Analysis Of Jianghuai Automobile Group Corp’s Profitability And Research On Improvement Measures

The "Energy-saving and New Energy Vehicle Technology Roadmap 2.0" issued by the Chinese Society of Automotive Engineering proposes that by 2035,my country’s hybrid vehicles and pure electric vehicles will each account for 50% of market sales,and pure fuel vehicles will gradually withdraw from the market.At the same time,with the release of a series of top-level designs on the Internet of Vehicles and autonomous driving,such as the "White Paper on Vehicle-Road-Cloud Integrated Control System" and "Guidelines for the Construction of the National Internet of Vehicles Industry Standard System(General Requirements)",the automotive industry is becoming more electrified.Under the coercion of the two revolutions of automation and automation,ushered in the biggest change in a century.Since the 21 st century,my country’s automobile market has entered a period of rapid growth,in which passenger car sales exceeded 15 million units in 2010,and then broke the 20 million mark for the first time in 2015.As the world’s largest automobile producer and consumer country,whether my country’s auto manufacturers can grasp the opportunities and challenges is not only related to their own survival and development,but also to the realization of my country’s industrial transformation and upgrading and modernization.Jianghuai Automobile is a traditional state-owned automobile manufacturer that manufactures trucks and passenger and cargo chassis.In 2007,it entered the passenger vehicle market based on its commercial vehicle business.However,the profitability in recent years is not optimistic.Financial indicators such as return on net assets,gross profit margin,and net profit margin are all lower than the industry average.Against the background of the slowdown in the growth of my country’s automobile market,the concentration of the domestic automobile industry will further increase,the market share of leading auto companies will further increase,and the competition in the automobile industry will further intensify.The situation facing Jianghuai Automobile will be more severe.Therefore,it is of great practical significance to evaluate and analyze the profitability of JAC,find out the existing problems and propose solutions.This paper conducts principal component analysis on relevant data of Jianghuai Automobile and finds that its profitability is at the downstream level of the industry.Based on the analysis of the main influencing factors and the degree of influence of Jianghuai’s profitability,a factor analysis of financial data is carried out.Analysis shows that poor profitability is mainly due to poor capital asset profitability,potential profitability and poor operating profitability.On this basis,combined with the actual situation of the automobile industry and JAC,from precise research and development,from providing products to providing services,selling idle capacity and increasing capacity utilization,streamlining enterprise product lines,creating subdivision monopolies,and maintaining good Commercial and passenger investment ratios,actively expanding overseas markets,strengthening credit policy management,strengthening accounts receivable management,and increasing short-term financing ratios have put forward specific and feasible suggestions.