Chinese car companies generally have low profits

Last week, "Fortune" magazine released the list of the world's top 500 companies in 2013. This year a total of 23 auto companies were selected one more than 22 in 2012, an increase of 50%. Among them, there are altogether 7 Chinese automakers, ranking in order of rank by SAIC, FAW Group, Dongfeng Automobile, China Military Equipment Group, Beijing Automotive, Geely Automobile and Guangzhou Automobile Group.

In addition to the seven listed Chinese automakers, a total of eight car companies in the remaining 16 foreign automakers were selected as Fortune 100, Toyota and Volkswagen 2 were among the top 10, with revenues of US$265.702 billion and US$247.613 billion, respectively. , ranked eighth and ninth, respectively, and ranked 10th and 12th respectively. General Motors, Daimler, Ford, Honda, and Nissan all broke through 100 billion yuan, ranking between 20-50.

Guangzhou Automobile Group is listed on the list for the first time
Of the seven Chinese car companies that were shortlisted, the six major auto groups were well-qualified and Geely became the only privately-owned auto company to be selected. However, this result has declined compared to last year. The ranking has dropped by 2 to 477 from 475. The revenue is US$24,550 million, which is slightly higher than that of the Beijing Auto Group that followed.

Of the remaining six automobile groups, Guangzhou Automobile Group is the first time to list. The same as Guangzhou Automobile's "first hit" was selected by BAIC. The two revenues achieved 24.145 billion US dollars and 33.375 billion US dollars respectively, ranking 483 and 336 respectively. Bit.

In addition, the rankings of SAIC, FAW Group, and Chubu Group have both increased compared with previous years: SAIC Motor has a business volume of US$76.244 billion, ranking up from the 130th place last year to the 103rd place this year, but it has not yet entered the top 100; FAW Group Revenue was US$648.86 billion, ranking up from 165th to 141th. Armoured Group’s revenue was US$47.967billion, ranking 29th to 209th. Dongfeng Motor’s ranking also declined, from 142nd last year to 146th this year, with revenue of USD 61.722b.

Chinese auto companies have low profit margins

However, China's auto companies are generally lower in terms of profits.

According to the Gasgoo Automotive Research Institute, among the 23 finalists in the automotive industry, the most profitable is the general public, whose profit reached US$27.909 billion, an increase of 30.3% over the previous year. Toyota Motor Co., which ranked second, achieved a profit of 11.587 billion U.S. dollars, an increase of 222.6% year-on-year, compared with only 3.591 billion U.S. dollars in the previous year.

Daimler, Hyundai, BMW, GM and Ford have higher profits, and their profits are between 5 billion and 10 billion US dollars this year. Of the five car companies, only Hyundai achieved profit growth, which was a year-on-year increase of US$7,602 million, while profits of the other four companies declined. Among them, Ford’s profit fell the most. Its profit in the previous year was as high as 20.213 billion U.S. dollars, and this year it dropped 72% to US$5.665 billion. This was followed by General Motors, which saw a sharp drop in profit of 32.7% to $6.188 billion. Daimler and BMW's profit slightly declined by 0.6% and 3.5% to US$7.833 billion and US$6.549 billion, respectively.

The highest profit of SAIC Motor in China is only US$3.289 billion, which is a big gap between the profits of the aforementioned companies. The profits of FAW, Dongfeng and Beiqi were US$2.622 billion, US$1.334 billion and US$1.074 billion, respectively. The profits of the Armed Forces Group, GAC, and Geely were only US$218 million, US$66 million and US$52 million, respectively. In terms of profit margins, the highest profit margins are mass and modern. Their profit margins have all exceeded 10% this year, reaching 11.3% and 10.1% respectively, both of which have increased year-on-year. The profit rate of other companies is less than 10%. Among them, the profit rates of Kia, BMW, Daimler and Tata are all between 5% and 10%, which are 8.2%, 6.6%, 5.3% and 5.2% respectively. Ford’s profit rate last year was as high as 14.8%, and this year it dropped sharply to 4.2%.

In contrast, the profitability of Chinese companies is low, and the highest profitability of SAIC is only 4.3%. FAW, BAIC and Dongfeng were 4.0%, 3.2% and 2.2% respectively. The profit ratios of CNG, GAC and Geely were less than 1%.

If SAIC Motor’s US$3.289 billion in profits, which is the highest profit of Chinese auto companies, is compared with foreign automakers, SAIC Motor’s profit is 11.78% of the highest ranking Volkswagen, and 50.22% of the lowest-ranked BMW Group. If you take the lowest profit of the Chinese car company Geely Automobile's $ 0.22 billion compared with foreign car companies, Geely Automobile's profit is the highest ranked Volkswagen's 0.186%, is the lowest ranked BMW Group's 0.794%.