Chery’s January Sales Increase 17.5% YoY

Yesterday, Chery Automobile released its January sales data and achieved sales of 86,299 vehicles, an increase of 17.52% year-on-year. The sales data of Geely Auto (00175.HK) announced on January 14 was lower than that expected by brokers. In January, the company achieved sales of 45,600 vehicles, an increase of approximately 4.0% year-on-year and a decrease of 18.7% from the previous quarter.

According to the data, in January, 26,975 units of the Qiyun series were sold at the top of the Chery brand; Chery’s QQ sales were 16,864 units, ranking the second place; Fengyun 2 sold 10,854 units; the Tiggo 3 and A3 sold 9,402 units and 7,471 units respectively. . Chery’s sales of QQ in January accounted for only 19.5% of Chery's total sales. In the same period, Chery’s exports in January reached 10,505 units, an increase of 132.5% year-on-year.

The sales data released by Geely Automobile shows that in January sales, the numbers of Free Ship, Geely King Kong, Dorsett EC7 and EC8, and Vista were 9115, 9194, 8993, and 7564, respectively.

Guotai Junan (Hong Kong) analyst Chen Huanyu released a research report yesterday, pointing out that Geely Automobile's sales growth in January was lower than the agency's expectations and market average, and all model sales were down in a month-on-month ratio, with the most serious ones being older and more expensive models. The low free ships and King Kong are mainly because consumers are more inclined to purchase higher-priced cars in cities where purchase restrictions are imposed.

At the same time, the withdrawal of policies such as national purchase tax, trade-in replacement, and automobile going to the countryside will make it difficult for Geely Automobile to increase its sales. Guotai Junan (Hong Kong) stated that it will consider whether to downgrade the company's rating to “neutral”.

Yesterday, Geely Auto closed at HK$3.76, a decrease of 0.79%.