For the company, revenue from the sale of automobiles fell to RMB2.68 billion for the period, down 15.0% from RMB3.15 billion in 3QFY2021. TCA sold 7,754 units in 3QFY2022, an 11.8% y-o-y decrease.
Automobile sales for the first eight months of 2022 decreased by 6.3% to 13.0 million units compared to the same period the year prior, with the premium segment dropping further by 9.2% to 2.1 million units during the same period due to the soft economy and suppressed consumer confidence.
Barring the potential for major policy and direction shifts to be announced at the 20th Congress Meeting of the Chinese Communist Party which will be held in mid-October, there are few catalysts in the immediate horizon to suggest that the economic environment will change significantly.
Nonetheless, there are stimulative measures in place, such as lowered borrowing rates and loosening of the property purchase policies which hopefully will stabilize the overall economy.
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TCA says it is “cautious” with large expenditures and is focused on cost control and balance sheet management to ensure appropriate financial flexibility.
Moving forward, its new Genesis dealership as the exclusive dealer for Genesis automobiles in Changsha, Hunan province and the BMW Service Center will add growth to TCA’s mature dealership portfolio.
Shares in TCA closed flat at 20 cents on Oct 18.
