The auto consumption of China is turning on high-speed development, and sales of new vehicles are growing increasingly. Relative analysis shows that, in the first quarter, the gross margin of listed auto companies was basically the same as that in previous year. Passenger car companies have been in the peak of industrial prosperity during the same period of last year and they had achieved performance at a rather high level. In comparison with passenger car companies, commercial vehicle companies grew much more rapidly. At present, the passenger car industry mainly relies on private consumption and new vehicle purchase, and has entered a fast growing period. Insiders reckon that in the foreseeable 5 years, the growth rate of passenger car sales will probably maintain at a level of not less than 25 percent.

SAIC Motor, being one of the three biggest vehicle-manufacturing groups in China, is keeping its steady growth. In 2006, SAIC Motor achieved an aggregated sales volume of 1.25 million and a market share of 15 percent. The company's market share in passenger vehicle field is 21 percent. Octavia series of Shanghai Volkswagen will launched in batch in the market; Buick Park Avenue of Shanghai GM will go to the market too; Roewe, a self-owned brand of SAIC Motor, will also begin mass production, indicating the company's strong capability of sustainable profit earning. SAIC Group has completed the overall listing of the group, for which insiders analyzed that listed automobile companies may obtain more quality assets through asset injection and profits repatriation, as well as more impetus for future development.

FAW Car Co., Ltd., being the first leading car manufacturer that has gone public, owns certain scale advantage. The main products include Red Flag, Mazda and Besturn, which was newly launched in last year. Mazda 6 is one of the leading models of car market in recent years. The brand value of FAW "Red Flag" has reached RMB5.828 billion. FAW Xiali sees bright future due to its dominant position in economy car sales. After taking control of distribution tache by acquiring all the shares of sales company, FAW Xiali figured out the problem of default in large amount of payment, and therefore the financial status was improved remarkably. However, the competition in economy car market is intense and the strength of rivals is increasing every day. As reference shows, FAW Toyota, of which 30 percent share was held by FAW Car Co., Ltd., is the main profit source of the company.

Changan Auto is a leading company in mini car industry of China, and is ranking No. 1 in Mini car industry throughout the country. It was introduced that Changan Auto plans to input RMB3 billion yuan in a few years in the R&D of high-tech small-displacement vehicles, and will launch a series of mini cars with completely independent IPRs. Moreover, the company has exported 7,050 vehicles in the first quarter of this year, far beyond the industry average of the country.

Golden Dragon Automobile has got a satisfactory business increase in 2006.

According to the annual report, the major business income was RMB9.6 billion yuan, up by 25 percent; the net profits were RMB150 million yuan, increasing by 53 percent. In 2006, the company sold 41 thousand passenger vehicles, increasing by 24 percent, in which large and medium sized passenger vehicles accounted for 27 thousand and increased by 18 percent, light passenger vehicles accounted for 13.8 thousand and grew by 36 percent. The company industrial position got raised. This year, the sales volume keeps growing, in the first quarter, sales volume of passenger vehicles increased by 23 percent, in which large sized passenger vehicle and medium passenger vehicle increased by 49 percent and 37 percent respectively.

In 2006, China National Heavy Duty Truck Group Co., Ltd. obtained a marked increase in income. The year's income was RMB9, 469.53 million yuan, increased by 45.54 percent year on year; the net profit was RMB 224.4 million yuan, increased by 48.97 percent year on year. The sale of heavy-duty trucks reached 44,447 units in 2006, up by 43.09 percent year on year. Analysts said that the prosperity of heavy duty truck of the company, especially those advanced heavy duty trucks with load of 15 tons and above and relevant parts, is improving increasingly, and thus the profit margin of vehicles will maintain constant.

Jiangling Motors Corp's (JMC) major business revenue in 2006 was RMB7.368 billion yuan. The growth areas for sales volume include the industrial growth and the launch of new models. The aggregate sales volumes for complete vehicles were 85,214 units, increased by 16 percent year-on-year. The company will launch the fifth generation of Quanshun series, namely V348, in the second half of this year; with advanced engine performance and improved comfort, the positioning of V348 will be extended to commercial vehicle filed and light passenger vehicles used for middle and short term trips in cities. It is predicted that V348 might become the future growth point of the company's performance. Some analysts consider that the core advantage of JMC relies on better cost control than that of rivals, and this kind of advantage will go on; plus the launch of new models, the company will grow steadily in future.

Anhui Jianghuai Automobile Co., Ltd (JAC) has realized a major business revenue of RMB10.29 billion yuan in 2006, up 9.54 percent year-on-year; but net profits realized decreased by 17.3 percent year on year to RMB410 million yuan. The passenger car project of the company was officially approved in January this year. At the same time, JAC has built a passenger car manufacturing base in Hefei development zone, which was designed for an output of 200,000 units per year; the construction of R&D and product line of matching equipments has been basically completed. It is predicted that JAC will launch the first C-class vehicle in the third quarter of this year and A-class vehicle at the end of this year or at the beginning of next year. According to professional analysis, the transition of car business of JAC is worth expecting.

The performance of Kunming Yunei Power Co., Ltd. grew by 358.55 percent in the first quarter. The main reasons include: adjustment of product structure, bigger proportion of high-end products, effective control of expenses, as well as certain investment income. In early April, the company announced that it would offer not more than 80 million shares publicly; the capital raised should be used in production capacity expansion project of diesel passenger cars. After the project is put into production, the newly increased sales revenue per year will be RMB5.7 billion yuan, and newly increased profit will be RMB0.4 billion yuan. The company's performance in the first half of this year is forecasted to go up by 100 to 150 percent.

Shuguang Automotive's main business includes passenger vehicle, SUV and the production and sales of auto parts like vehicle-bridge and differentials. Shuguang Automotive ranks No. 3 in the production and sales of large and medium sized passenger vehicles, and No. 1 in the manufacturing of vehicle-bridge, especially light vehicle-bridge. In the first quarter of 2007, Shuguang Automotive, as a main manufacturer of light vehicle-bridge, obtained an increase in vehicle-bridge business thanks to the relatively strong growth of light vehicle. However, the average profitability of the company went down slightly on the contrary due to the characteristics of parts and accessories.

                                                                                 Source:CE.cn