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GAC GROUP released his performance report for the first half of 2024 on August 31st. According to the financial report, the group's operating income in the first half of the year was 45.808 billion yuan, down 25.62% from the same period last year; the net profit belonging to shareholders of listed companies was 1.516 billion yuan, down 48.88% from the same period last year; and the net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was-338 million yuan, down 112.51% from the same period last year.

With regard to the performance of the first half of the year, GAC GROUP said that the change in performance during the reporting period was mainly due to the increase in commercial and political investment due to the impact of the "price war" in the domestic automobile industry; the change in net cash flow from operating activities during the reporting period was mainly due to the increase in net cash flow from operating activities of financial enterprises during the reporting period compared with the same period last year.

Data show that GAC GROUP's car sales in the first half of 2024 were 863000, down 25.79 percent from the same period last year, of which 164100 new energy vehicles were sold, down 30.61 percent from the same period last year. In terms of specific brands, among the joint venture brands, GAC Honda sold 207900 vehicles in the first half of the year, down 28.28% from the same period last year; GAC Toyota sold 336000 vehicles, down 25.80% from the same period last year. Among independent brands, GAC MOTOR sold 188900 vehicles, up 0.44% from the same period last year, while GAC Ean sold 126300 vehicles, down 39.65% from the same period last year.

According to Automotive Industry concern, Guangzhou Auto Toyota and Guangzhou Auto Honda accounted for 63.03% of GAC GROUP's total sales in the first half of the year, while GAC MOTOR and GAC Ean accounted for only 36.52% of total sales. In other words, the joint venture brand is still GAC GROUP's main source of sales, but with the strengthening of the independent plate, the share of the joint venture brand in the group has shrunk, especially the fuel vehicle market is gradually being eroded by the new energy vehicle market. Of course, the decline in sales of GAC GROUP's joint venture brands is not the only one in the car market, including Changan Ford and Changan Mazda of Changan Automobile Group, SAIC Volkswagen and SAIC General Motors of SAIC. Dongfeng Nissan, Dongfeng Honda and DPCA, which are affiliated to Dongfeng Automobile Group, did not perform well in the first half of the year.

In addition to the joint venture brand, GAC GROUP's performance in the new energy vehicle sector in the first half of the year is also indescribable. As GAC GROUP's new energy brand, GAC Ean new energy sales have plummeted since 2024, with a particularly significant decline, with a cumulative sales of only 126300 vehicles in the first half, down 39.65% from the same period last year, making it the group's biggest decline. Judging from the data, the overall sales performance of GAC Ean is under pressure. "Automotive Industry concern" believes that the decline in GAC Ean sales may be related to its market. At present, the online car-hailing market has gradually saturated, and the inner volume of the "price war" has also made GAC Ean lose its price advantage. in the case of sluggish sales, there are all kinds of adverse news such as layoffs and termination of contracts with new students.

At present, the layout of GAC Ean includes AION S, AION Y, AION V and AION LX models. Retail sales data show that in the first half of 2024, GAC's highest sales model was AION Y, with 74241 vehicles, followed by AION S, with 72088 vehicles, which is also the main model that GAC Ean put into the online car-hailing market. Sales of the AION V and AION LX were 8582 and 219 respectively. According to the plan, GAC Ean has a sales target of 700000 vehicles this year, compared with a completion rate of 18.05% in the first half of the year, making it almost impossible for it to meet its sales target.

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 GAC Ean is responsible for pure electricity transformation. However, compared with GAC Ian, GAC MOTOR achieved micro growth in the first half of the year, with cumulative sales up 0.44 per cent year-on-year to 188900 vehicles, making it the only brand in the group to achieve growth.

GAC Hino and Hechuang, which were classified as "other" by GAC GROUP, had cumulative sales of 3897 in the first half of the year, down 82.98 per cent from the same period last year.

Generally speaking, at present, joint venture brands are still the main source of sales of GAC GROUP, but under the general trend of the rise of independent brands and the transformation of new energy, joint venture brands are generally having a hard time in the domestic market, on the contrary, independent brands have gradually become the goal for global car companies to catch up.

GAC GROUP has previously said that the share of joint venture brands will further decline this year, and the market share of independent brands will further increase, standing firm at more than 50 per cent, and becoming market dominant. To put it simply, in terms of long-term development, GAC GROUP still has to rely on independent brands and new energy vehicles to achieve growth. In the face of the rapid development of the new energy market, GAC GROUP previously said that he would actively promote the comprehensive layout of EV, PHEV and REV of independent brand new energy models. Next year will be the year of the outbreak of GAC GROUP's own brand plug-in products, and will launch new plug-in and add-program hybrid models. As for the change in GAC GROUP's position in the car market at that time, we will wait and see.

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