Expansion of production capacity encountered car purchase restrictions

In the past month, a number of companies announced the completion of the construction of the new factory. On the other side, Guangzhou became the fourth city in China to implement automobile purchase restrictions after Shanghai, Beijing, and Guiyang. The expansion of the capacity of the automotive industry is in sharp contrast to the limited range of purchases. The competitive pressure of terminal sales is bound to be gradually transmitted to the corporate level.

In recent years, as a series of preferential policies for the automobile industry have faded out, the first-tier cities have introduced restrictive purchase policies, which have a major impact on the auto industry, which was originally in a downturn. Data show that in May, auto production fell by 4.66%, a year-on-year increase of 16.19%; sales decreased by 1.06% from the previous quarter and increased by 15.97% year-on-year. Although there was a double-digit increase year-on-year, the slow growth trend has not been reversed since the production and sales were relatively low in May last year. In the sales terminal, inventory and tasks also put pressure on dealers, and some dealers even stop picking up cars from manufacturers and transfer vehicles from other dealerships.

Although the Chinese auto market has entered the era of micro growth, these factors have clearly failed to inhibit the passion of automakers to expand their production capacity. In June alone, the founding of the Dongfeng Nissan Dalian plant, the foundation of the Shanghai GM Wuhan plant, the commencement of BAIC Guangzhou base, the completion of the GAC Fiat new plant and the establishment of the Dongfeng Yueda Kia plant. The successive plans for expansion have all shown that car owners are confident of the future prospects of the Chinese auto market. Even if the first-tier cities limit purchases, it will not be able to resist the rigid demand for car buyers.

With the decline of the growth of the first-line auto market, auto makers have to look to second-tier cities and even fourth- and fifth-tier markets. However, subject to the contradiction between the increase in car ownership and urban traffic conditions, Wuhan, Hangzhou, Chengdu, Ningbo, and other large cities are all brewing proposals for blocking the situation, and Jiangsu, Zhejiang, and other places have also reported "limited private car development". News. If other provinces and cities follow the introduction of the purchase restriction order, it will aggravate the hidden troubles of the domestic auto overcapacity in the future, or promote domestic auto market changes.

Some senior executives frankly stated that “there is an overall surplus in auto production capacity, and the surplus is double digits, which is about 30% to 40%.” And other viewpoints predict that if you follow the current auto expansion plan in the next 5 years or even 10 years If implemented, idle capacity in the future may reach more than 50% of the original sales plan. If companies do not respond in advance according to their own circumstances, it will lead to a lot of car brands are forced to marginalize.