BEIJING: Chinese automakers could report strong earnings when they kick off quarterly results next week, starting Aug 23 but the outlook could worsen as Beijing applies the brakes to a racing economy after giving the world's top auto market a stimulus-fed boost in 2009.
Several major auto groups, from SAIC Motor Corp to Chongqing Changan Automobile Co, had projected a big jump in first-half net profit on record sales.
But signs are emerging the market's breakneck expansion has started to slow since May, with the situation accelerating in the summer months as a slowing economy and widespread natural disasters kept buyers from showrooms.
"It won't be an easy ride for all, especially in the summer months. Demand should pick up in the peak auto sales season in the autumn, but there is no way for any auto maker to match the breakneck expansion in 2009," said Lin Huaibin, an analyst with IHS Automotive.
Warren Buffett-backed BYD reports second quarter results on Sunday, followed by top Chinese top automaker SAIC and Geely Automobile on Wednesday.
Earlier this month, a Chinese government think tank had warned the country's economy will cool further this quarter as fiscal pump-priming starts to fade and the restocking cycle draws to a close.
Extraordinarily strong automobile demand a year ago, pumped up by Beijing's policy initiatives, are also blamed for a moderate 13.6 percent rise in car sales in China in July, the slowest growth in 15 months.
Still, those who have more aggressively pushed out new models or have a wider product portfolio, such as SAIC and Dongfeng Motor Group Co, are set to hold up relatively well.
SAIC makes Buick, Chevrolet, Cadillac and Volkswagen models with General Motors and the top European automaker. Dongfeng operates car ventures with Honda Motor, Nissan Motor and PSA Peugeot-Citroen.
Others such as BYD, which sells passenger cars only under its own brand, should be bracing themselves for a tough ride. BYD, partly owned by Buffett's Berkshire Hathaway Inc, already cut back its full-year sales target by 25 percent earlier in the month. - Reuters
Several major auto groups, from SAIC Motor Corp to Chongqing Changan Automobile Co, had projected a big jump in first-half net profit on record sales.
But signs are emerging the market's breakneck expansion has started to slow since May, with the situation accelerating in the summer months as a slowing economy and widespread natural disasters kept buyers from showrooms.
"It won't be an easy ride for all, especially in the summer months. Demand should pick up in the peak auto sales season in the autumn, but there is no way for any auto maker to match the breakneck expansion in 2009," said Lin Huaibin, an analyst with IHS Automotive.
Warren Buffett-backed BYD reports second quarter results on Sunday, followed by top Chinese top automaker SAIC and Geely Automobile on Wednesday.
Earlier this month, a Chinese government think tank had warned the country's economy will cool further this quarter as fiscal pump-priming starts to fade and the restocking cycle draws to a close.
Extraordinarily strong automobile demand a year ago, pumped up by Beijing's policy initiatives, are also blamed for a moderate 13.6 percent rise in car sales in China in July, the slowest growth in 15 months.
Still, those who have more aggressively pushed out new models or have a wider product portfolio, such as SAIC and Dongfeng Motor Group Co, are set to hold up relatively well.
SAIC makes Buick, Chevrolet, Cadillac and Volkswagen models with General Motors and the top European automaker. Dongfeng operates car ventures with Honda Motor, Nissan Motor and PSA Peugeot-Citroen.
Others such as BYD, which sells passenger cars only under its own brand, should be bracing themselves for a tough ride. BYD, partly owned by Buffett's Berkshire Hathaway Inc, already cut back its full-year sales target by 25 percent earlier in the month. - Reuters
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