Changan: car sales decrease greatly; more SUVs will be launched into market

Gasgoo (Shanghai, April 11) — Changan released announcement on April 6th that, SUV CS35, CS75 have sales volumes of 18,255 and 22,037 units, increasing 28.2% and 39% respectively. The total sales volume for the above two models in the first quarter are 53,186 and 66,703 units, increasing 7% and 58% respectively.

“The current SUV market still has not met customers’ demands.” It’s estimated that the market could have a 3-4-year growth. Therefore, Changan will input more in the SUV market in the future two years. According to plan, SUV CS94 will be displayed on Beijing Auto Show in April, and will be launched into market in the end of 2016 or 2017. Besides, SUV CX70 is on preparation. But Changan faces many competitors in the market. Besides, Changan vehicles’ performance is disappointing. Data shows that Changan has a total production volume of 782,751 units in Q1, increasing 5.36%. The sales volume increases 4.2% to 838519 units. Relying on strong rebound in March, Changan has a growth in Q1. But the gap between its annual targets is still large. Apart from CS75, CS35 and other SUV models, Eado Series, Alsvin Series and MPV Honor have respective sales decrease of 11% and 70%, which is a great shock for Changan car business, accounting for 1/3 of the total Changan sales. Changan’s 2016 sales target 1.16m units increases 15% compared with the 2015 sales volume of 1.01m units. Passenger vehicles target is 0.83m units, increasing 10.7%. If Changan cannot turn its bad performance in car market and stand out in the SUV market, the stock price may face a rapid fall.