AutoBeta(AutoBeta.net)08/19 Report--

Zhongtai Automobile disclosed a semi-annual performance forecast, the company expects a loss of about 270 million yuan to 320 million yuan in the first half of the year, the company's net profit for the same period last year was 305 million yuan. Affected by the macroeconomic situation, the overall prosperity of the automotive industry is not high, and the company's car sales have declined, resulting in a significant decline in the company's semi-annual performance compared with the same period last year.

Not only has it lost money, but Zhongtai's sales have also halved. Zhongtai's cumulative sales from January to July this year reached 82000, down 48.4 percent from 159000 in the same period in 2018.

In fact, Zhongtai car sales began to decline since 2016, mainly due to the lack of independent R & D and innovation. Zhongtai, which is famous for knockoffs, can only attract some people by its appearance, and consumers will not pay for it in the long run.

As a result, Zhongtai has also increased its own R & D, investing 578 million yuan in R & D in 2018, an increase of 67.98% over the same period last year, which is a good improvement. Its best-selling sedan is the E200, which sold more than 18,000 in 2018, the SUV T300 and 43000 in 2018.

However, with the depressed environment in which car sales in China continue to decline, the share of independent brands continues to lose, with domestic passenger car production falling 16.3 per cent to 9.762 million in the first half of 2019. Zhongtai Automobile has also become the last of the top 15 independent brands from January to July.

It is not without reason to be in the last place. Zhongtai used to pursue borrowlism. Without core technology, Natural six cars cannot be launched within a short period of time, resulting in dealers in some areas with "no cars to sell." In the first half of the year, all the major car companies went to the five countries to welcome the six countries, and the sales volume was really high. However, after the policy change in July, the absence of national six models left dealers with no cars to sell, so that July sales were less than 10,000, only 8709, down 35.1 per cent from July 2018, when sales were 13434.

And not only that, recently, Zhongtai Automobile also exposed that due to the stagnation of the factory and the cut-off supply of factory parts, more than 100 Junma car dealers gathered in Zhongtai Automobile headquarters in Yongkang, Zhejiang Province to safeguard their rights.

It is understood that it is because Junma's factory in Changsha has stopped production due to financial problems. After Junma stopped production, some dealers did not know it and still transferred money to the manufacturer to purchase goods, but so far did not mention the car. At present, the first round of negotiations has been carried out, and Zhongtai has promised to be responsible for Junma Motor. The two sides will hold a second round of negotiations in two weeks' time.

In today's highly competitive Chinese automobile market, this independent brand has also begun to rise slowly, and some brands that began to carry out independent research and development a long time ago have been recognized by the market and consumers. For example, Geely, Harvard and Changan are known as the "independent top three" models also have a good performance in sales.

And Zhongtai Automobile, which used to be full of wind and water, if it cannot face up to its own problems in its products, the road will become more and more difficult. Coupled with the irresistible trend of the sixth national policy sweeping the country, how long can Zhongtai, without the sale of sixth national models, survive in the market?

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