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On the evening of August 29, Dongfeng Automobile Group Co., Ltd. (hereinafter referred to as "Dongfeng Group") released its interim results report for 2024. According to the financial report, Dongfeng Group's annual revenue was 51.145 billion yuan, an increase of 12.06% over the same period last year, and the profit attributable to shareholders was 684 million yuan, down 47.9% from 1.314 billion yuan in the same period.

Dongfeng Group, which owns joint ventures such as Dongfeng Nissan, Dongfeng Honda and DPCA, had a sales peak of 4.27 million vehicles, but under the influence of new energy transformation and intensified market competition, the sales of the joint venture brand began to decline. Dongfeng Group is also greatly affected. Data show that Dongfeng Group sold 966100 vehicles in the first half of 2024, up 2.2 per cent from a year earlier. It is understood that from 2018 to 2023, Dongfeng Group sold 3.0522 million vehicles, 2.932 million vehicles, 2.8683 million vehicles, 2.7751 million vehicles, 2.464 500 vehicles and 2.088 million vehicles respectively, a decline for five consecutive years.

Sales growth leads to revenue growth, but sales growth is driven by independent new energy brands, which are still selling cars at a loss, while joint venture brands are losing ground and are no longer as profitable as they used to be. In terms of specific brands, among the joint venture brands, Dongfeng's daily production and sales volume in the first half of 2024 was 330500, down 1.41% from the same period last year; Dongfeng Honda was 237800, up 4.79% from the same period last year; and DPCA was 37700, down 14.77% from the same period last year. Most of the independent brands achieved growth, with sales of 41600 Dongfeng Liuqi passenger cars, up 5.32% over the same period last year, while Dongfeng passenger cars were 85100, up 62.56% over the same period last year. Dongfeng Lantu was even stronger, up 102.098% to 30400.

According to Automotive Industry concern statistics, Dongfeng Nissan and Dongfeng Honda accounted for 58.8% of the group's total sales (568300 vehicles), while Dongfeng Liuqi, Dongfeng passenger cars and Dongfeng Lantu only 16.2%. Compared with 2023, Dongfeng Nissan and Dongfeng Honda accounted for a significant decrease in the group's total sales, while the share of independent brands increased significantly. At present, the joint venture brand is still the main source of sales of Dongfeng Motor, and the performance of the joint venture brand will directly affect the performance of Dongfeng Automobile, while the transformation of the joint venture brand in the electrified route is slow, or the sense of existence is very low. to a certain extent, the pace of Dongfeng new energy development has been hindered.

For Dongfeng Motor, to achieve the sales target must rely on its own brand, and need to rely on the new energy market. Dongfeng Lantu CEO Lu Fang said that Dongfeng Motor began to take action against the new energy passenger car plate a year ago, integrating the three independent passenger car brands: Dongfeng Fengshen, Dongfeng Yipai and Dongfeng Nano, which are directly operated by the group headquarters and compressed the management level. Data show that Dongfeng New Energy vehicle sales in the first half of 2024 were 153600, an increase of 28.5% over the same period last year.

In the face of the escalation of competition in the automobile market this year, Dongfeng must speed up the pace of transformation. It is understood that the overall sales target of Dongfeng Group in 2024 is 2.7 million vehicles, an increase of 29% compared with the 2023 sales target. A total of 420000 vehicles were sold in the first two months of this year, an increase of 41.5% over the same period last year.

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