The current situation of car companies: complaints and losses! Why is Wuling, whose profits have shrunk by 80%, still making masks?

"Whatever the people need, Wuling will make it!"

Masks are in urgent need! Masks are in urgent need! Suddenly, Wuling, which produces cars, especially vans, started making masks. And the slogan is particularly domineering: "We will make whatever the people need!"

In 2020, mask production became Wuling's "epidemic" battle, and for Wuling, this is not the first time "press Need to produce". Tractors were built a long time ago, and then vans that everyone can afford are built. This is the fate of Wuling. Wuling has been born for the people from beginning to end! After formal production, 1.7 million masks can be produced in one day. According to data from the Ministry of Industry and Information Technology on the 2nd, the daily output of masks accounts for 17% of the national total.

However, life for Wuling, which is dedicated to serving the people, is not so easy!

Recently, Wuling Motors issued a performance warning announcement for 2019. The full-year profit in 2019 may be less than 25 million yuan. Calculated based on the company’s net profit of 125 million yuan in 2018, it is expected to be year-on-year in 2019 The drop will be over 80. As for the reason, Wuling Motors stated that it was mainly caused by the continued downturn in the auto market from 2018 to 2019, which resulted in a significant year-on-year decrease in the revenue of auto parts and other industrial sectors.

According to the latest retail data from the Passenger Car Association, in 2019, the cumulative sales of SAIC-GM-Wuling were 987,863 vehicles, a year-on-year decrease of 24.9%. Among them, the leading model Wuling Hongguang has sold only 369,515 units, a sharp decrease of 20.6% year-on-year. According to data from the China Association of Automobile Manufacturers, my country's total automobile sales in 2019 were 25.769 million units, a year-on-year decrease of 8.2%. It can be seen that the sales decline far exceeded the average of the automobile market.

SAIC-GM-Wuling's decline is not only due to the downturn in the auto market, but also due to itself.

NO.1 As consumers upgrade, Wuling has lost its halo?

Why is Wuling so popular?

Because it is practical, it can be filled with goods that make you rich, and it can also take you home across mountains and ridges. And because of the hype from netizens, even getting off the track is not a problem. China is in the stage of development, and its emergence has greatly improved the efficiency of life and production. Therefore, Wuling Hongguang was born in 2010. In 2011, it ranked first in the sales volume of the MPV segment, with the highest sales volume in a single month exceeding 80,000 units. There is no doubt about the title of "Sacred Car"! By 2012, Wuling Hongguang’s single-brand sales exceeded 300,000 vehicles.

Starting in 2017, Hongguang, which had no worries about selling, also felt the pressure. In April of that year, Wuling Hongguang experienced its first consecutive negative sales growth. In 2018, Wuling Hongguang’s sales began to decline continuously, especially in the second half of the year. , Wuling Hongguang's sales in 2018 reached 465,100 vehicles, a year-on-year decrease of 12.2%. The reason for this is very simple, that is, consumers’ consumption of cars has upgraded. Cheap models under RMB 100,000 can no longer meet the needs of Chinese families. Such drastic changes have gradually put Wuling out of the sight of consumers.

NO.2? The transformation is too slow and the road to brand height is too slow

SAIC-GM-Wuling has actually discovered its disadvantages long ago, but it has always been in the market. Being labeled as cheap and low-end by consumers has made it extremely difficult for the Wuling Motors brand to move up.

On January 18, 2019, as Baojun Motors of SAIC-GM-Wuling announced that it would launch a new diamond brand LOGO, SAIC-GM-Wuling, an old independent car company with a history of 34 years, announced to the ten The price of 10,000 yuan officially bid farewell. However, the 2019 new Baojun still failed to save the decline of SAIC-GM-Wuling. What is the reason?

The primary factor is the lack of “National VI” models.

On July 1, 2019, 18 provinces and cities across the country officially implemented the "National VI" emission standards. The days before the implementation of the "National VI" was the best time for various car companies to go crazy with promotions and sell off inventory during the "National V" period, but they did not seize this opportunity.

The secondary factor is that the new brand has been established, but it has not provided adequate service, but has not increased production capacity, and the dealer network does not cover a large area.

It is not difficult to find that the new Baojun is a bit weak in the initial stage. The breakthrough from low-end to high-end will inevitably affect the brand’s sales in the short term. In order to truly realize the complete transformation of the brand to high-end, In the future, Wuling will continue to increase investment in research and development, enhance its brand image, and launch high-quality cars with market competitiveness.

What’s so new about NO.3’s new “Baojun”? Changing your self-label is difficult!

As we all know, Wuling Motors has always been labeled as cheap and low-end by consumers in the market. New Baojun wants to "change", and the changes faced by New Baojun are not limited to products. How to make consumers accept it as high-end is what New Baojun should study most. Improving its label in the minds of consumers is the primary topic of New Baojun in 2020. Not only that, it can be easily accomplished by creating a more luxurious 4S store, but also by replacing the original horse head logo of the Baojun brand with the so-called high-end diamond logo.

Ma said:

SAIC-GM-Wuling’s new round of transformation has just begun, but Marach City firmly believes in this car company that “builds whatever the people need” , no matter what kind of ups and downs they encounter, they will never give up their determination to explore the path against the trend.

And you must admit that it is true that truth is revealed in times of crisis. Under the epidemic, some brands are losing money and crying about poverty, while some brands are complaining about the difficulty in resuming work and production. Did SAIC-GM-Wuling not lose money? Have you resumed work?

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.