SHANGHAI, Jul. 30 (SMM) – Camel Group – a leading automobile lead-acid battery maker in China – reported a 16.6% fall in its profit in the first half of 2015, as automobile battery consumption was anemic, the company’s financial report revealed.
Camel Group made a profit of 242 million yuan ($39.5 million) January-June. The company registered a 46.42% jump in profit in H1 2014.
“The decline in profit margin for the automobile battery leader was a reflection of weak auto industry and intense price war in China’s auto battery market,” SMM research team says.
China’s automobile output and sales in H1 only rose by 2.6% and 1.4%, respectively, leading the China Association of Automobile Manufacturers to slash forecast for the full-year auto sales growth to merely 3%, compared with 7% predicted in January.
The slowdown in automobile sector left sharp decline in orders for most automobile battery producers. This was particularly evident after April when replacement demand also slowed, SMM learned.
Moreover, automobile battery market continued to be dragged down by unhealthy price war, mainly resulting from excess capacity and waning demand. Prices on 6-QW-60Ah battery are now only 250-300 yuan per set, down by 12% from the beginning of the year.
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