A few days after Beijing’s five major factories stopped production for a week, news from Beijing’s Hyundai Group confirmed to the Xinhua News that on August 3th, its four major vehicle factories had actually stopped production for a week, but the other party denied that this was due to poor sales.

Earlier, a number of media quoted informed sources saying that on July 28th, Beijing’s Hyundai factories had notified internal employees that “after today, all Beijing modern holidays, all units, 1,2,3,4, 5 Factories, all workers, and staff. Holidays resumed from July 29-August 6, August 7. This person also revealed that the vacation was a bit “unexplained” and “There was no OA notification. Send an e-mail to each section chief and give a verbal notice.”

On August 3rd, Xinyu News called Beijing Hyundai to be located in five factories in Shunyi, Quzhou and Chongqing in Beijing, but no one answered the call.

Since then, the relevant person in charge of the Beijing Modern Public Relations Department confirmed to the press that the shutdown was true, but not the five factories but the four factories. Because the Chongqing plant that was just completed in August of this year is still in the commissioning stage and has not yet been formally put into operation. Therefore, it cannot be called a suspension. As for the time, this person also said that it was not July 29-August 6, but July 31-August 4.

According to insiders, this holiday does not affect employee salaries and does not affect Beijing Hyundai's follow-up R&D.

Although Beijing Hyundai explained, “The reasons for the suspension of work are due to high temperatures and summer breaks.” But the industry generally believes that the most likely reason for this shutdown is that Beijing Hyundai’s sales in the first half of the year are not good enough, resulting in excess capacity, so it’s simply taking advantage of high temperatures. , leave to reduce excess production.

According to Beijing Hyundai's half-year sales data, in the first half of this year, Beijing Hyundai sales dropped from 506,000 last year to 301,000 vehicles, a sharp drop of 42.4% year-on-year.

According to public information, the Chongqing factory, the fifth largest factory of Beijing Hyundai, was originally planned to start production at the beginning of August. The annual production capacity of the vehicle will reach 300,000, and the annual production capacity of the engine will reach 300,000. It is expected that the new Renner will be produced.

After the Chongqing plant is put into operation, Beijing Hyundai's annual production capacity will jump from the original 1.35 million to 1.65 million. However, from the fact that Beijing Hyundai’s sales volume reached only 301,000 vehicles in the first half of this year, Beijing Hyundai’s idle capacity this year is likely to approach 1 million.

"Now due to the declining sales volume, the commissioning of the Chongqing plant will only lead to further excess production. Therefore, only 'high temperature false' can be released," Jia Yi, an analyst in the automotive industry, explained.

With the slump in sales, Beijing Hyundai has said that it will next year's sales target. It is reported that Beijing Hyundai will reduce its annual sales this year from the 1.25 million set at the beginning of this year to 800,000 and reduce 450,000, with an adjustment of up to one-third. The Xinhua News Agency confirmed this for Xue Haozhi, director of the Beijing Modern Brand Communications Department. The other party stated that it is not clear about this situation and it has not been disclosed to the public. The relevant person in charge of the Beijing Modern Public Relations Department admitted to reporters that there were internal adjustments, but the specific figures were not disclosed.

As for the adjustment of sales volume, the person in charge of Beijing Modern Public Relations explained: “This year’s overall market is not good, coupled with the adjustment of purchase tax, resulting in the general poor development of joint venture brands. Beijing Hyundai has been greatly affected and sales have been even more affected. However, this year The focus of the work is on adjusting dealer operating pressures and improving quality. As a result, inventory in the first half of the year has decreased, and the number of cards sold on the terminal is higher than the number of batches sold.

According to sources in the Beijing Modern Market Department, in the second half of this year, Beijing Hyundai has new ix35 and Rena listed, as well as a pure electric vehicle. With the adjustment of the rhythm of new products, Beijing Hyundai is expected to save sales in the second half.