AutoBeta(AutoBeta.net)06/24 Report--

Starting in 2017, as the annual sales of nearly 300000 fell to about 100000, and then stopped production, BAIC Yinxiang finally broke out in 2018, triggered by a three-month employee "high-temperature vacation". BAIC Yinxiang's plight was exposed, as well as speed cars, which also belong to Chongqing Yinxiang Industry.

In October 2018, BAIC, Yinxiang Industries and Chongqing Hechuan government jointly gave BAIC Yinxiang 2 billion yuan of blood transfusion, but the money was a drop in the bucket for BAIC Yinxiang. In the following six months, the car company not only did not improve, but fell into a bigger dilemma. Tianyan verification, BAIC Yinxiang judicial risk tips reached 530, was enforced 22 times. 2 billion yuan was thrown in, production did not resume, new cars were not launched, agents and suppliers did not receive arrears, and tensions with BAIC Yinxiang did not ease at all.

According to BAIC Magic Speed dealers, BAIC Magic Speed currently owes dealers about 200 million yuan. in addition, there are rumors that BAIC Magic Speed owes employees wages and suppliers about 1 billion yuan, that is, before restructuring, the Chongqing municipal government should first spend more than 1.2 billion yuan to clean up its debts.

According to reports, BAIC Yinxiang is about to complete its restructuring, and it is possible to abandon the magic speed and speed brands after the reorganization, and if the business improves, Orient plans to package and sell BAIC Yinxiang to new investors. After the reorganization is completed, the company will launch a new brand, LOGO has also been registered, magic speed and speed brands may be abandoned.

It is understood that in August 2010, BAIC Group and Chongqing Yinxiang Industrial Group Co., Ltd. jointly established BAIC Yinxiang, its main brands are BAIC Magic Speed and specific Speed. In 2014, the Magic Speed series SUV model was launched, and the low-price strategy of Magic Speed sold 150000 units in the first year. Comparison Speed was launched in 2015, focusing on SUV and MPV products, with the same low-price route as Magic Speed.

However, BAIC Yinxiang, which only relies on the advantage of low price to seize the market, is getting lonely. Figures show that only 158000 vehicles were sold in 2018, nearly halving compared with the peak annual sales of 266800 in 2016. At this time, the cumulative sales of speed is only about 68000 vehicles.

BAIC Yinxiang has been facing operational difficulties since 2018. BAIC Yinxiang issued a notice on July 10, 2018, saying that due to the continuous deterioration of the industry environment and operational difficulties, BAIC Yinxiang announced that it would stop production for 40 days, but in fact, this cycle is far more than 40 days, and according to data, BAIC Yinxiang's total sales in April this year was only 1933 vehicles, sales plummeted.

In a short period of two or three years, from the original sales dark horse to the present bleak, what is the reason behind this?

First of all, the most important reason is that the car market is affected by the decline in demographic dividends, the market environment is not good, and the market has already shown negative growth. In the era of consumption upgrading, people have higher requirements for the quality of automotive products. However, BAIC Yinxiang is not ready for the upgrading of the automobile industry. in addition to the advantage of low price, BAIC Yinxiang lacks the core competitiveness and technology, and relying on low price is undoubtedly not beneficial to the brand. this is also an important reason why many domestic brands are difficult to survive in the cold winter of the auto market.

Self-owned car companies that have been laying out high-end and more successful cars since a few years ago, such as the high-end brand Lecker jointly built by Geely and Volvo, have a positive impact on corporate brands. now, in terms of vehicle sales and the size of the enterprise, they are far ahead of many self-brand car companies that take the low-end route.

Thus it can be seen that the high-quality automobile market seems to have an immune effect on the car market in the cold winter, and all these can prove that there is indeed a trend of upward adjustment in the structure of China's automobile industry. Now the time to get a piece of the pie by fighting price war has passed, and we pay more attention to the quality of the products. We don't know whether the new brand to be launched by BAIC Yinxiang will be more high-end, but we can foresee that it is very likely that BAIC Yinxiang will start to build an upward strategic approach to the brand.

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