Conveyor Safety Devices,Conveyor Belt Switch,Belt Skid Slip Detector,Conveyor Safety Switch SUZHOU ARPHU INDUSTRIAL CO., LTD , https://www.arphuind.com
The forecasted target in 2005 is hard to achieve
In 2005, the National Information Center predicted that China’s auto market would see sales of between 5.82 and 5.85 million vehicles, positioning China to surpass Japan as the world’s second-largest car consumer. However, by November, it became clear that this target would not be met. Industry estimates suggested that annual sales might only reach around 5.6 million units. If Japan also managed to hit its target of 5.6 to 5.7 million, China could indeed claim the second spot globally.
The data for November 2005 showed a sharp increase compared to the previous month and the same period in 2004. In November, total vehicle production reached 525,800 units, while sales hit 549,600. This marked a 26.28% rise from October and a 21.60% monthly growth. Year-on-year, production increased by 20.56%, and sales rose by 21.64%. Passenger car production and sales were particularly strong, with 371,000 units produced and 393,600 sold—up 24.08% and 23.04% month-on-month, and 30.73% and 33.48% year-on-year. Commercial vehicle production and sales stood at 154,800 and 156,600 units respectively, with output up 31.88% and sales up 18.11% from the previous month. However, year-on-year, output grew by just 1.62%, while sales dropped by 0.61%.
From January to November, cumulative auto production and sales reached 5,144,700 and 5,137,600 units, rising by 10.24% and 12.07% compared to the same period in 2004. Passenger car production and sales totaled 3.5229 million and 3.5153 million, up 16.40% and 19.48% year-on-year. Commercial vehicle production and sales were 1,621,800 and 1,622,300 units, down slightly by 1.14% and 1.21% respectively.
In November, major automakers like FAW, SAIC, Dongfeng, Changan, and BAIC continued their steady growth. FAW, SAIC, and Changan saw significant month-on-month increases. Together, these five companies sold 377,700 vehicles in November, accounting for 68.9% of total auto sales.
Looking at the top ten auto sellers from January to November, FAW, SAIC, Dongfeng, Changan, BAIC, GAC, Hafei, Chery, JAC, and Geely collectively sold 4,304,800 units, making up 83.79% of the total market. Most of these companies experienced stable growth, except for FAW, which saw a slight decline.
Profit has become a key concern for the Chinese auto industry in 2005. After a turbulent 2004, the sector is now aiming for a “soft landing†and steady growth. Despite a 10-12% year-on-year increase in production and sales, the growth rate is much lower than the 50% or 80% seen in previous years. Globally, most countries are experiencing stagnant or negative growth, so China’s double-digit growth is still impressive.
One of the biggest challenges in 2005 was not inventory, but declining profits. While price reductions are normal, the overall drop in car prices this year was relatively modest. However, many models saw heavy discounts near the end of the year. While manufacturers didn’t suffer huge profit losses, dealers faced tough times, with some even losing money on sales. Companies like Shanghai Volkswagen have refined their pricing strategies, avoiding a full-blown price war.
Looking ahead, fuel and auto consumption taxes are expected to be major external factors affecting the 2006 market. If implemented, these policies could raise fuel prices by 50%, significantly impacting consumer behavior. As a result, automakers must carefully plan their 2006 targets, considering both policy changes and market dynamics. Analysts predict a 10-15% growth for the Chinese auto market next year, but individual segments may show varying performance. With these challenges on the horizon, the industry must remain agile and strategic.