FAW-Xiali Automobile sales increase in the first half of the year

Gasgoo.com (Shanghai August 5) - FAW-Xiali Automobile turned the sales slide in the previous years into positive growth in the first half of the year in China. However, the growth rate falls far behind that of the general vehicle market in the same period and the company is troubled with huge deficits.

According to Gasgoo.com (Chinese), FAW-Xiali’s sales increased from a year earlier to 37,741 units in the first half of the year, which is mainly contributed by the strong sales of newly launched FAW Junpai D60 SUV.

Thanks to popular appearance, powerful engine and excessive auto configuration, FAW Junpai D60 reported sales of 17,385 units in the first half of the year, with monthly highest sales of 4,154 units. Yet, the small SUV’s sales in June decreased 29.3% from May to 1,876 units, indicating widening gap behind the general growth rate of the small SUV market.

Given that Junpai D60 has effectively improved production structure and brand image, the joint-venture launched improved versions of the SUV in July to continue the positive influence of the model. The new versions of Junpai D60 included 1.8-liter automatic transmission cozy version and 1.5-liter manual transmission luxury version with navigation, in a bid to cater to the personalized demand of young consumers.

Owing to the big sales of the model, the company reported year-on-year sales growth of 1.1% in the first half of the year, announcing the end of the lingering sales slide situation since 2011. According to Gasgoo.com (Chinese), FAW-Xiali reached its sales peak in 2011 with annual sales of 253,035 units. Then the sales of the corporation decreased for three consecutive years on a year-on-year basis from 2012 to 2014, with an average annual drop rate of 23.8%. Its sales volume slumped to 72,075 units, accounting less than 25 percent of the result of 2011.

The consecutive sales drop was mainly resulted from the outdated and simple portfolio as the company adopted no new technology and no updated producing platform. Its previous production line consisted of Xiali, Vela V2, Vela, Vizi, Vita V5, among which Vela and Vizi had hardly contribute to the company’s sales volume since 2014. In particular, Xiali model, which accounted for 49.3% of the overall sales volume of the company, dropped by nearly 50% in the first half of the year. Vela and Vela V2 models decreased 24.6% and 43.9% from a year earlier.

Whether the new Junpai D60 models will help FAW-Xiali continue to grow in sales will be tested by the market.