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Changan Auto faces declining performance in the first half of year

Biwen Wang From 盖世汽车| July 31 , 2017

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According to the latest production and sales volume report, self-independent Changan brands including Eado, Alsvin, Honor, Auchan and CS-series have a total sales volume of 485,000 units in the first half of year, decreasing 7.3% year-on-year on the basis of 523,000 units. Although the price cut in May has lifted up the sales volume in June, Changan self-independent brands’ sales volume also shows slight declines in the first half of year.

Zhu Huarong, President of Changan Auto told reporters that, “We are adjusting some badly performed products.” It’s known that eleven models have been eliminated by Changan Auto.

Gong Bing, Vice President of Changan Auto said that, “The declining sales volume is mainly resulted by newly-launched products and adjusting inventory structure, and it will recover quickly after the adjustment. Although the wholesales volume shows great volatility, the retail volume keeps steady.”

According to plan, Changan Auto will release four new models and ten facelift models this year. Changan independent brands will further cover MPV, SUV and car markets, with the launching of CS95, Ling Xuan, CS55 and Raeton CC. In the meantime, the current models also face great competition pressure in SUV markets and declining sales volume in MPV market. The consumption upgrade has brought low-price middle-and-large-size self-independent SUV models into low-end MPV market, creating fierce competition.

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