AutoBeta(AutoBeta.net)07/26 Report--

Under the pressure of the downturn in the domestic automobile market, car companies have reduced their annual sales one after another, and the hot summer has come, but the summer of the automobile market has not come yet.

On July 20, Great Wall issued a forecast for the first half of 2019 and a sales target adjustment announcement for 2019. Based on the development of the automobile industry in the first half of the year, in order to maintain the overall sales of Great Wall, Great Wall adjusted its sales target to 1.07 million vehicles in 2019, down 10.8% from 1.29 million set at the beginning of the year. After the reduction, Great Wall's completion rate in the first half of the year reached 46.2%, 5.1 percentage points higher than the original sales rate of 1.2 million vehicles, which was 41.1%.

Prior to this, Geely Motor and SAIC also adjusted their original sales targets, with a drop of about 10%.

On July 8, Geely announced a profit warning for the first half of 2019 and said that the overall efficiency of the Chinese car market fell more than expected. Geely will take the initiative to reduce dealer inventory and cut its full-year sales target of 1.51 million vehicles by 10% to 1.36 million vehicles. After the reduction, Geely's completion rate in the first half of the year was 47.9%, 4.7 percentage points higher than the original sales rate of 1.51 million vehicles, which was 43.2%.

SAIC also suffered its first decline in sales in a decade, and faced with this dilemma, it also cut its sales target for 2019 by 8 per cent to 6.54 million vehicles, originally scheduled for 7.1 million. After the reduction, the completion rate in the first half of the year reached 45%, 3.6 percentage points higher than the original sales rate of 7.1 million vehicles, which was 41.4%.

According to the law of the market in the first half of the year, the completion rate of 45% in the first half of the year is a normal figure. At this level, the pressure on car companies will not increase in the second half of the year, and they are more likely to achieve the annual sales target.

In fact, whether it is Great Wall Automobile, Geely Automobile, SAIC, behind the reduction in sales is the sluggish sales, the decline in net profit, but also the pressure on the overall automobile market.

It is undeniable that during the switching period of the sixth National Day this year, the substantial discount clearance of car companies has increased sales to a certain extent, but such a move has overdrawn consumers' spending power to a certain extent, and sales may decline in the short term in the future. the pressure on car companies will be further increased.

For car companies, lowering sales targets is not a bad thing to some extent. The industry generally believes that although the decline in sales means that sales are not good, but for the development of car companies, it is conducive to the benign and healthy development of car companies. On the one hand, it will help car companies to adjust the market, will not be defeated by market pressure, on the other hand, it will also help to ease the relationship between dealers and car companies under the cold winter.

After Geely announced a reduction in its annual sales target for the first time, SAIC and Great Wall Motor also downgraded, as the leaders of their own brands, reflecting the severity of the current auto market, especially its own brand market. According to data from the Federation of passengers, in the first half of 2019, total sales of self-branded passenger cars were 3.998 million, down 21.7% from the same period last year. Not only that, but the market share of independent brands is also shrinking, falling to 36.5%.

In view of this, whether it is Geely, Great Wall or SAIC, the decline in sales means that the situation facing the second half of the year is not optimistic, and it is uncertain whether the new sales target can be achieved after lowering the sales target. According to the sales of other car companies in the first half of the year, the annual sales target will also be lowered to a large extent. While lowering the sales target, enterprises should also return to products, improve product strength and brand strength, and pay real-time attention to market trends, grasp new energy and vehicle networking, and accelerate the development of automobile brands.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat