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Auto industry profits up

By Dai Yan (chinadaily.com.cn)
Updated: 2006-11-21 14:11

Special coverage: Auto China 2006  Related publication:        Related readings: China will become crucial export base: GM China's auto imports surge 55.4%

Domestically listed auto companies registered an increase in their third-quarter profits, according to their third quarterly reports in 2006.

The commercial vehicle sector saw profits surge after suffering a downturn last year, as manufacturers adjusted the product line and introduced more new models. Dongfeng Motor's third-quarter gross profit totaled 101 million yuan (US$13 million), up five percent from 96.17 million yuan during the same period last year. Net profit increased 24 percent year on year to 84.13 million yuan, fueled by strengthened marketing management and strong sales of new products.

Yutong Bus reported a gross profit of 81.87 million yuan in the third quarter, and its net profit rose by four percent to 49.56 million yuan. The company earned 130 million yuan in the first nine months of the year, an increase of 15 percent year on year.

Xiamen King Long Motor, a leading bus manufacturer, realized a third-quarter gross profit of 101 million yuan and a net profit of 44.95 million yuan, up 37 percent from 28.47 million yuan in the third quarter of 2005. It also saw an unexpected 28 percent rise in net profit during the first nine months this year.

Auto part manufacturers raised their profitability by reducing production costs and improving management.

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The full text is available in the November Issue ofAutoChina.