The growth rate of the automotive industry is slowing down

Abstract Although China's automobile industry has encountered the dilemma of slowing growth in the short term, there is room for improvement in both the sales of automobiles and the benefits of car companies. After years of rapid development, China's auto industry is facing new challenges. According to the Ministry of Industry and Information Technology...

Although China's automobile industry has encountered the dilemma of slowing growth in the short term, there is room for improvement in both the sales of automobiles and the benefits of car companies.

After years of rapid development, China's auto industry is facing new challenges. According to the statistics of the Ministry of Industry and Information Technology, China’s automobile production and sales in 2018 showed the first negative growth in 28 years. Statistics show that in 2018, the industrial added value of China's automobile manufacturing industry increased by 4.9% compared with 2017, compared with 12% in 2017, the decline rate reached 7.1%; while the main business income only increased by 2.9% compared with 2017, 2017 The year was 10.8%, a drop of almost 8 percentage points. In addition, in 2018, China's automobile production reached 27.81 million units, and sales volume reached 28.08 million units. This data still maintains its position as the world's largest market. However, compared with the same period in 2017, it decreased by 4.2 and 2.8 percentage points respectively. That is to say, both the sales volume and the efficiency of the car, although still in the growth stage, have seen a significant decline in growth rate and efficiency.

In the past 40 years of reform and opening up, China's automobile industry has achieved great developments that have attracted worldwide attention. At the same time, the car has also changed from the “luxury” of the past to the “commodity” that has entered the homes of ordinary people. Due to the large population, China's automobile industry has quickly taken advantage of the number, and the car ownership has exceeded 300 million. However, if it averages to an individual, China's average 100 people will have 14 vehicles, compared with developed countries. big difference. According to statistics, the number of cars in the United States is about 323 million, with an average of about 80 cars per 100 people. If you consider that many minors and the elderly can't drive, this data is very amazing. The number of German cars is around 40,600. Although the total number of cars is not high, due to the small population base, there are 57 cars per 100 people. Japan’s car ownership is around 74 million, with an average of 59 cars per 100 people.

In other words, if we refer to the standards of developed countries, China's automobile industry still has great potential to be tapped. On the one hand, although some central cities impose restrictions on automobiles due to traffic congestion, with the continuous improvement of urban transportation facilities, the city's capacity for automobiles will be further improved. On the other hand, the vast rural areas are still a huge market for China's auto industry to be further explored. In 2018, the per capita net income of rural areas in China has exceeded 14,600 yuan, and car ownership is still at a low level. As the income level of rural residents continues to increase, the demand for automobiles will inevitably increase accordingly. At the same time, the traffic environment in rural areas has greatly improved. At present, the country is vigorously developing rural infrastructure construction and rural road greening and hardening projects, and has achieved remarkable results. This is obviously a major increase in the demand for automobiles in rural areas. Good.

In the demand structure of automobiles, with the continuous strengthening of the state's support for new energy vehicles and the strengthening of charging piles and subsidy policies, the consumption structure of China's automobiles will undergo major changes. According to data from the Ministry of Industry and Information Technology, the sales of new energy passenger vehicles exceeded 1 million vehicles in 2018, a significant increase of 83% year-on-year. In 2019, the production and sales volume of new energy vehicles is expected to exceed 1.5 million, continuing to maintain a relatively high growth rate.

It can be seen that although China's automobile industry has encountered the dilemma of slowing growth in a short period of time, there is room for improvement in both the sales of automobiles and the benefits of car companies. Of course, the public has higher requirements for the quality of the car and better safety performance. This requires not only the majority of car companies to continue to improve the quality and technical level of the car, but also the government to further improve support and preferential policies. Only when the government and the market work together and work together, the development prospects of China's automobile industry still have very broad prospects.

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