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in the first half of this year, the decline in saic group's revenue and net profit was particularly eye-catching: byd's revenue surpassed saic group for the first time, and its net profit was twice that of saic group; although great wall motor's revenue was only one-third of saic group's, its net profit exceeded 451 million yuan; its gross profit margin was 20.74%, which was also much higher than saic group's 8.53%.

behind the poor performance is the sharp decline in sales of saic motor. although saic motor retained its top position in the first half of the year, the double-digit decline, coupled with the rapid catch-up of its competitors, put its position as the sales champion for the whole year in jeopardy.

technology giants such as huawei and xiaomi are siphoning market traffic. automakers such as chery chairman yin tongyue and great wall motors chairman wei jianjun are "addicted" to live streaming. china's automobile production and sales, new energy vehicle penetration rate, and domestic brand passenger car market share have repeatedly set new highs... the chinese auto market in 2024 is extremely lively. while automakers are "fighting close together", the market structure is quietly changing.

with the arrival of the financial reporting season, listed automakers have released their "report cards". some have achieved a "win-win" in terms of revenue and net profit, some have "increased revenue but not profit", some have "lost money but gained publicity", and some have "both revenue and net profit have dropped"... amid the uneven performance, automakers are accelerating their differentiation, jointly interpreting the "ice and fire" of the auto industry.

screenshot of saic motor's 2024 semi-annual report

on august 29, saic motor released its 2024 semi-annual report. data showed that saic motor achieved operating income of 277.086 billion yuan in the first half of the year, a year-on-year decrease of 12.43%; net profit attributable to the parent company was 6.628 billion yuan, a year-on-year decrease of 6.45%; net profit attributable to the parent company after deducting non-recurring items was 1.02 billion yuan, a year-on-year decrease of 82%.

in contrast, byd's revenue in the first half of this year reached 300 billion yuan, surpassing saic group for the first time; at the same time, byd's net profit reached 13.631 billion yuan, twice that of saic.

another private automaker, great wall motors, had only one-third of saic group's revenue in the first half of the year, but its net profit exceeded saic by rmb 451 million, reaching rmb 7.079 billion. great wall motors' gross profit margin in the first half of the year was 20.74%, much higher than saic's 8.53%.

it is a consensus that the operating pressure of automobile enterprises has generally increased in the face of the market competition environment of "internal and external pressure". however, the decline in the revenue and net profit of saic group is particularly glaring.

regarding the performance changes, saic stated that the decline in the fuel vehicle market and the unprecedentedly fierce "price war" led to a decrease in the company's sales revenue and a decline in gross profit.

saic motor's june production and sales report

behind the poor performance is the sharp decline in sales of saic group. in the first half of this year, saic group sold a total of 1.827 million vehicles, a year-on-year decline of 11.81%.

although saic motor retained its top position in the first half of the year, the double-digit decline, coupled with the rapid catch-up of its competitors, put its position as the sales champion for the whole year in jeopardy.

in recent years, byd's sales have continued to grow rapidly, and its monthly sales have surpassed saic since june this year. as of august, byd's cumulative sales were 2.3284 million vehicles, a year-on-year increase of 29.92%; saic's cumulative sales were 2.3361 million vehicles, a year-on-year decrease of 19.31%.

in 2006, saic motor’s sales volume reached 1.224 million units, successfully surpassing faw group to win the title of the year’s auto market sales volume. in the following 18 years, saic motor’s sales volume continued to rank first in china. however, it is worth noting that after reaching the “peak moment” of sales volume and revenue in 2018, saic motor has been on a downward trend with the turbulence of the auto market and the gradual rise of the new energy vehicle wave.

byd august production and sales report

it is worth noting that saic is also actively adjusting to cope with market changes. recently, the group’s management has undergone intensive "blood transfusions": wang xiaoqiu and jia jianxu serve as chairman and president of saic group respectively, and business units such as saic volkswagen, saic general motors, and saic passenger vehicles have also successively ushered in management adjustments.

huatai securities stated in a research report on august 30 that saic motor is entering a necessary strategic transformation period under external pressure. we believe that the company will efficiently sort out internal governance and adjust personnel cadres, formulate and implement subsequent action plans. saic motor will also meet domestic and foreign challenges with a new face in the near future, drive the three pillars of going overseas, new energy, and autonomy, promote further transformation of the group, and is expected to usher in a deep squat jump.