China's auto industry in 2008: high growth and tight life


The automobile industry has always been sensitive to macroeconomic and industrial policies. This year, a "tight" word will become a watershed in determining the rise and fall of enterprises.
This year, GAC is expected to be the first to succeed.

In addition to the dispute over the disposal of Hafei Shenzhen assets, AVIC II Group considers the remaining assets to cooperate with Dongfeng.

Great Wall Motor and Lifan A shares IPO will also advance during the year.

Bid farewell to the unconventional 2007, China's auto industry sales this year is expected to exceed 10 million for the first time. On the one hand, with the debut of the Beijing Auto Show collectively, the emergence of new cars this year will once again confirm the charm of the Chinese market. On the other hand, due to macroeconomic policies and environmental impact, car companies must deal with various hard constraints. In addition, the merger and reorganization and IPO drama will continue to be staged, and the Chinese auto domain will be rewritten this year.

Competition will be more intense

When talking about competition in the industry, a high-level Dongfeng Nissan sent a sentiment to this newspaper: The automobile industry has always been sensitive to macroeconomic and industrial policies. This year, a "tight" word will become a watershed determining the rise and fall of enterprises.

First of all, the macro-control has tightened. “Macro tone pressure is very high, especially heavy demand for heavy trucks.” According to Chen Qiaoning, an analyst from the auto industry and Taida Dutch Bank, heavy trucks are closely related to the growth rate of fixed investment in the country. The increase in heavy trucks last year exceeded 70%, and the slowdown this year has become a consensus. In addition, the monetary tightening has also made car loans even more tense. At present, the proportion of consumers buying cars by car is about 30%. Car prices will also tighten.

Second, it is expected that the prices of CPI and industrial production materials will continue to rise, and the auto industry will have to take a tighter life. According to the latest statistics, the competition between self-owned brands and joint ventures will become more intense. Under the guidance of the State's policy of encouraging independent innovation, independent brands have ushered in an opportunity for one year this year, and joint ventures have many challenges: This year is the starting year of the new tax law, and the tax rate will be gradually increased from 15% to 25%; currently, each The joint-venture vehicle company has adjusted its investment strategy.

New energy-saving measures promote industrial upgrading

On January 1 of this year, the implementation of energy-saving and emission reduction measures such as the National III standard will also promote the upgrading of car enterprises and increase operating costs.

In this year's listed echelon, Guangzhou Automobile is expected to be the first to succeed. In the second half of last year, GAC Co. made a number of major projects. Endogenous growth was significant and there was strong demand for funds. In addition, FAW integrated its listed companies, and Beiqi initially sorted out the Beiqi Foton, Beijing Hyundai, Beijing Benz, Beijing Automotive Investment and Beijing auto parts architecture, all laying the foundation for the overall listing. The Great Wall Motors, Lifan A shares IPO will also advance during the year.

After SAIC Motor’s restructuring of 2.095 billion yuan was successful, it is no doubt that the national industrial policy that encourages auto groups to become bigger and stronger through mergers and acquisitions has been confirmed. On the subject of mergers and reorganizations, Zhang Fang, chairman of GAC, said that the reorganization of Shen Fei Hino is "going north to go to the exam." In addition, due to the need for large-scale aircraft projects, the Hafei and Changhe Auto Assets of AVIC II Group have become targets for the reorganization of all parties. According to the newspaper, in addition to the dispute over the disposal of Hafei Shenzhen assets, China Aviation 2nd Group considers the remaining assets to cooperate with Dongfeng.

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