New Junjie is difficult to help Chinese brands get out of difficulty

In the new Junjie listing conference in July, Yan Yumin admitted that the new Junjie with a displacement of 1.8~2.0L could not enjoy the subsidy policy adopted by the government for small-displacement vehicles. The chance of regaining the strong sales situation of Junjie was extremely low. . Before the old Junjie did not completely withdraw from the market, Yu Yumin hoped that the sales volume of Xinjunjie could be maintained at around 3,000. However, according to statistics from the CLUCC August, Junjie’s sales volume dropped 48% year-on-year, and only 1,052 units were sold during the month (see Table 1), which was far behind the actual expectations of Yu Yumin.

The loss of the Chinese quagmire in the Chinese brand and the loss of the gold in the *ST Gold Cup, together with the constant departure of senior executives, forced Sui Yumin to continue to deal with rumors about mergers. This is a case for Brilliance, which was once considered the mainstay of self-owned brands. Unpredictable embarrassment.

At present, Brilliance’s main sales model is Junjie FRV, which is a hatchback product on the Brilliance A-Class platform. In the fierce competition in the market, Junjie FRV, the profit of the bicycles has been continuously diluted, and the Chinese brand is in a losing period. In fact, the actual contribution is not great. Although the cumulative sales of the vehicle in the first eight months of this year reached 55,719 units, an increase of 39% year-on-year (see Table 2), the single-month sales in August only achieved a slight increase of 3%. This shows that Junjie FRV. Has a strong dependence on the overall rapid growth of the auto market. At the time of Junjie FRV growth slowdown, the new Junjie, which has increased costs (mainly due to increased costs in terms of security configuration), is still in a difficult period of sales growth, which has virtually increased the market pressure of the Chinese car.

Once the dark horse of the MPV market, once contested goods directly to the GL8's Gareth, sales in the past two years is also exhausted. Although the sales volume in the first eight months of this year increased by 2270 units compared to the same period last year, it is no longer comparable to the GL8's monthly performance of more than 5,000 units. In addition, China’s previous main vehicle, the Zunchi, has been replaced during the period. However, with the decline of the Chinese brand as a whole, Zunchi has basically been marginalized by the market, and there is very little possibility for it to be revived. In contrast, Junjie FSV has been relatively stable since its listing. Monthly sales in recent months have been maintained at between 3,000 and 4,000 vehicles.

When the development of the Chinese and Gold Cups suffered, the rise in sales of BMW Brilliance brought some comfort to Sui Yumin. In the first eight months of this year, sales of the BMW 3 Series and the 5 Series reached 19,266 vehicles and 24,253 vehicles, respectively, representing year-on-year increases of 97% and 60% respectively. Among them, 5 series achieved sales of 4,087 vehicles in August, setting a new monthly sales volume.

The 12th Five-Year Strategic Plan announced by Brilliance Automotive is to strive to complete the production and sales of 1.5 million units of complete vehicles, 1.5 million units of engine production and sales, and sales revenue of more than 160 billion yuan/year at the end of the 12th Five-Year Plan period. If this year's Brilliance Automotive successfully completes its annual sales target of 500,000 units, it will have to achieve a target of 1.5 million units for vehicle production and sales in 2015. Its average annual growth rate must reach 32%, compared to the current number of institutions for the next few years in the Chinese market. The overall increase is expected to quadruple. This can be imagined for Yu Yumin. Therefore, in order to achieve the grand goal of the “Twelfth Five-Year Plan”, it is impractical to simply renovate several existing models, and it is imperative to introduce a more “independent” new model-rich product camp. Of course, continuing to be stronger in the more advantageous proprietary vehicles is also a way out.