Auto companies overcapacity will come a new round of mergers and acquisitions
With the slowdown in China's auto market has been worrying overcapacity in car prices was finally publicly confirmed. 2015 (sixth), held yesterday on the Global Automotive Forum, a number of car companies responsible for the problem of excess automobile production capacity to reach a consensus. Liu Weidong, deputy general manager of Dongfeng company is a direct representation in China in 2015 total production capacity of 40 million cars, higher than the expected full-year sales doubled, less than 80% capacity utilization. One independent brand overall capacity utilization is not optimistic, especially with the sample survey of 19 independent brands in 15 possessions utilization is below 50%. Therefore, the growth rate of China's auto industry will enter the inflection point of the automotive industry growth will continue is less than 3%, or even zero growth or negative growth, a new round of mergers and acquisitions is not far away.
Overcapacity warning
At yesterday's meeting of 2015 (sixth) Global Automotive Forum, Liu Weidong first recognized on sales due to the less prosperous, overcapacity is a fact, and said, "from the year before, the east began to strictly control the development of new projects."
In fact, the Chinese automobile market slowdown has been so overcapacity conflicts. Some industry analysts pointed out that this year China's automobile production capacity could reach 40 million, if China's auto sales growth of about 7 percent this year, about 25 million, which means, or will have produced millions of vehicles that can be idle.
In fact, the market is worse than expected, China by the Federation to the latest statistics show that in May total sales of national passenger car market narrowly 1,485,300, an increase of 4.8%, the chain fell 1.9 percent; yield aspect, in May the country narrow passenger cars production 1,567,600, an increase of 3.2%, the chain fell 5%. This year from January to May, the narrow passenger car sales 8.106 million, an increase of 8.8% over last year, the cumulative monthly growth continued to decline, down 6.1% over the previous year.
China Automobile Dealers Association released data also show that in May this year, the national distributor inventory early warning index was 57.3%, while compared with April fell by 3.2 percentage points, but rose 8%, continue to be above the warning line. Tight next June to August the traditional off-season, was considered a slight increase from the Chinese automobile market in crisis period, the domestic automobile production capacity surplus serious, it has a direct impact on the market.
Joint venture enterprises quietly cut
It is understood that in the context of the market is not optimistic expectations, the joint venture has quietly cut. From the production data, including FAW-Volkswagen, Shanghai GM, Dongfeng Nissan, Dongfeng Honda, Beijing Hyundai and other car firms have different degrees of decline in production, including FAW - Volkswagen 4 per month fell by 25%, Nissan appeared 20.9% The sharp drop, Beijing Hyundai fell 8.8%.
Earlier, Chairman and CEO of Ford China Luo Lixiang and in May confirmed that Ford taken to reduce capacity in China practice, and said production is now complete. At the same time, Ford had to respect in April 2015, production scale of China's overall auto market is expected to cut 500,000, and sales growth is expected to be set to 8% or less.
In China by the Federation Secretary-General Choi Dong-tree view, since the auto market in May retail sales grew by 4%, less than in April year on year growth rate of 9% more, still not out of the expected rebound in the stock market. June passenger car market is still optimistic about the recent markdowns effect, the market demand is weak, sales were down 6 per month is a normal trend is expected car prices new round of production and marketing plans adjustment will emerge.
The advent of a new round of mergers and acquisitions
In the context of growth continued to slow, the industry is widely expected to enter the Chinese market is about the inflection point of growth, according to Liu Weidong forecasts, automobile industry growth this year will be lower than 3%, or even zero growth or negative growth.
"Industrial Competitiveness enter the real knockout stage, but should see significant growth opportunities brought turning point of the industry, and the opportunities outweigh the challenges." Liu Weidong said that this opportunity will help to further enhance the industrial concentration, auto companies will develop differentiation automotive industry may face a new round of mergers and acquisitions.
Meanwhile, Beijing Automotive Group chairman Xu Heyi is also yesterday's global automotive forum, said China's automobile market will accelerate into the knockout stage, it is expected to at least 2020, more than 20% of the domestic car prices will be out, and may even reach more than 30% , followed by a new round of inter-national companies will definitely speed up mergers and acquisitions.
