Shenlong Motor announced that it will increase its vehicle sales target by approximately 50,000 units in 2014. Since the announcement of the sales target in June last year, this is the second time that Shenlong Motor has increased its sales target. As the market as a whole progresses into a slow growth stage, the Shenlong Automobile’s move is regarded as a performance of regaining confidence. It is the Shenlong Automobile’s “returnâ€. The mainstream of the market has taken another step after the slogan.
Some insiders of Shenlong Automobile told the Times Weekly that Shenlong Automobile has always been based on becoming a mainstream joint venture in China. However, due to various historical reasons, the development has not been as expected. Now the parent company Dongfeng Motor successfully acquired the PSA after the technology. Support at the level and product level is greater, so the company has more confidence in the future development, and it is logical to increase sales targets.
The sales target has been raised to 700,000 units. The company has announced that it will increase its annual sales target of 650,000 units to 700,000 units this year. This is the second time that Shenlong Motor has raised its sales target since the release of the “E-strategy†in 2012. In 2013, almost the same period of time, Shenlong Automobile announced that it will increase the annual sales target of 507,500 units to 552,000 units, making it the first auto company to increase sales targets.
According to data released by Shenlong Automobile, in the first half of this year, Shenlong Automobile achieved a total sales of 343,170 vehicles, an increase of 23.9% compared with last year, almost double the overall growth of the passenger vehicle market. Among them, Dongfeng Peugeot brand achieved sales of 183,632 vehicles, an increase of 34.97% over the same period of last year; Dongfeng Citroen brand achieved sales of 159,538 vehicles, an increase of 31.43%.
From the data point of view, Shenlong Automobile has completed 52.8% of its previous sales target of more than 650,000 vehicles. According to this situation, Shenlong Automobile will adjust its sales target this year from “more than 650,000 vehicles†to “strive for 700,000 vehiclesâ€. The intention for sales increase is very obvious. The above-mentioned close to Shenlong Auto insiders told the Times Weekly that among the current sales target of 700,000 units, Dongfeng Peugeot is expected to account for 372,000 units, while Dongfeng Citroen accounts for 328,000 units. “This is based on the current growth of the two brands. As a result, the final data results may not be exactly the same.
In the Chinese market for many years, Shenlong Automobile seems to finally understand the basic needs of Chinese people for automobile consumption. In response to this situation, in recent years, two brands of Shenlong, Dongfeng Peugeot and Dongfeng Citroen, have launched at least one new model each year to promote sales growth. From the first half of last year to the first half of this year, Shenlong Motor has launched five new models including Dongfeng Citroen C4L, brand new Elysee, Dongfeng Peugeot 3008, 301 and Dongfeng Peugeot 2008.
From the perspective of new product layout, the products invested by Dongfeng Peugeot brand should be more in line with the preferences of the Chinese people, especially the small SUV 2008. Once it is put on the market, it is in short supply. According to the Dongfeng Peugeot Public Relations Department, Dongfeng Peugeot has signed a lease with Dongfeng Fengshen to meet the serious shortage of capacity in 2008 by transforming its excess production line.
Some insiders pointed out that these years are the best stage for the development of Shenlong Automobile. The products and technical support that China has obtained are the most advanced technologies. Therefore, Shenlong is very confident in the sales of its products, but the current production capacity cannot meet the sales volume. The demand, so the increase in sales targets is tentative.
Capacity Limit Shenlong Ascenda is one of the earliest joint ventures. The same year, the North and South Volkswagen has become an industry leader, while Shenlong Automobile has been redundant due to structural constraints and the lack of Chinese voice. After the development, it still belongs to the end of the second-line camp of the joint venture, becoming a marginal enterprise in the joint venture of the Chinese auto market.
Dongfeng's shareholding in PSA is the best opportunity for Shenlong Automobile. Dongfeng Peugeot and Dongfeng Citroen, which have been quiet for many years in the second-line camp of the joint venture brand, have finally ushered in their second spring.
According to the latest powertrain combination released by Shenlong, some insiders believe that according to the current domestic market preference for small-displacement turbocharged engines, PSA's new-generation powertrain has begun to find target consumers, and believes in a new generation. After the powertrain assembly products, sales of products of Shenlong Automobile are expected to double.
After the new products and powertrains are replenished in a timely manner, what Shenlong Motor will solve now is the lack of capacity behind future sales growth. It is reported that the three major factories of Shenlong are already operating at full capacity, and the increase in production capacity can only be achieved by transforming Dongfeng's own brand production line. However, it is obviously not enough for the long-term sales growth in the future.
This is close to Shenlong insiders, because the development of Shenlong Automobile has been slow, and there is no vision of early deployment in terms of capacity layout. Therefore, under the premise that sales are expected to increase significantly, the capacity limit has become the soaring of Shenlong Automobile. The biggest obstacle.
In response to insufficient production capacity, Dongfeng and PSA have officially signed an investment agreement for the Shenlong Fourth Plant in early July. The fourth plant of Shenlong Automobile will be settled in Chengdu. It is expected to be put into operation at the end of 2016, which will enable Peugeot Citroen to increase its production capacity in China at least. 50%, about 900,000 production capacity.
It is reported that due to the impact of Dongfeng's successful shareholding in PSA, the future Shenlong No. 4 Plant will not only provide capacity for the Peugeot and Citroen joint venture brands, but also meet the production needs of Dongfeng Fengshen and other independent brands. The factory will mainly produce SUVs, MPVs, etc. in the future. The function is mainly for passenger cars.
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