China Investment Advisor Automotive Industry Analyst Li Shengmao: Profit Dips Due to Unreasonable Structure
“At present, the overall increase in production of the automotive industry does not increase revenue, mainly due to the fact that small-displacement vehicles and mini-vehicles account for too much weight, while high-margin large-displacement cars and mid-to-high-class car sales are declining, accounting for only 30% of the market. Li Shengmao analyzed that since the second half of last year, the cost of raw materials for the automotive industry has dropped drastically, and at the end of last year, various car companies also started to cut costs, reduce investment, reduce marketing expenses, and increase production efficiency. However, under such circumstances, the profits of car companies still drastically dive. Li Shengmao believes that "there should be deep-seated reasons."
He said that although small-displacement vehicles have occupied the profit margins of various auto makers, the high-level diving of profits reflects that many auto companies have unreasonable product structures, and that their profits are heavily dependent on large-displacement, mid- to high-class vehicles, and even such occurrences have occurred. A slight decline in the models will seriously affect the overall profit of the company. "But both fish and bear's paw have to change the product structure of the current car company."
Camper Travel Trailer,Aluminium Trailer Camper,Camper Off Road Travel Trailer,Off Road Camper Trailer
Weifang Choice-link Trading Co., Ltd , https://www.choicelinkrv.com