On March 31, GAC Group released its 2021 financial report. Among them, GAC Toyota achieved production and sales of 823,200 units and 828,000 units, an increase of 7.62% and 8.23% year-on-year, and achieved operating income of 129.464 billion yuan, an increase of about 16.89% year-on-year, becoming the only joint venture brand under the GAC Group with positive sales and revenue growth.
It is often said that when the tide has faded, it is not known who is swimming naked.
When the market is good, the bullish sales figures along the way often cover up the shortcomings of car companies. In 2021, when chip shortages, repeated epidemics, joint venture brands have been impacted, and sales have generally declined, it is the time to test the brand power and system strength of an enterprise.
Brand power
In 2019, when GAC Toyota proposed brand evolution, it was quite puzzling.
After all, as a joint venture standing on the "shoulders of giants" with Toyota's global high standards, GAC Toyota can be said to have been born with a golden key. Where else is there to evolve toyota's golden signboard?
But it is precisely from 2019 that some joint venture brands have begun to enter a downward channel, and until now they have not been able to get rid of the decline. Then to the epidemic in 2020, the lack of core in 2021, the entire automotive industry suffered an unprecedented impact, at this time looking back at the brand evolution strategy proposed by GAC Toyota at that time, we understood Guangfeng's initiative to change and take precautions.
Focusing on high-value products, high-quality services and high-grade experience, GAC Toyota has opened the road to strengthening its brand power in three years: continuing to launch new models on the TNGA platform, exploring new service models and service experiences through innovative content such as smart stores, 1V1 exclusive services and community third space, which undoubtedly play a key role in gac Toyota's brand high-end and reputation.
In three years, sales in China's auto market have declined for three consecutive years, but GAC Toyota has achieved a leap from 580,000 to 840,000 units per year, and the user base has also grown to 6.18 million.
Not only has there been a new breakthrough in sales, but also GAC Toyota's own product structure has been fully optimized. The mainstream market of cars, SUVs and MPVs is fully covered, and the gasoline, HEV, PHEV and EV are fully deployed. The cumulative sales of TNGA models are 665,300 units, accounting for 79%. The lineup of four mid-to-high-end models consisting of Highlander, Camry, Willanda and Xena has accumulated sales of 459,000 units, accounting for 54.6% of the brand's share. It further raises the height of the brand and establishes a more high-end brand image.
After structural reform and continuous improvement of services in terms of terminal channels and users, the relationship between manufacturers and dealers, manufacturers and users, and dealers and users has become a "partnership", which has become a solid foundation for brand power improvement.
Institutional force
2022 marks the 18th anniversary of GAC Toyota's founding. From the introduction of Toyota's lean production method, refining a set of lean management philosophy, and then to the introduction of TNGA, the management, research and development, production, sales and other systems, internal and external cooperative suppliers for comprehensive optimization and integration, GAC Toyota's system strength also covers all aspects from production.
As Toyota's global model factory, GAC Toyota has introduced the TPS Toyota lean production method, introduced the world's most advanced production equipment and technology, and thoroughly implemented the Toyota production method in all aspects and continuously improved it. The biggest advantage of lean production method is that it can accurately control the production rhythm, effectively manage the supply chain system, reduce costs and increase efficiency.
The introduction of TNGA is not only to create a more beautiful, sportier and safer Toyota car through the new platform architecture, but more importantly, TNGA's concept is modularity and more component versatility. This maximizes the flexibility of R&D and production.
At the terminal, the regional system of Guangfeng dealers adopts the enterprise meeting system, which can form a synergy in marketing. Coupled with the digital service upgrade of the third-generation store, as well as a more transparent and fair online booking service, as well as e-customer service born for the mobile era, and the car life service platform "Fengyunxing" APP, a set of online and offline, pre-sales and after-sales full coverage of the sales system has been built.
The all-round improvement of system strength enables GAC Toyota to make timely adjustments in the face of various unfavorable factors such as the epidemic, lack of core, and rising raw materials, so as to minimize the impact and take the lead in recovering from the predicament.
New target
It can be said that GAC Toyota has been able to achieve sales and revenue growth against the trend for several consecutive years, precisely because it has adhered to the strategy of brand evolution and system capability improvement for many years, which has played a decisive role. This also gives GAC Toyota the confidence to achieve greater goals.
In 2022, GAC Toyota put forward the goal of annual sales of one million vehicles and "brand upgrading", as well as three strategic actions of comprehensive high-end, all-round electrification, and all-field technology.
If we say that the "brand evolution" in 2019 is a change made by GAC Toyota in the context of the industry entering a downward channel. Then, the "brand upgrade" in 2022 is in the context of the transformation of fuel vehicles to electric vehicles, and the continuous upward impact of independent brands on joint venture brands, GAC Toyota has once again taken the lead in seeking changes.
The three strategic actions are also around the upgrading of brand power and system power, and promote the upgrading of GAC Toyota in the full value dimension.
The soldiers and horses did not move the grain and grass first. Gac Motor Toyota's fourth plant, with a total investment of only 5 billion yuan, was officially put into operation in July 2021, with a production capacity of 200,000 units per year. The fifth plant, which is just across the river from the fourth plant, also has a planned production capacity of 200,000 units per year and is scheduled to start operations in July this year. Gac Toyota's total production capacity will reach 1 million vehicles per year, which has provided a strong guarantee for the target of impacting annual sales of one million vehicles.
The re-improvement of brand power and system strength has also had successful experience for GAC Toyota. It can be said that GAC Toyota has stepped into the million club with one foot.
I think GAC Toyota can succeed this time. (Text/UVIS Auto Old Cannon)
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