FAW Charade over relying on joint brand

Compared with 96% rising rate in the same period last year, Faw Charade net profit plunged 95% percent in the first half of this year, which was "decisively" affected by joint venture brand and was "helplessly" controlled by Faw group.

On the issue that the company how to take appropriate initiatives to change the current situation, Faw Charade related personnel responded. "we are just 30% share in the stake in Faw Toyota, and the concrete solution depends on the company."

Since the Diaoyu Islands incident last year, sales of Japanese cars in China have not yet fully recovered till the first half of this year. According to the gasgoo.com data, in the first half, Japanese cars made in China sold 1.268 million units, down 11.4% year-on-year. From market share, Japanese car sales accounted for 16.4% of the total domestic passenger car market in the first half of this year, far below the 21.7% market share over the same period last year.

Among them, Toyota's cumulative sales for the first half of this year are 416,900 units, down 5.8% compared with 442,500 sales a year earlier.

Toyota slipped sales have direct impact on the performance of the Faw Charade.

Automotive industry-renowned analyst Zhang Zhiyong told reporters, "this is by far the common phenomenon of the own auto brands of the joint venture companies. 95%, or even more of Brilliance Auto net profit is BMW Brilliance, Faw group profit is mainly headed by Faw-VW and Faw Toyota, Chang ' an mainly depends on Changan Ford, and Dongfeng motor group mainly depends on Dongfeng Nissan."

Zhang Zhiyong said, "our own brand development problem is left over by history, impossible to be reversed in the short term. On the other hand, own brand through various aspects of the effort to reverse this situation.

"The flagship model of Faw Charade is mini cars, which is not mainstream currently in China. In addition, due to the holding of Faw group, any decision made by the company is subject to the group. "Zhang Zhiyong said.