The automotive industry experienced cruel winter Go back »

2009-01-22 | Nanjing

The China Automobile Industry Association announced recently that in 2008 the growth rate in car production and sales volume had nearly hit a 10-year low. In 2008, nationwide automobile production and sales were 9.34 million units and 9.38 million units representing an increase on last year of 5.21% and 6.70% respectively. This represents a drop of 16.81% and 15.14%.

At the same time the China Association of Automobile Manufacturers also announced 2008 sales figures relating to China’s top 10 automotive manufacturers. These manufacturers are as follows: SAIC, FAW, Dongfeng, Chang'an, Beiqi, Kwong steam, Chery, Brilliance, Geely and Hafei. Compared with the same period last year, Chery, Brilliance, Hafei showed a slight decline while the others maintained positive growth. What’s more, the growth rate of FAW and Beiqi was more than 10%. In total, the above-mentioned 10 enterprises sold 7.82 million automobiles, with auto sales accounting for 83% of the total.

Relating to the automotive situation, KPMG recently released a survey indicating that: 77% of executives of the global automotive parts and components factories believe that there will be increased bankruptcy among these automotive enterprises. A year ago only 36% of executives had this feeling.

It is predicted that the number of bankruptcies among these automotive parts and components Companies will be higher than the number among actual end product automotive Companies. The report indicated that despite substantial losses in business profits, these automotive enterprises are in a self- rescue period and that signs of large scale bankruptcy has not yet appeared. In recent years however the number of bankrupt auto parts enterprises has increased significantly. 46% of the management staff of companies operating in the automotive industry predicts that within the next 5 years the profit of the automotive industry will not be stable; 24% believe that profits will continue to decline while only 15% of people believe that profit margins will increase.

In discussing the pattern of the global automotive industry, 60% of people believed that GM, Ford and Chrysler will continue to lose global market share over the next few years. The same proportion of people consider that the global market share of Toyota, Hyundai and Kia, Honda and Volkswagen will increase. About 80% of people considered that the global market share of China and India will increase.