Chinese carmakers predicted to make money in H2

Most of the listed Chinese complete vehicle makers witnessed sliding profits in the first six months. However, analysts point out that their profit drop has further narrowed since the second quarter, indicating they will earn good money in the second half year.
 
In the passenger car field, Anhui Jianghuai Automobile Co., Ltd. (JAC) sold 6.1 million vehicles in the first half of 2009, rising 17.69%. Its operating revenues reached CNY 9.324 billion, climbing 1.8%. However, the company's new car models have not generated many proceeds, dragging down its net profits by about 31% to CNY 115 million.

Focusing on passenger cars with displacement of 1.6L and below, Tianjin Faw Xiali Automobile Co., Ltd. made 103,953 vehicles in the period, hiking 9.05%. Its sales reached 111,361 vehicles, up 11.34%. However, because the company is slow in its car model update, its net profits slipped 49.2% to CNY 51.63 million.

With troubles from Ssang Yong Motor Company and lessening proceeds from security investment, SAIC Motor Corporation Limited witnessed net profits fall 26.43% to CNY 1.446 billion, although its operating revenues leaped 6.85% to CNY 61.585 billion. An analyst of Guotai Jun'an Securities Co., Ltd. discloses that 16.9% complete carmakers incurred losses in the first six months.

Affected by the financial crisis and withering exports, CNHTC Jinan Truck Co., Ltd. got operating revenues of CNY 10.945 billion and net profits of CNY 212 million, respectively diving 15.57% and 52.17%.

Zhongtong Bus Holding Co., Ltd., Anhui Ankai Automobile Co., Ltd., Yangzhou Yaxing Motor Coach Co., Ltd. suffered from losses and Xiamen King Long Motor Group Co., Ltd. and Zhengzhou Yutong Bus Co., Ltd. witnessed net profits tumble more than 50%.

However, 19 major Chinese carmakers witnessed their gross profits dip by only 1.38% in the period, according to the China Association of Automobile Manufacturers (CAAM).

With the recovery of the medium- and high-grade sedan market, Chinese carmakers released their new car models in succession, including Skoda Superb of Shanghai Volkswagen Automotive Co., Ltd. (Shanghai VW), New Camry of GAC Toyota Motor Co., Ltd. and DSG Magotan of FAW-VW Automobile Co., Ltd.

Besides, FAW Mazda Motor Sales Co., Ltd. promoted New Mazda6 and Shanghai General Motors Co. Ltd. (Shanghai GM) launched Buick New Regal 2.0 Turbo and Buick New LaCrosse. Totally, more than 20 car models come into the market, indicating that Chinese carmakers plan to obtain large profit growth in the fourth quarter, traditional midseasons for auto sales.