Recently, BAIC Motor Co., Ltd. (BAIC Motor, 01958.HK) released its results for the third quarter of 2022. The performance announcement shows that, thanks to the good operation and rapid upside in the third quarter, from January to September this year, BAIC Motor achieved revenue of 141.877 billion yuan, a year-on-year increase of 14.53%; net profit increased by 13.55% to 12.468 billion yuan, attributable to The net profit of shareholders of the parent company reached 3.215 billion yuan, a year-on-year increase of 20.43%.
In 2022, although the Chinese auto market will be affected by various factors, it will continue to recover despite the pressure. According to the statistics of the Passenger Car Association, the retail sales of passenger vehicles in the passenger car market reached 1.922 million units in September, a year-on-year increase of 21.5%.
In the face of the constantly challenging and unpredictable market and environment, BAIC Motor has reduced costs and increased efficiency through multiple measures such as ensuring supply, promoting production, increasing sales, and reducing costs. Profits performed well in the third quarter, contributing to the recovery of the real economy and kicking off the brand’s successful conclusion of the year.
BAIC Motor’s brands performed differently
Self-owned brands use products to drive brand renewal and leverage the incremental market. In July this year, BAIC Motor’s first full-scene definition smart car Rubik’s Cube was officially launched. This SUV is intended to start the brand’s upward path and launch an impact on the younger market.
Joint venture brands have also achieved continuous growth in the stock market. In the third quarter of this year, Beijing Hyundai’s sales continued to pick up, and it gradually returned to the mainstream joint venture brand track. The sales volume of the entire car series in September exceeded 30,000 units, and the total sales volume increased for 4 consecutive months, and the sales data of the main sales models rebounded significantly. Sales of the seventh-generation Elantra exceeded 10,000 units for three consecutive months, and the combined sales of the fifth-generation Tucson L and the new ix35, two main SUVs, exceeded 13,000 units in September. From the sales data, Beijing Hyundai may usher in a new development cycle.
Beijing Benz’s sales in September exceeded 66,000 units, a year-on-year increase of 142.37%. Major models such as the long-wheelbase C-class car, the long-wheelbase E-class car, and the long-wheelbase GLC SUV occupy the leading positions in the market, with gratifying results. In addition, according to the latest data from the Passenger Federation, the Vito, a joint venture luxury business vehicle produced and sold by Fujian Benz, saw sales in September increase by 5.74% year-on-year and 26.95% month-on-month, maintaining a leading edge in the segmented market.
Develop core technologies and optimize the industrial structure with electrification and intelligence as the engine
At present, the entire automobile industry is accelerating its transition to electrification and intelligence. The new four modernizations are also a strategic choice for the high-quality development of my country’s automobile industry. Independent technological innovation has become the “key key” to win the future. With forward-thinking deployment, BAIC Motor has accelerated its transformation to “electricity, intelligence, and connectivity”, comprehensively deployed fuel, hybrid, and pure electric drives, and focused on core technologies, focusing on new energy and intelligent connectivity technologies. In order to fully optimize the product structure.
In terms of sales volume, BAIC Motor’s electrification transformation has achieved remarkable results. In September this year, the sales of BAIC Motor’s pure electric models increased by 22% month-on-month, of which self-owned pure electric vehicles accounted for more than 30%, and overseas exports surged by 233.6% year-on-year. The first batch of BAIC Rubik’s Cube models have been shipped to the South African market. With the launch of the all-new EQE, the first pure electric model of Beijing Benz based on the EVA pure electric platform, BAIC Motor’s product lineup in the new energy market segment has become more abundant, laying a solid foundation for its realization of “full electric”.
On the intelligent track, the Beijing brand launched the @me intelligent platform, with “scenario-based cockpit + Internet of Vehicles + autonomous driving” as the core transformation direction, put forward a product plan for the 3.0 era of “define demand by scene”, and launched its first Model Rubik’s Cube. This model is its first fuel vehicle equipped with the Harmony OS intelligent cockpit system. With the launch of the Rubik’s Cube, BAIC Motor’s first-mover advantage in intelligence will once again be shown to consumers.
2022 is coming to an end. Judging from the sales of the auto industry in the first three quarters and the strong growth of BAIC Motor in the third quarter, the strength of BAIC Motor’s stock price has emerged. Through steady and upward measures such as continuous cost reduction and efficiency increase, export expansion, breakthrough in core technology, and industrial transformation, BAIC Motor’s annual report card is worth looking forward to.