AutoBeta(AutoBeta.net)08/02 Report--

According to the latest data released by the Federation of passengers, China's automobile market as a whole showed a downward trend in the first half of this year. Although the sales of some car companies boosted in June this year, this is the catalysis brought about by the sixth-grade switching. In the second half of this year, the depressed environment of the domestic automobile market continues.

On the contrary, the current situation of DPCA in the domestic market, even the boost brought by the change of emission standards in June, still has no effect in front of the car company.

Many consumers are not optimistic about the future of the carmaker. According to published data, DPCA's sales in June were only 10128, a decline of 54.3 per cent. Sales were even worse in the first half, with cumulative sales of DPCA, which owns Dongfeng Peugeot and Dongfeng Citroen, only 63000, down 60 per cent from a year earlier and achieving only about 30 per cent of its annual sales target of 235000.

The continuous decline in sales eventually led to a simultaneous decline in profits. According to a statement issued by Dongfeng Group, the revenue of the merger of DMC and DMC in the first half of 2019 decreased by about 59.7% to 7.05 billion yuan compared with the same period last year. At the same time, the first half of the year turned from profit to loss, with a loss of 2.5 billion yuan, compared with a profit of 200 million yuan in the same period last year.

As of the first half of this year, the losses of DPCA and its sales companies were close to 70% of the losses for the whole of last year. This means that this year's full-year losses will be further intensified.

According to the global performance report released by PSA, the group's overall net profit increased in the first half of the year, but by a small margin. The main reason is that Dongfeng Citroen and Dongfeng Peugeot are the largest and widest auto market in the world, but even so, PSA insists on not giving up the Chinese market. PSA said that in any case will not give up the Chinese market, after all, the Chinese market still has a lot of room for development. If you give up the Chinese market, you will lose a big piece of cake.

However, judging from the current development of PSA, it is very difficult to stay in the Chinese market. Behind the dismal sales, PSA has exposed many problems of its own. Many of its automotive products like original designs and do not really understand the real wishes of Chinese consumers, for example, eccentric steering wheels and grandiose designs are difficult to be accepted by consumers.

Second, problems such as old configuration and slow replacement have also greatly undermined the image of PSA in the minds of Chinese consumers. Before that, the Dragon Fukang gave people a sense of reliability, durability and a sense of technology, but now, all kinds of innovative designs have deviated from the original style. Take the Peugeot 308's gearbox, for example. When other car companies have already used CVT and dual clutch transmissions, Peugeot 308 also carries 4AT gearboxes, which is unacceptable to many consumers. At the same time, other models of DPCA also have a sense of "low value". For example, Dongfeng Peugeot 5008 uses torsion beam independent suspension, which is not in line with the aesthetic style of Chinese consumers.

Even though PSA is gradually aware of its problems and wants to make some changes, it is still difficult for consumers to accept. Getting the market by lowering prices is not a long-term solution. It is understood that PSA has formulated a "return to the track" three-step strategy, but so far the effect of this strategy does not seem to be obvious. In addition, PSA has repeatedly adjusted its senior management and laid off staff to reduce capital expenditure, and even offered factory leases to other automakers to solve capacity problems.

But in view of the current situation, PSA's development in China has been thwarted, the product pace has been slowly updated and the management is chaotic, it is very difficult for DPCA to turn losses into profits in a short time, and the fate of DPCA is also very worrying. At this point, DPCA should make changes as soon as possible and study the needs of the Chinese market. The more in the huge market, the more fierce the competition, eventually it will inevitably usher in a reshuffle. And whether PSA can survive in the Chinese market or be eliminated can only be verified by time.

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