AutoBeta(AutoBeta.net)08/05 Report--

Dongfeng passenger cars sold a total of 53028 vehicles in the first half of the year, down 28.13% from the same period last year and only 22% of the annual sales target, slightly better than the decline of more than 40% in 2018, but the decline is still higher than that of the overall market. According to the FIFA sales data, the cumulative sales in the first half of this year reached 9.954 million, down 9.3% from the same period last year.

Tang Jing, general manager of Dongfeng Liuqi, said that Dongfeng Fashion will start the promotion of a new product system, reshape brand value, and break through the current sales dilemma of popular cars.

Since Tang Jing took office, he has adjusted the product positioning many times according to market changes and launched the T5/T5L, which is popular in Dongfeng 3.0 era, but the performance of the new products is mediocre. The cumulative sales of T5/T5L in the first half of this year is only 15000 vehicles, which is less than the monthly sales of Harvard H6 and Chuanqi GS4. After the second transformation, after Dongfeng Fashion shifted its focus to the SUV market, MPV products remained in the doldrums. Lingzhi's sales in the first half of the year were only 28000, down 21.7% from the same period last year.

Dongfeng Fashion's current products include 1 car, 5 SUV, 8 MPV and 2 new energy vehicles. It can be seen that Dongfeng Fashion lacks market positioning and layout is seriously unbalanced, while most of its products are located in the low-end market. Compared with other medium-level models, Dongfeng Fashion lacks competitiveness.

Passenger cars have failed again and again, and the situation of commercial vehicles has not improved. It is understood that Dongfeng Liuqi achieved sales of 55034 Dongfeng Liuqi cars in 2018, a slight increase of 0.03% over the same period last year, and declined year-on-year in January, April and May, especially by nearly 50% in January. In the first half of the year, it fell 2.36 per cent year-on-year to 28527 vehicles, meeting only 43.89 per cent of the 65000 sales target.

In the face of declining sales, what the company is thinking about is not to strengthen product strength and technology research and development, but to change leaders. According to the survey, Dongfeng Liuqi changed its general manager three times in June 2016, December 2017 and December 2018, but even so, the situation of Dongfeng Liuqi remains unchanged.

From the point of view of the development of Dongfeng Liuqi, the transformation is not comfortable.

In 2003, Changan, Great Wall, Jianghuai and other car companies appeared, then the car market shrank, SUV and MPV become new growth points of the market, SAIC GM Wuling, Jiangling, Foton, Dongfeng Liuqi and other passenger car markets.

In 2010, Dongfeng Liuqi launched Lingzhi MPV to enter the passenger car market. With the maturity of the MPV model, sales increased from 50, 000 in 2010 to 241000 in 2014. However, after the launch of Jingyi in 2014, Dongfeng went further and further, falling to 140000 by 2018.

On the road of transformation, the winners are in the minority. According to FAW data, SAIC GM Wuling sold 503000 vehicles in the first half of the year, Great Wall 405000 and Changan 358000. With the exception of Great Wall, Changan Automobile, SAIC GM Wuling and other successful transformations, other car companies are on the edge. For example, Dongfeng Fashion dropped to 50, 000 in the first half of the year.

Industry insiders said that Dongfeng Liuqi products are relatively weak at the beginning, and there is still an opportunity to test the market. With the increasing competitiveness of the market, consumers will be more rational in choosing products, and those products that lack the accumulation of technology will gradually be on the edge and even be eliminated.

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