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The D120 plan announced by Dongfeng Motor at last year's Beijing Auto Show was realized in its annual report last week: In 2008, Dongfeng Motor produced a total of 1,323,500 vehicles and sold 1,329,600 vehicles, an increase of 14.34% and 16.12% year-on-year, respectively, and sales revenue was expected to reach 1900. Billion yuan, a year-on-year growth of 15%; comprehensive market share of 14.08%, an increase of 1.2%.
Digitally speaking, Dongfeng’s 120 plan seems to be somewhat conservative, but it is more conservative that Dongfeng has set the production and sales target for 2009 at only 1.4 million units, an increase of only 80,000 units from the 2008 target. It was developed with the addition of a new brand (Dongfeng's own passenger car brand).
Compared with other domestic automobile groups, Dongfeng can be said to be the most proud auto group in 2008. Its Dongfeng Nissan and Dongfeng Honda have become the only two companies in mainstream automobile companies to complete their targets at the beginning of the year. The rest of the car companies have not completed their annual targets. 40% of auto companies failed to complete 70% of the annual target, and even 1/4 of auto companies failed to complete half of the annual target.
In this situation, Dongfeng set the annual growth target at only 6%. On the one hand, the “good year†of its joint venture last year will no longer exist this year. On the other hand, it indicates that it is the first for independent brands to be released and listed. The annual sales did not give too much expectation.
Dongfeng Nissan and Dongfeng Honda have enjoyed good growth last year among Dongfeng’s largest profit contribution, but this year will face an unprecedented market challenge: Dongfeng Nissan will not have new cars like last year this year. The effect is that no heavyweight models will be introduced throughout the year; and the monopoly position of Dongfeng Honda's unparalleled CR-V segment in the market segment will be lost. Both Toyota and Volkswagen will launch their respective heavyweight models at this level.
If the two companies still have a good market base, Shenlong Motors and Dongfeng Yueda Kia will face greater market challenges. Shenlong will only launch a new car for the Citroen brand this year. Dongfeng Yueda Kia has apparently been marginalized by Dongfeng, and the profit contribution rate is almost negligible.
According to the information transmitted by the current car companies, almost all auto companies will set a relatively conservative sales target this year, which is less than or equal to last year's sales. Among Dongfeng’s joint ventures, only Dongfeng Honda has increased its production and sales targets this year. Ten thousand vehicles, which also means that even if the Dongfeng other sections of this year's sales volume is flat or slightly increased compared with last year, Dongfeng autonomous passenger vehicles must complete at least 30,000-40,000 annual sales tasks this year.
The information available for the Dongfeng Autonomous Passenger Vehicle Project now is that it will only appear in the market at a minimum until April of this year. In March, Dongfeng Passenger Vehicle Company will release relevant information related to companies, products, brands and strategies. The information, which means that in the next 8 months, Dongfeng Passenger Car Company will sell at least 3,500 vehicles each month, as a company that opens the way with medium-level vehicles, not only to Dongfeng Passenger Vehicles, but also to the entire Dongfeng Group. This is a serious challenge.
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