The sales volume of SAIC in first 5 months declined YoY for first time

On the evening of June 4th, SAIC group announced the sales data in May, showing the sales volume of SAIC in May was 434,400, declining by 4.51% YoY and total sales volume in first 5 months of 2015 was 2.415,700, declining by 0.96% YoY.

As reporter knows, the sales volume growth data of SAIC group in first 5 months of 2010, 2011, 2012, 2013 and 2014 were 48%, 13.8%, 11.3%, 15.4% and 12.7%. In 2009, the sales volume growth of first half year was 23.7%. So it meant it was the first time for SAIC group to decline in first 5 months from the year 2009.

In May, the sales volume decreasing rates of Shanghai Volkswagen and Shanghai GM were 1% and 10% YoY. The data of SAIC self-owned brands was over 28%. In first 5 months, the sales volume growth of Shanghai Volkswagen was only 0.23% and the data of Shanghai GM and SAIC self-owned brands were minus 6% and 34%.

On June 3rd, FAW Volkswagen released sales volume data of May, which showed the sales volume was 137,300, declining by 14.5% YoY.

This situation was unexpected so main joint venture auto enterprises including Shanghai Volkswagen, GM, FAW Volkswagen and Ford began to reduce prices 2 months earlier to win more orders but the results were not as obvious as before due to the decreased market demand.

At the same time, the capacities of main auto enterprises are still increasing such as Shanghai Volkswagen factory in Changsha, Shanghai GM factory in Wuhan, Changan Ford factory in Hangzhou and Hafei factory purchased by Changan ford. The conflict between demand and capacity is becoming more and more obvious.

In accordance with the statistic data from China Automobile Dealers Association, the distributor stock alert index was 57.3% in May, declining by 3.2% MoM but was still over the warning line.