China's auto industry growth rate continues to slow in the first eight months

The Automobile Industry Association announced on October 9 that in the first eight months of this year, the 15 key enterprises in the Chinese auto industry continued to maintain a growth trend. Although the major economic indicators were higher than the same period of last year, the growth rate continued to slow compared to the beginning of the year. Corporate profitability fell.

According to CCTV International, from January to August, 15 auto industry key enterprises realized a total sales revenue of 388.1 billion yuan, a year-on-year increase of 21.23%, a decrease of 2.39 percentage points from January to July. Among them, the sales revenue of FAW, SAIC, and Dongfeng still far ahead of other manufacturers, and their sales revenue accounted for more than 50% of the 15 key enterprise groups.

According to expert analysis, the main reason for the decline in product growth is the increasingly fierce market competition. After a large number of cars have sharply reduced their prices in the first and second quarters, they have begun to cut their prices sharply in the third quarter. The large price cuts are unprecedented, and many cars have reduced prices on average. Between 5000-10000 yuan.

From January to August, 15 key enterprises in the automotive industry realized a total profit of 31.1 billion yuan, a year-on-year increase of 5.41%, a decrease of 5.78 percentage points from January to July.

The decline in profitability of enterprises mainly comes from two aspects: one is the continued rise of raw materials, which has become an important factor that directly affects the decline of corporate profits and profit and tax profits. According to the figures provided by the National Bureau of Statistics, “In August, the rise in oil prices and the rebound in the prices of major production materials such as steel have led to a 6.8% year-on-year rise in the total ex-factory price of industrial products, which is an increase of 0.4% from July.”

The second reason is also due to the fierce market competition that has caused companies to take significant price cuts.