AutoBeta(AutoBeta.net)07/08 Report--

Geely announced June sales: total sales in June were 90875, down 29% from a year earlier, as Geely continued to reduce dealers' total inventory due to inventory pressure. Total sales in the first half of the year were 651700, down 15 per cent from a year earlier. In view of the lower-than-expected sales, Geely decided to cut its full-year sales target by 10% from 1.51 million to 1.36 million.

Geely, by contrast, sold 1.5 million vehicles in 2018, up 20 per cent from 2017.

Throughout the first half of the year, Geely saw only a slight increase in March and declined in the rest of the year, with a 27 per cent decline in May and a 29 per cent decline in June.

Almost all car brands are affected by the industry environment this year. China's new car sales are affected by the slowdown in economic growth, the overall market situation continues to decline, and the sales performance of various manufacturers fluctuates. The independent brand Geely, which has always had a good momentum, has also experienced great ups and downs this year, facing greater market pressure.

In fact, under the influence of the switch between country five and country six, manufacturers concentrated on cleaning up the inventory of cars in country five in June, and the sales of most manufacturers increased. The Federation also pointed out that retail sales of broad-sense passenger cars in China in June were 1.8 million, up 4.9% year-on-year for the first time in 13 months.

However, Geely still recorded a 29% year-on-year decline in sales in June, which the company said was due to a continued reduction in the total inventory of dealers. It means that the total amount of cars in stock of Geely dealers continues to be high.

In addition, Geely expects net profit attributable to shareholders to fall by about 40 per cent year-on-year in the first half of 2019, compared with 6.67 billion yuan in the same period in 2018, as a result of falling sales.

Geely complete announcement:

Geely announced that the group's total sales in June 2019, including those sold by the group's 50 per cent joint venture, was 90875, down about 29 per cent from the same period last year and up about 1 per cent from May 2019. This is due to the group's continued reduction of the total inventory of dealers. However, the corresponding retail sales recorded strong annual and monthly growth during the period, reflecting improved demand for the Group's products in the end market.

Of the total sales in June 2019, 15985 were new energy and electrified vehicles. The group's exports more than tripled year-on-year to 6234 units in June 2019. In June 2019, the group's total sales in the Chinese market were 84641, down about 33 per cent from the same period last year.

Total sales in the first half of 2019 were 651700, down about 15 per cent from the same period last year and reaching 43 per cent of the group's annual sales target of 1.51 million units in 2019.

In view of the larger-than-expected decline in overall vehicle sales in China since the beginning of the year and the Group's determination to take the initiative to reduce total dealer inventory, the Group's total sales in the first half of 2019 were lower than originally expected. Coupled with the continuing uncertainty in the Chinese passenger car market for the rest of the year, the group's management team decided to cut its full-year sales target by 10 per cent to 1.36 million from 1.51 million.

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