In the first half of "China Auto", the industry’s profit differentiation was remarkable. It was ideal to sell one car and earn 23,000 yuan, while Weilai lost 200,000 yuan per car.

A few days ago, 14 domestic listed passenger car companies released the mid-year report in 2023. On the whole, thanks to the continuous prosperity of new energy vehicles, many car companies performed well in the first half of the year. Of the 14 passenger car listed companies, 11 achieved year-on-year growth in operating income; 10 companies achieved a year-on-year increase in net profit; One turned losses into profits, and three net losses narrowed; 5 companies recorded a net loss; The gross profit margin of the three companies is negative.

In terms of sales performance, in the first half of the year, 10 car companies achieved year-on-year sales growth, 9 achieved monthly sales of over 10,000 vehicles, and 8 achieved bicycle profit.

In addition, in the first half of the year, when the technology was updated rapidly and the competition was fierce, many car companies continuously increased their investment in R&D. Fourteen listed passenger car companies invested more than 48.653 billion yuan in R&D expenses, of which R&D expenses once again exceeded the current net profit.

Ideal "turning over",BYDNet profit "king"

In terms of revenue performance, 11 listed passenger car companies achieved a year-on-year increase in operating income in the first half of 2023. With a strong scale advantage, it achieved an operating income of 316.41 billion yuan in the first half of the year, and firmly sat on the first throne of revenue; BYD’s revenue reached 260.124 billion yuan, a year-on-year increase of 72.72%; Beijing Auto ranked third with revenue of 99.047 billion yuan.

It is worth noting that LI reversed its losses in the past three years, and its revenue rose by 159.31% in the first half of the year, reaching 47.44 billion yuan, exceeding the income of last year. Among them, the increase in LI in the second quarter played a pulling role in the overall income, and the total income in the second quarter was 28.65 billion yuan, up 52.5% from the previous month. The surge in revenue was mainly driven by the increase in car delivery, and the car sales revenue in the second quarter was 27.97 billion yuan. According to this trend, it is still expected to double the income year-on-year in 2023.

Chinese automobile

In the first half of the year, the other three new car-making forces, Xpeng Motors, Weilai, seemed to be unable to cope, and their revenues declined one after another, dropping by 38.92%, 11.14% and 3.74% respectively.

The decline in revenue is mainly related to the price reduction of automobiles and the decline in delivery. The financial report shows that Xpeng Motors’s automobile sales revenue decreased by 43% in the first half of the year due to the reduction in automobile delivery and the termination of subsidies for new energy vehicles; Weilai’s car sales continued to decline in the second quarter due to the decrease in average selling price and delivery volume; In addition, Cyrus said that the price adjustment of products led to a decline in revenue.

From the perspective of net profit, BYD’s net profit returned to its mother in the first half of the year reached 10.954 billion yuan, doubling the same period last year. The net profit ranked second, and the net profit returned to the mother in the first half of the year reached 7.653 billion yuan, a year-on-year increase of 30.65%.

LI, whose revenue soared in the first half of the year, was far ahead of the industry in net profit performance. In the first half of 2023, it recorded a net profit of 3.223 billion yuan, compared with a loss of 629 million yuan in the same period last year, up 579.6% year-on-year. On a quarterly basis, the net profit returned to the mother in the second quarter was 2.293 billion yuan, which was profitable for three consecutive quarters. In 2023Q1 and 2022Q4, the net profit was 930 million yuan and 257 million yuan.

Chinese automobile

idealThe profit of bicycles exceeds 20,000, and Weilai loses 200,000 when selling one.

Under the continuous influence of the price war in the industry, various car companies have reduced their vehicle prices in the first half of the year, which has also led to a decline in the gross profit margin of many car companies to varying degrees. According to the financial report data, the top three car companies in the first half of the year were LI, BAIC and BYD, accounting for 21.22%, 20.76% and 18.33% respectively.

Except BYD, SAIC, and Zero Run Automobile, the gross profit margins of other 11 automobile companies all declined in different degrees in the first half of the year, among which the gross profit margins of Weilai and Tucki were only 1.28% and -1.43% respectively, with the declines exceeding 12%. Weilai Financial Report said that the year-on-year decline in gross profit margin was mainly due to the change in product mix and the increase in discounts offered by the previous generation of ES8, ES6 and EC6 models, which led to the decline in gross profit margin of automobiles. Xpeng Motors’s financial report revealed that the gross profit margin of automobiles in the first half of the year decreased by 15.6 percentage points year-on-year to-5.9% due to the impairment of inventories related to G3i, the loss of inventory purchase commitments, the increase of sales promotion and the expiration of the above subsidies for new energy vehicles.

In addition, the gross profit margin of zero-running cars in the first half of the year has improved significantly compared with the same period of last year, increasing by 20.07%, but the gross profit margin has not returned to normal, only -5.88%. According to the financial report of Zero Run Automobile, the continuous improvement of gross profit margin is mainly due to the improvement of the company’s product structure, and the average manufacturing cost of each electric vehicle has decreased as a percentage of the average selling price.

Chinese automobile

From the perspective of sales performance, the performance of various car companies in the first half of the year was obviously differentiated. Among them, SAIC maintained its scale advantage, with a total sales volume of 2.072 million vehicles and an average monthly sales volume of 345,300 vehicles; The second runner-up in sales was BYD, with sales of 1,255,600 vehicles in the first half of the year, up by 95.78% year-on-year, with an average monthly sales of 209,300 vehicles.

In addition, in the first half of the year, LI’s sales soared by 130.3% to 139,100 vehicles, with an average monthly sales volume of 23,200 vehicles. It is worth mentioning that while the sales volume in LI is increasing, the net profit of bicycles is also increasing, with a net profit of 23,200 yuan per car sold, which is the most profitable among all car companies. BYD, which ranks second, earns 8,700 yuan per car sold, while Changan Automobile, which ranks third, earns 6,300 yuan per car.

At the same time, the sales of some car companies have fallen into a downturn or even regressed. Among them, Weilai Automobile sold 54,600 vehicles in the first half of the year, up only 7.35% year-on-year, and the net loss of bicycles expanded to 200,100 yuan; Xpeng Motors sold 44,100 vehicles in the first half of the year, a year-on-year decrease of 39.93%, and the net loss of bicycles was 124,200 yuan.

Chinese automobile

R&D investment remained high, and the total sales expenses reached 799.25.a hundred million

From the perspective of expenses, in the first half of the year, except for, other car companies increased their investment in R&D and sales, and the sales expenses were generally significantly higher than R&D.

In the first half of the year, the total R&D investment of 14 passenger car companies exceeded 48.653 billion yuan, among which BYD, SAIC, Weilai Automobile, LI, and the top five car companies spent 13.835 billion, 7.954 billion, 6.42 billion, 4.278 billion and 3.509 billion respectively.

In terms of sales expenses, the total sales expenses of 14 passenger car companies reached 79.925 billion yuan in the first half of the year, among which the top five car companies were SAIC, Beijing Automobile, Weilai Automobile, BYD and Geely Automobile, with R&D expenditures of 12.68 billion, 12.032 billion, 11.542 billion, 10.838 billion and 9.692 billion respectively.

Chinese automobile

Automobile exports hit a new high, and automobile companies set off a wave of overseas factories.

Export is also a highlight of China auto market in 2023. It is particularly noteworthy that in the first quarter of this year, China surpassed Japan for the first time and became the world’s largest automobile exporter. According to the latest data of the Federation, China’s automobile export volume in the first half of this year was 2.34 million, an increase of 73% over the same period last year; Among them, the export volume of new energy vehicles reached 800,000, a year-on-year increase of 105%, accounting for 34% of the total export volume of automobiles.

In the first half of the year, the overseas sales of many car companies hit a new high year-on-year. Great Wall Motor released the 2023 semi-annual report on August 30, showing that the cumulative sales in the first half of the year were 518,800 units; The sales volume of new energy vehicles was 89,600, a year-on-year increase of 49.3%. In the same period, Great Wall Motor’s overseas sales reached a record high, with sales of 123,300 vehicles, up 80.2% year-on-year.

Not only the Great Wall, but also the overseas sales of SAIC, Chery Automobile, Changan Automobile, Geely Automobile, BYD and Beijing Automobile in the first half of this year also ushered in a substantial increase.

However, although China’s automobile exports are huge, its share in most single markets is relatively small. In addition, there are many automobile brands in China, which have not achieved the same status compared with multinational brands such as Europe, America, Japan and South Korea. Therefore, in recent years, the idea of car companies going out to sea has gradually changed from automobile trade export to brand ecological going out to sea.

In the first half of this year, BYD, GAC and SAIC successively announced the establishment of overseas factories. At present, many leading domestic manufacturers have established relatively perfect localized R&D, production and sales centers in overseas key markets, and are transforming from the traditional trade model to the overseas career development model, establishing international competitive advantages in the fields of technology, brand and service, and achieving leap-forward growth.

Chinese automobile

The research report pointed out that on the one hand, domestic OEMs can achieve more lucrative profits, and the increase in overseas prices is much higher than the increase in bicycle costs brought about by going out to sea. It can also extend the life cycle of models and realize the reuse of previous investments. On the other hand, China car companies are expected to gain market share and voice by exporting high-quality products and technologies overseas, participate in the formulation of local EV standards, and consolidate their first-Mover advantage.