It is not the overall industry recession holding responsibility for FAW sales slump but that the company hasn’t caught up the overall development pace of the auto industry leaving their products growing to be out of date, according to the statement of Cui Dongshu, secretary general of China Passenger Car Association.

FAW Car released August data express of sales and production of overall sales slump in car, SUV and MPV. Car sales slid 20.7% compared with the same period of last year; SUV dropped 24.4% on a year-on-year basis and MPV decreased 16.4% than a year earlier.

The FAW Car sales slip is not resulted from outside factors but inside ones in the company, pointed out Jia Xinguang, a senior analysis for automobile industry. It is a total mess of FAW car business, which hasn’t been taken responsibility by Xu Ping, the new chairman of FAW group. He hasn’t realized that the most urgent situation is that FAW Xiali may face delisting in the year.

FAW Car products are aging in Chinese market as Besturn cars and SUV haven’t been updated for several years. Even for the rapid development of China's auto industry in the past, the automobile companies need to upgrade products frequently to keep high sales. Even if this is not the big year for product updating, it still requires automakers to push forward some new models and revised models for a new year.

However, FAW hasn’t made any movement in launching new models or changed version of old models. The company’s top sellers Besturn B50 and X80 are growing out of date. And its only MPV Mazda 8 also has had a big age.

Source:Gasgoo