At the same time, some manufacturers are still facing shortages of raw materials of late as cars require a lot of parts. Take BYD as an example, although its stock price has been rising all the way and its market value is close to one trillion yuan, the recently released third-quarter financial report shows that revenue increased by 22% year-on-year, and net profit fell sharply by 275%.

According to the data released by the National Bureau of Statistics recently, the data released by the China Association of Automobile Manufacturers shows that the profit of the automobile manufacturing industry in the first three quarters of this year increased by less than 2% year-on-year, and the profit is expected to be negative after October. This situation is obviously contrary to market expectations, especially in the past two years, but the sharp increase in demand in the first half of the year has led to a rapid increase in the profits of domestic automakers. Data shows that in the first half of this year, most auto companies made a lot of money and achieved substantial growth in terms of revenue, profit, and sales. GAC Group, BYD, BAIC, Dongfeng Group, Great Wall Motor, Changan Automobile, Geely Automobile, Jianghuai Automobile, and Jiangling Automobile ranked the top ten in China, with a total revenue of more than 1 trillion yuan, an average increase of 38%, and a net profit of 38.67 billion yuan. However, according to the China Automobile Association, production and sales in September reached 1.767 million and 1.751 million respectively, an increase of 18.1% and 12.8% over the previous year, and a decrease of 13.9% and 16.5% over the previous year. From January to September, the production and sales of automobiles were 14.658 million and 14.862 million respectively, an increase of 10.7% and 11% over the same period of the previous year; the production and sales decreased by 2.9% and 2.7% over the same period of the previous year.

In the first three quarters, the total profit of the automobile manufacturing industry reached 379.97 billion yuan, an increase of only 1.2% year-on-year, 4.3 percentage points lower than that of January-August, and 43.5 percentage points lower than that of large-scale enterprises in the same period, accounting for 6% of the total profits of large-scale industrial enterprises. . B3F-4150 As far as luxury cars are concerned, domestic luxury cars are also affected by chip shortages. Sales in September were 254,000, down 14.5% from the previous year. From January to September, the total sales of domestic luxury cars reached 2.489 million, an increase of 22.8% over the previous year and an increase of 11.8% over the cumulative period.

Lack of chips is squeezing car companies' profits

Wafer shortages have been a big talking point in the semiconductor industry, especially the auto industry, this year. According to the latest data from Autoforecast Solutions (hereinafter referred to as AFS), due to the shortage of chips, as of October 24, the global auto market has reduced production by 9.74 million vehicles this year. In China's auto market, production fell by 1.863 million units, accounting for 19.1% of total production. AFS predicts that the total production of the global auto market will reach 10.943 million units this year. With the rapid development of new energy vehicles, the shortage of automotive chips has become more prominent. Recently, Intel CEO Pat Gelsinger said in an interview that the shortage of chips is expected to end in 2023 -ic/" title="2023model">2023-ic/" title="2023model">2023- ic/" title="2023 model">2023-ic/" title="2023 model">2023-ic/" title="2023 model">2023-ic/" title="2023 model">2023-ic/ " title="2023 model">2023-ic/" title="2023 model">2023-ic/" title="2023 model">2023-ic/" title="2023 model">2023-ic/" title ="2023 model">2023-ic/" title="2023 model">2023-ic/" title="2023 model">2023-ic/" title="2023 model">2023-ic/" title=" 2023 Model">2023-ic/" title="2023 Model">2023-ic/" title="2023 Model">2023-ic/" title="2023 Model">2023-ic/" title="2023 Model ">2023, but it is expected that the chip shortage will gradually improve over the next year. Contemporary managers also said that the worst period of chip shortages is over, and August and September were the most difficult times for Hyundai. As Intel carried out a lot of investment, expanding the supply of automotive chips. However, in the automotive market, there is still a large gap in chips. At the same time, some manufacturers are still facing shortages of raw materials recently due to the large number of components required for automobiles. For example, Ford said recently that production at its Hermosillo plant in northern Mexico will be suspended from Nov. 1-5. This comes after GM publicly said it had stockpiled more than 30,000 semi-finished vehicles at its plant this summer due to a lack of critical materials like chips , these cars cannot be put on sale. Toyota said global production in September fell 39.1% from a year earlier due to the further spread of the new crown pneumonia epidemic and interruption of chip supply. Toyota's global sales in September fell 16% from a year earlier due to the reduction in production %, reaching 700,000 vehicles, the first decline in 13 months. Even domestic automakers have suffered serious losses in this market. Take BYD, for example, although its stock price has been rising all the way, its market value is close to one trillion yuan, but The recently released third-quarter financial report shows that revenue increased by 22% year-on-year, and net profit fell sharply by 27.5%. First, with the rise in upstream raw material prices, the profit margins of automakers have been compressed. In addition, BYD's profit margins were relatively small in the past. add On the rise in raw material costs, BYD is rapidly expanding production, resulting in wider losses. Not long ago, BYD announced the "Battery Price Increase Contact Letter". This year, the price of LiCoO2, a raw material for positive lithium batteries, has risen by more than 200%, the price of electrolyte has risen by more than 150%, and the supply of negative electrode materials has continued to be tight. BYD will not be lower than 20%, and will increase the price of some models of batteries.

The auto industry has entered a stage of negative growth.

To be honest, in the past two years, due to the impact of the epidemic, many industries have experienced a significant decline, which has also reduced China's GDP growth to 2.3% in 2020, but the semiconductor industry and the automotive industry have not been silent. The financial reporting statistics listed above also show that many automakers have substantial revenues. However, by the second half of 2021, many companies are seeing a decline in market demand. One is the accumulation of consumer demand last year. On the one hand, it was released in the first half of the year. On the other hand, due to upstream cost pressure, it gradually penetrated into the terminal. The auto industry stands out in particular. Many auto 4S stores have suspended spot sales due to out of stock and production suspension, and users have to wait for a while to pick up the car. The preferential policies for many cars in the past have now been cancelled, which is equivalent to a disguised price increase. At the same time, even in many used car markets, the prices of many cars are rising, and the market prices of some used cars that have been driven for a few years are not much different from the ex-factory price. This has been rare before. At the end of the day, a car was damaged. On the one hand, demand is reduced, and on the other hand, the price of downstream products increases, which further reduces the number of consumers, and ultimately reduces the profit margin of the automotive industry. In addition, as the supply chain imbalance persists for longer, the auto industry is still struggling to resume the previous production rhythm, including BYD raising the price of lithium batteries, and downstream dealers further canceling discounts, and may even sell at high prices. Therefore, the number of downstream users is further reduced, and the profit margins of automobile companies are further reduced. After October, the China Automobile Association also predicted that the profits of the auto manufacturing industry would show negative growth. That's a typical shuffling process. Certain companies with weaker capital will be eliminated in the process, but the market will also be more concentrated. Some big manufacturers have responded. For example, Tesla says the lithium iron phosphate batteries used in standard lithium iron oxide batteries are cheaper. This will increase profits without increasing the price of the car. In addition, the company's third-quarter earnings report showed an even more compelling performance. In the third quarter of this year, the company's operating income was US$13.757 billion, an increase of 58% over the previous year; its net profit was US$1.618 billion, an increase of 389% over the same period last year, all exceeding market expectations. For domestic automakers, if they can get through the period of negative profit margin growth, this will be the focus of their thinking, especially in the case of new energy vehicle returns and rising raw material costs, how to ensure that the company can survive and even further develop. , has become the focus of future work.