China's joint-venture car companies profit double their own brands, passenger cars are higher than commercial vehicles

According to the statistics of the five consecutive years of tracking the Chinese auto industry by the All-China Federation of Sport and Tourism, the sales volume of the joint-venture automobile companies accounted for approximately 40% of the total sales of various types of automobiles in the Chinese market, but the total profit amounted to approximately 66%. ; And the sales volume of own-brand car enterprises accounted for 60%, and the total profit accounted for only about 34%. It is calculated that the profits of the joint venture automobile enterprises are roughly twice as much as their own brands.

China's auto industry's joint-venture car companies are basically concentrated in the passenger vehicle sector. Among the auto makers, commercial vehicle companies account for the vast majority. However, passenger cars are significantly higher than commercial vehicles in terms of market share and bicycle profit margin. In the joint-venture vehicle enterprises, as foreign investment usually accounts for 50% of the shares, their profits account for about 33% of the total profits of the Chinese auto industry. Judging from this percentage, the profits of Chinese and independent brands of foreign-invested and joint-venture vehicle enterprises are roughly equal. However, it is understood that foreign capital also gains extra profits through core auto parts such as engines, brand usage fees, and patent licensing fees, so that overall the actual profits of foreign capital are much higher than those of Chinese local companies.

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