AutoBeta(AutoBeta.net)08/30 Report--

BYD handed over its "report card" for half a year, making it the most profitable car company in China.

On August 28, BYD released its 2024 interim results report. According to the report, BYD's operating income in the first half of the year was 301.127 billion yuan, up 15.76 percent from the same period last year; net profit was 13.631 billion yuan, up 24.44 percent from the same period last year; and non-net profit was 12.315 billion yuan, up 27.03 percent from the same period last year. On the same day, SAIC released its interim performance report for 2024, showing that during the reporting period, SAIC achieved operating income of 28.47 billion yuan, down 12.82% from the same period last year; net profit was 6.627 billion yuan, down 6.45% from the same period last year; and non-net profit was 1.02 billion yuan, down 82.00% from the same period last year.

There is a huge contrast between SAIC and BYD in market performance, and SAIC's position in the domestic market has been seriously threatened. By comparison, BYD's net profit is already double that of SAIC. During the reporting period, BYD sold 1.613 million vehicles, up 28.46 percent from the same period last year, while SAIC sold 1.827 million vehicles, down 11.81 percent from the same period last year, of which 461000 new energy vehicles were sold, up 23.90 percent from the same period last year.

Although SAIC's sales are nearly 200000 higher than BYD's, due to the large-scale price reduction and promotion of joint venture brands, SAIC's overall sales have not increased significantly, but declined, thus affecting the group's profit performance. According to the financial report, SAIC-Volkswagen made a net profit of 865 million yuan in the first half, while SAIC General Motors lost 2.275 billion yuan.

SAIC GM's performance is very bleak, with cumulative sales of 225800 vehicles in the first half of the year, down 49.98% from the same period last year. The decline in sales is the main reason for SAIC GM's losses, followed by SAIC GM in a critical period of transformation of new energy vehicles. Need to continue to invest in products and technology, and finally, the traditional fuel vehicle price promotion, profit contribution further declined. At present, SAIC GM operates three major brands: Buick, Chevrolet and Cadillac, of which Buick is the main source of sales, with 184400 vehicles.

It is worth mentioning that BYD's car sales have surpassed SAIC's for two months in a row. In July, SAIC's wholesale sales were 251500, down 37.16% from a year earlier, while BYD's was 342400, up 30.60% from a year earlier. This is the second time in a row that BYD has surpassed SAIC this year. In June, SAIC's wholesale sales were 300500, down 25.92 per cent from a year earlier, while BYD was 341700, up 35.02 per cent from a year earlier.

By the end of July, BYD had sold 1.9554 million vehicles, up 28.83 per cent from a year earlier, while SAIC sold 2.0784 million vehicles, down 15.92 per cent from a year earlier. The sales gap between SAIC and BYD is only 123000 vehicles. With the decline of the joint venture brand, the decline of SAIC is expanding. According to the current market performance, BYD can overtake SAIC in only two months and become the largest automaker in China. Therefore, the counterattack of the joint venture brand will be the top priority of SAIC in the next five months, especially SAIC GM.

In order to save the market, SAIC has made a series of personnel changes. In August, SAIC completed the largest high-level adjustment in 2024. From SAIC to SAIC Volkswagen, SAIC General Motors, SAIC passenger cars and SAIC GM Wuling, as many as 15 senior executives are involved, almost completing a comprehensive coach change from the group to each branch. Whether it is the frequency of change or involving the number of people, positions, in today's automobile industry, it can be said to be the only existence.

It is undeniable that SAIC has entered the "deep water zone" of transformation. With the decline in the sales of joint venture brands and the high tariff wall built by the European Union on Chinese electric vehicles, how to speed up the rise of independent brands and reduce the pressure on overseas markets, these problems still need to be solved by the new management. It is expected that such a large-scale high-level structure adjustment can, to a certain extent, play a positive role in its innovation transformation and returning to the right track of development.

As for BYD, it shouted the slogan "electricity is lower than oil" after the Spring Festival of the year of the Dragon and launched a number of glorious models, reducing the price of Qin PLUS and destroyer 05 to 79800 yuan, further seizing the traditional fuel car market. At the same time, BYD launched a number of new models, including Qin L, Song L, Seal 06 and so on. It is worth mentioning that the day before the release of the interim report, BYD's equation Leopard brand announced a partnership with Huawei, and the Leopard 8 will be equipped with Huawei's ADS3.0, making it the first Huawei smart car under BYD.

Since the beginning of this year, the domestic automobile market has accelerated its transformation to electrification and intelligence. For BYD, with the breakthrough and high-end development of sales, intelligence will be a key link in the second half if it wants to maintain its competitive advantage. As for SAIC, its position in the domestic market has begun to waver, it is no longer the most profitable car company in the country, and the title of the number one domestic carmaker may also be removed. Fundamentally speaking, the transformation of automobile enterprises requires new leaders to change the relatively old internal organizational structure and management system in the past, and to build new teams to lead the company to go on better, but it is also difficult for elephants to turn around. SAIC has three joint venture brands and five independent brands, so it is not easy to get rid of the disadvantages.

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