What will GAC do if it loses "two fields"? Compared with the answer, the only way is not to forget the danger.

"2022 is the key year of the 14th Five Year Plan. GAC Group will make every effort to challenge the target of 15% year-on-year growth in production and sales, industrial output value and real estate value, and the sales revenue should reach 500 billion yuan. At the same time, we also hope to achieve the goal of trillion yuan by 2035 or earlier."

At the semiannual report press conference, GAC Group's senior executives explained their vision of the future to the outside world regarding the overall development situation in the first half of the year.

From every resolution and plan made by the Group since this year, everything foreshadows that, as a more comprehensive car company in the "national team", GAC will have a better story in 2022 than most people.

GAC Toyota, which is advancing towards the goal of millions of years' sales, and GAC Honda, which is also famous and profitable, have jointly supported the business of the whole group's joint venture sector; Based on the new energy industry, E'an, which is becoming better and better, has opened an opening directly on the road of mixed transformation of state-owned enterprises; GAC Trumpchi has experienced nearly 3 years of pain, and has regained its vitality due to product reform

Although, among its subsidiaries, GAC Fick, a joint venture with Stellantis Group, declared bankruptcy after being unable to save itself, and GAC Mitsubishi is also making a final attempt with the new Outlander, compared with any car company with a similar system, the overall development momentum of GAC is worthy of affirmation by everyone.

From its third quarter financial report, it can still be concluded that GAC has accumulated a very deep family background. If we have to worry, GAC is too dependent on the "two fields" profit model and GAC's independent growth rate in the traditional and new energy markets is inconsistent, which may be the crux.

The revenue rose sharply, helping the overall improvement

In recent years, in view of the unfriendly attitude of the Chinese auto market towards the whole joint venture market, many auto groups relying on the blood transfusion of the joint venture plate will inevitably encounter the situation of blocked development.

Chang'an, SAIC, Dongfeng and other mainstream auto enterprises have all returned to their own brands to practice their internal skills when their joint ventures encounter a downturn. Regardless of the result, in order to get rid of the limping state, these "top stream" auto groups are making a living on their own with the rise of China-Chic and the trend of new energy industry focusing on China in an all-round way.

For GAC Group, with GAC Toyota and GAC Honda as the backers, it is also time to start the business of GAC in a big way.

Now, despite the influence of objective factors such as epidemic situation and international situation, when E'an and Trumpchi have won seats in their respective camps, I think the revenue performance of GAC Group this year can actually reflect this new power from a certain perspective.

After delivering satisfactory results in the first half of the year, during the reporting period, the operating income of GAC Group in the third quarter increased by 51.58% year on year again, reaching 31.527 billion yuan; The net profit attributable to shareholders of the listed company was 2.312 billion yuan, up 144.07% year on year; The net profit attributable to shareholders of the listed company after deducting non recurring profits and losses was 2.087 billion yuan, up 292.70% year on year.

As a result, we can indeed get a new set of data. The accumulated operating income of GAC Group in the first three quarters has reached 79.976 billion yuan, up 45.10% year on year; Net profit attributable to the parent company was 8.062 billion yuan, up 52.59% year on year; Non net profit attributable to the parent company was 7.728 billion yuan, up 68.87% year on year.

To tell the truth, when all Chinese brands show the spirit of "willing to compete with Tiangong" in 2022, GAC Group can focus on the rapid development of the whole brand camp while maintaining the strong vitality of its joint venture, which can be regarded as a clear stream of the car market.

According to the data, GAC has sold 1.825 million vehicles accumulatively from January to September this year, up 22.2% year on year. Looking at the new high production and sales of GAC Toyota for the enterprise and one million vehicles per year, the outside world will increasingly feel that some judgments are enough to fall ahead of the target of "2.43 million vehicles per year of the Group" set by Zeng Qinghong, Chairman of the Group.

The "national team" has been missing a model that can point out the direction for the whole industry and develop in an all-round way.

In the past, under the background of the dual efforts of Roewe and MG, SAIC had certain potential. However, as China's new energy industry has entered a new era of high-speed iteration, the market has been forced to restructure, and the adjustment among the auto enterprises has also come to a crossroads.

Since the rapidly changing consumption concept, SAIC failed to take advantage of the opportunity. Chang'an, FAW and GAC, which are in the same trench as SAIC, have no reason not to strengthen their influence in order to win the second half of the car market hegemony.

Of course, what GAC Group is able to stand out from the crowd is bound to be a sense of pretentiousness. However, the new topic is that the next challenge for GAC Group is not limited to the shortcomings revealed in the development of its own business.

The chain reaction of the crazy pursuit of the overall sales volume will gradually emerge. When the whole industry is transitioning to electrification without thinking, will the GAC joint venture board be worried about its overly cautious behavior under this situation?

If you want to keep the years quiet, don't venture into the "two fields"

Living in South China depends on regional culture. In fact, the Japanese joint venture under GAC has had some characteristics that most auto enterprises do not have since its establishment. After a long time of market cultivation, the good reputation and popularity of Japanese car enterprises in the local area is enough to make GAC Toyota closely follow GAC Honda to grow into a powerful car enterprise that can play its own role.

It is worth mentioning that the main profit of GAC Group in the first three quarters of this year is the investment income from joint ventures and associates.

During the reporting period, GAC achieved a cumulative investment income of 12.268 billion yuan, a year-on-year increase of 48.1%. Among them, the return on investment in associates and joint ventures reached 12.144 billion yuan, which is enough to show how much the "two fields" contributed to the profits of the whole group.

To this end, standing at the volatile juncture of this era, as feared above, ask whether GAC Group can use its own power to complete future market expansion without the protection of "two fields"?

For a long time, Toyota and Honda have maintained their own nature in dealing with "making money": "keeping profits" is far more important than "selling more cars". This is the case when GAC Honda gambled with Dongfeng Honda. Later, this was especially true when GAC Toyota and FAW Toyota were involved in a tussle.

It was originally thought that, as the brand appeal of both companies has reached an unprecedented height in the past two years, it is enough to maximize self growth by using the existing resource allocation.

Perhaps seeing the huge market potential, "two fields" still have no patience. On the one hand, under the premise of full capacity, GAC Toyota is rushing to the peak of annual sales of millions of vehicles; On the other hand, GAC Honda, after putting aside its obsession with sales, has raised the image of its products at all levels in an all-round way to overturn people's inherent impression of the Honda brand.

At this stage, reviewing the market feedback of the past year, it seems that it is not inappropriate for both parties to make such a decision. But the volatility of the Chinese market is always so unreasonable. Today's efforts never indicate that the future will be a "road to the sky".

Once the market has been favoring it for several consecutive years, the "two fields" need to be more vigilant. This is not only impacted by the changing development rhythm of the Chinese market, but also based on the current market development trend.

As you can see, it has only been a few years since the traditional car market was forced to transform and everyone was actively seeking change. In addition to the joint venture between Toyota and Honda, which one can stick to its position?

When the issue of "increasing sales" starts to become difficult, for GAC Toyota and GAC Honda, holding the existing base and then completing the empowerment of GAC Group is the biggest blessing.

In addition, the two sides always have ambiguous attitudes towards the new energy industry. Watching the new energy market surging, but not surprised; Seeing the Chinese auto enterprises advance rapidly, they have to go ahead step by step.

Whether GAC Honda e: NP1 and GAC Toyota bZ4X have just been listed, we believe that their purposes are limited to leaving a window for Japanese car companies to live in China's highly involved electric vehicle market. As for whether the troops can stand out, they are not responsible for the mission.

As a result, in the face of increasingly fierce competition in the market, instead of always treating GAC Toyota and GAC Honda as "profit cows", the independent sector consisting of Trumpchi and E'an as the core, does it need to come up with stronger means for the healthy development of GAC?

It is getting closer and closer to the node of the overall transformation of China's car market, as well as to the time when the traditional car companies and newcomers are fighting head-on. Although different from Trumpchi, which has just shown signs of recovery, Egan, which is getting better and better, has buried a new development explosion point for GAC, before that, from maintaining the sales advantage to maintaining the profit source, the "two fields" under pressure must not rush forward.