Saloon Car Output Up by 83.1 Percent in the First Two Months

The output of saloon car was 604.7 thousand in the first two months, up by 83.1 percent as compared with the same period of the previous year. The saloon car production in February was 298.9 thousand, which was 1.07 times the size of last February.

With the impact of decrease of saloon car inventory, a better sales condition at the beginning of this year and lower radix in the same period of the previous year, the output in January and February increased a lot. Two points were remarkable: first, low-emission vehicles grew rapidly with the encouragement of national policy. The main low-emission vehicles base areas such as Tianjin, Chongqing, Anhui, Zhejiang, Heilongjiang and Shaanxi province and GM in Shandong, Guangxi province increased one time the size as the same period of the previous year; second, local vehicles developing rapidly. Chery, Geely, Hafei, Byd auto etc. have taken three places of the top ten best-sales brands. Besides, Geely’s production took the second place of numerous of foreign vehicle brands. 

The sales of saloon cars kept continuously growing; both the low-emission vehicles and some of new vehicle types were hot. Purchasing power of some high or mid-emission vehicles has been released under the impact of the expectation of the adjustment of excise on low-emission vehicles.

The situation of output increase but income decrease has changed. in the first two months of 2006, the main sales income of vehicles was up by 38.2 percent and that of profit was 3.2 times the size as the same period of the previous year. Of which, the sales income of 15 vehicle enterprises increased 86.8 percent and profit was 2.2 times the size as the same period of the previous year. GM Shanghai and Volkswagen Shanghai got an increase of more than 100 percent on profit. Faw-Vokswagen and Dongfeng Peugeot Citroen Automobile has turned to gain recently.

The profit of vehicle enterprises increased faster than the vehicle output and sales income. One of the reasons is that vehicle enterprises adjusted the price strategy and produced new vehicle types faster. Meanwhile, they declined the price of old type vehicle to catch the consumers. Two, the radix of last January and February was so small that the profit of vehicles was less than 1 billion yuan, which was the worst period in recent years. The total profit level in the first two months did not exceed the expectation, so there will be an apparently down course in the second quarter, but the trend of increase will not be changed.

Annex: the Production of Saloon Cars, Trucks and Motorcycles