Chongqing factory stopped production, brewing changes in the share ratio of joint venture companies, Beijing Hyundai has recently been exposed to two news.
The former news alludes to the sluggish market situation of Beijing Hyundai, and the latter news reflects the mood of the modern side seeking to change the modern status quo in Beijing.
After being verified by the media of all parties, the news of the suspension of the Production of Beijing Hyundai Chongqing Factory was partly true, and the news of Hyundai Brewing's change in the share ratio of the joint venture company was only a rumor.
But in the eyes of the people who understand, it does not matter whether these two messages are true or not. Under the slow sales of many models, the shutdown of Beijing Hyundai's production line is expected. Even if the stock ratio is adjusted, Beijing Hyundai, which has been in the doldrums for many years, may not have an immediate change.
What does not need to be verified is that Beijing Hyundai's sales have been declining, getting closer and closer to the edge of the market.
1. The death of sales
On February 21, the first financial reporter exclusively reported that Beijing Hyundai's factory in Chongqing may be in a state of suspension. "Beijing Hyundai's Chongqing factory has no output now, and most of the workers are on holiday." A Beijing Hyundai insider told the first financial reporter that the Chongqing plant has stopped production since December last year.
Before the suspension of production at Beijing Hyundai's Chongqing plant, its supplier, Chongqing Runchang Automotive Interior Systems Co., Ltd., had begun a three-month holiday at the end of October last year, and the follow-up working hours were unknown.
Several models from Beijing Hyundai's Chongqing plant sold too dismally.
Public data shows that for the whole of 2021, ix25 sold 16,201 vehicles; Rena only sold 10,723 vehicles; Fiesta sold only 8,249 vehicles for the whole year; Andinau was the worst, selling only 611 vehicles in the whole year.
Since its completion in 2017, The Beijing Hyundai Chongqing plant has been operating at low loads, with a capacity utilization rate of only about 30% to 50%, and even in 2019, the peak of the plant's capacity utilization rate was less than 2/3. In 2021, when less than 20,000 vehicles were sold in the whole year, the capacity utilization rate of the Chongqing plant was less than 12%.
In the first month of 2022, Beijing Hyundai's sales fell again.
The latest data show that Beijing Hyundai's terminal sales in January were only 37,099 vehicles, down 33.59% year-on-year. Several models from the Chongqing plant have sold negligible sales.
Under the sluggish sales volume, the first plant of Beijing Hyundai has been sold to the ideal car. As for the Chongqing factory, Beijing Hyundai insiders told Oxcart. "Whether to cooperate in OEM or do new energy vehicles is still uncertain and is under discussion." ”
2, the unstoppable decline
Over the past five years, decline has become the main theme of Beijing Hyundai, and its market share has deteriorated.
In order to reverse the decline, Beijing Hyundai made a series of adjustments, not only inviting Chinese Xiangdongping as a senior executive of Beijing Hyundai Korean side, but also launching heavy new cars such as Fiesta Electric Version, New Generation Sonata, New Generation Elantra, New Generation Tucson and Kustu.
However, contrary to expectations, a series of adjustments by Beijing Hyundai did not achieve the expected results.
In addition to the new generation of Elantra, Beijing Hyundai has launched a number of blockbuster new cars that have all been "stoned into the sea". Xiang Dongping, a high-profile invitation invited by Beijing Hyundai, was unable to promote the transformation of Beijing Hyundai from a cost-effective price to a "technology premium" and a "brand premium", and left after a year.
In the five years of Beijing's modern decline, although the "north and south volkswagens" have declined slightly, they still hold the top spot in the domestic market. At the same time, sales of both the North-South Toyota and the North-South Honda rose to 700,000 units. It is worth mentioning that China's local car companies such as Geely, Changan and Great Wall have climbed to more than 1 million vehicles.
Today's Beijing Hyundai is not only strongly suppressed by "one group of two fields", but also robbed of the limelight by a number of Chinese local brands. The lack of market appeal has become a fundamental problem for Beijing Hyundai. And this is likely to further accelerate the decline of Beijing's modernity.
3. Is the ratio of shares reborn?
"Beijing Hyundai may be brewing a change in the joint venture share ratio." A few days ago, a source revealed to the "Daily Economic News" reporter that Hyundai Motor Group is working to increase its shareholding in the Chinese joint venture Beijing Hyundai, or to follow Kia's role in the new joint venture company and seek more dominance.
Subsequently, Hyundai China clarified to the Daily Economic News that "no relevant news has been received", while Beijing Hyundai did not reply. Sources also said that although Hyundai Motor has the intention to strive for the equity of Beijing Hyundai, it has not yet reached an agreement with BAIC, and the final result remains to be seen.
It can be expected that once the share ratio is changed, Beijing Hyundai will be completely decided by the South Koreans. However, both China and South Korea understand that today's Beijing Hyundai needs to start from the basics and make up for the lessons that have been left behind. And this lesson cannot be completed overnight.
Behind the rise of the above-mentioned car companies, the technical advantages of "Two Fields" are becoming more and more popular, the texture and design of Geely, the Great Wall and Chang'an are pleasing to the eye, and BYD's "three electric" technology has become a "signboard". In contrast, Beijing Hyundai does not have a distinct product selling point and brand image.
At the very least, Beijing Hyundai has to offer its selling points.