Sales volume dropped by 10% in the first seven months

Recently, Changan Automobile released its semi-annual report, saying that total revenue in the first half of the year decreased by 12.57% year-on-year, and net profit decreased by 23.89% year-on-year. The relevant person in charge of Changan Automobile explained that this was mainly due to the decline in mini vehicle sales and the increase in raw material costs. Similarly, sales of SAIC-GM-Wuling fell due to the mini vehicle company, and the sales growth of General Motors in China in the first half of the year also slowed down.

According to the statistics from the China Association of Automobile Manufacturers, sales of mini-vehicles fell by 10% from January to July, which is in sharp contrast to the year-on-year growth rate of more than 80% two years ago.

The bleak sales of the mini-vehicle market contrasts sharply with the upsurge of auto companies investing two years ago. The industry believes that due to the gloomy micro-car market, micro-car market sales this year will not exceed 3 million, but the micro-car company's existing production capacity and construction capacity of more than 7.5 million, micro-car market, a serious excess capacity.

According to the statistics of the China Association of Automobile Manufacturers, from January to July, the micro-market sales were 1.31 million, a decrease of 10.49% over the same period of last year. The sales volume of minivans was 287,700, which was a decrease of 5.73% over the same period of last year. Car analyst Jia Xinguang analyzed that after two or three years of capacity expansion, the existing capacity of the mini vehicle market and the capacity under construction have reached 7.5 million vehicles.

Before 2009, domestic micro-vehicle manufacturers were mainly 6 companies including Changan Automobile, SAIC-GM-Wuling, Dongfeng Junan, Hafei, Changhe, and FAW Jilin. In the past two years, the rapid growth of the mini-vehicle market has not only stimulated the expansion of production capacity of old mini-vehicles, but also Beijing Automobile Group, Chery Automobile, Brilliance Jinbei, Shaanxi Automobile Group and other companies have entered the mini-vehicle market. The total number of mini-vehicle companies has exceeded 14.

“The profitability of micro-vehicle companies is very thin, and the highest single-vehicle profit is 3,000 yuan. It is only possible for the company to achieve profitability with sales of more than 3,000 units per month. However, the newly added mini vehicle companies in the past two years rarely have more than 3,000 units sold every month. I know two The company's micro-vehicle company has sold less than 500 vehicles a month, and one of the micro-vehicle companies has stopped production for two months. "A micro-vehicle marketing department researcher told reporters, "Mini-car cool momentum will continue until the end of next year."

The drastic increase in the sales volume of the mini vehicle market driven by local governments is the main driving force for the expansion of car companies. At the same time, car companies can quickly launch micro-vehicle projects, which are also inseparable from local government promotion.

According to public information, Jilin Provincial Government has earmarked 100 million yuan to subsidize the micro- and light trucks produced by FAW Group in Jilin Province.

Chongqing has also been launching mini-vehicle projects in recent years. According to incomplete statistics, including Beiqi Yinxiang, Changan Automobile, Dongfeng Junan, Xinyuan, and Lifan (601777. SH), the total capacity of Chongqing minicars will reach nearly 3 million vehicles in 2012. Other areas have also expanded rapidly.

At the same time, the old mini-vehicle companies are using lower prices, promotions and other means to squeeze the survival space of the latecomers.

“The competition in the mini-vehicle market is becoming increasingly fierce. The micro-vehicle market not only fights for price, but also fights for brands and after-sales services. As the micro-car market consumption threshold increases, some companies entering the car market will face adjustments and transitions, and companies will not take the initiative to adjust. It will also be adjusted passively," said Xu Changming, director of the Information Department of the National Information Center.