Sales are declining!SAIC GM urgently needs to turn around, and profits need to be rescued

Mondo Cars Updated on 2024-01-28

SAIC-GM's sales and profits have continued to decline, putting the company under tremendous pressure. At the 2023 Guangzhou Auto Show, Zhuang Jingxiong, general manager of the company, said that the company needs to accelerate its development in all aspects, including new tracks, new energy and software intelligence. In recent years,

SAIC-GM's sales have been declining, capacity utilization has gradually decreased, and profits are becoming less and less optimistic. At the auto show, SAIC-GM's brands launched a large number of electric intelligent products, hoping to change the current predicament. Judging by the data,

In October 2023, SAIC-GM sold 85,000 vehicles, down 2857%, with a total of 809,259 vehicles sold in the first 10 months, down 1682%, which is in stark contrast to the 2 million cars sold annually.

In the data of the passenger association, SAIC-GM's ranking on various lists has also been declining, especially in new energy vehicles, and the performance is even more unsatisfactory. In terms of financial performance, revenue for the first half of 2023 was 6204.8 billion yuan

Attributable net profit for the same period was 52.8 billion yuan, compared with the revenue of 67.5 in the same period in 20222.4 billion yuan and attributable net profit of 228 billion yuan, the decline in profit indicators is very amazing. In terms of sales, SAIC-GM once set a sales record of 2 million units

However, sales have continued to decline in recent years. Sales in 2015 were 1.75 million units, which fell to 1.97 million units in 2018, 1.6 million units in 2019, and nearly 1.47 million units in 2020. Sales in 2021 and 2022 also continued to decline

In the first 10 months, sales fell by 16% year-on-year82%。In recent years, SAIC-GM has experienced a number of hot-selling models being recalled, and at the same time, facing the rise of China's domestic car brands and the rise of electric vehicles, its market share has been diverted to a certain extent. In terms of financial data,

In 2012, SAIC-GM's revenue reached 14505.9 billion yuan, with attributable net profit of 1754.6 billion yuan, compared to 266 billion in 2013Attributable net profit of 1.6 billion yuan. However, with the decline in sales, the profit in 2018 was slightly higher than in 2017

But nowhere near the pre-2016 level. The revenue in 2022 is 16279.3 billion yuan, and the net profit attributable to the parent company was 557.9 billion yuan, compared with the previous data, the performance fell sharply. Overall, SAIC-GM is facing the challenge of declining sales and profits

It is necessary to accelerate the pace of development and enhance the competitiveness of new energy vehicle products in order to reverse the current predicament.

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