China Automobile Association: It is difficult for the auto market to grow by 5% throughout the year

CAAC said that although the production and sales of new energy vehicles in the first half of the year have only completed 200,000 vehicles, which is less than 1/3 of the annual target of 700,000 vehicles, judging by the combination of policies, demand and other factors, the goal of achieving 700,000 vehicles in the whole year will not be considered. difficult.

Although the growth rate of the auto market in the first half of the year was 3.8 percent from the growth rate of the China Automotive Industry Association (referred to as "China Automobile Association") at the beginning of the year, there is still a certain gap between the growth rate of overdraft sales last year and the auto consumption market remains strong. CAAC believes that, according to the current situation, achieving 5% growth throughout the year still has significant challenges and pressure.

Assistant Secretary Xu Haidong of China Automobile Association believes that at present, China's auto consumption demand is in a period of steady growth, which will promote China's auto production and sales to maintain a certain range of growth. "Preferential policies for the purchase tax for passenger cars of 1.6L and below will end by the end of this year. By then, policy stimulus may generate new consumer demand." Xu Haidong stated that the 5% annual growth target is a more cautious forecast. CAAC will temporarily not adjust this expectation.

It is worth noting that, with the growth rate of the auto market at only 3.8%, the growth rate of the total industrial output value, operating income, and total profit of the 17 key automobile enterprise groups has remained at over 10% from January to May. The growth rate of these three indicators of 17 key auto enterprise groups was 11.3%, 11.2% and 10% respectively. In this regard, CAAS Assistant Secretary-General Chen Shihua said that despite the slowdown in market growth and intensified competition, the competitiveness of powerful large enterprise groups still has certain advantages, which is also the development characteristics of the auto industry. Specifically, on the one hand, with the acceleration of the merger and restructuring of the market and the acceleration of the survival of the fittest, the advantages of large enterprise groups will become more apparent. This is also the trend of the development of China’s automobile industry in the future; on the other hand, the sales volume of passenger cars of 1.6L and below will decline. This means that the segment with a lower profit margin is shrinking, making the company's profitability increase.

“The growth rate of key indicators such as corporate revenues is higher than the growth rate of sales, indicating that the market is in a stage of rational competition, rather than relying on price war to boost sales. This is a sign of market maturity.” Chen Shihua said that rational competition has It helps enterprises to enhance their profitability and instead focus more on product and technology enhancements.

While the competitiveness of key enterprises continues to increase, Chinese brands will also usher in better development. According to Jian Jianhua, deputy secretary-general of the China Automobile Association, the Chinese brand is the most promising area for China's auto market in the second half of the year. With the increase in the competitiveness of Chinese brands, car companies represented by Geely, Guangzhou Automobile, Great Wall, and Chang'an are highlights in the market. They not only rely on the first-mover advantage in the SUV field, but also emphasize the improvement of product strength and technological level. .

The improvement of Chinese brand quality has also helped it gain more attention in overseas markets. Xu Haidong stated that with the ever-increasing competitiveness of Chinese brands, China's auto exports are expected to continue to maintain a growth rate of more than 20% in the second half of the year.

For the development of the new energy automobile market this year, the industry is generally more optimistic. CAAC said that although the production and sales of new energy vehicles in the first half of the year have only completed 200,000 vehicles, which is less than 1/3 of the annual target of 700,000 vehicles, judging by the combination of policies, demand and other factors, the goal of achieving 700,000 vehicles in the whole year will not be considered. difficult. "In 2015 and 2016, the production and sales of new energy vehicles for the first six months respectively accounted for about 16% to 17% of the target for the year. The data for the first six months of this year already accounted for 17% of the 700,000 units. From this, it is inferred that this year There is little pressure to break through 700,000 vehicles," said Xu Yanhua, Deputy Secretary-General of China Automobile Association.

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