BAIC could refocus on commercial vehicles
- While the sales and production of most independent brands of major Chinese manufacturers have been increasing for the past ten years, one major manufacturer has been in free fall since 2016, it is the BAIC group (Beijing Group).
- It is its "passenger cars" division that is experiencing great difficulties, as the "utility vehicles" division is holding up with production of 650,000 units in 2021 compared to 510,000 in 2016 and 670,000 in 2012. There is no growth but stagnation. On the other hand, BAIC's passenger car division plummets from 865,000 units in 2016 to 720,000 in 2017, 560,000 in 2018, 405,000 in 2019, 145,000 in 2020 and 125,000 in 2021. All categories are affected, both sedans, SUVs and even electric cars.
- The group failed to develop the Borgward brand, which it ended up scrapping, and also failed to consolidate its other brands under the Beijing logo as it had announced. Its "Senova" mid-range electric cars have disappointed customers who have overwhelmingly shifted to Chinese-made Teslas.
- One wonders if the BAIC group is not going to abandon its various brands of passenger cars to focus on utility vehicles (category in which it remains the leader) and J.V. (joint venture). BAIC produces Mercedes and Hyundai under license for the Chinese market, which translates into production of 950,000 additional passenger cars in 2021, down from previous years (1,090,000 units in 2020, 1,276,000 in 2019 and 1,480,000 in 2016).
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