This year is a good year for the entire automotive industry
When Chery Automobile announced that it would enter commercial vehicles, companies such as Great Wall, Futian, and JAC, which are mainly commercial vehicles, were doing the opposite and entering the field of passenger vehicles. Great Wall Motors has publicly stated that it will exhibit its three cars at the Beijing Auto Show. Futian and Jianghuai, known as the “Light Truck Geminiâ€, have also revealed that they will display their passenger cars.
Commercial vehicle business blocked
This year is a good year for the entire automotive industry. Statistics from the China Association of Automobile Manufacturers show that as of the end of September, both the production and sales of automobiles exceeded 5 million, reaching 5.28 million and 5.17 million, respectively, an increase of 26% and 25% respectively year-on-year.
However, from the open data, commercial vehicle companies do not seem to enjoy the patronage of the entire industry. In the first five months of this year, commercial vehicles sold 1.5 million vehicles and 1.49 million vehicles, an increase of 11% and 12% year-on-year. From the perspective of growth rate, although it has changed from last year, it still lags far behind the entire industry.
From the perspective of commercial vehicle listed companies that have announced their major results for the first three quarters of this year, the entire commercial vehicle segment is not optimistic and further development is generally met with resistance. Except for JMC, Chang'an, Jinlong, Changhe and Zhongtong, the growth rate of the main business income of other listed companies in the first three quarters was below 10%. Among them, Chang'an and Changhe's revenue growth is mainly driven by the Changan Ford of the car segment and the Liane car of Changhe Suzuki. Jinlong is benefitting from the consolidated financial statements of Xiamen Golden Dragon, Xiamen Golden Brigade and Suzhou Golden Dragon. Therefore, only commercial use is required. It is only Jiangling and Zhongtong buses that have grown more than 10% of their business income.
From the perspective of net profit, the situation is even less optimistic. China's largest commercial vehicle company, Foton Motor, saw a loss of 21 million yuan. Changhe shares even suffered a huge loss of 148 million yuan. Even if it maintains a profit growth of 50% or more for 10 consecutive years, it is known as The growth momentum of JAC Motors of blue chip stocks also came to an abrupt end. In the first three quarters of this year, profits dropped by more than 10% from last year.
Of the 10 commercial vehicle listed companies, Changan Automobile’s net profit, which was mainly based on mini-vehicle business, has increased by nearly 1.5 times, which is particularly noticeable. However, Chang’an Auto’s announcement stated that it is mainly due to Chang’an, which holds 50% of its shares. Sales volume and net profit of Ford Mazda Motors Co., Ltd. increased significantly year-on-year, not related to commercial vehicles. Thanks to strong support from the passenger vehicle business, Changan Automobile appears to be in no hurry with the mini vehicle business that has been declining in the market.
Enter the passenger car
Jianghuai Automobile, which has been enjoying a good reputation in the field of commercial vehicles, demonstrated its concept car similar to Toyota's Lexus to the outside world as early as in the 2004 Shanghai Auto Show, which has aroused widespread concern. It is said that Jianghuai Automobile has already entered the top 10 billion yuan in the field of passenger vehicles. Zuo Yan'an, chairman of Jianghuai Automobile, once stated publicly that Jianghuai would have no choice but to enter the field of cars in order to break through the development bottleneck.
Fukuda Motor, which has grown into the largest domestic commercial vehicle company this year, has encountered a bottleneck in its development since 2005. It is understood that the Foton sedan project started as early as three or four years ago to carry out specific feasibility studies and related preparations. The product is aimed at 1.6 liters of economical cars below the displacement, and it is an integrated social resource for independent development. According to reports, Foton’s self-owned economic sedan may participate in the 2006 Beijing Auto Show and be officially listed in 2007.
Before this year, the proportion of commercial vehicles far exceeded that of passenger vehicles, but from this year onwards, the sales volume of passenger vehicles has been more than double that of commercial vehicles, and this trend continues to continue, so commercial vehicle companies have begun to enter the market. The idea of ​​using the car field is not hard to understand.
Reporter observation
How many transitions can be made?
The two traditional domestic giants, FAW and Dongfeng, started from commercial vehicles and then succeeded in cooperating with foreign giants in joint ventures in the field of passenger vehicles.
Great Wall, Jianghuai, Futian and other commercial vehicle companies have a good market foundation in terms of product awareness and brand awareness. If their quality is high, their prices are appropriate, and their marketing strategies are appropriate, it is also a good idea to win a car in the car market. However, due to the strong appeal of these brands in the field of commercial vehicles, consumers are not willing to hang their own car is a commercial vehicle trademark. So the best thing is to restart the stove, but building a new brand requires huge amounts of money and rebuilding channels, which is a huge challenge.
These commercial vehicle companies took the lead in launching passenger cars mainly in low-end models, but in the low-end segment, Chery and Geely, which are independent brands, have established a firm footing. International auto giants General Motors and Toyota continue to down product lines. Extending, can these commercial vehicle companies come from behind?
The commercial vehicle company launched the passenger car project will also have to go through the policy of Kaner. The passenger car projects in Futian and Jianghuai have not yet resulted in “resultsâ€, and they do not know whether Lifan Motors will be able to work as a “first moveâ€.
In fact, GM and Ford's big and complete companies have not had a good day. It is the companies that focus on certain fields such as BMW and Porsche. Moreover, Jiangling Motors and Golden Dragon Motors have worked well in the commercial vehicle sector. Perhaps these commercial vehicle companies eager to launch passenger cars should calm down first, make commercial vehicles thoroughly, and then become stronger.
Major commercial vehicle listed companies have blocked growth in the first three quarters of this year
Manufacturer's main business income (100 million yuan) Growth Net profit (100 million yuan) Growth
Changhe shares (600372) 29.33 31.83% -1.48 -531.44%
Ankai Bus (000868) 7.22 1.18% 0.11 38.19%
Zhongtong Bus (000957) 7.55 37.51% 0.06 -22.25%
Jiangling Motors (000550) 55.22 17.44% 5.38 26.69%
Changan Automobile (000625) 182.30 36.08% 5.33 146.32%
Yutong Bus (600066) 32.11 9.09% 1.27 11.44%
Foton Motors (600166) 138.57 0.21% -0.21 -
Jianghuai Automobile (600418) 73.38 5.14% 3.48 -11.33%
Golden Dragon Motors (600686) 67.98 23.81% 1.07 40.53%
China National Heavy Duty Truck (000951) 67.83 5.11% 1.76 72.69%
Source of data: first three quarterly reports for each company
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