The sales of Huasong 7 only stand at 128 units while the other two subsidiaries of Brilliance in China have to live on government subsidizes

Gasgoo.com (Shanghai Dec 11) Huasong of China Brilliance Auto Group announced that it had gained an order of 7,000 units of Huasong 7 from China Auto Rental Ltd. (short for CAR) in the middle of November.

Regarding its bad performance in the first eight months this year, this order can be regarded as huge for Huasong.

Data show that the total sales of Huangsong 7 reached 749 units nationwide in the first three quarters of 2015, which was mainly ascribed to the car rental business and orders from major accounts in September. And it just had small sales of 128 units before.

“Order-based purchase from major accounts is different from the private consumption by means of credit. Considering that some incentives must be offered to major accounts and that CAR is good at bargaining on the other hand, Huasong can’t expect to reap too much profit from their cooperation,” pointed out Cui Dongshu, secretary-general of China Passenger Cars Association.

“Brilliance is closely related to BMW, which is the main reason why CAR choose to cooperate with Huasong this time.” indicated Zhang Zhiyong, an senior auto analyst in China

In fact, all of four listed subsidiaries of Brilliance Auto are leading tough lives based on the investigation of a financial newspaper in China. Both Jinbei Auto and Shenhua Holdings rely on the huge governmental subsidies to survive, while China Brilliance lives on profits made by Brilliance BMW. And Xinchen Engine even lives on providing the range of Brilliance BMW 5 with engines.

It is a challenge for Huasong to upgrade its brand and market acceptance in a short time. Therefore, it spares no effort to push for rental business in the hope of surviving the serious situation.