In 2021, The cumulative sales volume of Beijing Hyundai was about 385,000 units, down 23.3% year-on-year. This is the fifth year of beijing hyundai's sales decline, and entering 2022, the market pressure of Beijing Hyundai is increasing. Subsequently, there have been rumors of a shutdown of the share ratio factory and an adjustment of the stock ratio recently.
Recently, the news that the Beijing Hyundai Chongqing plant is in a state of suspension. According to the China Economic Network, a relevant person close to Beijing Hyundai revealed that "most of the production lines of Beijing Hyundai's Chongqing factory have been suspended since December last year, and workers are also on holiday." At present, Beijing Hyundai has the first, second and third plants in Shunyi, Beijing, as well as five major passenger car production bases in Cangzhou and Chongqing in Hebei, with a total annual production capacity of 1.65 million units.
The problem of overcapacity
According to First Financial News, 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." An insider in Beijing Hyundai said the Chongqing plant stopped production in December last year. Caijing Network Auto contacted the relevant person in charge of Beijing Hyundai for this reason, and the other party said: "I don't know about this matter. ”
According to the data, the Chongqing plant was completed in 2017, with a total investment of 8.39 billion yuan, an annual production capacity of 300,000 vehicles and an annual engine design capacity of 300,000 vehicles. According to relevant statistics, the annual production capacity of Beijing Hyundai factory is about 1.65 million vehicles, and the market sales of Beijing Hyundai in 2021 are only 385,000 vehicles, a year-on-year decline of 23.3%, not only failing to complete the sales target of 560,000 vehicles set in 2021, but also the problem of overcapacity is placed in front of Beijing Hyundai.
In order to further alleviate the pressure on production capacity, in May 2021, the Beijing Shunyi District Government released a document showing that Ideal Automobile will add a new factory in Beijing Shunyi District, with a total investment of 6 billion yuan, a total area of 270,000 square meters of renovation and expansion, and plans to put into operation in 2023.
On October 16, Ideal Automobile will take over the Beijing Hyundai First Factory, and the follow-up Ideal Automobile will use the Beijing Hyundai First Factory to build a pure electric passenger car intelligent manufacturing factory, carry out research and development of complete vehicles, core components, automatic driving and other technologies, and achieve an annual production capacity of 100,000 vehicles.
As the first plant in China, Beijing Hyundai No.1 Plant was officially put into operation in 2002, with an annual production capacity of about 300,000 units. Even after removing the first factory, Beijing Hyundai's market sales in 2021 will be less than 400,000 vehicles, while the spare capacity will be close to one million, and the capacity utilization rate of the entire Beijing Hyundai is less than one-third.
Today, in addition to the first factory that has been sold, Beijing Hyundai has two factories in Beijing, one each in Cangzhou, Hebei Province, and Chongqing. Stopping the loss by buying a factory may become a potential factor for Beijing Hyundai to list for sale. Last year, hyundai motor group was putting its second factory in Beijing on sale, and Hyundai would shift its focus to electric vehicles and luxury models, hoping to reverse years of sluggish sales in China, the world's largest auto market, according to a report by China Youth Daily. As of now, in addition to the first plant being included in the ideal car, the second plant and the Chongqing plant will be sold.
Previously, it was reported that the third factory of Ideal Automobile may have been finalized to settle in Chongqing, an important automobile town.
According to the Chongqing Municipal Public Resources Transaction Supervision Network, the A16-8 plot of the A division of the Water and Soil Group of Chongqing Liangjiang New Area was completed on January 27, 2022. The land area of the plot is 1,133,400 square meters, the transaction price is 430.69 million yuan, the transferee is Chongqing Chezhiyu Automobile Industry Co., Ltd., and the industrial category of land use conditions is transportation equipment manufacturing.
According to the industrial and commercial registration, Chongqing Chezhiyu Automobile Industry Co., Ltd. was established on December 9, 2021, with a registered address of No. 618, Liangjiang Avenue, Longxing Town, Liangjiang New District, Chongqing, which is 100% controlled by Chongqing Ideal.
However, Ideal Auto told Caijing Auto that Ideal's new plant in Chongqing has nothing to do with Beijing Hyundai's Chongqing plant.
Sales have been declining year after year
Whether it is selling the factory or stopping production in Chongqing, it is inseparable from the market performance of Beijing Hyundai.
From the perspective of global market sales, Hyundai Motor released sales data last year shows that Hyundai Motor's global sales in 2021 reached 3.891 million units, in the global automotive market, can compete with Toyota, Volkswagen and Renault-Nissan-Mitsubishi Alliance, hyundai motor market sales ranked fourth in the world, while in the domestic market, Hyundai's sales have shown a decline in 5 years. Founded in 2002, Beijing Hyundai has become a thing of the past in the past 20 years of market development in China, and after entering the million-level club in 2013, the highest market sales reached 1.16 million vehicles, and since the beginning of 2017, Beijing Hyundai's sales have declined all the way.
Its sales data shows that Beijing Hyundai sold 785,000 vehicles in 2017; The year-on-year decline of more than 30.5%, sales in 2018 were basically the same as in 2017, maintaining at 790,000 vehicles, in 2019, Beijing Hyundai launched 6 models including cars, SUVs, new energy cars and new energy SUVs in the product layout, but the market sales did not recover the decline. In 2019, Beijing Hyundai's sales volume was 716,000 vehicles, in addition to the impact of the rapid decline in sales, in 2019, affected by the epidemic and other factors, the negative news about the personnel adjustment and factory suspension of Beijing Hyundai First Factory has also been continuously exposed, and the competitiveness of Beijing Hyundai products and brands in the market has become weaker and weaker.
Zhang Xiang, an analyst in the automotive industry, said: "Beijing Hyundai's brand influence is now declining significantly, and there is no core technology support. At the same time, the frequent quality problems of Beijing Hyundai are not only the embodiment of its weak technology, but also seriously affect its reputation. ”
In 2020, the cumulative sales volume of Beijing Hyundai in the whole year was only 502,000 vehicles, a year-on-year decline of 28.7%, and the market sales ranking of Beijing Hyundai has also fallen from the top 5 of car sales to the top 15 list of car companies. In 2021, The cumulative sales volume of Beijing Hyundai was about 385,000 units, down 23.3% year-on-year.
Public information shows that in the whole year of 2021, Beijing Hyundai ix25 sold 16,201 vehicles; Rena market sales of 10,723 units; Fiesta sold 8,249 vehicles in the market for the year; The market sales of the electric vehicle Onsino are only 611 vehicles, and it is difficult for the low sales data to support the layout of the modern electrification market in Beijing. As a representative of Beijing Hyundai's main electrification, onsino's market performance is far less than the market recognition of domestic new energy models such as its own brand Great Wall Euler, and the lack of brand presence has become its influencing factor.
Cui Dongyou, general manager of Beijing Hyundai, said of the decline in sales in 2021: "In 2021, due to factors such as the epidemic and insufficient chip supply, Beijing Hyundai is facing a situation where the overall operating situation is not satisfactory. Compared with 2020, 2021 saw a certain decline, with sales of about 385,000 units in the whole year. ”
Beijing Hyundai said that the sales data is not satisfactory because of the adjustment of the strategy, from focusing on sales to optimizing the product structure, improving technology and improving the dealer network, and it is understood that the current Beijing Hyundai dealer network has been reduced from the original 800 to 590.
Beijing Hyundai's sales target for 2022 is 500,000 vehicles, while the january market sales data shows that Beijing Hyundai's terminal sales in January were only 37,099 vehicles, down 33.59% year-on-year. Among them, the sales volume of Elantra reached 14657 units, beijing hyundai iX35 reached 8626 units, and the performance was not ideal for the pure electric version of the pure electric version of the Festa and the pure electric version of the Mingtu pure electric version, with monthly sales of 30 vehicles and 14 vehicles respectively.
As an early layout of the new energy field, Beijing Hyundai has been involved in the three major technical fields of EV, HEV and PHEV, but today, the market recognition of new energy products is very small. In terms of new product planning, in addition to the new generation of Elantra, Beijing Hyundai plans to launch a number of new cars also face many difficulties.
Zhang Xiang said: "For the current automotive industry, if the company does not do well in new energy vehicles and smart cars, the brand influence will shrink significantly. ”
According to the data released by the China Association of Automobile Manufacturers, from 2016 to 2021, the passenger car market share of Korean brands in the domestic market has dropped from 7.3% to 2.4%, and the market sales share in January this year is only 1.7%. How Beijing Hyundai achieved the sales target of 500,000 vehicles, now from the perspective of the overall market development trend, in the face of the gradual shrinking market share, the market pressure of Korean cars led by Hyundai and Kia will be further amplified this year.
Cui Dongshu, secretary general of the National Passenger Car Market Information Joint Association, also said earlier, "Beijing Hyundai's sales continue to decline, and the gap between production capacity and sales continues to expand, which I think is a problem of unsatisfactory water and soil." Hyundai's sales performance in the global market is good, but it is not satisfactory in China, and the brand still has to face the problem of how to improve product strength and how to quickly adapt to changes in the Chinese market. ”
Or seek a share ratio adjustment
In recent years, Beijing Hyundai has declined all the way in market performance, not only the lack of market competitiveness in product strength, but also difficult to obtain market recognition in terms of product technology, at the same time, after the listing of a variety of products, the competition between products has become internal friction, in addition, in the product market brand, in the face of the squeeze of independent brands and other joint venture brands, the product cost-effective advantage is no longer, it is difficult to open the market.
In the face of declining sales and declining market share, the change in Beijing Hyundai's stock ratio has become the focus of attention.
A few days ago, according to the Securities Daily, "Beijing Hyundai may be brewing a change in the joint venture share ratio." Hyundai Motor Group will be ready to adjust the shareholding ratio of the joint venture company, with reference to Kia's new joint venture model, and whether the adjustment can be achieved in the end, Hyundai China responded that it has not received relevant news.
Hyundai Motor's intention to increase its share ratio in the joint venture has been rumored for a long time, and at the end of 2021, it was rumored that Hyundai Motor would increase its equity investment, but Beijing Hyundai Convenience did not give any reply to the rumors.
In January this year, Cui Dongyou, general manager of Beijing Hyundai, responded: "Hyundai has no plans to adjust the equity ratio of Beijing Hyundai, and the joint venture contract between China and South Korea will only expire in 2032." However, he also admitted that the market performance of Beijing Hyundai in 2021 has declined significantly compared with the previous year.
In recent years, the rise of China's own brands, the market share of joint ventures has gradually shrunk, in the view of the deputy secretary-general of the China Association of Automobile Manufacturers, after the full liberalization of the share ratio, foreign companies want to increase their shares in the joint venture in China, or depend on the contribution and ability of Chinese and foreign parties in the joint venture company.
Cui Dongshu, secretary general of the National Passenger Car Market Information Joint Association, once said that domestic joint venture car companies have been challenged by operation, and these car companies urgently need to change their predicaments through equity changes and find new development opportunities.
It is worth noting that Beijing Hyundai is of great significance to BAIC Group, even if the market sales decline, but the status of Beijing Hyundai in the BAIC Group is still important, Beijing Hyundai wants to expand the right to speak through the adjustment of the stock ratio is still not small.
In addition to facing considerable difficulties in the change of the stock ratio, there are also frequent adjustments in personnel decision-making, and the frequent personnel changes of Beijing Hyundai have led to the lack of stable strategy and market direction of Beijing Hyundai brand. In 2021, with the departure of Xiang Dongping and Fan Jingtao successively, now only Executive Deputy General Manager Du Junbao is sticking to it, in the face of market pressure in 2022, the sales volume is sluggish, the product brand power needs to be improved, and the market share is gradually declining, how Beijing Hyundai will develop and whether it can bring new changes, look forward to it together.