AutoBeta(AutoBeta.net)11/03 Report--

On October 31, the three major subsidiaries of BAIC Group successively announced their results for the first three quarters, among which BAIC Blue Valley did not increase profits, while Beijing Automobile and Futian Motor both showed a decline in revenue and profit.

Specifically, BAIC Blue Valley's operating income in the first three quarters of this year was 9.82 billion yuan, up 5.5% from the same period last year, but profits did not rise with it. The net loss in the first three quarters was 4.49 billion yuan, an increase of 38.2% from the-3.25 billion yuan loss in the same period. Thanks to Beijing Mercedes-Benz, Beijing Auto's net profit in the first three quarters was 10.29 billion yuan, but down 22.3 percent from a year earlier, and operating revenue also fell 6.7 percent to 144.02 billion yuan. In addition, Foton Motor's revenue was 35.76 billion yuan, down 16.7% from the same period last year, and its net profit was 430 million yuan, down 45.2% from the same period last year.

As the vanguard of BAIC's new energy transformation, although BAIC Langu achieved operating income growth in the third quarter, it still did not get rid of the fate of losses, and even further aggravated the losses, with a net loss of 1.92 billion yuan in the third quarter, with a loss of 51.2% year-on-year. If nothing happens, 2025 will be BAIC's fifth year of losses. Previously, from 2020 to 2023, BAIC's net losses of 6.482 billion yuan, 5.244 billion yuan, 5.465 billion yuan and 5.4 billion yuan respectively, coupled with a loss of 2.571 billion yuan in the first three quarters, resulted in a cumulative loss of more than 27 billion yuan over the past four and a half years.

However, BAIC's Langu sales have stopped falling, with sales of 67849 vehicles in the first three quarters, up 23.9 per cent from a year earlier. Among them, BAIC polar fox is the absolute main sales force, with sales of 46741 vehicles in the first three quarters, accounting for 68.9% of BAIC Blue Valley's overall sales. In order to improve market performance, BAIC Langu successively launched two pure electric models, the Alpha T5 and the Alpha S5, to increase sales by improving product power and performance-price ratio, while at the same time partnering with Huawei to launch the shared brand. The first model, the S9, was officially launched in August, with a price of 399800 yuan and 449800 yuan respectively. However, as a brand-new brand, the market performance is still relatively general. In September, the sales volume of the Hengjie S9 was only 2169, which is significantly lower than that of the M7, which is also the smart car of Huawei. Although it is backed by Huawei, the low brand awareness and inadequate channel construction still affect the market development of the Hangjie.

Beijing Auto is also having a hard time as the luxury brand market is eroded by domestic brands. In the first three quarters, Beijing Automobile's revenue was 144.02 billion yuan, down 6.7% from the same period last year, and its net profit was 10.29 billion yuan, down 22.3% from the same period last year. The double drop in revenue and profit of Beijing Automobile is mainly due to sales. Beijing Automobile has not released specific sales in the first three quarters, but it is not difficult to see that it is mainly affected by Beijing Mercedes-Benz. Mercedes-Benz's revenue in China in the first three quarters was 17.227 billion euros, down 6.7% from a year earlier, with revenue falling 16.6% to 5.09 billion euros in the third quarter, according to Mercedes-Benz Group results. In terms of sales, Mercedes-Benz sold 512200 vehicles in China in the first three quarters, down 10.2 per cent from a year earlier, with sales falling 12.9 per cent in the third quarter to 170700 vehicles, the biggest decline in the single market in that quarter.

In Mercedes-Benz's view, the decline in sales is still due to the price war, and the situation in China's high-end and luxury car markets remains weak, leading to continued pressure on its sales in China. Generally speaking, the competitiveness of entry-level models affected by the "price war" is as strong as before, with a decline in sales, such as Mercedes-Benz A-Class and GLB models, while sales of expensive models are not as large as before, and sales of core models have declined, resulting in a decline in revenue and profits. Kang Linsong, chairman of Mercedes-Benz Group, said on a conference call that it is estimated how long Mercedes-Benz's failure in China will continue, and that the company will "do its best" to improve its performance in the future, including launching new products in the Chinese market to launch a sales offensive.

As for Foton Motor, its revenue in the first three quarters was 35.76 billion yuan, down 16.7% from the same period last year, and its net profit was 430 million yuan, down 45.2% from the same period last year. In terms of sales, Foton sold a total of 433000 vehicles in the first three quarters, down 3.85% from a year earlier. Like the passenger car business, Foton is seen as BAIC's fortress in commercial vehicles, but Foton's sales, revenue and profits also fell in the first three quarters.

In the view of people in the industry, BAIC needs to come up with more cards to return to growth.

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