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The National Bureau of Statistics recently released information on the profits of large-scale industrial enterprises across the country in 2019. Among the 41 major industrial industries, the total profits of 28 industries increased compared with last year, while 13 industries decreased, of which the operating income of the automobile industry was 8.08467 trillion yuan, down 1.8 percent from the previous year; profits totaled 508.68 billion yuan, down 15.9 percent from the same period last year.

According to the specific data of production and operation quarters of culture and related industries above scale, the Bureau of Statistics issued a postponement announcement. affected by novel coronavirus's pneumonia epidemic, the production time of production and operation data of culture and related industries above scale was postponed in 2019, and the release time was postponed from February 6 to February 14.

In fact, the whole automobile industry is affected by many factors, such as the macro-economic slowdown, the automobile market tends to be saturated, and the sixth national emission is implemented in advance, resulting in a continuous decline in car sales and a decline in the efficiency of automobile enterprises. According to the China Automobile Association, China's automobile production and sales in 2019 were 25.721 million and 25.769 million respectively, down 7.5% and 8.2% from the same period last year, and the decline in production and sales increased by 3.3% and 5.4% respectively compared with last year. In the new energy vehicle industry, which had high subsidies and high growth, sales fell off a cliff after the subsidy retreat was announced in July, so that the rising new energy turned down, with annual production and sales of 1.242 million and 1.206 million vehicles respectively, down 2.3 per cent and 4.0 per cent year-on-year. With regard to the forecast of car sales in 2020, Xu Haidong, assistant secretary general of the China Automobile Association, predicts that the annual sales of China's automobile market will decline by about 2% in 2020.

With regard to the current decline in sales in China's automobile industry for two years, Xu Haidong, assistant secretary general of the China Automobile Association, predicts that the annual sales of China's automobile market will still decline by about 2% in 2020. However, many people in the industry are optimistic that judging from the current car ownership in China, there is still room for growth and potential in China's automobile market.

Up to now, of the 14 A-share listed car companies in China, 10 have issued performance notices, but only 3 have positive results, while the other seven have poor performance, including 4 pre-losses and 3 pre-deductions. It is not hard to see that the profits of most car companies fell sharply in 2019.

As the largest auto company in China, although the profit decline of all auto companies is the smallest, it has also dropped by nearly 30%. The company expects to achieve a net profit of about 25.6 billion yuan belonging to shareholders of listed companies in 2019, a decrease of about 10.4 billion yuan and 28.9 percent compared with the same period last year. The net profit of the former "big money maker" SAIC Group is also expected to be reduced by 10 billion yuan in 2019. SAIC Group, which owns SAIC-Volkswagen, SAIC-GM, SAIC passenger cars, SAIC-GM Wuling and other enterprises, sold 6.238 million vehicles in 2019, down 11.54% from the same period last year.

Changan Automobile, which has the reputation of "profit cow", expects to lose 2.4 billion-2.9 billion yuan for the whole of 2019, while it still made a profit of 680 million yuan in the same period last year. Its profit changed from profit to loss, a drop of as much as 452.56% and 526% compared with the previous year. Similarly, Changan Automobile explained as "due to the decline in sales", the production and sales of almost all its brands declined, the most serious of which was Changan Ford, which sold 184000 vehicles in 2019, down 51.3% from the same period last year. Changan Automobile sold about 1.76 million new cars in 2019, down 15% from the same period last year.

BYD expects to make a profit of 1.584 billion-1.774 billion yuan for the whole of 2019, compared with 2.78 billion yuan in the same period last year. As sales halved due to new energy subsidies, profits fell as much as 36.19-43.03% from a year earlier. Total BYD car sales in 2019 were 460000, down 11.39 per cent from a year earlier. Among them, sales of new energy vehicles and fuel models were both 230000, down 7.39 per cent and 15.02 per cent respectively compared with the same period last year. The new energy models, which were originally strong in the first half of the year, will be exchanged in the second half of the year.

The main passenger car brands of FAW are Pentium brand and FAW Mazda. The net profit belonging to shareholders of listed companies is expected to be 36 million yuan to 54 million yuan in 2019, down 73.45% to 82.3% from the previous year. The company said that due to the influence of the market and the continued intensification of competition, the company's product sales decreased, as well as the switching of the five countries and six countries and other factors led to a significant decline in performance.

The two car companies, Zhongtai Automobile and Lifan, were deeply affected by the "Black Swan" incident, which was rumored to be bankrupt last year, resulting in a sharp decline in the performance and sales of both companies, with pre-losses exceeding 6 billion yuan and 4.9 billion yuan respectively. In terms of sales, Zhongtai Motor sold a total of 16600 vehicles in 2019, more than 50% more than the same period last year, while Lifan Motor sold a total of 13000 vehicles, down 77.4% from the same period last year.

It is worth noting that Jianghuai Motor and ST Haima, the two car companies that turned profits in 2019, made them profitable not because of rising sales, but through asset sales and subsidies. Among them, Jianghuai Motor has received a cumulative subsidy of 841 million yuan in 2019, while cumulative sales in 2019 were only 163000, down 17.8% from the same period last year.

Seahorse Motor made up for its losses by selling idle real estate, transferring shares in subsidiaries and government financial subsidies in 2019. It is conceivable that the loss of Haima Motor in 2018 was as high as 1.63 billion yuan. A number of models have been discontinued in 2019, with cumulative sales of only 29500 vehicles, a year-on-year drop of 56.41 per cent.

Generally speaking, the continuous decline in the market environment has not yet been improved, so that the automobile manufacturing industry is in the doldrums, car companies' profits are reduced or losses are reduced, and the industry reshuffle will continue.

According to Cui Dongshu, secretary general of the National Federation of passengers, the car market will still be affected by the epidemic this year, hindering the production of the automobile industry chain and the purchasing power of consumers. Therefore, it is expected that the car market will be affected by the epidemic in January and February this year. The decline in the car market may be more than 20%.

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