AutoBeta(AutoBeta.net)09/16 Report--

On the evening of September 13, GAC Group issued an announcement stating that after voting by the directors attending the meeting, the "Proposal on the Dissolution and Liquidation of the Joint-Stock Company Shanghai Hino Engine Co., Ltd." was reviewed and approved. According to the company's commercial vehicle development plan, in order to realize the strategic transformation of new energy for commercial vehicles, the company agreed to dissolve and liquidate the joint-stock company Shanghai Hino Engine Co., Ltd.(hereinafter referred to as "Shanghai Hino") in accordance with the law.

According to Nikkei Chinese website, on the same day, Hino Motors announced that it would stop producing diesel engines in China. The local subsidiary Shanghai Hino Engine will stop production at the end of September and be dissolved after 2024.

According to public information, Shanghai Hino Engine Co., Ltd. was established in 2003 and its production headquarters is located in Shanghai. The registered capital and paid-in capital of the company are both US$29.98 million. It is mainly engaged in the research and development and production of traditional fuel vehicle engines and auto parts products. The company is a joint venture jointly funded by Hino and Guangzhou Automobile Group, with a capital contribution of 70% and 30% respectively. Data shows that the joint venture's sales volume in 2023 will be 1874 vehicles, less than 10% of the peak.

GAC Group's latest announcement shows that as of December 31, 2023, Shanghai Hino's audited total assets were 698 million yuan, total liabilities were 286 million yuan, operating income in 2023 was 234 million yuan, and net profit was-61 million yuan. However, GAC Group pointed out that the dissolution and liquidation will not have a significant impact on the company.

Shanghai Hino's production suspension, dissolution and liquidation are related to the current development of the auto market. In China's highly competitive new energy vehicle market, the past 10 years may have been the best ten years for joint venture car companies, but now it is a different story. Since June this year, domestic fuel vehicle sales have significantly lagged behind new energy vehicles. Data from the Passenger Transport Association shows that retail sales in the domestic passenger car market in June were 1.72 million units, of which retail sales of traditional fuel vehicles were 840,000 units, and retail sales of new energy vehicles were 878,000 units. That is to say, new energy vehicles have officially replaced the oil vehicle market position, which means that consumers are more willing to buy new energy vehicles; In addition, retail sales in the domestic passenger car market in August were 1.905 million units, of which retail sales of conventional fuel vehicles were 870,000 units, and retail sales of new energy vehicles were 1.027 million units. New energy vehicles once again led oil vehicles.

Of course, the suspension of production and dissolution and liquidation of Shanghai Hino are not isolated cases. As early as October last year, GAC Mitsubishi, one of the first Japanese brands to enter the Chinese market, announced its dissolution and delisting. At present, although fuel vehicles still cannot completely replace new energy vehicles in a short period of time,

However, the trend of new energy is unstoppable, which also means that new energy is the only way to compete among car companies. Therefore, Shanghai Hino Engine Company, which is mainly engaged in the research and development and production of traditional fuel vehicle engines and auto parts products, will stop production at the end of this month and be dissolved after 2024. It may be expected that Hino Motor will announce a plan to stop producing diesel engines in China. After all, only by following market development trends can we achieve more development.

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