China's auto production and sales slow down sharply

The continuous decline in the growth rate of China's auto production and sales has aroused the alert of the whole industry. Yesterday, China Automobile Industry Association announced the March automobile production and sales data show that the current month auto production and sales completed 1,827,300 and 1,829,500 vehicles, respectively, although the chain increased by 44.99% and 44.32% respectively, but compared with the same period last year, only increased by 5.34 compared with the same period last year % and 5.36%, both the monthly and quarterly increases have shown a big drop.

It is understood that this is the first time that the Chinese auto market has experienced a year-on-year growth rate of less than 6% this year. Dong Yang, Secretary-General of China Automobile Association, said that the first quarter of the Chinese auto market was a mixed one. Compared with the 70% increase in the same period of last year in March last year, the growth rate in March this year has slipped below 6%, and the fall rate is quite large. He worries that this will affect the previously forecasted sales growth of 15% in the whole year, and it also gives a warning to the growth rate of the efficiency of auto companies. According to the forecasts of the China Automobile Association, the profitability of some automakers will decrease significantly in 2011. Some companies will face operational difficulties. The development of small-displacement and local brand passenger vehicles will encounter difficult challenges. At the same time, Dong Yang also believes that the first quarter of this year, the growth rate of automobile production and sales decreased significantly, to prove that China's auto industry restructuring and change the development mode has achieved significant results.

In analyzing the unfavorable factors in the auto market in 2011, Dong Yang believes that the withdrawal of automobile industry development policies, the continued rise in oil prices, the restrictions on automobile purchases in some cities, and the implementation of access policies for fuel consumption will affect the growth of the road transport vehicle market. Factors such as fatigue and the earthquake in Japan have negatively affected the production and sales of automobiles in the first quarter.

Statistics from the China Automotive Industry Association also show that in the first quarter, a total of 1,7828,800 self-owned brand passenger cars were sold, an increase of 2.76% year-on-year, accounting for 46.38% of the total sales of passenger cars, and the occupancy rate decreased by 2.85% from the same period last year. It is worth noting that the share of passenger cars with the highest occupancy rate of 1.6L and below in their own brands has also declined. Among them, sales of passenger cars with 1.6 liters or less in the first quarter accounted for 70.03% of total passenger cars, which was a decrease of 0.49 percentage points from the same period of last year. After the loss of policy support, the proportion of vehicle sales in this displacement range is inevitable.

Concerned, Dong Yang predicted that sales in the auto market in April will be the same as in March, and the growth rate will remain at a relatively low level. At the same time, he disclosed that this year the country will introduce a new policy on supporting energy-saving and new energy vehicles. The auto industry should calm down, and companies should re-examine the development plan and reduce costs and increase efficiency through strengthening management.

Dong Yang also said yesterday that the impact of the earthquake and tsunami in Japan on the Chinese auto industry and global auto industry cannot be underestimated.