According to the latest statistics from the China Association of Automobile Manufacturers, the decline in profits of the vehicle manufacturing industry continued to expand in the first 10 months, a year-on-year decrease of 11.74%. At the same time, 3 of the 15 key companies (groups) suffered losses and 6 of them suffered negative growth. . Statistics show that the profits of the 5813 domestic companies in the first 10 months of the year still increased by 1.5% year-on-year, but the profits of 129 vehicle manufacturers fell by 11.74% year-on-year, the first time in six years. Among the 15 key enterprises, most for profitability decreased. Except that 6 companies continued to grow year-on-year, Brilliance Jinbei, Nanqi Group and Changhe Group had incurred losses. In addition, six companies including FAW, Hafei, Southeast, Jiangling, Dongfeng, and Qingling had negative growth in profits in the first ten months of this year. According to the analysis, the reasons for the decline in the profits of automotive companies have been the continuous decline in vehicle prices, sales continued to shrink and raw materials continued to rise. The industry believes that this year is the collapse of the price of the car, but the price cut does not help manufacturers to increase sales, but led to more serious currency holdings, sales fell and fell, and cut off the company's hope of small profits but quick turnover. Together with the continuous rise in raw materials this year, the profitability of auto companies is worsening. RDA, the Secretary General of the National Passenger Vehicles Association, predicts that only one passenger car will be used this year, and the pre-tax profit due to price cuts will be more than 20 billion yuan. This year, the average profit of the auto industry will also be reduced from 8.6% last year. About 5%. Experts in the industry expressed that although the price increase of raw materials and the national macro-control have affected the decline in car sales, the fundamental reason for the decrease in profits and even losses is the blind overestimation of market demand by companies and the continuous pressure from stocks to dealers. Not due to reason. Last year, the blowout market in the automotive industry made companies “ambitiousâ€. Especially for passenger vehicles that have been blowout for two years in a row, this year's row of production reached 3.5 million vehicles. Many companies’ expectations have even increased by more than 50%, and experts are most optimistic. It is estimated that there will be about 2.6 million vehicles, but there was no enterprise at that time worried about the excess capacity of nearly 1 million vehicles. The CLUCC confirmed that in the so-called blowout last year, there was a gap of 160,000 between the sales volume of passenger cars and the number of vehicles sold. It is reported that the 160,000 units were forced by the manufacturers for the sake of good performance at the end of the year, but the market did not digest them at that time. Worryingly, this year's practice of transferring stocks to dealers by such companies has reached the extreme. According to statistics released by the 12 major auto makers in November, the sales in the last two days of November accounted for 40% of the monthly sales of these companies. Some companies even made 60% of monthly sales in the last two days. This was achieved in the last two days by pressing stocks to dealers. Industry experts have warned that such unrealistic sales will allow more companies to drink their own brewed bitters.
Nearly one million overcapacity leads to a sharp drop in profits in the auto industry
According to the latest statistics from the China Association of Automobile Manufacturers, the decline in profits of the vehicle manufacturing industry continued to expand in the first 10 months, a year-on-year decrease of 11.74%. At the same time, 3 of the 15 key companies (groups) suffered losses and 6 of them suffered negative growth. . Statistics show that the profits of the 5813 domestic companies in the first 10 months of the year still increased by 1.5% year-on-year, but the profits of 129 vehicle manufacturers fell by 11.74% year-on-year, the first time in six years. Among the 15 key enterprises, most for profitability decreased. Except that 6 companies continued to grow year-on-year, Brilliance Jinbei, Nanqi Group and Changhe Group had incurred losses. In addition, six companies including FAW, Hafei, Southeast, Jiangling, Dongfeng, and Qingling had negative growth in profits in the first ten months of this year. According to the analysis, the reasons for the decline in the profits of automotive companies have been the continuous decline in vehicle prices, sales continued to shrink and raw materials continued to rise. The industry believes that this year is the collapse of the price of the car, but the price cut does not help manufacturers to increase sales, but led to more serious currency holdings, sales fell and fell, and cut off the company's hope of small profits but quick turnover. Together with the continuous rise in raw materials this year, the profitability of auto companies is worsening. RDA, the Secretary General of the National Passenger Vehicles Association, predicts that only one passenger car will be used this year, and the pre-tax profit due to price cuts will be more than 20 billion yuan. This year, the average profit of the auto industry will also be reduced from 8.6% last year. About 5%. Experts in the industry expressed that although the price increase of raw materials and the national macro-control have affected the decline in car sales, the fundamental reason for the decrease in profits and even losses is the blind overestimation of market demand by companies and the continuous pressure from stocks to dealers. Not due to reason. Last year, the blowout market in the automotive industry made companies “ambitiousâ€. Especially for passenger vehicles that have been blowout for two years in a row, this year's row of production reached 3.5 million vehicles. Many companies’ expectations have even increased by more than 50%, and experts are most optimistic. It is estimated that there will be about 2.6 million vehicles, but there was no enterprise at that time worried about the excess capacity of nearly 1 million vehicles. The CLUCC confirmed that in the so-called blowout last year, there was a gap of 160,000 between the sales volume of passenger cars and the number of vehicles sold. It is reported that the 160,000 units were forced by the manufacturers for the sake of good performance at the end of the year, but the market did not digest them at that time. Worryingly, this year's practice of transferring stocks to dealers by such companies has reached the extreme. According to statistics released by the 12 major auto makers in November, the sales in the last two days of November accounted for 40% of the monthly sales of these companies. Some companies even made 60% of monthly sales in the last two days. This was achieved in the last two days by pressing stocks to dealers. Industry experts have warned that such unrealistic sales will allow more companies to drink their own brewed bitters.