In July, the automotive industry continued to slide

Yesterday, the auto production and sales data announced by the China Automobile Association in July was still not optimistic. The data show that in July, the production and sales of autos were 1,306,100 and 1,275,300, respectively, although they increased by 1.26% and 2.18% year-on-year, but they decreased by 6.96% and 11.19% month-on-month, which continued the industry's continuous decline.

The data of the China Automobile Association also shows that from January to July, the cumulative production and sales of automobiles have both exceeded 10 million.

Sales of leading automakers declined significantly. According to data from China Automobile Association, in July, the production and sales of passenger cars were 1,050,400 and 1,101,800, a decrease of 6.38% and 8.78% from the previous quarter, and an increase of 5.82% and 6.74% year-on-year. Commercial vehicle production and sales reached 255,700 units and 263,500 units, a decrease of 9.26% and 19.36% from the previous quarter and a decrease of 13.98% and 12.23% year-on-year.

The reporter learned that July is the traditional low season for car sales, and this year's low season in July made many leading companies feel lost. According to the data, in the month of July, FAW passenger car sales fell by 48% compared with the previous month, Chang'an Ford's drop also reached 33%, Shanghai Volkswagen, Shanghai Universal's decline was relatively less, fell by 21%, a drop of 10%.

From January to July, the top ten automobile manufacturers in terms of sales volume were: SAIC, Dongfeng, FAW, Chang'an, BAIC, GAC, Chery, JAC, Brilliance and Great Wall Motor.

China Automobile Group also announced the cumulative sales of automobiles from January to July: the accumulative production and sales of automobiles totaled 10.4624 million vehicles and 10.6101 million vehicles, an increase of 2.33% and 3.22% year-on-year. Among them, 809.56 million passenger cars and 8.127 million vehicles were produced and sold, an increase of 5.42% and 5.89% year-on-year; sales and sales of commercial vehicles were 2,366,800 and 2,481,100, a year-on-year decrease of 7.00% and 4.68% respectively.

In fact, relevant responsible persons from the passenger car associations briefed reporters that among the top 20 companies in the first half of wholesale sales, 13 companies did not complete sales targets of 50%, and the uncompleted proportion was as high as 65%. The half-year sales volume of brand auto companies is even lower than 40%. Some companies have already lowered their sales targets for the whole year, and even the sales general manager of an independent brand car company has left recently.

The landslide lasts at least until the first quarter of next year. According to the forecast of Rao Da, Secretary-General of the Passenger Car Association, the auto market's financial subsidy policy has been withdrawn after the “purchase tax relief”, “car to the countryside,” and “replacement for the old” to promote the auto market's financial subsidy policy. Landslides will continue into the first quarter of next year. He said that the obvious year-on-year rise in China's auto market will occur in the second quarter of next year and beyond.

In this situation, experts analyzed that the auto market will be filled with price wars in the second half of the year. According to reports, since July, Japanese car companies have increased their prices across the board. From the A-Class's Corolla, Corolla, Civic, to the B-Class, Tian Mei, Camry, Reiz, Accord, MPV's Odyssey and Mazda 8, the Japanese car's large-scale discount almost dominated the industry's overall preferential trend.

It is worth noting that this round of price reductions cannot be spared with luxury cars. The price information from Shanghai auto dealers' terminals shows that the Audi A4, Audi A6, Crown, BMW 5, and Volvo S80L are also stepping up promotional efforts to compete in the highly competitive auto market.