low maintenance costs. they are well known by consumers for their reputation of "fuel saving and durability", and their market share in China was once maintained at more than 25%. At its peak, it even reached 30%, but with the rapid popularity of Chinese electric vehicles and the improvement of the appeal of local brands, they began to erode the market of German and Japanese brands. It is difficult for Japanese cars to survive only because of their superior quality and fuel consumption. Not long ago, Honda China announced that Guangzhou Auto Honda plans to close its fourth production line with an annual capacity of 50,000 units in October 2024, and its new new energy plant will start production in November 2024.

Even so, the joint venture brand is still GAC GROUP's main source of sales. According to Automotive Industry concern, Guangzhou Auto Toyota and Guangzhou Automobile Honda account for 61.5% of the group's total sales. With the strengthening of the independent sector, the share of joint venture brands in the group has shrunk, and its fuel vehicle market has been eroded by the new energy vehicle market.

However, the performance of GAC GROUP's new energy vehicle is also indescribable. As GAC GROUP's new energy brand, GAC Ean New Energy sold 28,300 vehicles in July, down 37.17% from a year earlier, making it GAC GROUP's biggest decline, while sales from January to July totaled 154600 vehicles, down 39.21% from a year earlier. It is also the group's biggest decline. It is understood that GAC Ean sales have declined for six months in a row, while GAC EAN sales target is 700000 vehicles in 2024, with 22% of the target sales by July, and the next seven months sales need to be stable at more than 110000 vehicles, under great pressure. it's almost impossible.

GAC Ean, formerly known as GAC NE, was founded in July 2017. after its launch, it was highly expected by GAC GROUP, and its sales continued to rise for many years. At the 2020 Guangzhou Auto Show, Guangzhou Auto Eian announced its independence and changed its name from GAC NE Automobile Co., Ltd. to Guangqi Ean New Energy Automobile Co., Ltd. At the same time, GAC Ean announced that the brand renovated, using a more flattened design of the "G" mark, the inner ring using "AION blue" hue, in order to highlight the electric identity. In 2023, GAC Security sold 380000 vehicles a year, an increase of 77.02% over the same period last year. It is worth mentioning that most of this sales growth is supported by the ride-hailing market. GAC Eian is known as the "king of ride-hailing". The AION S and AION Y models of 12-150000 yuan have become the first choice for ride-hailing. As a result, GAC Ean quickly occupied the ride-hailing market. However, with the gradual saturation of the ride-hailing market, GAC Ean faces the challenge of declining sales. After entering 2024, under the background of accelerating the internal price and configuration of the major independent brands, GAC Ean began to turn sharply, and in the case of sluggish sales, there were all kinds of adverse news such as layoffs and termination of contracts with fresh students.

As one of the Gemini stars on the road of GAC GROUP's new energy transformation, GAC MOTOR carries the technological transformation of plug-in hybrid models, while Ian is responsible for pure electricity transformation. In 2010, GAC GROUP launched Chuanqi brand, relying on the resources of the joint venture brand, launched a variety of products, but with the transformation of intelligence and electrification, GAC GROUP poured more resources into GAC Ean. GAC MOTOR's positioning in the process of external competition and internal resource coordination is becoming more and more awkward, and the challenges are growing day by day. Not long ago, GAC MOTOR officially changed his name to GAC MOTOR. In July, GAC MOTOR sold 25800 vehicles, down 17.70% from a year earlier. From January to July, cumulative sales of 214700 vehicles, down 2.90% from a year earlier.

GAC Hino and Hechuang, which was classified as "other" by GAC GROUP, sold 242 cars in July, down 70.56% from January to July, down 82.55% from January to July.

The decline of joint venture brands and the head-on catch-up of independent brands have become the truest portrayal of China's automobile market, and it also reveals the awkward position of joint venture brands in the domestic market. Previously, joint venture brands have dominated the Chinese car market for more than 20 years, and Chinese car brands have no choice, but now independent brands have gradually become the target for global car companies to catch up. Whether it is Honda Toyota with a joint venture brand or Ian with its own brand, behind the decline in sales is the "onslaught" of other independent brands in the market.

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