The "Cars Going to the Countryside" policy pioneered by Chongqing Municipality has made Changan Automobile, which is not doing well in the market this year, to see new opportunities in the mini-vehicle market.

The relevant person in charge of Changan Automobile stated that after the launch of the “car to the countryside” policy, sales of Changan mini-vehicles in Chongqing area are expected to increase by 20% to 30%. At the same time, at the marketing level, Chang’an will once again put mini vehicle sales to the top, etc. After the policy is launched nationwide, Changan Micro-vehicle can enter the state ahead of schedule and grab market opportunities.

In contrast, the high-end strategy of Changan Automobile can be described as slow progress. One-and-a-half month ago, the independent high-end models at the Beijing Auto Show were dazzling and the significance of the significance of the sign was not yet over. The adjustment of Changan’s delayed high-end car strategy proved that the high-end road of independent brands was still far away. The advantages of the market seeking profits are more realistic options.

The important role of micro-cars for Changan Automobile is self-evident. At the time of transformation, the sales volume and profit protection provided by micro-vehicles are also “half of the country” of Chang’an Automobile.

In 2012, Changan Automobile's primary task was to ensure profit growth. An internal Changan Automobile employee told reporters that “Changan will ensure profit this year to become the top priority for this year. It is under this guidance that Changan Motors has begun to reduce expenditures in many areas such as research and development and project approval.”

The first models of high-end brands are still brewing

The news of the cancellation of the high-end division of Changan Automobile has continued to spread. In response to this, the relevant person in charge of Changan Automobile told reporters that this is not true. “The sales department of high-end cars of independent brands has not been cancelled, but changed its name to high-end cars. Propulsion Department, the relevant organizational structure has not changed."

In this regard, the person in charge told reporters that after the name change, the functions of the organization will change. Mainly from marketing, to product planning and research and development as the main body of the main functions. At present, the development and finalization of the first model of the high-end brand of Changan Automobile is still under discussion.

According to Chang'an Automobile's previous plan, high-end car brands will be released before the end of 2011, and their models will also be ready for production at the Beijing production base of Changan Automobile. It is estimated that by April 2012, Changan will formally put into production the first high-end model, with the first batch of about 10,000 units.

For the delayed production of the brand and models, the above-mentioned person in charge of Changan Automobile told reporters that apart from the factors affecting the city's withdrawal, it is even more important that, after a period of investigation, Changan Automobile had a high-end auto brand model. New definition. He told reporters, "After investigation, it has been found that the high-end trend of self-owned brands at this stage is somewhat different from Chang'an Automobile's previous forecast. We will carry out a higher lift on the basis of research and development of models."

Automobile industry analyst Jia Xinguang told reporters that the top priority of Changan Automobile is to make adjustments. The high-end brand is more about burning money than about making money. Now that you are a high-end car, you need to keep up with all aspects of your business.

The above-mentioned insiders of Changan Automobile stated that in 2012, Changan Automobile must ensure sufficient profits, and the “150th anniversary of the establishment” of the gifts was postponed. One of the reasons why high-end sedan projects turned to internal R&D is also affected by this.

"The capital investment definitely has a certain impact on high-end car projects, but this is short-term." The above-mentioned person in charge of Changan Automobile confirms this fact, but he stressed that short-term business problems will not affect the high-end auto brands of Changan Automobile. Planning, the product is the most important issue.

He told reporters, "Changan Automobile has made two points. First, high-end is the path that our own brands must take. Second, we must not be too hasty in the choice of time. This is due to the fact that both technical development and brand accumulation are difficult to support. Next, blindly accelerating the high-end process will inevitably affect the company's profitability and brand reputation."

In the planning of Chang'an, this year, the high-end strategy of self-owned brands is mainly reflected in brand building and product structure. In the next two years, in the definition of Chang'an Automobile, it is still the time to go high.

Leveraging on Chongqing's Autonomy to the Countryside

"Maybe in 1 or 2 years, mini-vehicles will still occupy half of Changan's products." Zhang Baolin, president of Changan Automobile, said earlier that the data shows that in 2011, of the nearly two million cars produced by Changan, mini-vehicle production and sales were nearly 800,000. Vehicle.

The profitability and layout of mini vehicles are still very important for Changan Automobile in the short term. However, Changan Automobile's sales in the mini vehicle sector can not help but worry. From January to April of this year, the sales volume of Changan Automobile mini-vehicles was 120,500 vehicles, which was far behind the sales volume of SAIC-GM-Wuling 430,000 vehicles. The traditional advantages in the sales of micro-vehicles were lost.

According to local market surveys conducted by reporters, it can be seen that even in the traditional advantage areas of Changan Automobile such as Chongqing and Chengdu, sales of Shanghai GM Wuling are similar to that of Changan Automobile. According to statistics, in April of this year, sales of Shanghai GM Wuling mini-vehicles were all on Chang'an in Chengdu, Xi'an, Wuhan, and Hangzhou, and Dongfeng Xiaokang (quotation image parameters) was also very clear, even in Chongqing local market, Changan micro-car advantages are not obvious.

In the past two years, Changan Automobile has also made many changes in the micro-vehicle field, such as the introduction of mid- to high-end micro-car models Changan Taurus (quote picture parameters), and Changan Ono, the high-end micro-car model that favors the development of MPV, but occupy the largest The main models of sales are still the low-end Changan Star (quote picture parameters) series.

Changan Automobile reported in the first quarter of this year that its net profit fell by nearly 80% in the first quarter. According to statistics, in April this year, the sales volume of minibuses in Changan was 33,915, a 46.16% decrease from the previous month, and its advantage in the micro-vehicle field is now gone. According to the analysis of the above-mentioned insiders of Chang'an Automobile, “Changan Automobile, which lacks product reserves and lacks funds, is clearly in a passive position. The decline in mini-vehicle business is the main reason for the decline in Chang’an’s performance.”

Recently, Chongqing Municipality took the lead in implementing the "automobiles going to the countryside" subsidy policy, stating clearly that the main purchaser is limited to farmers with Chongqing agricultural accounts, and the range of subsidy models is only produced by Chongqing enterprises or produced in the administrative areas of Chongqing Municipality. car. This policy obviously has the greatest support for Changan mini-vehicles.

In response, Chang'an Automobile immediately announced that based on the Chongqing subsidy, Chang'an Automobile added another 4% subsidy. Specific to each vehicle, farmers can receive up to 10% of the capital subsidies, up to 5,000 yuan/car. Chang'an's additional subsidy policy will follow the implementation of the municipal government's subsidy policy.

This is considered to be an important part of the Changan mini vehicle market counterattack. In response, Yang Dayong, manager of the Chang'an Commercial Vehicle Business Management Department, stated that from 2009 to 2010, Changan Micro-vehicle production and sales volume jumped from the previous 350,000 to 700,000, benefiting from policies such as “car going to the countryside”, trade-in replacement, and purchase tax reduction and exemption. Vehicle. Despite the overall decline in the micro-vehicle industry last year, the actual sales volume still exceeded 500,000 vehicles in the whole year.

Rethinking the "too big"

On June 6th, Changan Automobile announced that recently, the company received the "Circular of the Chongqing Municipal Bureau of Finance on Disbursement of the Subsidy and R&D Subsidy Funds for the Changan Automobile Co., Ltd. Automobile Comprehensive Testing Ground Project". The Chongqing Municipal Bureau of Finance will allocate the company 2012. The annual subsidy funds for the auto testing ground project is 200 million yuan and the research and development subsidy is 100 million yuan, which is used to support the construction of the company's auto comprehensive proving ground and enhance the company's research and development capabilities.

For Chang'an Automobile, which has been making profits this year, it is undoubtedly of great significance. In this regard, Jia Xinguang told reporters that Chang’an has taken too much pace in the past two years and needs to calm down to stabilize it.

In terms of profits, Changan Automobile's annual report shows that in 2011, the net profit attributable to the shareholders of the listed company was 968 million yuan, a year-on-year drop of 52.44%; the cumulative sales volume of production and sales reached 1,698,200 and 1,700,000 vehicles, a year-on-year decrease of 11.13% and 10.62% respectively. In the first four months of this year, Changan Automobile sold 583,300 vehicles, a year-on-year drop of 13.3%.

The above-mentioned insider of Changan Automobile stated that since the beginning of last year, Changan’s performance has been very severe. It is now necessary to concentrate its efforts on achieving breakthroughs in mid-level vehicles rather than to develop more difficult high-grade cars. Even in the mid-size car market, Changan Automobile did not achieve the expected target. "Easy movement (quote picture parameters) since the listing, sales are not satisfactory, mainly in brand awareness, Changan car is not doing well."

However, Changan Automobile is still attached to the senior car strategy. “There is no change in the direction in which the self-owned brand passenger vehicles will take the high-end, and there is no change in the grand strategy of the Chang’an Auto”. The relevant person in charge of the Chang’an Automobile mentioned above repeatedly emphasized in an interview.

Zhang Baolin once said that Changan Automobile has seized the opportunity of rapid development of the Chinese auto industry and has made a series of good preparations in recent years. According to the 2012 plan of Changan Automobile, from 2015 to 2016, Changan will sell more than 4 million vehicles and will reach 6 million by 2020. “We hope that 60% will be independent brands. We did this plan and we also made a series of Preparation, especially in product development.

He said that at present, Changan’s self-developed cars have developed rapidly. In 2010, they sold 100,000 vehicles. In 2011, they sold 200,000 vehicles and this year is expected to exceed 300,000 vehicles. By 2020, 60% of Changan’s autonomous vehicle products will be cars and 4 will become mini vehicles. "These passenger cars are not limited to economical mid-size cars but will also enter the high-end car market."

"This year's market conditions have not rebounded, and companies are practicing their internal strength. In order to ensure profit, Chang'an Automobile has a series of shrinking plans in R&D and other fields this year, and it is bound to show disadvantages in the next round of competition," said Changan Automobile insider. Told reporters.

It is widely expected in the industry that the Chinese auto industry will usher in a new round of growth since the second half of 2013, and the challenges and pressures faced by independent brands will also increase. In this regard, the 150-year-old Changan Automobile will also face a new round of challenges.

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