When will the auto industry enter the era of low profit? From the mid-1990s, around 1995, the home appliance industry entered a period of rapid development. During the ten years from 1986 to 1995, the average annual growth rate of household electrical appliance industry output was 32.1%. In 1996, China’s main home appliance products—the annual output of color TVs, refrigerators, washing machines, and air conditioners—accounted for about one-fifth of the world’s output of similar products; the output of refrigerators, washing machines, electric irons, electric fans, and rice cookers ranks first in the world. In 1996, China's home appliance industry had sales of more than 110 billion yuan, accounting for about 7% of the annual sales of 200 billion U.S. dollars in the world's home appliance market, ranking third in the world after the United States and Japan. The home appliance industry experienced high-speed development from 1996 to 1999, a fierce price war from 1999 to 2000, and the household appliance industry's integration into the meager industry after 2001, and it may have experienced five to six years before and after. From this point on, the automobile industry was again seen. From the beginning of last year to the beginning of this year, the development of the car has just entered a period of super-high speed. Last year, China’s auto production exceeded 4 million vehicles, which was equivalent to 1995 and 1996 in the home appliance industry. In accordance with the laws of the household appliance industry, we must go through a price war to a fierce price war era, and then enter the meager profit era, which will take about five to six years. Then it is inferred that the automobile will enter the meager profit era around 2010. However, according to a meticulous market survey conducted by a household appliance company that entered the automotive industry, despite the rapid growth in domestic auto investment, the price of automobiles has also fallen further and lower, but the domestic auto market has great potential. In the first half of 2003, only domestic automobile consumption in the country This is an increase of over 80% over the same period last year. In the next eight years, China will be the peak market for car consumption. This means that the high profit era of the car will continue until 2012 to 2013. However, the above is only a simple reference forecast. Although the development of the two industries is very similar, after all, the automotive industry is different from the home appliance industry. The automobile industry is affected by import quotas, tariffs, and national policies. Many factors affect the auto industry. In the era, no one can really predict the direction of development. Related Links Expert opinion: The automotive industry needs help from the home appliance industry The household appliance industry has entered the auto industry with a large amount of capital, which has caused concern and controversy among many insiders. The reporter interviewed Prof. Lu Manping, chief economist and director of the Institute of the First Securities Co., Ltd. on this issue. Reporter: What are your basic judgments about the current home appliance companies' entry into the automotive industry? Lu Manping: Although the industry and related media are still controversial and skeptical, I believe that the active role is clear and certain, based on full investigation and research and years of follow-up analysis. Among the many industries in China, the most compelling one is the home appliance manufacturing industry. Among the major industries in China, the household appliance industry is an industry that is continuously opening up to a higher level of market openness, which has become a completely open market, and the trend of changes in industrial organizations is relatively clear, and industrial development performance is also satisfactory. The household appliances industry has become one of the fastest growing industries in China. The China Household Electrical Appliances Maintenance Association survey predicts that in the 21st century, China may become the world’s largest home appliance manufacturing center. As an industry like this, the household appliances industry will enter into any industry in the process of diversified development. Its role and significance will be extraordinary and enormous. Reporter: So, can you specifically talk about the role and significance of the home appliance industry in the automotive industry and its expectations? Lu Manping: The extraordinary and immense role and significance of the home appliance industry's entry into the automotive industry is that it shows China's industrial integration and revitalization, and the “world manufacturing center†is making dreams come true. Only by the arrival of the era of meager profits can we really force the auto industry to operate on its extensive operations. After the war, a number of enterprises have now fallen and replaced with more competitive companies. This kind of market-based brutal competition does not necessarily have the effect of adjusting the industrial structure more than the government or human regulation. Gantry Loader With One CNC Machine Gantry Loader With One Cnc Machine,Robotized Turning Cells,Cnc Lathe Plus Gantry Loader,Lathe With Integrated Loader Qingdao Jiujin Machinery Co., Ltd , https://www.jiuinmachinery.com
Industry insiders of both industries have to admit that the automobile industry has striking similarities with the development of the home appliance industry. At present, the automotive industry, especially car companies, is still a relatively high-profit era, with more and more companies and industry capital. Flocking in, followed by a four-wave price-cutting frenzy in the automotive market last year, and the profit margin of automotive products is gradually falling. Just like the household electrical appliance industry of that year, from a relatively profitable industry group, as production capacity increased substantially and subsequently led to price competition, through market consolidation, mergers and reorganization... Then when will the auto industry enter the era of meager profits?
Some experts said that the market's best-selling "Charlie" is only equivalent to the original "9-inch black and white TV" in the home appliance market. Today's automobile industry is equivalent to the rapid development of the home appliance industry in the late 1990s.