AutoBeta(AutoBeta.net)08/12 Report--

At the beginning of this year, BAIC New Energy initially set an annual sales target of 220000 vehicles, but by the end of July, BAIC New Energy had achieved only 35 per cent of its sales target. According to the announcement on BAIC's Langu website, BAIC's new energy subsidiary sold 12509 vehicles in July, up 78% from January to July to 77668 vehicles, up 28% from a year earlier.

According to the data released by the Federation of passengers, the sales of new energy narrow passenger vehicles in July this year were 67000, down 3.8% from the same period last year. The cumulative sales from January to July were 635000, an increase of 54.9% over the same period last year. BAIC's new energy performance is still good.

In the first half of this year, BAIC New Energy took the initiative to optimize its capacity structure, and some of the former low-end main models stopped production one after another and turned to higher-level products. Now the EU and EX series have basically completed the switch to lower-grade models EC, and the product structure has made phased progress. By the end of July this year, BAIC's cumulative production of new energy was only 15174 vehicles, down 65.76 per cent from the same period last year. In the face of increasingly strong market demand, this level of production capacity will obviously affect the terminal supply. However, in the long run, this kind of labor pains are also necessary for BAIC's new energy.

Previously, due to the era of subsidies, BAIC New Energy has been going all the way since its establishment in 2009, winning the championship in pure electric vehicle sales in China for six consecutive years. According to the data, BAIC New Energy sold 158000 vehicles in 2018, an increase of 53% over the same period last year, exceeding the 150000-year sales target.

In terms of subsidies, according to data, BAIC New Energy received 2.771 billion yuan in state subsidies and 2.188 billion yuan in local subsidies in 2017, totaling 2.959 billion yuan. At that time, BAIC New Energy had sold more than 100000 pure electric vehicles, an increase of 98% over the same period last year, making it the first pure electric vehicle company to sell more than 100000 cars.

Looking back at BYD in a twinkling of an eye, as a rival to BAIC's new energy, the development situation in July does not seem to be very satisfactory. According to the released data, the total sales of new energy in July was only 17000, down 11.8% from the same period last year. This is BYD's first year-on-year decline this year, but its cumulative new energy vehicle sales from January to July still increased by 73%. But compared with BAIC New Energy, the gap is not small.

With the gradual promotion of new energy vehicles in the market, major manufacturers continue to make efforts in new energy vehicles. In addition to BYD, SAIC, Geely, Great Wall and even the new car-building forces all have new plans, which is no small challenge to BAIC New Energy.

Xu Heyi said that BAIC New Energy still adheres to its annual sales target of 220000 vehicles and said it would not lower its annual sales target. However, for BAIC New Energy, which is in transition, it is still a little difficult to achieve its annual sales target of 220000 yuan. After all, it is pressed by the current car market environment and other car companies. However, judging from the development in previous years, the third and fourth quarters are the stage of BAIC's new energy generation. At the Chengdu auto show a month later, BAIC New Energy will bring EU7 and EU5 R600 models with stronger battery life, which will help BAIC New Energy develop in the second half of the year.

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