Saloon Car Production Kept Increasing in Year 2005

According to the statistics of NBS, the total output of saloon cars in 2005 reached 2958.4 thousand, a rise of 26.9 percent, and 15.2 percentage points higher as compared with that in previous year. Of which, in December of previous year, the total output of saloon cars stood at 308 thousand, up by 60.2 percent as compared with that in last December, the monthly output has created newly high record.

The national saloon car has been influenced by draught of economical saloon cars and lower cardinal number of the second half year of 2005, the production and marketing rose fasten, the production of saloon cars reached 53.1 percent in the second half year, a rise of 47.9 percentage points as compared with that in first half year. Due to the unbalanced developments, and severe differentiation of saloon car enterprises, that of the growth rate of production of six regions which included Guangdong, Jiangsu, and etc. were up by 50 percent, that of six region which included Shanghai, Jilin, and etc. have descended production, in which, Shanghai, Jilin and Shaanxi have been dropped over 2 years continuously.

In spite of the rapidness of saloon cars’ production, the profits of automobile industry had continuously declined for two years. The profit rate of the sector kept declining from 18.3 percent of the first half year to 38.4 percent of the second half year, profit margin of sales dropped rapidly from 9.11 percent of 2003 to 6.85 percent of 2004, and 4 percent of 2005. Along with the tariff of saloon cars will be declined in position in 2006, the automobile industry expedited internationalization and tracking steps, the profit margin of automobile industry’s sales will be regressed celerity to the overseas level. In the background of present automobile overstocks, the automobile industry was reduced sudden huge profits, and equilibrium the profits gradually.

The growth rate of saloon cars’ production and marketing will be showed high to low tendency in 2006; the collectivity growth rate will equal or lower as compared with that in previous year. The profits of automobile industry will be finished declining tendency and resumed increasing, but general level of profits still could not achieved the level of 2003 and 2004.

Annex: Data sheet for saloon cars, cargos, and motorcycles of December, 2005