FAW Xiali's sales fall over 22% in January

Gasgoo.com (Shanghai February 22) - Tianjin FAW Xiali's January performance review reveal was released earlier this week, Caijing reported today. According to the review, the manufacturer's produced and sold respective totals of 15,246 and 16,545 vehicles last month. The figures are equivalent to negative year-on-year growth of 10.94 percent and 22.2 percent, respectively. Compared with most other major manufacturers, which reported high sales in the first month of the year, FAW Xiali's performance was relatively disappointing.

FAW Xiali saw sales of its two flagship series, Xiali (pictured) and Weizhi, fall significantly over the course of the month. A total of 11,094 vehicles from the Xiali line were sold in January, 39.67 percent less than last year, while 5,451 Weizhi vehicles were sold, a full 89.47 percent less than a year ago.

Prior to October 2011, FAW Xiali's performance was very strong, as its sales exceeded those of its own brand rivals However, in the months that followed, the manufacturer's growth rates begun to drop, declining as much as 40 percent in January and March of last year. Its growth rates, which have remained negative ever since, have been far below industry averages.

FAW Xiali reported a net profit of between 16 million yuan to 71 million yuan ($2.55m-$11.29m) in 2012, representing a drop of at least 35 percent. The manufacturer attributes its lackluster performance to fierce competition in the market and the introduction of policies limiting the number of new vehicle registrations in several Chinese cities.