Guoliu' Standard Shuffle Market Great Wall Vehicle Sales Reverse

Since 2019, China's automobile market has been in a low temperature. On the one hand, the overall growth rate of the automobile industry has slowed down in the first half of the year. On the other hand, the overall downturn of the automobile market has been catalyzed by the accelerated implementation of the Sixth Emission Standard and Sino-US trade frictions and other external events.

In the downturn of the industry, on July 19, Great Wall Automobile Co., Ltd. issued a mid-term performance forecast for 2019, which said that the company expects its mid-term operating income to be about 41.38 billion yuan, a decrease of 7.3 billion yuan compared with the same period last year, a decrease of 15% compared with the same period last year; and the net profit attributed to shareholders of listed companies is about 1.53 billion yuan, the same as the previous year. Compared with the same period last year, the net profit attributable to shareholders of listed companies will be reduced by 2.17 billion yuan, down by 58.6% compared with the same period last year, and the net profit attributable to shareholders of listed companies will be about 1.24 billion yuan, down by 2.34 billion yuan, down by 65.4% compared with the same period last year.

In view of this performance reduction, Great Wall Motors gave the reason that the company increased the product preferential quota to benefit consumers, and increased the brand promotion efforts and R&D investment, resulting in a decline in net profit attributable to shareholders of listed companies.

From the performance of the single company, the business income and net profit of Great Wall Automobile have fluctuated to a certain extent, but from the actual market performance, Great Wall Automobile is one of the few companies in the industry to maintain sales growth. In the first half of this year, Great Wall Automobile sold new cars. 493 538 vehicles, an increase of 4.7% over the same period last year.

Great Wall Automobile Relevant Officers told the Securities Daily that in the first half of 2019, although Great Wall Automobile maintained steady growth, the overall situation of China's automobile market is not objective, especially the market share of Chinese automobile brands is declining continuously, and the Chinese automobile market is changing from "incremental market" to "stock". Market".

In fact, compared with last year, China's automobile market has shown a sustained downward trend this year, and the downward trend is gradually expanding. According to the data of China Automobile Industry Association, in the first half of 2019, domestic automobile sales were 12.223 million, down 12.4% year on year. Zhao Ping, a researcher in Pacific Securities and Automobile Industry, believes that the first half of the recession in the automobile industry is due to the macroeconomic impact, the second is the consumer's weak desire for consumption, and the third is that the last round of tax incentives made the purchase of automobiles a certain overdraft.

"Based on the macroeconomic downturn and the development of the automobile industry in the first half of 2019, in order to maintain the overall sales health, stability and sustainable development, Great Wall Automobile adjusted its sales target for 2019 to 1.07 million vehicles according to the actual situation of its brand, and strived to improve the market share of enterprises and the quality of enterprise development." Great Wall automobile related person in charge said.

In the first half of the year when the automobile market is depressed, the implementation of the Sixth National Standard can be regarded as a "big shuffle". If some automobile enterprises with weak technical reserves fail to adjust their structure in time according to the new regulations, they are likely to be eliminated by the market.

An automobile industry insider told the Journal of Securities that the emission standards of G6 are very stringent, even higher than those of some European and American countries. Such stringent emission standards of G6 will have a great impact on the whole automobile market. In order to meet the regulatory requirements, the automobile enterprises need to follow the following rules and regulations: Fuel injection, exhaust gas treatment and other subsystems are coordinated to upgrade, and spare parts suppliers need to upgrade synchronously. However, it is the general trend that the price of vehicles decreases year by year. Technological upgrading will increase the cost of automobile enterprises.

Faced with the newly arrived Sixth National Emission Policy, the relevant person in charge of Great Wall Automobile said: "Great Wall Automobile has made corresponding adjustments ahead of the national emission policy, taking the lead in successfully completing the fifth National Miao Sixth vehicle model switching, so that distributors can get rid of inventory pressure. For a long time, the overall inventory coefficient of Great Wall vehicles has been low, especially in the inventory clearance of Guowu switching Guoliu vehicles, Great Wall vehicles have made adjustments according to the national emission policy, and completed the switching of Guowu to Guoliu vehicles in advance.

The stringent Sixth Emission Standard can not only further control the pollution of automobiles to the environment, but also make the automobile enterprises develop in a more mature and perfect direction. In the first half of 2019, China's automobile market showed a sustained downward trend. Affected by a series of factors, such as the macro environment, the implementation of the Sixth National Emission Standard and the decline of new energy subsidies, the domestic automobile market in the second half of the year was full of challenges and variables, according to the person in charge of Great Wall Automobile.

In light of the current development situation of the domestic automobile market, Zhao said to reporters that the automobile industry is approaching a reversal cycle, and the "Guoliu switching effect" has basically ended. In July and August, automobile sales will not be too good in the short term because of the overdraft phenomenon of clearing Guowu inventory at a low price in the first two months, but after September. The industry will be in a gradual recovery trend, possibly ushering in a reversal of sales and profits.