China Auto Trending Hashtag| BAIC achieve dual growth/ Ford and Peugeot Citroen's factories are in low capacity use

1. BAIC Group achieved dual growth in revenue and profit in the first half of the year

In the first half of this year, BAIC Group sold 1.109 million vehicles, with revenue of 246.45 billion yuan, up 6.0% year-on-year, and its profit increased by 4.4% year-on-year. According to this year’s list of Fortune Global 500 Companies, BAIC Group ranked 129th among the world's top 500 companies with a revenue of US$72.677 billion.

BAIC BJEV sold a total of 65,159 new cars in the first half of the year, a year-on-year increase of 21.57%, making it the first pure electric vehicle company with more than 400,000 vehicles in the market. In addition, BAIC BJEV has been continuing to optimize its product structure in the first half of this year, and has transited from mid- to low-end products such as A00/A0 to A-class vehicles.

Due to the continued downturn of the Chinese auto market, many automakers have experienced a sharp decline in sales. However, BAIC Group has achieved growth in such an environment. Several subsidiaries have also made clear plans for future development plans, and it is expected to further promote the high-quality development of BAIC Group's products and brands.

2. Four real estate developers team up with State Grid

Guoheng Smart Energy, the JV established by State Grid Corp. of China and Evergrande Group, one of China's biggest real estate developers, was officially unveiled on Sunday. State Grid has also signed service cooperation agreements with three other major real-estate firms -- China Vanke Co., Country Garden Holdings Co. and Sunac China Holdings Ltd.

Guoheng Smart Energy, established on June 21, is a 50-50 joint venture set up by State Grid and Evergrande Group, with a registered capital of 180 million yuan ($26.2 million).

It will focus on community smart charging services. The early stage of cooperation will focus on promoting the construction of community charging piles and introducing smart energy service systems.

The entry of the four major real estate developers will help promote the development of charging infrastructure. They not only bring social capital, but also help to integrate the construction and operation of charging infrastructure at the community planning level.

3. Ford and Peugeot Citroen's factories suffer from low capacity use in China

As the Chinese auto market continues to shrink, some multinational auto companies are suffering. The current capacity of these car companies is only a small part of the total. They may be forced to leave China, the world's largest car market.

Ford and PSA Peugeot Citroen suffered the most. Since Chinese auto market experienced its first sales decline in 30 years last year, their factory capacity is far below the historical minimum.

The utilization rate of Ford's plants in China in the first half of this year was 11%. From January to June, Ford's sales in the Chinese market fell by 27% year-on-year, with an unearned interest before tax loss of $155 million. 

From January to June this year, PSA sold 64,169 units in the Chinese market and Southeast Asia, down 60.62% from 162,946 units in the same period last year.