Home > News > Content

Car Industry Report: Short-term Pressure And Opportunities Gradually Appear

- Jun 22, 2017-

Market space is still there but short-term demand is suppressed. China's annual sales of cars in the appropriate economic situation will still improve. Domestic longitudinal comparison, the first echelon to maintain more than two times the second echelon; international horizontal comparison of the first echelon of thousands of people still maintain the amount of Japan, South Korea average. So we conclude that there is still room for the domestic auto market. However, the unbalanced development of the domestic economy led to the huge difference between the first echelon city and the second tier cities in the per capita GDP and the per capita income level, which makes the current consumption capacity constrained by the economic development level and the economic cycle, so we judge that short-term demand Difficult to effectively release. Traffic, energy and other issues restrict development. The automobile industry is constrained by traffic and energy, and this kind of restriction is real. It can be said that in the current circumstances, the automotive industry is the source of traffic, energy pressure, but also the victims. The first echelon of urban roads has become saturated, and the second echelon is also under pressure from urban areas that are small and the road traffic is underdeveloped. Overall, the current operating level does not allow the rapid development of the automotive industry, also determines the intensity of future policy stimulus will not be too large.

Structural downward trend is obvious. Passenger cars as durable consumer goods, the sensitivity of the price is still high.

Judging If the auto industry is a comprehensive price reduction tide, price reduction and a larger range, with the economic bottom of the rise, passenger car sales may be a certain rate of growth. To profit margins for sale space will be inevitable, when the auto industry gross margin decline does not affect the income and profit out of the bottom area, the plate will once again rise.


We believe that with the gradual digestion of the market after three quarterly and expected price reduction, after pre-adjustment, the investment value of the automotive industry will gradually appear, mainly concentrated in the passenger car industry, the proposed focus on the industry leader Shanghai Automotive and high-quality parts and components business , In the third quarter to the beginning of the fourth quarter gradually added to the standard, the fourth quarter outperformed the market for the probability of events. 


Related News

Related Products

  • Nissan Maxima Expansion Valve
  • Front Headlights Head Lamp S21-3772010 for Chery S21/QQ6/Speranza A213/Jaggi
  • Nissan Maxima Hydraulic Brake Hose
  • Aftermarket Cushion Assy -Mounting RH A11-1001310BA For Chery A15 Amulet Viana
  • Full Set Of Cage Repair Kit A13-XLB3AF2203030B For Chery A13A Very
  • Rear Shock Absorber Assy A11-2915010BA for Chery Amulet/A15/A168/Viana