Recently, various domestic vehicle companies have successively released their 2014 financial reports. Although the overall profitability has reached a record high, the joint venture sector is still acting as a "profit cow". The profitability of the independent aspect is not only low, but more are still in loss.
"Although vehicle groups dominated by state-owned enterprises have made a lot of money through joint ventures and invested billions or tens of billions in their own brands, but if it is too late to make a profit, it will not only be impossible to talk about sustainable development, but also It shows that there is no prospect for the self-owned brand built on this basis." Cao He, an analyst at National Securities, told the auto reporter of China Economic Net.
At present, it seems that the independent sectors of FAW, SAIC, BAIC, Changan and other companies have not achieved profitability, and they all need to use joint venture profits to feed back. However, in contrast to large groups with policy, technology, and capital advantages, but relatively lagging behind in independent development, the annual net profit of Great Wall Motors, which has been controversial in the past year, is as high as 8.41 billion yuan.
"The automobile industry is an economy of scale, and qualitative change can only be achieved through the accumulation of quantity, and so is the development experience of Great Wall." In Cao He's view, Great Wall Motor's success is due to the SUV focus strategy, which realizes quantitative change to qualitative change. "State-owned enterprises have no advantages in terms of system and cost control. Although it is a problem that currently plagues independence, especially the development of independent brands with the national prefix, it is also a necessary stage of development. Only by increasing the amount can it be achieved in the end. Qualitative change."
Great Wall Motor’s 2014 official financial report also clearly pointed out that increasing the proportion of SUVs and adjusting the product structure based on the market environment have driven the group’s revenue forward.
The total sales of Great Wall Motor last year reached 730,000 (including pickup trucks), and a total of 520,000 SUVs were sold, a year-on-year increase of approximately 25%. Among them, the Haval H6 sold a total of 316,000 units, ranking first in the sales of SUVs. The Haval H2, which went on the market last year, also performed well, with an average monthly sales volume of 10,000 units. The Haval H9, a high-end SUV priced close to 300,000 yuan, also sold about 5,000 units in the last two months. This not only basically met expectations, but also marked the steady progress of Great Wall Motor's upward strategy.
In addition to Great Wall Motors, Changan Automobile is also considered one of those who are expected to achieve qualitative changes through quantitative changes. In 2014, Changan's self-owned passenger vehicles sold 710,000 units, a year-on-year increase of approximately 30%. Among them, about 330,000 sedans were sold, and 154,900 were sold by Changan Yidong, which is one of the few autonomous cars that sold more than 10,000 in a month; about 195,000 SUVs, CS35 and CS75 (listed at the end of April last year) 100,000 and 53,000 were sold respectively; about 185,000 for MPV and about 140,000 for Changan Uno.
Although it is still at a loss, its 2014 financial report indicated that with the increase in sales, the company's operating losses have been substantially reduced. At the same time, Ping An Securities analysis report also pointed out that the hot sales of SUV models CS35 and CS75 have greatly increased the gross profit margin of Changan's autonomous passenger vehicles. In 2015, with the support of SUV products and the new vehicle Yuexiang V7, it is expected that its self-owned passenger vehicle sales (excluding MPV) will reach 700,000 units. By then, Changan's passenger vehicle business segment is expected to achieve profitability.
Even so, some people in the industry said that compared with Great Wall's annual profit of nearly 10 billion yuan, Changan is still far behind in the short to medium term. Under the pressure of the joint venture price cuts, the situation is particularly severe. If the status quo continues, the prospects will become more worrying and even more likely to face life and death.
Cao He agreed with this. He pointed out that the production space is becoming narrower, and some domestic enterprises may have completely missed the development space. In severe cases, they will be eliminated in the next three years. "After years of development, if even food and clothing are difficult to solve, how can we talk about development? High profitability is the yardstick for measuring the current situation of enterprises. Although FAW, SAIC and other companies have invested a lot of independence, they have little actual results. Also need to reverse the development thinking? You must know that the time left for everyone is running out."
Regarding the trend of the large group's autonomous sector, Cao He also said that there is a phenomenon of wind and water rotation in the local auto ecosystem, but it is a question of whether it can last. Although Changan Automobile is expected to achieve profitability, as a company that has just landed, it must not be slack.
It is reported that this year's Changan autonomous passenger car has targeted 800,000 vehicles. SUV is the main force. CS35 modified model, CS75 four-wheel drive version and high-end SUV model CS95 will all be launched within this year. On the other hand, the main rival Great Wall Motors, Haval H7 and Haval H8 two new SUVs will be launched within this year, and a number of redesigned vehicles of existing models are also being planned. Therefore, this year's competition between Changan Automobile and Great Wall Motors, which focuses on SUVs, will be even more interesting.