AutoBeta(AutoBeta.net)02/02 Report--

Suffering from two consecutive years of decline in the car market, coupled with the reduction in the number of working days during the Spring Festival, many 4S stores will fail to meet their sales targets in the first month of 2020. However, everything became more serious because of the outbreak of COVID-19. In order to reduce the pressure on its dealer partners, Volvo announced the launch of a dealer care policy.

Under the continuing impact of COVID-19 's epidemic, enterprises across the country have responded to the state's call to issue postponement plans for resumption of work, and advised the public to avoid going to public places with high passenger flow as far as possible. therefore, many car 4S stores will be affected.

On Feb. 2, Volvo announced through its official Wechat that it would launch a number of dealer care policies, including no February sales target, direct staff subsidies to dealer employees, and special support for many business projects.

According to Volvo official sources, two major measures have been launched. first, in order to reduce the operational pressure on dealers caused by the outbreak, Volvo decided to relax its performance review and not set a sales target for February. Second, considering that the income of dealers may be affected by the epidemic, in order to reduce the financial pressure on dealers, Volvo directly provides staff subsidies totaling more than 10 million yuan to dealer staff.

In addition, Volvo will negotiate with banks to reduce the loan pressure on dealers and provide online training to strengthen online marketing capabilities and skills. Volvo also said that during the epidemic period to provide car owners with free door-to-door, Hubei free road rescue, free extension of insurance and other intimate services.

In the face of the epidemic, all parts of the country will work together to face difficulties. Although this epidemic will have a certain impact on the automobile industry, some industry insiders have analyzed that the impact of the epidemic also has positive aspects. Due to the hidden impact of the public relations traffic panic among most consumers, it may stimulate consumers' demand for private cars to increase in the short term. At the same time, as most potential consumers are resting at home, this has also promoted the online development of the automobile industry.

At present, many car companies and dealers have made corresponding measures to transfer the offline sales model to online sales, including watching cars online through VR and live car sales online. A 4S store in Beijing said, "during the epidemic prevention and control period, we will strengthen online marketing efforts, through the 'smart hall' APP to do fixed-point push to customers, customers do not have to enter the store, through the mobile phone can see the actual record of the intended model."

More than one distribution store has launched online sales, and it is understood that Geely, Lecker, Volvo, FAW, Great Wall and other brands have opened online smart showrooms.

Although online sales are unacceptable to some consumers, with the development of the times, the online shopping model is also accepted by more and more young people. after all, most consumers learn about it through the Internet before buying cars. Brands like Tesla in North America are mostly through online shopping to deliver cars, while the online shopping model in the Chinese market will gradually mature.

According to Volvo sales data in 2019, a total of 154961 new cars were sold in China for the whole year, an increase of 18.7% over the same period last year. At the same time, the Chinese market is also Volvo's single market with the largest year-on-year growth, accounting for 22% of Volvo's cumulative sales.

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