A year-on-year decline of 29.53% in the first 8 months

    "The best times are over" Frank Witt, the chief financial officer of Volkswagen Group, said earlier that in 2020, this sentence will also be fulfilled on SAIC Volkswagen.

    On September 4, SAIC Group released its August production and sales bulletin. SAIC Group’s monthly sales broke the 500,000 mark for the first time. It is striking that SAIC Volkswagen sold 145,000 vehicles in August, a decrease of 6,000 vehicles from 151,000 vehicles in the same period last year. ; From January to August, the cumulative sales volume was 856,400, a cumulative decline of 29.53% year-on-year. Since 2020, SAIC-Volkswagen has fallen continuously for August and has become the largest decline in mainstream joint venture brands.

    The continued decline in sales and the continuous decline in profits, SAIC Volkswagen's total operating income in the first half of the year and net profit after being attributed to the parent company fell by more than 30%.

    "What we want is to expand the market, not to grab share from others." Jia Mingdi, executive deputy general manager of sales and marketing of SAIC Volkswagen Co., Ltd. and general manager of Shanghai SAIC Volkswagen Sales Co., Ltd., recalled Tiguan 10 years ago. Said on arrival. In terms of brands, SAIC Volkswagen includes two brands, Volkswagen and Skoda, and its models cover sedans, SUVs, MPVs and other market segments. SAIC Volkswagen’s hopes of “making the market bigger” will become weaker in 2020.

    However, Volkswagen’s lack of star models and the marginalization of the Skoda brand have affected SAIC Volkswagen’s sales. Under pressure and pressure, SAIC Volkswagen has implemented the "price for volume" strategy. SAIC Volkswagen’s Skoda brand models have been officially released; some models such as Weiran, the new generation of Lavida and Passat have introduced preferential policies such as zero down payment, replacement subsidies, exemption of purchase tax, and car price concessions. The short-term sales volume achieved growth, but the long-term output remained weak.

Domestic Audi may become a new growth point

    SAIC Volkswagen has been surpassed by FAW-Volkswagen for 20 consecutive months since January 2019, and the gap between North and South Volkswagen is gradually widening. Data show that FAW-Volkswagen’s cumulative sales from January to July reached 1.033 million, while SAIC-Volkswagen’s sales in the first eight months were only 947,100, which was less than FAW-Volkswagen’s cumulative sales in the previous seven months.

    FAW-Volkswagen's brands include Volkswagen, Audi, and Jetta, covering low-end joint ventures and independent markets. When SAIC Volkswagen was eager to recover the decline in brand reputation caused by the Passat "collision door" incident, FAW-Volkswagen accelerated its SUV market layout. Since T-ROC Tange opened up the SUV market, FAW-Volkswagen has successively listed Tanying, Tanyue GTE and Tanyue , Tanyue X, gradually covering the SUV market.

    The above-mentioned analysts told China Car.com that FAW-Volkswagen surpassed SAIC-Volkswagen or benefited from the complete layout of the FAW-Volkswagen SUV market. The current sales of SUV models are very good. In addition, the cumulative sales of the Audi brand under FAW-Volkswagen in China reached 6 million. well development.

    In addition, the above-mentioned analyst also stated that “FAW-Volkswagen attaches great importance to the development of Internet of Vehicles and the new four modernizations. Its voice recognition function, mobile phone interconnection function, automatic parking and other driving assistance functions have attracted 80, 90 and other major consumers to buy. This is one of the reasons why FAW-Volkswagen sales surpassed SAIC-Volkswagen."

    Many aspects of FAW's advantages have enabled it to quickly pick up during the epidemic. So we see that FAW-Volkswagen has increased year-on-year for March consecutively, while SAIC-Volkswagen has declined year-on-year for August, and the decline continues.

    However, Chen Hong, chairman of SAIC Group, said at the 2019 shareholders meeting held this year that “the research and development, production and other related work of SAIC Audi projects are in progress. SAIC Audi’s first product, Audi A7L, will be launched on the market in early 2022.” In addition, SAIC Audi's second model to be put into production is a medium and large fuel SUV. SAIC's decision to produce domestically produced Audi will make up for the shortcomings of SAIC Volkswagen's high-end luxury brands and is also expected to become a new growth point for future sales.