The global financial crisis has slowed down, the international auto market has started to rebound, and the Chinese auto market has reached new heights. With regard to the prosperity of the Chinese auto market that has started since March of this year, people are excited to see that under the support of policies, the domestic auto market is bucking the trend and that the auto market is overdrawn ahead of schedule, and it is uneasy for sales in the coming year.
On September 6th, the statistics of the China Association of Automobile Manufacturers exceeded the expectations of many manufacturers. Domestic auto sales recorded an alarming increase in August sales and remained at a high level of one million units for six consecutive months. After experiencing anxious sales in the off-season in August, the production and sales of domestic automobiles have skyrocketed and increased by 86.10% and 81.68% respectively over the same period of the previous year. From January to August, the cumulative production and sales increased by 26.55% and 29.18% year-on-year.
"The point that we can confirm that China has entered the era of auto sales and sales of millions of cars" has already formed. No one would suspect that the Chinese auto market will continue to be hot in the remaining four months of this year. However, policies accompanied by a 50% reduction in vehicle purchase tax will expire at the end of the year. The auto market is about to withdraw from partial policy support, and the policy of maintaining growth for the auto market will also leave a greater test for the auto market next year.
The director of the Asian City Business Information Center, Guo Wei, believes that it is expected that the heat of the auto market will not be able to cool down in the short term. The data of auto manufacturers will not have to worry about the decline in production and sales until the end of the year. However, the policy of promoting the development of the automobile industry next year is still under investigation. For the growth of automobile market, the central government should have corresponding countermeasures.
Automobile production and sales speed?
In August, the Chinese automobile market grew at an unexpected rate, and continued to show a rapid growth in production and sales in the absence of a weak period in July.
In August, 1.149 million vehicles were produced, an increase of 2.62% from the previous period and a year-on-year increase of 86.10%. Sales were 1,138,500 units, an increase of 4.71% month-on-month and an increase of 81.68% year-on-year. Among the major automobile varieties, passenger car production was 857,500 units, a year-on-year increase of 0.75%, an increase of 97.23% year-on-year, and sales of 858,300 units, an increase of 3.00% from the previous period and a year-on-year increase of 90.18%. The production of commercial vehicles was 283,200 units, an increase of 8.75% from the previous period and a year-on-year increase of 58.96%. The sales volume was 280,200 units, an increase of 10.30% from the previous period and a year-on-year increase of 59.82%. From January to August, the cumulative production and sales of automobiles reached 8.258 million and 833.13 million, an increase of 26.55% and 29.18% respectively.
Regarding the speed of growth in the automotive market, Dong Yang, executive vice president of the China Association of Automobile Manufacturers, believes that as China’s macroeconomic situation improves and consumer confidence increases, China’s auto industry has continued to undergo a temporary recovery process. With a steady and rapid growth momentum, the overall situation has been fully improved, and product mix adjustments have shown significant results. Before the outbreak of the international financial crisis, only the United States had monthly sales of more than one million vehicles. "The government hopes to maintain a growth rate of more than 10% through a series of policies. Today, the monthly growth is above 20%, and even July and August sales growth is above 50%. This is totally unexpected."
As a front line on the market, Guo Yun of the Asian Games Village automobile trading market also has a deep feeling. "As long as this year's dealer sales in Yacheng increase by 100%, most dealers will have more than 3,000 sales this year."
The policy is effective
Although the scale of China's auto production and sales of 1 million vehicles has already been presented, there will be little suspense in the auto market's breakthrough of 12 million vehicles this year. However, most experts believe that the good development situation in the first eight months of this year is inextricably linked with the promotion policies introduced by the country. Regarding the arrival of "China's automobile sales monthly sales of millions of vehicles", the biggest contribution among them is the policy of halving the purchase tax below 1.6L at the beginning of this year, plus the "combination boxing" of a series of policies.
In fact, since the halving of the purchase tax for 1.6L models issued by the State Council in January of this year, the product mix of passenger cars has undergone major changes under the combined influence of policy and market. According to statistics, the number of passenger vehicles below 1.6L increased by 55.5% in the first eight months, 18.7 percentage points higher than the total growth of passenger vehicles over the same period, accounting for 70% of the total, up 9% year-on-year; passenger cars below 1.6L. The growth rate was 51%, which was 18.3% higher than the growth rate of the sedan over the same period. It accounted for 69% of the total sedan volume, which was an increase of 8% year-on-year.
"This year's models focus on the following 1.6L models, of which the most rapid growth of micro-vehicles." Guo Yan told reporters that since the implementation of policies such as halving the purchase tax, car to the countryside, micro-car sales in the passenger Car companies benefit the most. From January to August this year, the cumulative sales of passenger cars were 6,264,400, an increase of 36.84% year-on-year. Among them, the sales of basic passenger cars (cars) was 4,475,200, an increase of 32.67% year-on-year; and the sales of cross-subsidiary passenger cars were 1,238,800, an increase of 67.31% year-on-year, ranking first in growth.
Behind the growth of sales data, corporate profits are equally gratifying. The data show that from January to July this year, the 19 key enterprises (groups) of the automotive industry, driven by the significant increase in automobile production and sales, have seen a significant improvement in the economic efficiency of enterprises. The main indicators have appeared to be better than in the same period of last year. From January to July, it achieved a total revenue of 762.594 billion yuan, a year-on-year increase of 5.95%, an increase of 5% from January to June, and 12 of the 19 companies were higher than the same period of last year; from January to July, key enterprises in the automotive industry ( The total accumulated profit of the Group was 53.759 billion yuan, an increase of 8.82% year-on-year, from negative growth from January to June to positive growth; from January to July, the key industrial enterprises (groups) of the automobile industry completed an industrial added value of 154.193 billion yuan, an increase of 7.63% over the same period of last year. The growth rate was 7.55% faster than that in the first six months. From the statistics of the first seven months, the key economic indicators of key companies have been rising month by month. According to the August automobile production and sales completion, it is expected that the profit and value-added of key enterprises in the first eight months can reach more than 10%.
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