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The profit of the car enterprise is more than 4 times the sandwich enterprise.

Number of visits: Date:Jun 21,2017

In 2016, the automobile production and marketing completed the double over 28 million vehicles, increasing faster than the same period. In the smooth development of the industry background, not only the vehicle industry preference, the demand scale of the auto parts market is also growing. From the performance forecast, as of January 22nd, more than 90% of the auto parts companies which were announced by 55 annual reports had achieved profit growth in 2016.
By the Federation Secretary General Cui Dongshu said that the number of China's auto parts enterprises small scale, low market concentration, with the market competition, automobile parts enterprises are facing the downstream product prices, the upstream raw material prices and compression pressure, the industry overall profit level. According to the market competition, large and medium-sized enterprises will further occupy the market share with the advantages of technology and product, and the market concentration will be further improved.
The car industry is in a boom cycle
According to the statistics, the production and marketing of cars in 2016 were 28 million 118 thousand and 800 and 28 million 28 thousand and 200 respectively, which increased by 14.46% and 13.65% over the same period. The major cause of profit growth is mainly influenced by three factors. The first is the company to expand sales channels and improve the quality of products, get more customers, sales increased significantly; two is with the change of product structure, strong profitability products accounted for expanding; three is the company vigorously promote cost efficiency, cost and cost effective control.
Cui Dongshu said. The first is the overall economic development provides a good external environment for the automotive industry; secondly, in the past year, the relevant state policies to promote the way of automobile industry; combined with the automobile brand for the new energy topics such as the control, the timely introduction of new products into the market, only the last car the industry's dazzling performance.
Component company performance
Data statistics found that, as of January 22, 2017, a total of 55 listed auto parts enterprises in Shanghai and Shenzhen two cities announced their annual performance forecasts for 2016, and 51 of them were pleased with their performance. From the performance point of view, the existing 55 auto parts enterprises issued 48 expected net profit, which topped the list of Weichai power.
Weichai Power in the analysis of the reasons for its 2016 full year yejiyuzeng said that the national policy and rule over the limit load of power coal transportation demand upgrade, heavy truck industry and the recovery of the company's traditional business to enhance market share for the growth performance of the company has increased, the company's main product sales is an important reason to result in an increase in performance.
Parts and components enterprises need transformation and upgrading
In addition, the most profitable the Great Wall automobile industry, expected net profit of 10 billion yuan -106 million yuan; auto parts company in Weichai Power profit net profit up to about 2 billion 150 million yuan -25.00 million, compared to two of the expected net profit is 4 times -5 times. The same as the auto parts enterprises, is expected to net profit ranked second (19.600, -0.15, Wanfeng auto -0.76%) is expected to profit of about 957 million yuan -11.96 yuan, the equivalent of the first half of Weichai Power, the large gap, can not help but think.
As we all know, the auto parts industry is in the middle of the whole automotive industry chain. Its upstream industry is steel, rubber, plastics, chemical industry, and so on, and downstream manufacturers and parts suppliers. In the context of the overall improvement of automobile industry last year, although auto parts enterprises realized profit growth, profit margins were constantly squeezed, and there was huge difference between them.
In the case of the thinner profit of the traditional auto parts products, it is an inevitable choice for the parts company to find new profit points and seek transformation and upgrading.
(excerpt from the center of the test center)

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