AutoBeta(AutoBeta.net)03/12 Report--

China Association of Automobile Manufacturers released the latest production and sales data, February this year, car production and sales fell sharply year-on-year. The production and sales of automobiles were 285,000 and 310,000 respectively, down 79.8% and 79.1% year-on-year respectively; from January to February, the production and sales of automobiles were 2,048,000 and 2,238,000 respectively, down 45.8% and 42% year-on-year respectively.

Specifically speaking, the production and sales of passenger cars in February were 195,000 and 224,000 respectively, down 82.9% and 81.7% year-on-year respectively, higher than the overall decline in automobile production and sales; the production and sales of new energy vehicles in February were 9951 and 12908 respectively, down 82.9% and 75.2% year-on-year respectively, which has declined for 8 consecutive months since the decline of new energy subsidies last year.

China Automobile Association said that affected by the epidemic, the automobile industry production and sales in February this year fell sharply. At the production end, slow resumption of work and parts supply problems led to a sharp decline in production levels. On the consumer side, the cessation of product consumption has led to severe market suppression. However, with the resumption of production, the auto market has rebounded, the decline in March will shrink, it is predicted that the domestic auto market sales in March will decline by about 50%.

A sharp drop in car sales in February was not unexpected. Similar to Honda, Toyota, Great Wall, Geely and other recent growth against the trend of automobile enterprises in February this year have experienced a substantial decline, it can be seen that February this year on independent automobile enterprises and joint venture automobile enterprises impact is not small.

During the epidemic, car dealers were also under great pressure because they could not carry out normal marketing activities and sales activities. According to the survey results of "Automobile Dealer Inventory" released by China Automobile Circulation Association on March 10 in February 2020, the comprehensive inventory coefficient of automobile dealers in February was 14.8, up 6 times year-on-year and 8 times month-on-month. The inventory level was above the warning line, and the warning index reached a new high. In addition, as of February 28, the last working day of February, the return rate of dealer employees is 55.4%(more than half of the employees are required to be on duty in the start-up shop), the sales efficiency is 21.7%, the after-sales efficiency is 26.1%, and the comprehensive return efficiency is only 30.19%. Some dealers said,"Even if it has started business, few customers come to the store to buy cars. In fact, passenger traffic is still falling sharply."

In February, the pressure on dealers is very high. In order to reduce the burden on dealers, many automobile enterprises reduce or exempt February performance assessment, and even subsidize funds to help dealers through difficult periods.

At present, there are still certain difficulties for dealers to carry out marketing activities online, and many dealers will also look online to open VR car watching, live car selling, cloud car watching and other measures to promote sales growth. However, according to dealer feedback data, online car sales contributed to the volume is not obvious, can be said to be minimal. In addition, automobile enterprises also turned their eyes to online, especially after the Geneva Auto Show was forced to cancel, Chinese self-owned brand automobile enterprises and overseas automobile enterprises held new car launch conferences online, but because of too formal, and not popular with consumers.

As February this year is a critical period for epidemic prevention and control, all prefecture-level cities have adopted strict prevention and control mechanisms, resulting in unprecedented difficulties in sales volume in February in China. So far, February's 80% decline in car sales should be the biggest monthly decline of the year, predicting that the auto industry has had an unusually difficult month. Entering March, the development of China's automobile industry is still not optimistic, but compared with February should have a greater improvement, according to the data released yesterday by the Federation, the first week of March (1-8 days) average daily retail sales volume of 16325 vehicles, a year-on-year increase of 51%; dealer purchase performance also began to pick up, the first week average daily manufacturer sales of 12569 vehicles, a year-on-year growth rate of 68%.

In the first week of March, the overall sales volume is obvious, which shows that the automobile market has begun to rebound. With the gradual easing of the epidemic situation, Hubei automobile enterprises will return to work and return to work. Of course, this recovery will not be very fast, the epidemic is expected to be under control at the end of March, April car enterprises and dealers will continue to recover, May domestic auto market is expected to return to normal.

China's auto market has been 20 consecutive months of year-on-year decline in sales, market sales have fallen back to the same level as in 2005, for the future trend of the domestic auto market, the industry generally believes that it will continue to decline. In view of such a situation, the China Automobile Association suggested that relevant departments should introduce policies to promote automobile consumption as soon as possible, including appropriately increasing the number plate in the restricted areas; lifting the ban on new energy vehicles; incorporating individual purchase expenditures into the special additional deduction of individual income tax; adjusting the purchase tax rate of small displacement vehicles, introducing the policy of promoting consumption by vehicles going to the countryside; implementing the "National III" emission vehicle purchase tax reduction; increasing auto financial support; increasing the VAT rebate rate for vehicle exports to promote vehicle exports; Policies to promote the circulation and consumption of second-hand cars. Through the above policies, we will promote automobile consumption capacity and boost automobile sales.

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