AutoBeta(AutoBeta.net)10/26 Report--

On October 25th, Guangzhou Automobile Group Co., Ltd. (hereinafter referred to as "GAC GROUP") announced that in order to realize the transformation of the management mode of its own brand from strategic control to operation control and improve management efficiency, GAC GROUP moved to a new office address, which was located at 23 Xingguo Road, Zhujiang New City, Tianhe District, Guangzhou City, Guangdong Province. it was changed to 668 Jinshan Road East, Panyu District, Guangzhou City, Guangdong Province.

GAC GROUP said that this move is mainly in response to profound changes in the market pattern of the automobile industry, promote independent brands to become bigger and stronger, speed up the completion of GAC GROUP's transformation and adjustment, and achieve sustained, healthy and high-quality development. Feng Xingya, general manager of GAC GROUP, said that the competition pattern of Chinese car brands has changed greatly, with independent brands accounting for more than 60% of the market. In the transformation of traditional cars to new energy, both local and joint ventures are facing challenges. Joint venture brands are also accelerating the transformation of intelligence and electrification. To this end, GAC GROUP has launched a reform to strengthen the development of independent brands.

From the city to the countryside, GAC is not here to enjoy, but to "fight", so we have to talk about GAC's performance.

According to the interim results, GAC 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 decline in deducting non-net profit was even more obvious, deducting a non-net loss of 338 million yuan, down 112.51% from the same period last year.

With the rapid transformation of China's new energy vehicle market, the problem of traditional car enterprises trapped in new energy has become increasingly prominent. GAC GROUP is under greater pressure than ever before. GAC GROUP said that the decline in performance is mainly due to the increase in commercial and political investment due to the impact of the price war in the domestic automobile industry, but the price war is after all an industry problem, and other large automobile manufacturers may not have such a sharp decline, so in the final analysis, it is the reason for the enterprise development strategy.

Guangzhou Auto Honda and Guangzhou Auto Toyota are well-deserved sales pillars, but they can't handle it now. Data show that GAC GROUP sold a total of 1.3351 million vehicles in the first three quarters of 2024, down 25.59% from the same period last year, including Guangzhou Auto Honda down 29.06% year-on-year to 309200 vehicles and Guangzhou Auto Toyota down 24.49% to 517900 vehicles. The two joint ventures account for 62% of the group's total sales. The sharp decline in sales has a direct impact on the group's revenue and profit performance. Although the two joint venture brands continue to exchange discounts at the terminal, they have not been able to achieve obvious results. After entering the first half of the year, the decline rate of the two joint venture brands not only did not improve but significantly accelerated.

Guoxin energy automobile industry chain has reshaped the industrial pattern. In the past, the fuel economy and hybrid advantages of Japanese cars were not obvious, and even surpassed by BYD, car-building new forces and other brands, the brand power is not what it used to be. Honda and Toyota are leaders in hybrid technology in the global market, but they have gradually lost their edge in the development of new energy vehicles in China, and until now there are no powerful electric products on the ground. this slow pace has also left it far behind by a number of domestic brands.

In addition to the joint venture brand, the life of the independent brand is also difficult, especially GAC Eian. As GAC GROUP's independent brand industry, the poor performance of GAC Ean makes GAC under great pressure. Data show that GAC Ean sales in the first three quarters of 226700 vehicles, down 35.40% year-on-year, is the group's largest decline in brand. As of the end of September this year, the completion rate of GAC Ean was only 32 per cent based on the proposed annual sales target of 700000 vehicles.

The main reason for the decline in GAC's Aian sales is due to the saturation of the ride-hailing market and the intensification of competition in the industry, coupled with the continuous decline in the prices of independent brands such as BYD, Geely and Chery, AION S does not have obvious market advantages, while higher prices of AION V and AION LX models are more difficult to sell. In addition, GAC Ean has launched the Haopin brand and launched three models: Haopin SSR, Haopin HT and Haopin GT, but they also failed to stir up splash in the market.

Today's GAC is facing tremendous pressure. In the past, Toyota and Honda were the main joint venture brands, but with the volume of the car market, its two major joint venture brands are facing a huge crisis. today, they have not launched strong electric products, while the share of fuel vehicles continues to decline. it has a direct impact on the overall performance of the group. As for independent brands, GAC Ean, which is highly expected, mainly depends on the volume of the ride-hailing market, and this market is gradually saturated, which makes GAC Ean sales continue to decline. GAC MOTOR's performance is OK, but this does not solve the current group's problems.

In today's increasingly fierce market competition, there are not many opportunities for GAC to try and make mistakes. Joint venture brand shrinks, new energy transformation is weak, today's GAC does lack a strong enough growth point. How can GAC find a foothold in it and get the enterprise back on the right track? We still have to wait for the final test of the market.

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