the automotive industry is moving towards "innovation" and "intelligence"
2024-09-23
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original title: the automotive industry is moving towards "new" and "smart"
economic daily reporter gou mingyang
recently, the disclosure of the 2024 semi-annual reports of listed companies was completed. the performance of many shanghai-listed companies in the automotive industry was outstanding, and the quality of earnings continued to improve. data showed that in the first half of 2024, shanghai-listed automotive companies achieved revenue of 953.223 billion yuan, a year-on-year increase of 5.16%; net profit attributable to the parent company was 39.869 billion yuan, a year-on-year increase of 44.83%. among them, nearly 70% of the companies achieved positive growth in performance, and 13 companies achieved growth rates exceeding 100%.
liu chunsheng, associate professor at the central university of finance and economics, said that in the first half of 2024, the overall performance of a-share listed companies in the automotive industry was stable, with both revenue and profit growing, which shows that despite fierce market competition, the industry as a whole still maintains good profitability. in addition, the high proportion of profitable companies shows that most companies can still maintain good operating conditions when facing challenges.
component companies' performance growth
since the beginning of this year, the automobile industry has continued to rapidly promote various technological innovations and industrial upgrades around the development trend of new energy and intelligentization. at the same time, driven by multiple factors such as new energy vehicles going to the countryside and old for new, the production and sales volume of the domestic automobile industry continued to grow steadily in the first half of the year. according to statistics from the china association of automobile manufacturers, from january to august 2024, automobile production and sales will reach 18.674 million and 18.766 million respectively, up 2.5% and 3% year-on-year respectively. by 2023, china's automobile production and sales have ranked first in the world for fifteen consecutive years.
affected by the industry trend of strong production and sales, shanghai-listed vehicle manufacturer seres achieved operating income of 65.044 billion yuan in the first half of the year, a year-on-year increase of 489.58%; and achieved a net profit attributable to the parent company of 1.625 billion yuan, turning losses into profits compared with the same period last year. yutong bus achieved revenue of 16.336 billion yuan in the first half of the year, a year-on-year increase of 46.99%; and achieved a net profit attributable to the parent company of 1.674 billion yuan, a year-on-year increase of 255.84%.
the potential of the automotive industry continues to be released, and demand is growing steadily, driving the significant growth of the operating performance of automotive parts companies. for example, wencan co., ltd., which mainly engages in the research and development, production and sales of automotive aluminum alloy precision castings, achieved revenue of 3.076 billion yuan in the first half of the year, a year-on-year increase of 20.07%; and realized a net profit of 82 million yuan attributable to the parent, a year-on-year increase of 488.19%. the company's products are mainly used in the body structure system, integrated body system, battery box system, electric drive system, chassis system, brake system, gearbox system and other automotive parts of new energy vehicles and traditional fuel vehicles.
the relevant person in charge of wencan shares said that the performance growth mainly benefited from the strong demand for orders from new energy vehicle customers, and the proportion of the company's body structural parts and integrated large casting products in the revenue structure increased. in the first half of 2024, wencan shares' new energy vehicle product revenue was 971.3634 million yuan, a year-on-year increase of 160.89%, of which the body structural parts (including integrated body structural parts) had a revenue of 673.6589 million yuan, a year-on-year increase of 128.47%, continuing to maintain a good momentum.
in addition, benefiting from factors such as strong demand in the overseas tire market and falling raw material prices, tire companies continued to be highly prosperous in the first half of this year, with strong production and sales and profit growth. for example, linglong tire company achieved revenue of 10.38 billion yuan in the first half of the year, a year-on-year increase of 12.37%; and realized a net profit attributable to the parent of 925 million yuan, a year-on-year increase of 64.95%. the person in charge of the company said that since 2024, the company has continued to use technologies such as industrial internet, big data, edge computing, and artificial intelligence to realize the digitization, networking, and intelligence of various business system r&d design, production and manufacturing, business management, and operation and maintenance services, so as to enhance manufacturing capabilities and improve product quality.
the reporter noticed that several listed companies in the automotive industry stated that they currently have sufficient orders on hand. for example, top group, which focuses on the main business of automotive parts, has continued to maintain a rapid growth trend in new orders this year with the support of r&d innovation and digital manufacturing. the comprehensive competitiveness of the company's interior functional parts, lightweight chassis, and thermal management business continues to improve; the automotive electronics business has ushered in a harvest period, and projects such as closed air suspension systems, intelligent braking systems (ibs), electric steering systems (eps), and smart electric door systems have gradually been put into mass production and achieved rapid sales growth. it is worth noting that top group achieved revenue of 12.222 billion yuan in the first half of the year, a year-on-year increase of 33.42%; net profit of 1.456 billion yuan, a year-on-year increase of 33.11%.
gao yinan, chief automotive analyst at changjiang securities, believes that the intelligent electrification of automobiles has opened up long-term growth space for the industry. china's excellent parts companies are gradually reshaping the industry landscape with their advantages in technology, cost, and response speed, and are expected to emerge in the new era. compared with traditional fuel vehicles, the internal parts of smart electric vehicles have undergone tremendous changes, driving the incremental market.
exports remain highly prosperous
at present, many automakers are seizing opportunities in overseas markets and accelerating the process of "global sailing", and the export of the auto industry remains highly prosperous. gao yinan said that the demand for automobiles is stable, and the growth of new energy vehicles and exports is strong. with the arrival of the peak season, the demand for automobiles is expected to increase further.
according to statistics from the china association of automobile manufacturers, from january to august this year, 3.773 million vehicles were exported, a year-on-year increase of 28.3%. among them, 2.955 million traditional fuel vehicles were exported, a year-on-year increase of 33.4%; 818,000 new energy vehicles were exported, a year-on-year increase of 12.6%. moreover, in the first seven months of this year, the total import and export volume of automobile products nationwide reached us$172.25 billion, a year-on-year increase of 7.3%. among them, the export value was us$131.82 billion, a year-on-year increase of 11.7%.
industry insiders analyzed that chinese cars have been recognized in many countries due to their high degree of intelligence, good quality and reasonable price, and the export volume has been increasing in recent years. under the global wave of electrification, shanghai-listed automakers have stepped up their core technology research and product iteration, with sufficient overseas orders, and the characteristics of export growth driven by technological progress and product iteration are more obvious. in the first half of the year, great wall motors, saic group and gac group achieved a total overseas sales of more than 800,000 vehicles, a year-on-year increase of 20%. at the same time, "one car going overseas drives the whole chain", and the overseas revenue of 42 auto parts companies increased by 8% year-on-year.
in its semi-annual report, great wall motors mentioned that overseas sales growth was one of the main reasons for the substantial increase in profits. in the first half of 2024, great wall motors sold a total of 554,900 vehicles, a year-on-year increase of 6.95%, a growth rate that exceeded the overall performance of the industry. among them, new energy vehicle sales were 129,800 vehicles, a year-on-year increase of 44.89%, and growth for four consecutive years; overseas sales were 199,800 vehicles, a year-on-year increase of 62.09%, and growth for eight consecutive years.
next, how can we continue to enhance the competitiveness of china's automobile industry in the world? liu chunsheng believes that the following aspects can be considered. first, strengthen technological innovation. through continuous investment in research and development, improve vehicle performance, especially in the field of new energy vehicles, accelerate the development of battery technology and intelligent driving technology. second, expand brand influence. through marketing strategies, enhance brand image and strengthen overseas market layout, especially in growing markets with demand for new energy vehicles. third, improve service quality. by improving the after-sales service network, ensure that overseas consumers can obtain timely and effective technical support and service guarantees. fourth, actively respond to changes in the international economic and trade environment. continue to pay close attention to changes in international economic and trade policies, flexibly adjust production and export strategies, and reduce risks brought by external uncertainties. fifth, promote green and sustainable development, respond to environmental protection requirements, and promote low-carbon and energy-saving automobile products.
citic securities stated in a research report that globalization is the only way for chinese auto companies to achieve sustainable development. in the short term, the export of complete vehicles is still the main way for chinese auto companies to go overseas. overseas sales are expected to become a new investment driving logic. in the long run, auto companies going overseas are expected to not only gain a double increase in market share and profitability, but also export technical standards and achieve higher-quality overseas growth. as the south american and middle eastern markets gradually become new drivers of overseas growth, it is expected that exports will be significantly boosted in the second half of the year, bringing investment opportunities for related targets.
yan jungang, co-chief analyst of the automotive industry at gf securities, believes that since 2021, the resilience of domestic demand and the continuous breakthrough of exports have driven the demand for chinese passenger cars to continue to rise. in this process, chinese brand passenger cars have increased their domestic and overseas market share through the selection and reserve of driving technology paths, continuous technological innovation and significant cost-effectiveness. looking ahead, the demand for passenger cars driven by policy protection and overseas growth is still worth looking forward to.
old-for-new exchange gradually shows results
in order to promote automobile consumption, relevant state departments have issued a number of favorable policies in recent years. the "several measures on strengthening support for large-scale equipment renewal and consumer goods trade-in" issued in july this year proposed "raising the subsidy standard for scrapping and updating automobiles", and the subsidy for a single vehicle that meets the corresponding conditions is up to 20,000 yuan. at present, the old-for-new policy is gradually taking effect and continuously promoting the replacement of automobiles with "energy". as of august 31, the number of applications for scrapping and updating subsidies exceeded 800,000, and the number of applications per day continued to grow.
huang xili, assistant director of soochow securities and chief analyst of the automotive industry, said that the new scrapping subsidy policy has a significant effect, which is expected to stimulate demand for replacement of old scrapped vehicles and support sales growth. at the same time, local governments have actively followed up and successively introduced automobile replacement subsidy policies, further expanding the coverage of the policy, which is expected to continue to stimulate automobile consumption demand. judging from the data in august, the policy-driven effect is better than expected. in addition to the doubling of the national scrapping and replacement subsidies, local governments have generally increased replacement subsidies recently, which has a significant role in promoting terminal consumption of passenger cars.
data shows that in the first half of the year, gac group, saic group, great wall motors and other vehicle manufacturers sold a total of about 760,000 new energy vehicles, an increase of 8% year-on-year; seres focused on the field of new energy vehicles, with cumulative sales of more than 200,000 vehicles in the first half of the year, a year-on-year increase of 349%; yutong bus integrates bus product research and development, manufacturing and sales. in the first half of the year, the company sold 18,335 large and medium-sized buses, a year-on-year increase of 41.5%, with a market share of 36.9%, ranking first in the industry and continuing to maintain its leading position.
specifically, gac group achieved automobile sales of over 860,000 units in the first half of the year, of which the sales of self-owned brands increased to about 36.5%. during the reporting period, the company's energy-saving and new energy vehicle sales ratio has increased to 40.63%, of which energy-saving vehicles accounted for about 21.62% and new energy vehicles accounted for about 19.01%. the subsidiary gac trumpchi achieved production and sales of 193,600 and 188,900 units in the first half of the year, up 6.51% and 0.44% year-on-year, and the proportion of high-value models continued to increase.
"against the backdrop of steady growth in the domestic macroeconomic volume, the mean reversion of domestic demand renewal rate is expected to bring about significant sales elasticity for commercial vehicles." yan jungang believes that from a short-term perspective, from the perspective of domestic demand, the old-for-new policy effectively promotes the conversion of passenger car demand, and the demand boom continues to exceed expectations; the old-for-new policy for commercial vehicles has also been introduced, which is expected to gradually contribute to sales elasticity. from a medium- to long-term perspective, from the perspective of domestic demand, through the decomposition of the passenger car demand structure, the domestic market still has room for growth, and the demand for replacement is expected to become a new driving force for the next stage of total growth.
gao yinan said that looking forward to the next stage, intelligent electricity will enhance competitiveness, and he is optimistic about the process of independent high-end development and the continued expansion of overseas markets. independent brands represented by byd, huawei smart selection, and leading new forces are focusing on the mid-to-high-end market, and models will continue to be intensively launched in the third and fourth quarters of 2024. intelligent driving has entered the end-to-end large model stage, and intelligent driving is expected to change from quantitative change to qualitative change, and the user experience will be greatly improved. my country's auto companies continue to go global, especially in the next stage of global new energy demand, chinese companies are expected to seize industry opportunities to continue to expand their global share.
source: economic daily
