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2019 must be an extraordinary year for the auto industry, affected by the macro-economy, not only experienced the first decline in 28 years, but the downward trend has not improved. In this environment, whether independent or joint venture brands have varying degrees of impact.

According to data released by the National Bureau of Statistics, profits in the automobile industry fell 19.0% from January to August compared with the same period last year, a decrease of 4.2 percentage points respectively from January to July. Compared with the 1.7% decline in the average profit of industrial enterprises, the profit decline of the automobile industry is obviously much higher than the average level of the industrial manufacturing industry.

The profit performance of the automobile industry has attracted a lot of attention, and although it has improved compared with the previous period, it is still in a state of negative growth, so it can be seen that the depression of the automobile industry is quite severe.

According to the China Association of Automobile Manufacturers, car sales in August were 1.96 million, down 6.9% from the same period last year, and 11% in the first August of this year. So far, sales in the domestic passenger car market have declined for 13 consecutive months. At the same time, it also highlights that the overall downward pressure on automobile production and marketing is still large.

Affected by the overall car market, the vast majority of domestic car companies listed on the market in the first half of the year saw a substantial decline in profits, the decline in profits exceeded expectations, and the revenue and profits of many leading enterprises such as SAIC, Guangzhou Automobile, Geely and the Great Wall all declined. as a result, the profit growth of the automobile industry lags behind in various industries in the first half of the year.

Although things have changed after July, many car companies are still in decline. Among them, SAIC sold 486900 vehicles in August, down 7.87% from the same period last year; GAC GROUP sold 161800 vehicles in August, down 6.78% from the same period last year; Geely sold 101200 vehicles in August, down 19% from the same period last year; Changan Motor sold 125000 vehicles in August, down 5.19% from the same period last year; BYD sold 36000 vehicles in August, down 13.95% from the same period last year Haima sold 1600 units in August, down 73.96 per cent from a year earlier.

There are many car companies that have lost money on a scale, and some of them have reached the brink of a dead end. According to the car companies that have disclosed their financial results in the first half of the year, Haima Motor lost 178 million yuan in the first half of the year; Zhongtai Motor lost 290 million yuan; and Lifan Motor lost 950 million yuan.

In terms of new energy, there has been a rapid rise in state subsidies, but under the influence of government subsidies and other policies, sales have declined continuously. Sales fell for the first time in July, but the impact has not abated, with a further year-on-year decline in August.

According to the China Automobile Association, the production and sales of new energy vehicles completed 87000 and 85000 respectively in August, down 12.1% and 15.8% respectively from the same period last year. This year, car production and sales totaled 1.991 million and 1.958 million respectively, down 0.5 per cent and 6.9 per cent from the same period last year, while sales were less than 2 million, a trough over the years.

Entering the second half of the year, the situation of China's automobile market is still grim. The decline in production and sales for 13 consecutive months compared with the same period last year is accelerating the elimination and reshuffle of the industry. Some automobile enterprises that maintain the tradition, imitation and no core technology will eventually be eliminated, at this time, it will also lead to the merger and reorganization of some automobile enterprises, and the automobile industry will reshuffle. Therefore, only by speeding up technological innovation and providing high-quality products can enterprises gain a firm foothold in the market and continue to move forward.

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