According to recently released data, BAIC Blue Valley (including Jihu and BAIC New Energy) saw a decline in new vehicle deliveries in January 2024, with only 1,492 units, a year-on-year decrease of 2979%, becoming the focus of attention. This figure once again highlights the trend of declining sales of BAIC Blue Valley, especially the challenges faced by the ARCFOX brand.
Both sales and financial performance are declining, and the situation is worrying**
BAIC Blue Valley has been in a state of loss for a long time, with an estimated net profit loss of 5.2 billion yuan to 5.7 billion yuan in 2023, and a loss of 5.7 billion yuan to 6.2 billion yuan after deducting non-net profit, and in the past six years, its non-net profit has accumulated a loss of about 25 billion yuan. At the same time, the sales scale of the Jihu brand is also unsatisfactory, with only 30,000 units sold in 2023, which is a significant gap compared with the performance of peer brands.
Selling expenses are high, and the effect of boosting sales is not effective**
Although BAIC Blue Valley has invested heavily in sales, and its sales expenses even exceed R&D expenses, the sales increase brought by it is not obvious. Its marketing activities such as title concerts cost a lot, but the effect on sales is limited. This may be a hint that its marketing strategy needs to be rethought and adjusted.
In the face of market challenges, JiHu needs to adjust its strategy**
At present, JiHu is facing many challenges such as fierce market competition, declining sales, and financial losses. In order to turn the situation around, JiHu needed to strengthen product innovation, improve market competitiveness, and review marketing strategies to find more effective ways to promote the situation. In addition, increasing investment in research and development of new energy technologies and launching more competitive products is also the key.
Looking to the future, seeking breakthroughs**
Despite the current severe situation, BAIC Blue Valley is still expected to achieve a rapid increase in sales volume and further expand its market share by adjusting its strategy and optimizing its product structure. With the intensification of competition in the industry, BAIC Blue Valley needs to maintain keen market insight, flexibly respond to market changes, and strive to achieve more considerable performance in the future.
February** Dynamic Incentive Program