AutoBeta(AutoBeta.net)03/28 Report--

Zhongsheng Group, which has a good momentum of development, has maintained the second largest car dealer group in China, benefiting from the advantages of 373 high-end brands, which helped the group achieve a big increase in profits last year, even surpassing some car companies.

According to the latest performance report of Zhongsheng Group, the comprehensive income of Zhongsheng Automobile reached a new high in 2020, with revenue of 148.3 billion yuan, an increase of 19.6% over the previous year, and a net profit of 5.581 billion yuan, an increase of 23.5% over the same period last year.

According to specific data, most of the group's revenue in 2020 came from new car sales, accounting for 84.6% of the total annual revenue, and the revenue from new car sales was 125.527 billion yuan, an increase of 19.327 billion yuan or 18.2% over the previous year.

It is worth mentioning that in terms of new car sales revenue, Mercedes-Benz is the car brand with the highest new car sales revenue in Zhongsheng Group, accounting for 84.6% of the new car sales revenue, accounting for 29.4% of the group's total new car sales revenue.

Judging from the group's sales last year, Zhongsheng Group's new car sales reached 500609, an increase of 9.9% over the same period last year, and new car sales reached 303421 in the second half of 2020, an increase of 25.4% over the same period last year. Among them, sales of luxury brands reached 275417, an increase of 20.8 percent over the same period last year. Sales of luxury brands reached 163764 in the second half of 2020, an increase of 33.8 percent over the same period last year, accounting for 55.0 percent of the group's total sales, a substantial increase over the same period in 2019.

It can be seen that although the market was obviously affected by the epidemic in the first quarter of 2020, the luxury market began to rebound in the second quarter and rebounded in the second half of the year, showing a strong growth momentum.

An industry analyst said, "the growth of sales in the luxury car market in 2020 has driven the new car profits of luxury car dealers to a new high in recent years."

In addition, value-added services such as auto insurance, auto finance and used car agents, as one of the core growth drivers of Zhongsheng Group in the future, have achieved good growth against the market in 2020. The annual income of value-added services such as auto insurance and auto finance, such as after-sales service, was 20.245 billion yuan, an increase of 13.5% over the same period last year. For the second-hand car business block, the trading volume of second-hand cars reached 107075 units in 2020, an increase of 50.0 percent over the same period last year, with sales revenue of 2.776 billion yuan. At the same time, management believes that the used car business will be the main source of profit from now on, with a guide of 40% growth in 2021.

As of December 31, 2020, the total number of distribution stores of Zhongsheng Group has increased to 373, covering 24 provinces, municipalities and autonomous regions, and more than 90 cities. Among them, the number of luxury brand dealerships reached 218, with luxury brands accounting for 58.5%. It covers luxury brands such as Mercedes-Benz, Lexus, Audi, BMW, Volvo and Jaguar Land Rover, as well as mid-range brands such as Toyota, Nissan and Honda, most of which are profitable brands in 2020.

It is a fact that luxury brands help dealers make money against the trend in 2020. Not only Zhongsheng Group, but also Yongda Automobile, one of the main luxury brands, also made a net profit of 1.7 billion yuan in 2020, an increase of 10.5% over the same period last year. Its BMW and Porsche have become the two most profitable luxury brands in the group. Among them, the BMW brand accounted for 43% of the group's new car sales revenue last year, up 18.4% from the same period last year, while Porsche brand car sales accounted for 15% of the new car sales revenue, up 29.9% from the same period last year.

In fact, the strength of luxury brands began to show in 2018, while luxury cars continued to rise amid a decline in overall passenger cars. Cui Dongshu, secretary general of the Federation of passengers, has also said that with the rise of the concept of consumption upgrading in the past two years, the market share of middle and high-end products has increased rapidly, with the most obvious growth of luxury brands. The increase in sales of new luxury cars in 2020 also led to an increase in the profits of dealers' new car sales. In this regard, with the growth of luxury car sales, the profit of luxury brand dealers will naturally grow.

In the future, with the rapid development of the economy, the purchasing power of consumers will gradually increase; coupled with the increasing proportion of the middle class, the group of potential users of luxury cars will also grow.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat