Saloon Cars in July Down by 21.1% over June

The Output of Saloon Cars in July was 170.4 Thousand, Down by 21.1% over June

By the end of July, the capital of finished goods of industrial enterprises above designated size and net amount of accounts receivable was 36.7% of the floating assets, up by 0.1% over the end of June.

According to the statistics of the National Bureau of Statistics, the output of saloon cars in July was 170.4 thousand, down by 21.1% over June, and up by 0.5% over the same month of the previous year, and the growth rate dropped by 19.9% over June. The accumulative total output of saloon cars during January-July was 1.4179 million, up by 29% over the same period of the previous year.

In July, the output of saloon cars throughout the country dropped by 45.7 million over June, which was not beyond the prediction of insiders. The monthly sales volume of saloon cars has dropped from more than 200 thousand to about 170 thousand in the last few months, and the monthly output was forced to be downward adjusted due to the increase of stock. The auto manufacturers reduced the production in July due to the hot weather and by making of the chance when the electric power was not sufficient and the equipment was being repaired. Among 21 regions that produce saloon cars, 19 saw a drop in the production, and only 2 saw a slight growth.

In July, the sales volume of saloon cars throughout the country was 170 thousand, a litter more than that in June, and the stock increase was somewhat slowed down due to the production reduction , but the oversized stock can't be settled basically with production halt in summer and extension of vocation. Beijing, which made great contributions to the prosperity of the automobile market in the last two years, saw a drop of market sales from the second quarter, and the sales volume in July was only 31 thousand, down by 15.6% over the same period of the previous year and the drop rate was more than the average level inland. Under the situation when the automobile consumption credit was not loosened distinctively, the automobile sales in other large cities besides Beijing, such as Shanghai, Guangzhou, and Shenzhen, were all influenced greatly.

Due to the double negative effects, namely price fall and drop of output and sales, the profits of automobile manufactures had been dropping fast. During January-July, the profits of the automobile manufacturing industry were on the margin of negative growth, and automobile distributors were in a more difficult situation due to the single way of profit-making.