China’s auto development lost 50% of the outflow of yield 62% of briefings

China’s auto production and sales since the first quarter of this year while a new record high, but did not stimulate an increase in corporate profits, and exports even more severe situation, a significant decline in overseas orders.

Domestic: the constructive expansion of the market

April 13, published by the Association of steam in March vehicle sales data show that the completion of China’s car sales 1,109,700, the Central than the 34.10 percent growth, year-on-year growth of 5.01%, respectively, reaching the highest level in the same period in previous years. At the same time, the first quarter of the total car sales reached 2,678,800, surpassing the United States once again, making China the world’s largest new consumer market.

In this consider, the rationale of vapour to aid the Secretary-General accepts as factual that whereas the above-mentioned facts and numbers display that the country’s principle function to stimulate the finances extend to be productive, the automobile market has begun to step-by-step choose up, but has not advanced functioning efficiency. This is because the vehicle market is mostly associated to functional development, by the State to boost the little vehicles the principle significances, of which 45% of the vehicle advantage, but the other 55% of the forms are still down.

Association data show that in the vapor, driving the growth contribution of automobile production and sales of the three largest models are cross-type passenger cars, lorries and cars. Cross-type passenger cars is the most important benefit by the policy model, a single ring on the same period last year more than three consecutive months and to maintain growth in the first quarter of year-on-year growth of 34.78 percent, higher than the industry growth rate of 26.97 percent. The first quarter and 1.6 liters displacement following the sale of passenger cars reached 1,411,400, an increase of 21.93 percent, higher than the passenger car industry growth rate 14.12 percent, 70.72 percent market share, higher than 8.19 the same period last year percentage points. 1.6 liters and below the current emission of passenger cars across the board price of a callback, the beginning of the end of last year and this year the dealer price concessions have been rare sight.

But the principle does not advantage the other forms the position is not hopeful, MPV first quarter sales of 46,700 yuan, down 15.47 percent; semitrailer tractors, motor advisers and motor trucks fall nonholonomic vehicles more conspicuous, semi-trailer tractor sales down 70% . The identical time span last year, the 9 classes A total of 5 sub-model vehicles dropped 4 forms up there.

January-February enterprises overhead designated dimensions vehicle major enterprise earnings of 320.413 billion yuan, up 9.42 per hundred down turn, the earnings amounted to 9.879 billion yuan, up 50 per hundred fall, fall significantly. Steam Association in the 19 key enterprise assemblies of the financial position in January-February furthermore shows this issue, and fall more than the commerce average.

GF Securities analyst associated that because of functional development, mostly displacement 1.6 liters and underneath the market and cross-type traveller vehicles of these two forms by the principle to stimulate development, and they all pertains to meager earnings goods, cost and earnings are somewhat low.

“The so-called down turn in the effectiveness of two, is a decrease, there is a down turn in earnings growth. We wish that the interest rate is higher than sales development, which show the high value-added. But now the auto commerce there have been less than perfect form, that is, the down turn in earnings development, but it is not directly go in the stage of a comprehensive loss. “visit of Deputy Secretary-General of the Association that the Jie Yao, and contrasted to other commerce, the automotive commerce has not failed a large number of layoffs to decrease the large number of dealers, output and trading is still in the somewhat steady state.

Exports: trade protectionism

With the household automobile output and sales, China’s auto trade items, it was an conspicuous down turn continued. Originated in evolved nations the economic urgent position has disperse to appearing markets, the two market demand of China’s trade items of components and vehicles initating important opposition, producing in a considerable down turn in enterprise instructions, and even then no one can.

According to Association of gas statistics, automobile trade items throughout the first quarter this year, 61,000 yuan, down 62.06 per hundred, the peak five exporters are a considerable down turn in exports. According to culture statistics, China’s trade items in the first two months of this year 40,000 engine vehicles, treasured at 630 million U.S. dollars, respectively, dropped 49.8 per hundred and 61.7 percent. One in February for a lone month trade items capacity in 2007 the smallest issue since the monthly exports.

China’s auto parts export growth has obviously slowed down. Since January 1 this year, the China to improve content and 553 kinds of high-tech mechanical and electrical products with high value-added export tax rebate rate, a number of auto parts products to be included, but not a positive factor for the policy to save the car, such as machinery and electronic trend decline in exports. Data show that the first 2 months, the United States and Europe on China’s auto parts exports decreased 36.4%, 35.9% and 50%. At present, a decrease in demand for emerging markets the situation is not optimistic.

“Great Wall Motor in Russia, were affected in southern Africa, mainly the absence of orders, at the same time resulted in the appreciation of the renminbi weakening of the competitiveness of their products.” Great Wall Motor Company vice president of marketing your business-yu said, “Great Wall Motor’s export volume during the first quarter to 1 more than 10,000 vehicles, up more than 40% down. ”

Russia set up the security of high tariffs and other trade hurdles, changing virtually all the in the household automobile trade overseas enterprises, the Great Wall, Chery, Geely, Brilliance and other valued automobile trade overseas enterprises, virtually had to cease faced with this one time the greatest trade overseas market . In item, as showed by the General Administration of Customs statistics, from January this year, Argentina, the United States, Russia has resolved to originating in China’s automobile mechanical devices and other yield made with the differential anti-dumping or countervailing determination.

The end of last month, has one time over been Brilliance China Automotive (ADAC) is bestowed “piecemeal” the collide fiercely investigate effects, but the Brilliance Junjie at the matching time joining in the test of Austria, the Netherlands and Switzerland but the collide fiercely investigate body is bestowed the “Samsung” evaluation results. This is not arduous to observe, in the face of China’s auto trade overseas, ADAC such administration do not deliberately or even play-act as a “trade protectionism” vanguard role.

Increasingly complex international trade environment has increased the difficulty of auto exports, the Commerce Department’s export trade as the competent departments, has been introduced measures to encourage exports, but the further spread of the financial crisis, as well as the impact of trade protectionism, these policies have so far have little effect. Department of Commerce Office of the Director of the State machinery and electronic products, some incentives are too late to play a role, such as changes in currency exchange rates, as some problems.

South Africa vehicle trade tariffs is 4%, alike to those to nations with smaller levy rates for trades and trade items of enterprises are the most beneficial, but due to the admiration of the yuan exchange rate directed to alterations in the localized Chinese goods have no comparable for demonstration, and if the localized vegetation was too late.

And on the auto components trade items, the most of enterprises as a outcome of China’s R & D capability is feeble, uncompetitive goods, restoring the slow and other components, this is the constraints of its trade items of long-term problem.