FAW plans to exceed 900 billion yuan in revenue in five years.
Editor’s note: This article comes from “ Future Car Daily ” (WeChat public account ID: auto-time), author: Terence Lee Nan.
Author | Li Zinan
Edit | Li Huanhuan
After five years, FAW Group once again announced revenue data.
Faw Group recently announced that in 2019 FAW Group achieved a total of 3.64 million vehicle sales throughout the year, an increase of 1.3% year-on-year; realized operating income of 620 billion yuan, an increase of 4.4%, and net profit of 44.05 billion yuan, Up 2.2%.
In the joint venture segment, FAW-Volkswagen’s production and sales exceeded 2 million units, ranking first in the industry in passenger car sales. FAW Toyota’s total annual sales reached 738,000 units, a year-on-year increase of 2%. In terms of independent brands, the annual sales volume of the Hongqi brand exceeded 100,000 units for the first time, fulfilling the phased target of 100,000 annual sales in 2020 in advance. FAW Jiefang sold a total of 335,700 heavy, medium and light trucks throughout the year.
“2019 is the highlight of China FAW, especially the Red Flag brand has repeatedly performed miracles and performed particularly well.” FAW Group Chairman Xu Liuping said at the 2020 Red Flag Partner Conference that the red flag’s revival became the most worthwhile in 2019 Happy event for celebration.
Since August 2019, Hongqi has sold more than 10,000 yuan for five consecutive months. On December 26, 2019, the Hongqi brand achieved its annual sales target of 100,000 ahead of schedule. By 2020, Hongqi ’s sales target is 200,000. Another independent brand of FAW Group, Pentium, has also gradually started to exert its strength since 2018. In the first 11 months of 2019, Pentium sold 104,000 vehicles, a year-on-year increase of 43% and a market share increase of 18%.
Relevant data shows that as early as 2014, FAW Group’s revenue reached 494.1 billion yuan and net profit exceeded 60 billion yuan. However, the good times did not last long, and the loss of independent brands once put FAW Group in trouble.
According to the Economic Observer, Hongqi and Pentium have previously been big losers. Taking Pentium as an example, it lost 500 million yuan in 2017, compared with a loss of 644 million yuan in 2016. In the first half of this year, FAW Pentium’s net profit was about 228 million yuan. In addition, Hongqi is still in the red, but the specific amount is unknown.
How to turn losses into profits has become the next important issue for FAW’s autonomous sector.
From the perspective of the group, the revenue of more than 600 billion yuan is not the ultimate goal of the FAW Group. In 2018, Xu Liuping stated that the group company plans to achieve over-selling vehicle sales in five years.Over 5.9 million vehicles, operating income of more than 900 billion yuan, profits of more than 80 billion yuan, and per capita income of more than 180,000 yuan. By 2030, build the group company into a world-class mobile travel service company.
