The earliest planning but early departure of FAW new energy vehicles can not cross the 2018 deadline

Once the new energy dual-point management approach is completed, FAW, which is a relatively backward development of its own brand, will face greater pressure.

In June this year, the website of the State Council Legislative Affairs Office published the “Measures for the Parallel Management of the Average Fuel Consumption of New Passenger Vehicles and New Energy Vehicles (Draft for Soliciting Opinions)”, proposing that the percentage requirements for new energy vehicles from 2018 to 2020 should be 8% respectively. , 10%, 12%, the proportion of new energy produced by enterprises has become a clear red line.

FAW is currently ranked behind its own brand.

According to the sales data released by the China Association of Automobile Manufacturers, SAIC, Chang'an, and Geely ranked in the top three in the top ten sales of China's own-brand passenger cars in the first half of 2017, while FAW's own brands were not in the top ten. At present, FAW's auto passenger car has a total of Pentium, Red Flag, Xiali, Oulang, Senya five brands. Among them, the red flag cars that build high-end brands have invested more in recent years, and the red flag H5's three-year R&D investment cost has used 10.5 billion yuan. However, this high investment has not brought about results. In the first half of this year, the cumulative sales of the red flag was only 1900. Although it was the main engine of the FAW Auto Group, it also fell 8.8% year-on-year to 46,000 units in the first half of this year.

In addition to the lack of product strength, FAW's own brands also affected the overall sales volume due to the slow pace of new energy deployment.

At present, many autonomous car companies have already deployed new energy sources, which has led to an increase in overall sales. “The breakthrough of SAIC in the field of new energy vehicles has made a significant contribution to sales volume.” Cui Dongshu, Secretary-General of the National Passenger Vehicle Market Information Association, told the First Financial Reporter that the Roewe eRX5, a new energy model based on the hot-selling model Roewe RX5, This year's cumulative sales have exceeded 9,000 vehicles, becoming the king of plug-in hybrid sales in 2017. The pure electric version of the SUV Roewe eRX5 has also been listed, will further enhance its influence in the pure electric market.

Although the overall sales volume of BYD, BAIC, etc. are not yet among the top brands, they are still in the first camp in the development of new energy vehicles.

With the increase in the proportion of new energy vehicles, they will receive more and more new energy points, that is, the proportion of points will exceed the national requirements of 8%, then the future of other traditional fuel vehicle-based car prices will be purchased from it . In the latest investor relations activities, BYD said that according to the current policy and future sales expectations, BYD will generate a large number of new energy points in 2018, and its external sales revenue will make a greater contribution to the group's profitability. In this way, the car companies such as BAIC BYD will also receive an increase in profits.

Facing a strict integration policy, Great Wall Motors also stated in a July announcement that it has signed an agreement with Hebei Yujie Vehicle Co., Ltd., which will result in a 25% stake in Great Wall Motors. Since then, Hebei Yujie fuel consumption points will be directly transferred to the Great Wall, without any charge, and in the new energy vehicles positive points, Hebei Yu Jie promised to give priority to Great Wall Motor under the same conditions for sale.

In fact, FAW Car was the first to propose a new energy auto industry plan in the six major state-owned auto companies. As early as 2012, FAW Car announced the construction of a new energy plant in Changchun. The project plans to invest a total of 4.348 billion yuan, of which 4.109 billion yuan will be for new construction investment and 1578.2 billion yuan will be for initial working capital. According to the plan, this new energy plant is scheduled to be completed and put into operation in July 2014. It covers an area of ​​1.26 million square meters, including four major workshops for stamping, welding, painting and assembly, and logistics and warehousing facilities. After completion, it will have a production capacity of 200,000 vehicles in a double-shift production line. New energy vehicles and A-class vehicles will be put into operation in the future. “But now, only the Pentium B30 is a pure electric vehicle, and there is also a plug-in hybrid vehicle in Hongqi, but it is not sold in a small range.” Cui Dongshu told the First Financial reporter.

However, this project was terminated by a paper announcement issued by FAW Car in May this year and the plant was officially suspended. The reporter found out that the actual investment in the project was 24,155,000 yuan, which only accounted for 0.56% of the total planned investment. The money invested was mainly land payment, which has now been fully recovered. Regarding the reasons for stopping, FAW Car said: “The company can meet the requirements of the future product layout by effectively transforming the production technology of the existing plant, etc., in accordance with changes in the market environment and future product planning. In line with the principle of maximizing profits, the company plans to adjust the locations of future new energy products and terminate the construction of new energy plant technology transformation projects in line with the spirit of the relevant national policies to increase the allocation of resources of enterprises, improve the efficiency of the use of funds, and maintain the company’s The interests of all shareholders."

The reasons for the suspension of new energy automobile projects are closely linked with the market performance and profitability of FAW Car in recent years.

As early as 2012, FAW Car Co., Ltd. fell 24% year-on-year, of which the main model Pentium fell by nearly 30%. It was also in that year that FAW Car had a loss. Although FAW Cars took a profit in 2013, the profit of FAW Cars has continued to decline since 2014 and its losses have been expanded to 950 million yuan by 2016. Now FAW Car has a poor operating condition. Even if it continues to invest, it may not be able to obtain a corresponding return. Some industry analysts believe that the termination of the project can also be seen as a way to stop loss of FAW cars. After all, FAW Car is a listed company, and the impact on financial reports will be greater.

“The project is costly, and FAW is more pragmatic and has chosen to develop new energy models within its existing system. Faced with the double-integration approach, each car company should quietly develop new energy vehicles, but most have not announced progress. If the points are not up to the standard, they will need to be purchased from other car companies. FAW, as a large company, has the ability to independently develop new energy models. However, the number of models that can be developed will depend on market performance,” said Cui Dongshu. However, FAW Cars and Mazda support, the Japanese Department of the new energy vehicles is also relatively strong.

"If a company sells 1 million a year, then according to regulations, it will need to reach a standard of 80,000. If this company has a plug-in hybrid model, it will need to sell 40,000 units a year to meet the standard. If it is pure In the case of electric models, sales of more than 20,000 units can be achieved, and FAW Car will be able to reach such a popular model before 2018. As a northeastern enterprise, it will be plugged for FAW as it is colder in the northeast. The hybrid model is more appropriate.” Cui Dongshu said that Pentium’s performance has improved. The problem that FAW is now to solve is to first increase the strength of its own brand of traditional cars, and then increase investment in new energy vehicles.