2017 six big car business revenue are positive growth eye-catching big group is no longer serious

Over the years, China’s six major auto groups have not been criticized by people both inside and outside the industry for their own brands, saying that “the car is hard to do”. For example, in the autonomy sector, although the state-owned auto companies have accumulated and have a solid foundation, they often have lagging market reactions and insufficient development strength, and have not been widely recognized by consumers.

But now, in different past days, when "high-quality development" has become a new direction for the development of China's auto industry and even various industries, state-owned auto companies are revitalizing their new economy with their considerable economic scale and strong R & D capabilities, and are expected to become new ones. "Leader" under the wave of technological revolution.

The 2017 financial report shows that although the sales of vehicle sales of the six major auto groups in 2017 were not the same, there were some fluctuations, but the annual operating income of the major groups maintained a positive growth compared with the previous year. Specifically, self-owned brands are gradually becoming an important driver of incremental increase; major automotive groups that closely follow the two major trends of new energy vehicles and smart network alliance not only achieved better results in the past year, but also expected the next technological change. The momentum for the era to keep moving forward is worth mentioning; besides passenger vehicles, commercial vehicles have also become an important segment for large groups to increase revenues and increase net profit margins.

♦ Autonomy can run faster

Xu Heyi, party secretary of Beiqi Group, once called the “Thirteenth Five-Year Plan” a “watershed” for the development of the Chinese auto industry, or the last chance for the self-owned brands to catch up. The basic consensus that has been formed in the current industry is that only self-owned brands will become the backbone, and the high-quality development of China's auto companies will be more stagnant and long-lasting. In the 2017 financial report data, it is the FAW sedan and GAC Group with the fastest growth in net profit in 2017.

In 2017, FAW's operating income reached 27.902 billion yuan, a year-on-year increase of 22.86%; net profit attributable to shareholders of listed companies was 281 million yuan, an increase of 129.47% year-on-year. The data shows that apart from the divestment of the Hongqi brand, which has had a positive impact on the profitability of FAW Car, the market performance of Pentium and FAW Mazda should be the two “heroes” that drive FAW Car to turn losses into profits. Among them, with the help of the main model Pentium X40, FAW Pentium annual sales reached 115.4 thousand vehicles, an increase of 13.7% year-on-year.

This is even more true for GAC Group. In 2017, its total operating revenue was 71.575 billion yuan, an increase of 44.84% year-on-year; net profit attributable to owners of parent companies was 107.86 billion yuan, an increase of 71.53%. Industry experts pointed out that in 2017, GAC Group’s subsidiary GS4 and GS8 continued to sell well, and with the newly launched GS3 and GS7 in 2017, the market sales were better, further enriching its own brand product portfolio, and GAC's own brand achieved annual sales last year. Breakthrough of 500,000 vehicles, a year-on-year increase of 36%.

♦ Grasp the two major trends of new energy and intelligent network

In 2018, China's auto industry will “go to the depths of the water”: the contradiction between slower growth in production and sales, adjustment of industrial structure, and changes in supply and demand, especially in the “electrical, digital, networked, and intelligent” technology wave Among them, the reform of the auto industry is imminent. "As China's auto market becomes increasingly competitive, independent auto makers need to grasp the market's rhythm and make timely adjustments according to market changes," said Cao Heru, president of All-Union Auto Investment Management (Beijing) Co., Ltd. Specific to the six major auto groups, fully grasping the two major trends of new energy vehicles and intelligent network-linked vehicles is a prerequisite for enhancing competitiveness.

The SAIC Group’s first self-owned brands, which launched the Internet car, reported that in 2017, SAIC Roewe and the famous brand of MG have achieved a cumulative sales volume of 522,000 vehicles, an increase of 62.3% year-on-year, accounting for over 40% of the autonomous Internet passenger vehicle market. Thanks to this, although GM's overall performance in SAIC Motor Group in 2017 had a certain degree of adverse impact, SAIC Motor Group still achieved a net profit of 34.4 billion yuan attributable to the shareholders of listed companies in 2017, an increase of 7.51% over the same period of last year. This is almost the same as last year's 7.43% growth rate. Enjoying the "Intelligent Connected Vehicle" brings the market dividend to the FAW Car. The Pentium X40 equipped with the D-Life All Voice Intelligent Interconnect System has also become the main force of the Pentium brand in 2017, helping the FAW Car to achieve its brand. Younger, improved consumer acceptance.

In the financial report data of major auto groups in 2017, new energy vehicles will undoubtedly become a new bright spot. Although there is currently limited role in enhancing the group's profitability, it is very promising to become a strong growth sector in the future. In 2017, BAIC New Energy achieved a total vehicle sales of 103,000 units, a year-on-year increase. Analysis by industry insiders, the higher sales of new energy products with a higher sales price offset the decrease in sales of BAIC's own brands and Beijing Hyundai's sales volume. The impact helped boost its operating income for the year by 470.34 billion yuan, a year-on-year increase of 15.8%, and a profit increase of 14.4%.

♦ High-end passenger cars and commercial vehicles

In the past, in order to ensure a good sales performance, auto companies often adopted a “price-for-price” approach, but in the increasingly competitive Chinese auto market, this may lead to a substantial reduction in profit levels, only actively moving towards the mid- to high-end market. High-end, high-priced products with high consumer acceptance can improve the revenue and profitability of China's auto companies. For example, in 2017, Changan Automobile failed to complete the sales target of 3.30 million units set at the beginning of the year, and its sales volume fell 6% year-on-year. However, due to the increase in average selling price after product replacement, sales revenue was still realized in the event of sales decline. The slight increase of 1.87% year-on-year reached 80 billion yuan. Among them, the CS series of the autonomous segment has created a variety of explosion models.

As one of the hallmarks of high quality development, passenger cars and commercial vehicles should become the plate that auto companies strive to enhance. In 2017, commercial vehicles became a big “magic weapon” for China’s auto group to guarantee its revenue level. This phenomenon is more evident in the financial reports of Dongfeng Group and Beijing Automotive Group Corporation. In the 2017 annual performance report announced by Dongfeng Group, its revenue increased by 2.5% year-on-year to RMB 125.016 billion; net profit attributable to shareholders of listed companies increased by 5.4% year-on-year to RMB 14.063 billion. Among them, commercial vehicles "individuals suddenly enter", the annual sales increase of up to 23.8%, sales revenue growth is more than 40%.

However, according to the China Association of Automobile Manufacturers, the growth rate of the commercial vehicle market may be reduced to 1% in 2018, and the contribution of commercial vehicles to the profitability of commercial vehicles is much lower than that of passenger vehicles. Experts say that whether it is to increase operating income, or To increase the company's annual net profit, the automobile conglomerates should continue to devote more efforts to the passenger car segment in 2018. After all, the private car market is an important position that determines the market position of the enterprise.