According to data from the National Passenger Vehicle Market Information Association, despite significant price reductions in the automotive sector in 2007, the industry still managed to generate nearly 40 billion yuan in profits. More importantly, the overall economic performance remains strong, with expectations that this year’s total profits for the auto industry could surpass 100 billion yuan.
Rao Da, the Secretary-General of the National Passenger Vehicle Market Information Association, highlighted that the profitability of automotive companies has seen a major improvement this year. One key factor behind this positive trend is the increased localization rate of new vehicle models. Currently, the average localization rate for joint-venture products has reached around 75%, which not only reduces production costs but also enhances the competitiveness of domestic brands in the market.
In addition, improved supply chain management and more efficient manufacturing processes have contributed to better margins. As the industry continues to evolve, these factors are expected to play a crucial role in sustaining growth and maintaining healthy profit levels in the coming years.
Jiangsu Huayu Electric Co., Ltd , https://www.huayutransformer.com