First of all, the more the quantity produced, the lower the cost. Because automobile production is an assembly line product, it needs a whole set of production machines. Looking at a car alone, the consumption of starting the assembly line is indeed far greater than the profit brought by the sales of a single car. However, if a large number of cars are made, the situation will be reversed. Because the cost of starting the assembly line has basically not changed, the benefits brought by mass production of automobiles are much higher than the cost of starting the assembly line, which reduces the overall automobile manufacturing cost and can bring huge benefits.
Second, the sales volume is huge. Because mass production of cars reduces the cost, as long as all these cars are sold out, it will bring huge profits, and the money obtained from these sales can further promote the manufacture of cars and increase the output of cars, thus forming a positive feedback closed loop, which can continuously accumulate money and obtain huge profits.
However, we should not only see the huge benefits brought by selling cars, but also see the research and development costs behind automobile manufacturing. Take the brand of Beijing Auto as an example. In just two years, BAIC's R&D expenses have reached more than 5 billion. It can be seen that selling cars can not only bring huge profits, but also face huge cost obstacles. Once the profit can't offset the R&D cost, the whole enterprise will fall into financial deficit. Therefore, we should not only see the scenery on the surface of the automobile industry, but also see the sadness behind it.
The above is Bi's answer to this question. If you have other opinions, please leave a message below the comments.