Mini Car Sales Declines, Changan Auto under Pressure

Except “Car to the Countryside” policy cancelled, Changan mini car dealers feel pressure by stiff competition among its opponents.

Facing decline mini car segment, not only Chery, Lifan and Haima Motors under pressure, but also its leader Changan Auto does.

Changan Auto has sold 1.53 million cars in the first three quarters, which has increased 22.8%. However, Changan Auto mini car sales have decreased 7.6% to 405 thousand. Dragged by its mini car business, mini car and sedan have lost 350 million Yuan. Totally loss of the first three quarters accumulates to 840 million Yuan, which has increases 580 million Yuan.

Dayong YANG, vice general manager of Changan commercial car segment told reporter of during interview in March that “Mini car is widely lost in the east China market.” Huatai Securities points out that Changan Chinese owned brand loss is because of mini car business is forced to cut price for promotion under pressure of opponents.

Mini car business decline drags Changan Auto sales, and makes dealers feel restlessness because of its slack sales.

Reporter has contacted 330 dealers of Changan from Beijing, Chongqing, Shanxi, Hebei, Shandong, Jiangsu, Zhejiang, Anhui, Henan, Sichuan and Inner Mongolia. 40 dealers told reporter than sales of last three months has drops almost 30%. And almost 70% dealers said that their only sold 40%~55% sales quota of Changan up to the end of Oct. Dealers of Chongqing, Chengdu, Houma of Shanxi, Yangquan, Xuzhou of Jiangsu, Shaoxing of Zhejiang, Luohe of Henan, Fuyang of Anhui etc. said that they lost at that moment. Loss is from 100 thousands to couple millions.

“We do Changan brand from 2003, and have not met situation like this.” When mentioned about mini car sales, a dealer of Hebei Tangshan told reporter above.

A dealer of Shanxi Province faces the same plight. Lady Wang, the manager told reporter that according to experience, Sept and Oct are peak seasons of auto industry, normally her sells 65~75 cars at peak season. But this year she sold 38 in Sept, and less than 30 in Oct.

“From the next half this year, we sell 8~10 cars per month and customers are much less than before.” Manager Liu of Shanxi Province told reporter “we still have 70 inventories for digesting.” The shop operates Changan mini car from 1998. At gold age of mini car in 2009 ~ 2010, monthly sales is around 70~80. However, it goes downturn from 2011. It sells less than 10 cars per months even include the next tier agents. “Now it is hard to sell 1 car per day.”