The profit of the auto vehicle industry will go out of the bottom and profits will rise sharply

National Bureau of Statistics predicts that vehicle profits will rebound sharply in the fourth quarter and the first quarter of next year

Since the beginning of this year, there has been a general increase in the increase in production for auto companies, but the latest report from the National Bureau of Statistics shows that this dilemma will soon change.

The report said that in the second half of the year, the increase in production and sales of cars was significantly higher than that in the first half of the year, and the efficiency of the auto vehicle industry has gradually come out of the trough. From January to November of this year, the loss of the automobile industry has dropped from 43.6% in the first three quarters to 38.1%. The monthly average loss of the loss-making enterprises in the vehicle industry in the last two months has fallen by 41% from the first three quarters. The situation of large-scale loss of vehicle companies is clearly changing. The National Bureau of Statistics also expects that the profit of the automobile industry in the fourth quarter and the first quarter of next year will grow by a large margin.

According to previous statistics from the National Bureau of Statistics, in the first nine months of this year, China's car production increased by 17.7% year-on-year, but corporate profits fell by 52.9%. Of the 15 major car companies, there were 4 losses in sales revenue, 8 profits fell, and only 3 companies saw a large increase in profits. For many auto companies, survival has become the biggest problem.

However, the latest report released by the Bureau of Statistics on the 23rd shows that although the profit of the auto vehicle industry in the first 11 months still fell by more than 40% year-on-year, it has basically reached the bottom of the short-term cycle in the first quarter. It is expected that the entire automobile industry in the fourth quarter and the first quarter of next year. Profits will grow by a large margin compared to the same period of last year, and the faster recovery of profits will be mainly due to loss reduction and loss reduction of loss-making enterprises. However, compared with the first half of 2003 and 2004, this recovery is still at a low level.

The data also shows that in November, the national car production hit a record high in the car company's operation at the end of the year. At the end of the month, the country produced 29.19 cars, nearly 300,000 integers, an increase of 52.1% over the same month of the previous year. The high point of 5 months ago (ie June) was rewritten. From January to November this year, the country produced a total of 2,600,600 cars, an increase of 24.2% over the same period of last year.

In addition, while the passenger car production was at a high level, sales of cars continued to outstrip production in November, mainly due to three factors: First, the sales of new models such as Toyota Reiz and Changan Fox; and secondly, the car companies focused on distributing their inventory to dealers by the end of the year. The day was particularly noticeable; third, some mainstream companies took the initiative to reduce production, and inventory fell significantly. For example, Shanghai Volkswagen’s production in October and November decreased by 35% and 21% respectively, while North-South Volkswagen’s cumulative new inventory was only 7,000 at the end of November, a decrease of more than 40,000 vehicles from the end of June. A series of mainstream car companies' limited production promotion actions have kept the market relatively stable, and the overall inventory pressure of car companies has been reduced. (Yu Linglin)

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