As the best-selling automobile brand in China twenty years ago, Xiali becomes the firm which has the heaviest losses in the Chinese automobile market now. After the first three seasons in 2014, it has lost about 115 million dollars.
Two decades ago, Xiali made a lot of Chinese people to own their first car, and it has been named as “National Automobile”. The firm set many new records in car-making industry, and took up 40% of the taxi market in 2000. However, Xiali was hit hard since Beijing government announced to replace all these taxi by other better cars and it lost one of its main market gradually. Nowadays, Chinese automobile market is full of competition, the situation make Xiali more difficult to turn the table. But the deeper cause of the problem might be the acquirement by Yiqi Group. After being acquired, Xiali miss the opportunity to innovate and only focus on the low-end market. Now that, the consumption level has been higher and higher; less and less consumers would like to purchase Xiali as a part of their live.
In my opinion, let Yiqi Group go public is the most important way to save Xiali, because this action will send a kind of positive information to the public and let the future of Xiali to be worth being looked forward.
