Growth rate of the automotive industry further slowed

Reporter Chen Liang reports from Beijing

The China Association of Automobile Manufacturers has predicted that the production and sales of automobiles will be expected to exceed 5.6 million vehicles this year, which will achieve a year-on-year growth of 10%. Compared with the growth rate of 15% last year, the growth rate of the automobile industry has further slowed this year.

According to the latest data from the China Automobile Association, from January to November, China's total vehicle production and cumulative sales were 5,144,700 and 5,137,600 respectively, an increase of 10.24% and 12.07% respectively year-on-year. In the first 11 months of this year, China's auto production and sales have exceeded the level of last year.
However, the auto industry as a whole is still in a state of increasing income without increasing profits. In the first three quarters of this year, the total profit of the automotive industry totaled 36.135 billion yuan, a year-on-year decrease of 39.29%, and the profit trend for each month was always in a negative growth state. The sales margin of auto vehicle manufacturing industry was only 3.77%.

According to industry analysts, the main reason for the increase in the auto industry's revenue growth this year is that there is a certain degree of excess capacity in the auto industry. From the second half of the year, the price war between enterprises has once again begun to rise. As oil prices have been rising all the way, the consumption structure of the domestic auto market has changed significantly compared with the previous two years. This year's hot-selling models are mainly economic and fuel-efficient, and they are low-margin products. The mid-to-high-end car market, which has a high contribution to corporate profits, has contracted to a greater extent.