AutoBeta(AutoBeta.net)02/12 Report--

China Automobile Circulation Association (hereinafter referred to as "Association") released a survey report pointed out that as of February 11, in Beijing, Shanghai, Hebei, Jiangsu, Guangdong and other nearly 50 automobile dealer groups in a total of 2895 4S stores, only 573 resumed work, the resumption rate of 19.8%.

The association pointed out that among the reasons for not starting construction, 73.3% of 4S stores have strict approval requirements due to the local government. Other reasons include that the application for resumption of work has not been approved, the shortage of epidemic prevention materials does not support the resumption of work, the difficulty in returning employees to their posts, and the business volume after resumption does not support the operation expenses, etc. In addition, in the 4S stores that have been started, they are also faced with practical problems such as shortage of relevant materials and sharp drop in passenger flow.

At the beginning of 2020, a sudden outbreak of new crown pneumonia paralyzed the upstream and downstream of the automobile industry, many automobile enterprises and dealers extended the resumption time, and parts manufacturers also fell into a state of production suspension.

With the deepening of the "war epidemic", the tide of resumption of work in many provinces and cities across the country began to come, and many automobile dealers chose February 10 as the first day of resumption of work, but at present, the proportion of resumption of work is not high.

In addition, some automobile enterprises also announced to continue to extend the resumption time, including Brilliance BMW, FAW Toyota, GAC Toyota, Dongfeng Honda and other automobile enterprises announced to extend the resumption time to February 17. Of course, as the main link of automobile production, some parts manufacturers are affected by the resumption of work due to insufficient supply.

According to the latest survey released by the association, the inventory warning index of automobile dealers in China in January 2020 was 62.7%, up 6.3% month-on-month and 6.5% year-on-year. The inventory warning index was above the warning line.

The association pointed out that due to the arrival of the Spring Festival holiday in January, China's automobile market entered the traditional off-season, plus December overdraft marketing activities, most consumers are not enthusiastic about buying cars, car turnover also further declined. Although the pandemic had a certain impact on vehicle delivery volume, the impact of the pandemic on vehicle sales was limited due to the Spring Festival holiday.

In order to reduce the inventory pressure of dealers, a number of automobile enterprises for dealers "loose". On February 2, Volvo took the lead in announcing the launch of business policies including no sales target in February, direct personnel subsidies for dealer employees, suspension of new 4S store assessment, and strengthening online marketing investment.

Subsequently, Great Wall Motor, Dongfeng Motor, Jaguar Land Rover, GAC Toyota, Audi, Dongfeng Fengshen and other automobile enterprises successively launched to reduce pressure for dealers, reduce or cancel sales assessment in February or the first quarter. Among them, Volkswagen, Ford, Jaguar Land Rover, Hyundai and other brands cancelled the sales assessment in the first quarter, and GAC Chuanqi has cancelled the task of dealer pick-up.

The epidemic led to increased inventory pressure on dealers, and the traditional offline way of buying cars was also greatly affected. For this reason, a number of automobile enterprises try to sell cars on the water line to meet the demand of consumers and the inventory pressure of dealers to the greatest extent.

GAC Chuanqi can provide consumers with car selection without leaving home through online VR car viewing, online intelligent exhibition hall, e-commerce platform including micro-mall and Tmall, and provide special pick-up service; BMW launched the application software of "BMW Dealer Handheld Office", opened special live broadcast every day in BMW Tmall official flagship store and BMW Jingdong official flagship store, and set up "online exhibition hall" at the same time. In addition, including Great Wall Motor, Dongfeng Motor, Tesla, NIO, Xiaopeng, Weima and so on also began to test the water line to sell cars.

China is the world's largest automobile market. Affected by the epidemic, most upstream and downstream enterprises in the automobile industry will resume work after an extended week, while Hubei has gathered a number of automobile manufacturers and parts manufacturers, which will also make adjustments to resume work according to the prevention and control of the epidemic.

Automobile manufacturers, parts manufacturers extend the resumption of work and consumers do not leave home, automobile dealers and manufacturers are bound to face huge inventory pressure. The personage inside course of study thinks, Under the influence of the epidemic situation, Although car enterprises and dealers launched online car watching, Car delivery door and other marketing activities, But still difficult to promote consumers 'willingness to buy cars.

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