Own Chinese car market in crisis: the production capacity this year, or 40 million

Posted on 6/8/2015 10:40:11 AM

And very different from the market in full swing, the Chinese auto market in the traditional cold season, even this year the growth rate was threatening Changan Automobile (000625.SZ) is also hard to resist the cold, the first negative growth of 5 per month, sales growth has slowed dramatically.
Even its joint venture Changan Ford sales still difficult to change course, Ford sales fell 8.93 percent the month. At the same time, sales of domestic passenger cars in the top five companies of Shanghai Volkswagen, FAW - Volkswagen, Shanghai GM, Beijing Hyundai and Dongfeng Nissan both appear in the drop in sales in May. Some experts believe that China's auto market has more than half of the body in a crisis.
Mainstream prices of cars, "Black May"
Changan Auto Express has posted sales in May, the month of car sales of the company were 217,000 and 218,100, slightly lower than 3.65% and 0.34%, respectively, while production and sales of its own brand production and sales in the month of Chang'an Automobile increased 26% and 24% respectively, but the joint venture Ford, Changan Suzuki and production and sales of its own brand series Yue Xiang place was a decrease brands substantial in global sales of Changan Automobile show weakness in May. After a few months, Changan Automobile in the performance car market was "encouraged" this year 4.1 per month, sales of 983 800 and 1,032,000, an increase of 11% and 16%, respectively, to retract the Group FAW Group to enter four cars three, or even one month in February also ahead of second Dongfeng Motor. However, with the downturn of the car market in China, Changan Automobile has spared, May sales performance is not optimistic.
2015 Changan sales target is 2.9 million, an increase in production and sales targets were 10.37% and 13.99%, while the hind legs dragging since the May results, the company 1-5 on production and annual sales increased 8.03% and 13.14%, respectively, slightly lower than the target value, the working pressure begins to increase in the second half of this year. Chang'an Automobile CEO Zhu Huarong during the Auto Shanghai in April to accept the "First Financial Daily" and other media interview, despite drastic changes in the market has been aware, said the economic "new normality ", increasing pressure on the automotive industry, the future of 5% to 7% growth has been very optimistic. He also stressed that Changan Automobile in recent years is actually very stable strategic thinking, not throwing. The decline in production for the first time Chang is regarded as the industry is that companies make timely adjustments to market, reduce stress and distributors effort.
Numerous joint ventures and companies self-brand cars a few years ago has been ahead of capacity allocation, this is the end of the second five-year plan, the main groups of cars have to deliver the transcripts of this stage, the downturn of the car market in China experienced conflicts overcapacity, industry analysts said that this year the production capacity of China's car could reach 40 million, if the growth of car sales in China this year , about 7%, about 25 million, which means that there are millions or capacity has been idle vehicles. In fact, the market is worse than expected, according to the Industry Association of China, from January to April, car sales 8280800 and 8144800, up 4.12 percent and 2.77 percent, to 1 , 14 percentage points over the first quarter and 1.13 percentage points higher than the previous year, a decrease of 4.87 percentage points and 6.30 percentage points. Data from several car firms announced the current status of view, the situation has not improved in May, sales of SAIC automotive group classification from January to May sales in the first decline in six years higher.
Many prices of conventional cars has been ahead of shame market odor, prices many years the company Shanghai Volkswagen took the initiative and postures, the initiative announced price cuts in April, Ford, Beijing Hyundai, FAW - Volkswagen have joined the wave of price cuts, but still to no avail. Affected by the general slowdown in the automotive market, the corruption riddled multiple factors and broken axle Sagitar, FAW - Volkswagen current performance of the market concern, there is news that the FAW - Volkswagen in May and even a drop "style cliff "in the first three weeks of actual sales fell 45.7%, FAW - Volkswagen rumor quickly publish official data, May sales of 137,300 vehicles, up 14.5%. Although these data shred the argument "cliff-style" to decline, but the FAW - market Volkswagen remains poor performance is an indisputable fact, the largest joint venture in the prices of conventional cars, sales Shanghai Volkswagen and Shanghai GM in May year on year fell 1% and 10%, sales in the past three ancient ventures, collective peak in May this year of negative growth in the camp.
China Automobile Dealers Association released data also show that our country's automobile market remains in the doldrums, in May this year, the rate of national early warning dealer inventory was 57.3%, while compared with April dropped by 3.2 percentage points, but increased by 8%, still above the warning line. Tight next June to August the traditional off-season, the industry that the auto market is facing major challenges.
In the automotive crisis period
Market demand and the slowdown in car prices, excess capacity, China's auto industry are working together to promote the "period of crisis." Auto analyst Zhang Zhiyong accept the "First Financial Daily" he said that China's auto market has started to increase slightly over the period of crisis. As defined by the international aspects of the economy for six months in a persistent economic downturn, it is called a recession or economic crisis. According to this definition of the economic crisis, the current Chinese auto market has more than half the market plunged into an economic crisis. This data carrier, according to the China Association of Automobile Manufacturers data, from October 2014 to April 2015, sales of commercial vehicles down for seven consecutive months, meaning that the commercial vehicle market has been in crisis . Since the fall, the fall cross type passenger car market is even bigger than the market for commercial vehicles, cars cross the same kind and commercial vehicles market, the future of basic inevitable decline, it continued to decline in a row market seven months passenger crossover has also been in crisis. During the same period, although data on passenger car market cross, commercial vehicles market look good, in the span of seven months has been positive growth for two months, but after February 2015 and continued in October past, the downward trend in November, but is not yet out of the nightmare of long-term decline.
"In accordance with the law of market growth in previous years, the annual July, August is the lowest in market growth year, the car market will decline at least presents the situation inside the next time three or four months, we can say that the car market is basically in a period of crisis and maintain a rapid growth in just two important segment of the SUV and MPV, but with the arrival of a large number of car companies these two segments meet market, SUV and MPV growth will slow down and set price war. " Zhang Zhiyong believes that China's auto market has more than half of the body in a crisis. After entering the cycle of crisis, car prices reduce prices, layoffs and other cuts and adjustments are inevitable.
However, China's auto market is not a Hong Hai, Honda, Toyota, Mazda and other Japanese car companies and Chang'an Automobile, Great Wall Motor and car prices own brand of Dongfeng Motor in the last years through products, and many other settings, the current crisis in the Chinese automobile market Under still achieve rapid growth. Guangzhou Toyota Motor Co., Ltd. Deputy General Manager Huang Yongqiang 6, "First Financial Daily" and other media in the dark when the Hong Kong and Macao Auto Show, said from January to May, Guangzhou Automobile Toyota achieved a growth sales of 17%, better than the overall growth of passenger car market. Among them, the performance of the most striking is the market since the models in late March of next generation Highlander SUV, from late May has garnered more than 30,000, despite the lack of overall market for passenger cars but Guangzhou Toyota will stick to the original 406000 annual sales target.
Shen, president of China Automobile Dealers Association recently accepted the "First Financial Daily" reporters, he has always insisted that China's auto market is shifting from a seller to a buyer's market, in-depth market research to find out the consumer demand is particularly important Automakers have to work together to develop and distributors of potential market demand, which is an effective way to solve the excess capacity.

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