Steel energy squeezed at both ends automobile industry profit plunged this year

According to Xinhua Daily Telegraph reported China automobile industry consulting chief analyst Jia Xinguang analysis pointed out that the decline of China car industry profits greatly this year.

Automobile manufacturers are squeezed at both ends

According to statistics, from 1 to September the national car industry to complete the total industrial output value of 858 billion 956 million yuan, an increase of 5.67%, product sales revenue of $841 billion 770 million, down by 39.29%. No increase in output. Jia Xinguang believes that the reason for this situation is the second half of last year, a significant decline in car prices, and in recent years, steel, energy and other prices continued to rise, both ends of the squeeze squeeze.

2004 car average price of 146 thousand and 300 yuan, in 2005 the average price of $129 thousand and 300, an average price of $17 thousand, a decrease of 11.63%. In the first 9 months of this year, the automobile manufacturing industry sales profit rate of only 3.77%, cost profit margin of 3.99%. Several major automotive group profitability is in a state of decline, FAW fell 75.86%, BAIC fell by 66.31%, Changan fell by 63.16%, SAIC fell by 59.29%, Dongfeng fell by 21.23%, GAC fell by 16.57%.

Domestic sales are very different, the first 3 quarters of this year, Chinese car exports grew by 70%. According to the introduction China Automobile Industry Association, the first 3 quarters of China export 19 thousand cars, up 70% over the same period last year, especially Geely, Chery, Xiali and Hafei, known as non mainstream car enterprises of small cars for export, created Chinese automobile export records.

Next year more intense competition in high-end cars

With the rapid growth of domestic car production, the future of China's car market will show a more competitive situation. Experts think in the just concluded the fourth session of the Shenyang auto industry development summit Chinese annual meeting, at present, only a few for the high-class cars market share situation will come to an end, there are more models in this field will be next year, with the market, more intense price competition is inevitable.

The past 2005 car market, the price of high-end cars on the voice has not stopped. For the domestic car market in 2006, China automotive industry consulting development company chief analyst Jia Xinguang believes that due to the growth of production capacity is much higher than the actual needs, the price war will continue. Jia Xinguang said that from the beginning of this year, car sales will maintain a steady growth of 12% to 15%, but the growth rate of car production capacity is relatively fast. It is predicted that this year, China's car production and sales of 2 million 600 thousand, next year will be 3 million 200 thousand, an increase of around 23%, while in 2008, production will likely reach up to 5 million.

The emergence of more new cars will also break the high-end car market, all male hegemony, and into the multi brand melee situation. Guangzhou Honda Automobile Co Sales Manager Qi Yanfei said.