FAW Xiali hits new lows with production and sales numbers falling over 50% in May
Following a full morning of poor trading, FAW Xiali's stock value fell to a minimum level on Thursday noon, Caijing reported on Friday. While other manufacturers are reporting increasing sales, both of FAW Xiali's production capacity and sales amounts respectively fell 53.8 percent and 55.1 percent in May.
According to statistics, FAW Xiali manufactured 11,453 vehicles and sold 10,233 vehicles in May. Those numbers are far less than the 17,615 vehicles produced and 15,869 vehicles sold by the manufacturer last May. The manufacturer's cumulative production and sales volumes for the first months of the year totaled 71,173 vehicles and 64,381 vehicles, representing year-on-year declines of 30.2 percent and 44.3 percent, respectively.
Cumulative sales volumes of the manufacturer's flagship Xiali and Weizhi series from January to May totaled 48,569 vehicles and 15,812 vehicles, respectively. The Xiali's sales result is 59.48 percent less than the amount reported a year ago, while the Weizhi's sales grew 2.38 percent. Both model lines' total production volumes decreased over 20 percent over those time periods.
According to a recent analysis done by China Merchants Securities, FAW Xiali's prospects for the near future depend on the sales performances of FAW's Japanese models, as FAW Xiali owns a 30 percent share in FAW Toyota, as well as the overall performance of parent company FAW Group. FAW Xiali has suffered heavily due to its lack of new and competitive models to deal with its rivals, with the manufacturer reporting a deficit last year of 1.31 billion yuan ($212.89m) after deducing income made on investments.