AutoBeta(AutoBeta.net)10/31 Report--

October is almost over, the third-quarter results of car companies have been "released", the major car companies' achievements have also been settled. Like the coming winter, the cold wave has not abated, and production and sales in the domestic car market have declined for 15 consecutive months.

According to the China Association of Automobile Manufacturers, in the first three quarters, domestic automobile production and sales completed 18.149 million and 18.371 million respectively, down 11.4% and 10.3% respectively compared with the same period last year. In September, the decline narrowed, with production and sales volume of 2.209 million and 2.271 million respectively, down 6.2% and 5.2% respectively from the same period last year.

Of the 13 major listed passenger car companies, 7 suffered losses in the first three quarters, while nearly 80% of them made a decline in profits. Only four car companies have achieved growth, and in fact they have also suffered a huge impact from the industry.

Among them, although BAIC Langu's revenue has increased significantly, its net profit has fallen sharply and turned into a loss. BYD predicted in its third quarterly report that the profit of its new energy vehicle business will decline to a certain extent in the fourth quarter compared with the same period last year. The company's full-year net profit will decline by 36%. 43%. The increase in JAC's net profit mainly comes from non-recurrent profits and losses dominated by government subsidies. JAC's non-net profit in the first three quarters was-83.82 million yuan, which was higher than that in the same period last year. Obviously, the operating situation of domestic car companies this year is not optimistic.

Changan Motor lost the most, with a loss of 2.662 billion yuan in the first three quarters, down 328.83% from the same period last year. In addition to the 19% decline in sales of Changan independent brands compared with the same period last year, Changan Ford and Mazda, known as "profit cows", have seen a sharp decline in sales in both joint venture sectors due to the downturn in the overall market. Sales fell 57.2% and 25.4% respectively in the first three quarters, which undoubtedly had a serious impact on Changan Automobile's profitability.

Even SAIC, China's leading auto maker, saw a decline in net profit in the first three quarters of this year. In the first three quarters, SAIC achieved operating income of 585.345 billion yuan, down 13.25% from a year earlier, and net profit fell 24.86% to 20.793 billion yuan. In the first three quarters of this year, SAIC's production and sales both declined, by 15.97 per cent and 14.23 per cent respectively. For this reason, SAIC also reduced its target of "striving to achieve 7.1 million sales" at the beginning of the year to about 6.5 million vehicles.

In the depressed car market, marginal car companies bear the brunt. Including FAW sedan, FAW Xiali, Zhongtai Automobile and Lifan Motor all showed a sharp drop in net profit, with net profit in the first three quarters down 297.33% 2064.56% from a year earlier. Among them, Zhongtai Automobile, Lifan Automobile have all the data decline.

After the National Day, an internal email from Ping an Bank was exposed, referring to the request to conduct an internal risk investigation on the upstream and downstream industrial chains of Cheetah, Zhongtai, Huatai and Lifan. Although various car companies have refuted the rumors, but from the current performance, there is no doubt that people think that there is no way to turn back.

In contrast, there are also car companies with good "cold resistance" such as Great Wall Motor, which have become one of the few car companies that have been able to reverse the trend. Revenue and net profit rose sharply in the third quarter compared with the same period last year: the total revenue of Great Wall Motor was 21.202 billion yuan, up 18.01% from the same period last year, and the net profit belonging to the shareholders of the parent company was 1.4 billion yuan, up 507% from the same period last year.

In terms of current market performance, the polarization of independent brands is becoming more and more serious. the entry-level market covered by most independent brands has shrunk year after year, and the brands that originally occupied the market by performance-to-price ratio are unable to attack in the depressed market environment. Can only sit back and wait for the market to be eroded. Survival of the fittest and survival of the fittest is the inherent law of development under the mode dominated by market economy.

Cui Dongshu, secretary general of the Federation of passengers, also said: "the pressure on automakers is increasing, and the decline in car sales may accelerate the process of unqualified companies being squeezed out, some of which may withdraw from the market next year." It means that China's automobile industry has also entered a period of adjustment and the market will reshuffle.

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