In the third quarter of 2024, Changan Automobile experienced a significant decline in performance, with both revenue and profit dropping.
Recently, Changan Automobile released a financial report showing that its revenue for the third quarter of 2024 was 34.236 billion yuan, a decrease of 19.85% year-on-year; the net profit, excluding non-recurring gains and losses, was 512 million yuan, down 74.96% year-on-year.
As a result, the company's revenue and profit in the first three quarters also fell short of expectations. In the first three quarters, Changan's revenue growth rate plummeted from 17.15% in the first half of the year to just 2.54%; the total net profit attributable to Changan was 3.579 billion yuan, a year-on-year decline of 63.78%.
Securities analysts noted that the decline in Changan's third-quarter net profit attributable to the parent company and the net profit after excluding non-recurring items was mainly influenced by decreasing vehicle sales, a slowdown in highly profitable overseas operations, increased research and development expenses, and losses from joint ventures.
According to the financial report, Changan's vehicle sales in the third quarter were 570,900 units, down 12.71% year-on-year. Sales have been declining since June, with July seeing a year-on-year drop of 17.86% to 170,600 units, August down 10.63% to 187,100 units, and September down 9.98% to 213,100 units.
On the other hand, Changan Automobile continues to increase its investment in new energy transformation and intelligent technology. In the second half of the year, Changan will continue to focus on the new energy vehicle market and is set to launch several new and updated models, including the Qiyuan E07, Deep Blue S05, Deep Blue L07, Avita 07, and the fourth generation CS75PLUS.
Changan Automobile Chairman Zhu Huarong stated at the Changan Technology Ecosystem Conference that the company plans to invest 250 billion yuan over the next five years and recruit more than 10,000 technology research and development personnel.
According to Changan's plan, the target for new energy vehicle sales in 2024 is 750,000 units, with annual targets for the Changan Qiyuan, Deep Blue, and Avita brands set at 250,000, 280,000, and 90,000 units, respectively.
Related analyses suggest that the Deep Blue S05, a volume model, and the Avita 07 equipped with Huawei's Qian Kun Intelligent Driving ADS 3.0 are performing well in terms of orders. With the launch of the Avita 11 and 12 extended-range versions, the company is expected to see both volume and price increases in the fourth quarter.
It has been reported that Changan plans to launch 37 smart digital products in the future, with an overall goal of reaching an annual sales volume of 5 million units by 2030, of which 4 million units will be from Changan's own brand, 600,000 from new energy models, and 30% from overseas sales.
