Summary: 2014 sales target completion rates for Chinese manufacturers in 2014 H1

The Chinese passenger automobile market has managed to maintain rapid sales growth during the first half of 2014. A total of 8.87 million automobiles were sold in China over the first six months of the year; that figure represents positive year-on-year growth of 14.8 percent. However, while a few major automobile manufacturers have reported high growth rates, there are still several manufacturers whose performances are a little worrying.

Looking at the statistics, only a minority of manufacturers have managed to meet or exceed 50 percent of their full 2014 sales targets in the first half of the year. Of the 24 major manufacturers whose sales figures were compiled by Gasgoo.com (Chinese) in this study, only eight of them–Shanghai VW, FAW-VW, Shanghai GM, Beijing Hyundai, Changan Ford, Changan Automobile, Brilliance BMW and Dongfeng Liuzhou–reported that they have already completed over 50 percent of their set sales targets for the year.

 

 

Leading the European-affiliated joint ventures, Shanghai VW led the sales charts. The JV has sold 940,500 vehicles so far, completing 58.8 percent of its 1.6 million sales target for this year. The Lavida, Santana, Passat and Tiguan have all fulfilled over half of their individual sales missions. Monthly sales of the Lavida and Santana in particular were above 30,000 units on average, while monthly sales of the other above models were around 20,000 units.

FAW-VW's performance was also commendable. The JV's sales volume for the first half of the year was 906,200 vehicles, accounting for 53.3 percent of its 1.7 million sales target for 2014. The Sagitar, Jetta, New Bora and Magotan have all achieved average monthly sales of over 10,000 units. The Golf A6 has also performed very strongly, with its sales this year growing 80 percent from 2013.

Brilliance BMW's sales target of 270,000 vehicles for 2014 is 30 percent higher than the one it set a year ago. Fortunately for the JV, its sales record of 139,700 units over the first half of this year represented year-on-year growth of 38.8 percent.

Shanghai GM remained the most successful American affiliated JV in China. The JV has set a sales target of 1.6 million vehicles for this year. So far, the JV has achieved 51.5 percent of this target, selling 823,200 vehicles over the first half of the year. Its Cadillac LaCrosse, Buick Excelle, Chevrolet Cruze and Chevrolet Sail have all managed to achieve monthly sales volumes of over 20,000 units on average.

Changan Ford also performed well, thanks to sales brought in by the popular New Kuga, EcoSport and New Mondeo. The JV sold 400,500 vehicles over the first half of the year, representing year-on-year growth of 38.8 percent and achieving nearly 51 percent of its 790,000 sales goal.

Sino-French JV Dongfeng Peugeot Citroën has sold 343,200 vehicles so far, completing 52.8 percent of its original 650,000 sales target for 2014. In response, the JV increased that sales target to 700,000 sales.

Korean-affiliated Beijing Hyundai is also doing well this year, having sold 553,000, or just over half of its sales goal of 1.1 million vehicles. The Accent (Verna) was among one of the its best sellers. Dongfeng Yueda Kia, meanwhile, has completed 47.8 percent of its 650,000 sales goal, which is 18.9 percent higher than the amount of vehicles it sold in 2013.

Not a single Sino-Japanese venture managed to meet 50 percent of its sales target over the six month period. Dongfeng Honda came the closest, completing 49.1 percent of its 350,000 sales goal. This was primarily thanks to the popularity of the CR-V and its new Jade, half year sales of which totaled 95,000 units and 31,300 units, respectively.

Meanwhile, Guangqi Toyota and Dongfeng Nissan have set targets of 400,000 sales and 1.1 million sales, respectively. With half of the year now over, both JVs are still far off the halfway mark, having achieved 44.1 percent and 43.3 percent of their respective targets. FAW Toyota and Guangqi Honda are even further off, having completed only 38.1 percent and 36.3 percent of their targets. The two JVs only managed to achieve year-on-year sales growth of under three percent over the first half of the year.

Equally troubling is the performance of domestic own brand manufacturers. According to the data supplied, only two of the manufacturers, Changan Automobile and Dongfeng Liuzhou, managed to fulfill at least half of their 2014 sales targets in the first half of the year. Among them, Changan has benefited from the popularity of its new models, seeing its sales growth nearly 40 percent over the six month time period. The manufacturer has sold 377,800 vehicles so far, completing nearly 60 percent of its 600,000 sales target. Dongfeng Liuzhou, meanwhile, has sold 118,400 vehicles so far, just over half of its 230,000 sales target.

Other own brands have fared worse. FAW Car (including Mazda sales) and SAIC-GM-Wuling have established sales goals of 300,000 units and 1.8 million units, respectively. However, they have only managed to achieve 44.1 percent and 44 percent of their respective sales targets. Even though both manufacturers also sell multinational branded products, they rely primarily on sales of domestic own brand models.

Due to its current restructuring, Geely has seen its sales fall 28.1 percent over the first half of this year. So far it has only managed to complete 32.7 percent of its 580,000 sales target. Great Wall, which set a sales target of 890,000 vehicle sales (including pickup sales), has also recorded a subpar performance. Due to the poor performance of its sedan division, Great Wall sold only 347,400 vehicles so far this year, achieving only 39 percent of its sales target. BYD has sold 207,400 vehicles so far this year, 41.5 percent of its half million sales goal for the year.