Auto Production and Sales Volume going high in August: profits of auto manufacturing industry increase 43.9%

Gasgoo (Shanghai, September 28)—

Data shows that industrial enterprises above state designated scale achieved a total profit of RMB 4,058.37b from January to August, increasing 8.4% and 1.5 percentage points higher than January to July. August’s profit increases 19.5%, 8.5 percentage points higher than July and it’s the highest monthly growth this year.

In fact, among all industrial enterprises above designated scale, state-owned holding companies achieve profits of RMB 746.11b, decreasing 2.1%; collective enterprises achieve profits of RMB 28.74b, decreasing 1.5%; joint-stock enterprises achieve profits of RMB 2,777.44b, increasing 8.8%; foreign and Hong Kong-Macao-Taiwan invested enterprises achieve profits of RMB 1,008.48b, increasing 10%; private enterprises achieve profits of RMB 1,431.63b, increasing 8.4%.

He Ping, from National Bureau of Statistics, said that industrial enterprises are going on an optimistic change in August, showing the good results of favorable policies. Most industries have increasing growths or decreasing declines of profits, with lowering unit costs and losses. Product inventory keep on falling, along with the debt ratio. Five main factors, including increasing industrial production and sales growths, recovering prices, lowering unit cost, the low profits in last year and recovering auto, steel and petroleum processing industries, are causing the above result.

He Ping also said that, currently, the foundation supporting enterprises’ fast growths are not solid enough. Domestic and foreign demands still need to be lifted, and collection periods for account receivables are still long. Traditional industries, especially those with excess capacities, are still in troubling operation.

But, it’s quite noticeable that auto industry has a high production and sales volume in August, the profit of which increases 43.9% and 24.9 percentage points higher than July.