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Zhitong Finance APP learned that Cui Dongshu, secretary-general of the China Passenger Car Association, wrote that in June, as the macro-combination policy was implemented and detailed and market demand continued to pick up, the effect continued to show. From January to June, industrial enterprises above designated size achieved operating income of 64.86 trillion yuan, a year-on-year increase of 2.9%; operating costs of 55.31 trillion yuan, an increase of 2.9%; operating income profit margin was 5.41%, an increase of 0.03 percentage points year-on-year. From January to June 2024, the automobile industry's revenue was 476.72 billion yuan, a year-on-year increase of 5%; costs were 417.3 billion yuan, an increase of 5%; profits were 237.7 billion yuan, a year-on-year increase of 10.7%; the automobile industry's profit margin was 5.0%, which is still low compared with the average profit margin of 6.4% of downstream industrial enterprises. With the expansion of the production scale of the auto market, the downward trend of PPI, and the decline in the cost of upstream lithium carbonate, the overall profits of auto companies have improved slightly.

From January to June 2024, the automobile industry has good production and sales under a low base, but due to high competitive pressure, profits mainly rely on exports and high-end luxury, and most other companies have seen sharp declines in profits, and some companies are under increasing pressure to survive. With the implementation of various macro policies, industrial production has grown steadily and rapidly, and corporate profits have continued to recover steadily. However, insufficient domestic effective demand has constrained the continued improvement of corporate efficiency, and the severe and complex international environment has increased corporate operating pressure. The foundation for the recovery of industrial enterprise efficiency still needs to be consolidated. Since fuel vehicles still have meager profits in the early stage, but shrink rapidly, some companies have suffered serious losses; new energy vehicles have high growth, but large losses, and greater contradictions and pressure. Therefore, the central government and governments at all levels actively stabilize fuel vehicle consumption and promote stronger implementation of scrapping and renewal. Only when oil and electricity are strong can the overall situation of the automobile industry continue to be stable and improve in the future.

In 2023, the overall profit performance of the automobile industry was not strong, with a sales profit margin of only 5%, a significant drop from the historical normal level. From January to June 2024, the sales profit margin of the automobile industry was 5.0%, still at a historical low.

In June, the unit cost of industrial enterprises was relatively stable. Commodity prices were running at a low level, and the cost pressure of raw materials in the middle and downstream industries was alleviated. In June, the overall revenue per vehicle of the automotive industry chain was 333,000 yuan, and the profit per vehicle of the industry chain was 13,000 yuan.

Automotive industry profits are struggling

In 2022, 27.48 million automobiles were produced, with a year-on-year increase of 3%. 7.22 million new energy vehicles were produced, an increase of 98%, with a penetration rate of 26%.

In 2023, 30.11 million automobiles were produced, a year-on-year increase of 9%; 9.44 million new energy vehicles were produced, a year-on-year increase of 30%, and the penetration rate was 31%, which is a very high growth.

In June 2024, 2.61 million vehicles were produced, up 2% year-on-year; 1.03 million new energy vehicles were produced, up 37% year-on-year, with a penetration rate of 39%. From January to June, 13.96 million vehicles were produced, up 6% year-on-year; 4.90 million new energy vehicles were produced, up 34% year-on-year, with a penetration rate of 35%, which is a return to stable growth.

Considering the downward trend in profit margins in previous years, the recent decline in profits in the automotive industry is still large. Due to the obvious price advantage of new energy vehicles supported by policies, the profit pressure on mainstream automakers has increased sharply.