AutoBeta(AutoBeta.net)08/03 Report--

In the first half of 2019, the car market fell by more than 10%. If 2018 is the worst year for the car market in 30 years, then the first half of 2019 can also be called the worst half-year in the history of China's auto market.

Because of the downturn in the car market, car companies such as Geely, Great Wall and Guangzhou Automobile have to lower their annual sales targets, while companies such as Zhongtai, Haima and Lifan have also reached the edge of the market and are about to face a reshuffle or even elimination.

Zhongtai Motors:

Zhongtai Automobile is the only brand that can compete with BMW, and once achieved good sales results by drawing lessons from it into the public eye. However, with the rise of other independent brands and changes in consumer concepts, as well as the car market environment is not as expected, Zhongtai Motor began to lose competitiveness.

According to data, Zhongtai sold 73900 vehicles in the first half of 2019, down 49.45% from the same period last year, nearly halving.

In addition to the downturn in the auto market, a large part of the reason for halving sales is due to the lack of strength of their own products. Especially in the current environment, the reputation of consumers is very important. And some consumers complain about defects in product quality and configuration after buying Zhongtai Automobile, so that its main third-and fifth-tier cities also gradually abandon Zhongtai Automobile.

Of course, it's not that Zhongtai hasn't changed. In April this year, Zhongtai hired a former Volkswagen designer to reshape its brand image. However, brand building is not achieved overnight, but it takes a long time to accumulate. However, there is not much time left for Zhongtai Automobile. Whether it can break through the current dilemma depends on Zhongtai Automobile itself.

Seahorse car:

With the help of the market dividend to achieve the turnaround of the seahorse car, compared to Zhongtai Automobile, the red quickly also fell very quickly.

With the development of the SUV model, the Haima S5 won 100000 of its annual sales in 2016, but by the first half of 2019, Haima car sales had fallen to 14425, down 65.16% from a year earlier.

Haima's net profit continued to decline as a result of falling sales, especially in 2018, when its revenue fell 48 per cent year-on-year to 5.05 billion yuan. The net profit attributed to the listed company is-1.64 billion yuan. In 2018 alone, Haima Motor almost lost the profits of the previous six years, and this loss will continue to expand.

Two consecutive years of losses forced Haima to implement a "delisting risk warning" on April 24th. In order to preserve its shell, Haima sold a total of 400 properties and a 39% stake in Haima property to renew its life.

Judging from the operating condition of Haima Motor, only one model was released in 2019, and the market response was as expected. At the same time, in order to save the seahorse situation, Jing Zhu, the founder of Haima Motors, returned and brought the marketing mode of "Internet direct selling". However, it is still unknown whether this kind of sales can bring about a turnaround for the seahorse.

Lifan Automobile:

If it is Zhongtai may still have room for manoeuvre, seahorse and Jingzhu bet, then Lifan car may really fail. Equity freeze, profit decline, dealers withdraw from the net and other problems, Lifan Motor has been eliminated is a matter of time.

In the first half of this year, Lifan accumulated sales of 20700 vehicles, down 62.55% from the same period last year, while sales of Lifan new energy vehicles in June were only 246, down 69.29% from the same period last year. The cumulative sales in the first half of the year were 1257, down 60.66% from the same period last year.

There are two main reasons for the sharp decline in sales: the first is the lack of core competitiveness of products.

At present, Lifan cars on sale include seven fuel vehicles and three new energy vehicles, including Xuanlang and X80 for 2017, Maiwei for 2016, Lifan 820, x60 and Letu for 2015, and Lifan X50 for 2014. In other words, when the sixth national standard was implemented in July, none of Lifan's fuel vehicles met the sixth national standard.

In terms of new energy vehicles, the models on sale include Lifan 650EV, 820EV and Maiwei New Energy, of which Lifan 650EV has a mileage of 305km, 820EV is 330km and Maiwei has a mileage of 405km.

Now that the range is 500 kilometers, Lifan new energy vehicles are not competitive at all.

Secondly, the withdrawal of dealers from the net has caused a huge blow to Lifan. In May this year, Lifan encountered four rights protection incidents.

And slow to make a profit, Lifan shares have also been reduced by major shareholders. In order to avoid elimination, Lifan put up with the pain of "selling his body". According to public data, as early as 2018, in order to alleviate the financial difficulties, Lifan transferred the production base of 150000 passenger cars to Chongqing Liangjiang New area Land Reserve renovation Center and received 3.315 billion yuan. Chongqing Lifan's passenger car production qualification was sold to Li Xiang's car and home at a price of 650 million yuan.

But obviously this is not a long-term solution. After Lifan sold all its few hematopoietic trunks, it may be more difficult to be optimistic in the face of its performance that only decreases but does not increase.

In the case of a cliff decline in sales, a sharp drop in profits, the withdrawal of dealers from the net and the reduction of major shareholders, Lifan has been willing but powerless.

Zhongtai, Haima and Lifan just happened to seize the opportunity and became the "celebrity" of the car market, while as the car market gradually calmed down, some car companies suffered a reshuffle and were finally submerged in the long river of time.

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