AutoBeta(AutoBeta.net)07/31 Report--

According to production and sales data released by SAIC, SAIC sold a total of 2.9373 million vehicles in the first half of 2019, down 16.62 per cent from a year earlier. This is the first time in 10 years that SAIC's sales have declined in half a year.

Judging from the development of SAIC, SAIC is climbing step by step. Even with the decline in the auto market in 2018, SAIC still maintained a slight growth of 1.75%, with annual sales reaching more than 7 million vehicles, contributing 1/3 of China's passenger car sales. However, only half a year later, the sales of SAIC subsidiaries or joint ventures declined across the board, with the exception of Thailand and Indonesia.

Among them, SAIC Volkswagen sold 919100 vehicles in the first half of 2019, down 9.94% from the same period last year; SAIC GM sold 834100 vehicles, down 12.91% from the same period last year; and SAIC's three major brands sold a total of 1.119 million vehicles, down 24.2% from the same period last year. In terms of specific brands, SAIC GM Wuling sold 744700 vehicles, down 29.91% from the same period last year; SAIC sold 834100 passenger vehicles, down 13.18% from the same period last year; and SAIC Datong sold 63000 vehicles, down 5.8% from the same period last year.

In addition, SAIC car sales are also declining. In the first half of the year, SAIC Shenwo buses fell 3.94% compared with the same period last year, SAIC Iveco Hongyan dropped 10.77%, and Nanjing Iveco dropped 25.69%.

In fact, SAIC's monthly sales began to decline since September 2018, which has been going on for 10 months. Even sales of SAIC-Volkswagen, SAIC-GM and SAIC-GM Wuling, the three major sales pillars of SAIC, have all declined in succession.

SAIC Volkswagen and SAIC General Motors have always been SAIC's main sources of profits, but the shrinking market share of these two companies has had a huge impact on SAIC. SAIC is likely to lower its full-year sales target to 6.54 million vehicles, 8 per cent less than the original target.

Zhong Shi, an auto analyst, said that the decline in SAIC sales is a high probability event, which will be SAIC's first full-year decline since 2006.

In order to maintain market share, try to recover the decline in sales. On July 22, SAIC announced that Wang Xiaoqiu would succeed Chen Zhixin as group president. What he will have to face is that the carmaker will face a decline in sales as a result of falling demand.

Zhong said that in the case of "a serious decline in joint ventures and the inability of independent brands to move up", capital is the most effective tool to solve the problem. Therefore, SAIC said that it plans to apply for the issuance of corporate bonds of no more than 20 billion yuan in the form of storage shelves to supplement working capital, R & D innovation, project construction, and so on.

From this point of view, in the case of fluctuations in sales and profits, through external financing to increase new business, this is Wang Xiaoqiu's way to change. In terms of products, SAIC still adheres to the "new four modernizations" strategy, focusing on R & D investment; but in the final analysis, only by ensuring market share can the company continue to survive.

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