BAIC Aims to Take up Larger Market Shares of SUV with Development of New Modes
Gasgoo (Shanghai, September 23th)-Reportedly, sales of BAIC, one of leading automakers in China were 869,000 units in the first half in 2016, with a year-on-year rise of 14.1%, which is 5% more than that of overall passenger vehicle market. Soaring sales of SUV have been the leading factor.
Moreover, development of new SUV modes may help the company to make profits rather than suffer a loss in revenue, which may be achieved in 2018, according to insiders of BAIC. Analysts believe that BAIC now may aim at taking up larger market shares rather than making profits. Though suffering a loss in revenue, sales of Chinese brands of BAIC were ranked NO.5 in the Chinese market.
According to report from J.P. Morgan Chase&Co., considering improvement in product assortment may encourage performance of BAIC, J.P. Morgan Chase&Co. has increased profit forecast of the company by 5%、18% and 19%, indicating rise in gross margin rate. And targeted price has increased to ten RMB from eight RMB.
Marketing strategies of BAIC may encourage development of SUV in all segments based on blooming demands in China.