BAIC BJEV: The reason behind the nosedive of production and sales volume in JAN

The annual sales volume of BAIC BJEV in 2018 was 158,012 units, an increase of 53.1% year-on-year, exceeding the annual sales target. However, in January of this year, under the background of sales growth of new energy vehicles such as BYD and SAIC, BAIC BJEV has turned sharply. The sales volume was only 4,512 units, down 43.66% year-on-year; the production volume was only 142 units, down 98.17% year-on-year. After the IIA communicated with the insiders of BAIC BJEV, the data released by the other party did not match the actual data because of the inconsistency in statistical methods.

1.    Reasons for data decline: The statistics of production and sales are different, and the new models have not been fully delivered.

First of all, the production data mentioned in the announcement does not include the models based on the same platform jointly developed by BAIC BJEV and BAIC, and commissioned by BAIC. Since the production statistics need to be in accordance with the production qualification plan, and the sales volume is calculated according to the actual data of the BAIC BJEV sales models, there is a big difference in the production and sales data.

Secondly, according to the new product plan of BAIC BJEV, the company is carrying out equipment transformation, production introduction and staff training for its Qingdao and Changzhou bases, preparing for the launch of the EX3 and EC5 this year.

At the same time, the best-selling model EU5, its sales in January accounted for 86% and there are more than 30,000 orders which haven’t been delivered due to capacity problems. As one of the popular models of BAIC BJEV, the EU5 has been delivered since June last year and has become one of the best-selling models in this segment with sales of 22,540 units. After the capacity adjustment completed and the EU5 being delivered normally, the sales volume of BAIC BJEV will gradually become normal.

2. Product promotion and “Double Upgrades” are still the key point

In 2019, BAIC BJEV will continue to focus on the “high-quality development”, focusing on the upgrades of products and brand, competitiveness and systemic service capabilities. At the same time, BAIC BJEV will strive to promote the brand upgrade of BAIC BJEV and work hard to achieve the "2049 Plan”.

This year, BAIC BJEV will focus on mid-to-high end products such as EX5, EU5, EX3, EU7, EC5, etc. The annual sales target of Class A and above models will reach 50%, and the average selling price will exceed 100,000 yuan.

3. Debut at the Geneva Motor Show / multiple models to launch

This year, BAIC BJEV will also introduce a number of new models, including the EX5 already on the market, the new models EU7, EX3 and the new EC3. And at the upcoming 2019 Geneva International Motor Show, BAIC BJEV's high-end brand ARCFOX will officially announce its Chinese name and independent product structure. The pure electric flagship supercar ARCFOX-7 will also have the debut at the Geneva Motor Show.

The new ARCFOX brand will be officially launched in the fourth quarter, and the brand will also help BAIC BJEV take an important step into the high-end market. Not long ago, BAIC BJEV also exposed a preview of the first ARCFOX production SUV, which is expected to be launched in 2020.

In the end: This year is also going to be a year of rapid development for the new energy vehicle industry. Facing the subsidy cut down and the more competition, BAIC BJEV should always focus on the long-term development. Besides the attractive product, the completed industrial chain, the branding power will also become the key to a successful leading company in the new energy vehicle industry.