Profit growth of 36 percent over last year dropped 20 percentage points

Prior to high-speed line before the profit growth of the automotive industry, has been "climbing" the end of Guairu "going downhill" stage.

Recently, the State Development and Reform Commission announced the official website of "major industrial sectors from January to May operation" shows that the auto industry profit growth rate from last year's 65 percent to 36 percent lower, or up to about 20 percentage points. This growth rate is also lower than 2006's 44 percent annual increase.

But it is worth mentioning that in the entire domestic industry slowdown in profit growth against the background of the former May auto industry is still substantial profits, up 63.3 billion yuan. This amount is almost completed half of last year's total profits.

It is estimated that this year the automobile industry profit growth will fall to 30 percent, about 164.8 billion yuan.

Of the machinery industry profits 1 / 4 -

Development and Reform Commission released "from January to May major industrial operation" shows that 1-May, vehicle production 4.48 million, an increase of 18.1 percent of which, 2.36 million cars, an increase of 17.4 percent. Machinery industry realized profits of 207.1 billion yuan, up 36.6 percent; which the auto industry realized profits of 63.3 billion yuan, an increase of 36.2 percent. The automobile industry profits of the machinery industry accounted for almost 1 / 4 strong.

Compared to other sub-sectors, the auto industry profits are still in the lead state, second only to the electronics industry, ranking the second. In the whole of last year, China's automotive industry became 39 industrial sub-sectors of the fastest profit growth industry.

Growth rate dropped 20 percentage points

However, before the May auto industry profit growth of 36.6 percent growth rate over 2007 to reduce the annual growth rate of 20 percent and 44 percent lower than 2006's growth rate. This shows that the automobile industry has failed to shake off the overall manufacturing sector growth rate of decline in profits.

However, taking into account the 2007 profit base has a higher profit for first half of the automotive industry is still very objective. According to statistics, 2006, the auto industry profits in 2007 were 76.8 billion yuan, 126.8 billion yuan. May this year before the profits of 63.3 billion yuan, almost completed the half profit last year, only a full-year profit from the previous year about 13 billion yuan.

Full-year profit is expected to grow by 30%

In fact, before the May auto industry, also from the high profits hard. This is mainly lies, including the automotive industry, industrial manufacturing, are faced with rising prices of raw materials which raise the cost of the plight of the automotive industry and other sectors will also be faced with a rare price war. According to SDRC statistics, in May, passenger car prices fell continuation of the trend, the ring fell 0.18 percent from last month fell to 0.53 percent, down 2.26 percent.

These two problems will continue to expand automobile market in the second half. In addition, the second half of the year may further slow-down in sales of automobile market, "sales boost profits" of high-speed growth mode by the more severe test.

It is estimated that this year the automobile industry profit growth will fall to about 30 percent of that in 2008 the entire industry is expected profits of about 164.8 billion yuan.