Auto makers see firm earnings
By Pan Xiaoyi |
00:00 UTC+8 January 20, 2011
|
Print Edition
Print Edition
Chinese mainland-listed auto makers expect their profits to be strong in 2010 as they benefited from robust auto sales but analysts caution that earnings may fall this year on slower demand growth and tougher policies being imposed.
Dongfeng Automobile said yesterday net profit may soar between 80 percent and 90 percent from 318 million yuan (US$48 million) in 2009.
Its sales surged 37.8 percent annually to 2.6 million units last year.
China's fifth largest auto manufacturer, BAIC Motor, estimated net income may jump an annual 75.1 percent in 2010 to 11 billion yuan.
BAIC sold 1.5 million units last year, up 20.6 percent from a year ago.
Based on statistics from Huatai Securities Co, 17 major listed auto makers drove to a combined net profit of 212 billion yuan, an annual surge of 80 percent.
But analysts warned that the sales growth in China's auto market is expected to decrease to 10 percent to 15 percent this year after the expiry of subsidies on vehicle purchases extended to rural residents.
"The expiry of subsidies along with rising material costs will bite into the profit margins of auto makers in 2011," according to Ma Chunxia, an analyst at Zheshang Securities Co.
Dongfeng Automobile said yesterday net profit may soar between 80 percent and 90 percent from 318 million yuan (US$48 million) in 2009.
Its sales surged 37.8 percent annually to 2.6 million units last year.
China's fifth largest auto manufacturer, BAIC Motor, estimated net income may jump an annual 75.1 percent in 2010 to 11 billion yuan.
BAIC sold 1.5 million units last year, up 20.6 percent from a year ago.
Based on statistics from Huatai Securities Co, 17 major listed auto makers drove to a combined net profit of 212 billion yuan, an annual surge of 80 percent.
But analysts warned that the sales growth in China's auto market is expected to decrease to 10 percent to 15 percent this year after the expiry of subsidies on vehicle purchases extended to rural residents.
"The expiry of subsidies along with rising material costs will bite into the profit margins of auto makers in 2011," according to Ma Chunxia, an analyst at Zheshang Securities Co.
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