By the beginning of May, the financial reports of domestic auto companies in 2023 had basically been released.
According to the financial report data of 18 car companies (mainly passenger car business) in 2023, it is found that under the influence of factors such as price war and the continuous expansion of new energy scale, the net profit of car companies has changed greatly compared with the previous year: first of all, the pattern of “one person is dominant” has emerged, and BYD has become the most profitable car company.
secondly, the overall growth rate of new energy car companies is higher than that of traditional car companies dominated by fuel vehicles or joint ventures.
Third, Dongfeng Group shares ushered in a loss for the first time in a decade.
fourth, the ideal of new forces beat traditional car companies such as Chang’an and Great Wall to become the third most profitable.
fifth, intensified competition led to increased losses for some new energy car companies.
The head effect of new energy is beginning to show.
At the beginning of last year, analysts at the Global Automotive Research Institute said that inexpensive new energy models have emerged in several subdivided tracks, and they are all popular models.
The new energy market pattern of 0-300000 yuan is emerging, of which SAIC GM Wuling and BYD are the first to break through.
However, in the market of more than 300000 yuan, the forecast at that time was that the pattern had not yet been formed.
After a year of development, ideal cars stand out in the new energy market of more than 300000 yuan, with annual sales reaching 376000, far exceeding competitors of the same level, such as Ulay, Polar Krypton, Avita and so on.
0-300000 yuan market, although the emergence of Guangzhou Automobile Ean, Geely Galaxy, Changan Deep Blue, Mengjie and other strong new energy brands, but SAIC GM Wuling, BYD’s position is still solid.
Photo source: BYD, but by contrast, the Chinese new energy brands that achieve both quantity and price at this stage are actually only BYD and ideal.
Compared with the sales and profit data of domestic car companies in 2023, although SAIC GM Wuling sells millions of vehicles a year, it mainly focuses on the 100000 market, and the high-end transformation is not smooth, resulting in limited profit space.
Coupled with the increase in competitive products in the market, its sales last year were 1.
4 million, down 12.
3% from the same period last year.
and the net profit was 1.
8 billion yuan, down 36.
3% from the same period last year.
In a large number of car companies, SAIC GM Wuling profitability performance is not outstanding.
On the other hand, BYD ranks first among traditional car companies, with sales of 3 million vehicles last year, an increase of 61.
9% over the same period last year, and net profit of more than 30 billion yuan, an increase of 80.
72% over the same period last year.
In 2022, the net profits of SAIC and BYD were both around 16 billion yuan.
A year later, BYD became the only Chinese brand that sold more than 3 million new energy vehicles and made a profit of more than 30 billion yuan.
Guoxin Securities pointed out that on the whole, BYD maintains its profitability by virtue of its strong brand appeal, continuous expansion of scale, and the ultimate capital control ability of the industrial chain.
Under the background of general price reduction in the industry, BYD has basically achieved month-on-month stabilization of bicycle profits thanks to multiple factors such as “solid cost control ability + economies of scale release + lithium carbonate price decline + export share increase”.
Photo source: ideal car, data show that, driven by its high gross margin brand momentum and equation Leopard, BYD made a net profit of 9100 yuan last year, pushing up its gross profit margin to 20.2%. Although it sold less than 400000 cars last year, it achieved a net profit of 11.
7 billion yuan, second only to BYD and SAIC.
Especially in the fourth quarter, the ideal delivery volume and profit exceeded expectations, reaching 132000 vehicles and 5.
7 billion yuan respectively.
Like BYD, ideal net profit surged 6.
8 times last year compared with the same period last year, mainly due to rapid sales growth.
But the difference is that the ideal focuses on the 300000 + new energy market, so it has more profit margins.
Coupled with the high concentration of product lines, high input-output ratio of R & D, and low proportion of marketing and management costs, it is ideal that the gross profit margin last year was as high as 22.
2%, on a par with the BBA luxury brand.
The net profit of bicycles exceeds 30,000 yuan, ranking first among Chinese car companies.
Although the competition pattern of the new energy market has not yet been settled, BYD and ideal have grabbed the first-mover advantage with their strong sales scale and excellent profitability.
The profit growth rate of more than half of the car companies has slowed down, but on the other side of the coin, more than half of the car companies have been plagued by a slowdown or even decline in profit growth.
Among them, the performance of car companies with joint ventures is more obvious.
SAIC, for example, had revenue of 744.
7 billion yuan last year, up only 0.
09% from a year earlier.
The annual sales volume exceeds 5 million vehicles, ranking first among domestic car companies.
But net profit was only 14.
1 billion yuan, less than half that of BYD and down 12.
5% from a year earlier.
SAIC’s gross profit margin is 10.
19%, lower than the industry average of 10.54%. Photo source: SAIC Group, SAIC Group sales and profit decline, mainly due to joint venture brands.
Due to the impact of increased competition in the industry and voluntary price cuts to boost sales, SAIC-Volkswagen, SAIC-GM and SAIC-GM Wuling sold a total of about 3.
6 million vehicles last year, more than 470000 fewer than the previous year.
Due to the decline in profitability, the investment income of SAIC-Volkswagen and SAIC-GM joint ventures in SAIC Group halved to 5.
6 billion yuan, and the net profit per bike dropped to about 2500 yuan.
Another joint venture brand SAIC GM Wuling contributed 930 million yuan to the group’s profit, 500 million yuan less than in 2022.
The three joint venture brands account for 70% of SAIC’s vehicle revenue.
Fortunately, the independent business gradually propped up sales, which slowed SAIC’s profit decline.
SAIC sold 2.
775 million vehicles independently in 2023, accounting for more than 55%, an increase of 2.
5% over the same period last year.
Of this total, 1.
123 million new energy vehicles were sold, up 4.
6 per cent from the same period last year.
With the support of independent sectors, SAIC’s net profit fell from 34.
3% in 2022 to 12.
48% last year.
SAIC Group, meanwhile, has an eye-catching export record, selling more than 1.
2 million vehicles last year, making it a new growth engine for SAIC.
According to the data, its overseas market revenue last year reached 112 billion yuan, an increase of 34.
4% over the previous year, accounting for 15% of the total revenue.
In contrast, SAIC’s revenue fell slightly by 4.
24% in China.
The growth rate of revenue in overseas markets has driven the group’s overall revenue to achieve positive growth.
Look at GAC GROUP.
Last year, revenue rose 17.
6% year-on-year to 129.
7 billion yuan, and sales also rose, but net profit fell 45.
08% year-on-year to 4.
429 billion yuan, only one-seventh of BYD’s.
GAC GROUP’s profit decline is due to many reasons: first, the increase in the overall expense rate.
second, the decline of subsidies for new energy vehicles, the emergence of price war in the automotive industry and other factors.
third, the reduction of investment income of joint venture brands.
Specifically, GAC GROUP’s research and development, sales and management expenses totaled 12.
2 billion yuan last year, an increase of nearly 3 billion yuan over the previous year.
In particular, the cost of sales reached 6.
2 billion yuan, an increase of 58% over the same period last year.
GAC GROUP’s solutionShi said that in the case of the transformation of new energy, the promotion of high-end brands and the expansion of overseas markets, independent brands have increased investment in publicity fees, while increased sales have led to an increase in after-sales service fees and transportation logistics fees.
While the profitability of independent brands needs to be improved, the joint venture business continues to be under pressure.
Last year, in order to maintain market share, GAC Honda and GAC Toyota stepped up terminal promotions, resulting in a decline in bicycle profits.
According to Soochow Securities, the net profit of “Liangtian” was only 2900 yuan last year (investment income / sales volume is approximately calculated), a drop of 40%.
Photo: Dongfeng Motor, another car company Dongfeng Group shares performed even more unexpectedly, with net profit falling 138.
9% year-on-year to-3.
996 billion yuan for the first time in a decade.
The decline in passenger car sales and the impact of price war are the main reasons for the decline in share profits of Dongfeng Group.
Last year, the group sold about 347400 independent passenger cars, down 30.
2% from a year earlier.
At the same time, the joint venture business has been greatly squeezed because of its living space, and its market share continues to decline.
Dongfeng Group said that despite flexible business policies and pricing strategies, sales of the joint venture still fell 15.
6 per cent.
For example, the price of some models of DPCA has been reduced by more than 100000 yuan, but sales in 2023 were only 80, 000, down 35.
8% from a year earlier.
Based on this, the revenue of Dongfeng Group’s shareholding passenger car business fell 8.
96% last year compared with the same period last year, to only 42.
543 billion yuan.
In addition, Dongfeng Group shares believe that continuously increasing investment in new energy, intelligent R & D, brand and channel construction is also one of the reasons for profits and losses.
It is reported that the group’s R & D expenditure in related fields has increased by about 177 million yuan compared with the previous year.
Dongfeng Group shares did not further collapse in profits last year, thanks to a “rebound” in the commercial vehicle business.
The group sold 343400 commercial vehicles last year, up 10.
3% from a year earlier, driving sales up 28.
1% to 49.
538 billion yuan.
Similar to Dongfeng Group shares, some car companies such as Jiangling Motor and Jianghuai Motor have also benefited from the recovery of the commercial vehicle market and achieved performance improvement.
Among them, Jiangling Motor’s net profit increased by 61.
26% to 1.
476 billion yuan compared with the same period last year.
In addition, Geely, the Great Wall, Xilai and other car companies also generally have the problem of increasing income without increasing profits.
The reasons are different, among which traditional car companies such as Geely and Great Wall are mainly caused by increased investment in R & D and sales of new energy products.
While new energy brands such as Weilai, Xiaopeng, Cyrus and BAIC Blue Valley have not yet had an impact on scale.
This year, how to break the car companies that rely on joint ventures? With the further expansion of the scale of new energy, the erosion of the market share of joint venture brands by independent brands will be accelerated.
The Global Automotive Research Institute predicts that sales of new energy passenger vehicles are expected to be 11 million this year, an increase of more than 20 per cent year-on-year and accounting for 35 per cent of the market.
Sales of Chinese brands supported by new energy business will continue to grow, while sales of joint venture brands that rely heavily on fuel vehicles will decline further.
The market share of independent and joint ventures has been reversed.
Under the strong attack of Chinese brands led by BYD, the era of the same price of oil and electricity or even “electricity is lower than oil” is accelerated.
This means that new energy products, especially plug-in products, speed up the replacement of mainstream fuel vehicles.
The cumulative retail sales of independent brands in the first quarter were 2.
661 million vehicles, up 25.
4% from the same period last year, higher than the overall growth rate (13.
2%) and occupying 55% of the market share.
Foreign brands are in the doldrums as a whole, with German and Japanese rising only 4.
2 per cent and 2 per cent respectively, while almost all other factions are in decline.
German and Japanese departments were able to achieve a slight increase in sales, in addition to the support of brand strength, mainly increased promotional incentives.
Like Lang Yi, Xuanyi and other mainstream oil vehicles, the terminal profit is more than 20,000 yuan.
In the short term, this ensures sales and market share, but in the long run, over-reliance on “price for volume” is not a good policy and hurts profits.
This is evident in the changes in profits of car companies that rely on joint ventures in recent years.
For example, SAIC, affected by the decline in sales of the two joint venture brands SAIC-Volkswagen and SAIC-GM, has been involved in a price war and has failed to meet revenue and sales targets for six consecutive years.
Profitability has also fallen sharply, with net profit falling from 36 billion yuan in 2018 to 14.
1 billion yuan today, a drop of more than 60%.
BYD, it can be predicted that due to the joint venture brand does not have a leading advantage in the field of electrification, the squeeze of Chinese brands on the joint venture fuel vehicle market is inevitable in recent years.
The Gaishi Automotive Research Institute predicts that the market share of domestic passenger car brands will reach 62% this year and more than 70% by 2030.
For car companies with joint venture business, how to break the dilemma has become the key.
The current solutions mainly include: strengthening independent business, accelerating the development of new energy, and changing joint venture brands.
Take SAIC as an example, with the rise of independent plates and the formation of an annual sales scale of millions in the new energy market, the Zhiji brand has opened a breakthrough at the high end.
Coupled with the continued outstanding performance of the export business, Soochow Securities predicts that SAIC’s net profit this year is expected to reach 15.
7 billion yuan, an improvement over last year.
In fact, with the intensification of competition in the new energy market, not only joint venture brands are facing tremendous pressure, but Chinese brands are also extremely anxious.
In order to maintain market share and sales, almost all car companies have adopted a price reduction strategy in the Chinese market.
Enterprises with advantages of scale and ultimate cost control may be able to cope, but for new forces and traditional car companies that lack these advantages, they are undoubtedly testing cash flow and reserves.
Not surprisingly, the profitability of Chinese car companies may be further divided this year.
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