AutoBeta(AutoBeta.net)05/11 Report--

Among the data released by the Association yesterday, China's auto market fell again in double digits in April, with passenger car market sales falling 16.9% year-on-year to 1.508 million units, also the 11th consecutive month of decline in sales of Chinese cars. 1-4 The cumulative sales volume of domestic passenger cars in January was 6.595 million units, a decline of double digits to 11.9%, a decrease of nearly 900,000 units.

The downward trend has not changed or even further expanded the decline, automobile manufacturers are under pressure, dealers are also facing great pressure.

China Automobile Circulation Association released April auto dealer inventory report, survey results show, April auto dealer comprehensive inventory coefficient for 2.0, Year-on-year increase of 20.5%, Annulus rose 11%, Inventory level is above the warning line. At the same time, it also means that dealer inventory pressure is increasing.

Inventory factor = ending inventory/current sales, reflecting the current inventory depth of the car dealer or brand. According to industry practice, inventory coefficient is between 0.8 and 1.2, inventory is in a reasonable range; inventory coefficient> 1.5 reflects that inventory has reached an alert level; inventory coefficient>2.5 reflects that inventory is too high, operating pressure and risk are very high.

Therefore, 1.5 is the warning line. Since the beginning of this year, only January manufacturers have actively reduced their inventories and reduced the wholesale number, and the inventory coefficient has also dropped below the warning line; February and April are above the warning line, among which February and April have reached 2.0 or above.

Sales of new cars declined, market competition intensified, inventory levels of automobile dealers continued to be high, and the survival status quo did not change much.

It is worth noting that the continuous decline of the automobile market has done the most damage to independent brands.

Brand category, April independent brand comprehensive inventory coefficient month-on-month increased by 20.9%, reached 2.55, joint venture brand month-on-month slightly decreased to 1.74. It means that the high inventory of self-owned brand dealers is the main reason for the rise of comprehensive inventory coefficient of automobile dealers.

Three independent brand inventory explosion table.

In April, there were 17 brands with inventory depth of more than 2 months, among which Chang 'an, Chery, Roewe, GM Chevrolet and GM Buick had the highest inventory depth. The inventory depth of the first three independent brands is more than 3 months. In other words, dealers can operate normally without picking up cars for more than 3 months and relying on inventory to continue sales.

Chang 'an and Chery are the independent brands with the greatest inventory pressure. Chang 'an Automobile used to be an independent automobile brand with annual sales of millions. It once ranked first in its own position, but since 2018, Chang' an's independent and joint-venture brands have declined. Chang 'an automobile sales volume in April was 121,000 units, down 35% year-on-year, of which Chang' an autonomous passenger cars wholesale only 40,000 units, down as much as 42% year-on-year.

In addition, although Chery Automobile did not publish specific sales data, but from the dealer reached 3.4 inventory level, Chery is also a big decline in the automobile market decline environment of its own brand.

SAIC GM fell as much as 40% in April sales figures, with sales of only 90,000 new vehicles in April, down more than 60,000 from a year earlier. Chevrolet and Buick, meanwhile, were the joint venture brands with the largest inventory factor in April, with dealer inventory depth reaching 2.4. SAIC GM terminal price reduction has been relatively large, but in the continuous decline of the market trend has not been effective. In order to digest the inventory of national five models, the internal purchase price provided by SAIC GM to SAIC employees is basically more than 30% off, and the direct price reduction ranges from tens of thousands to hundreds of thousands. Among them, the price reduction of the kingpin A-class car is the largest, basically 60% off sale.

On the whole, automobile sales continue to decline, market demand declines, coupled with the approach of the sixth national switch, inventory clearance pressure, automobile dealers more difficult. In view of this, we still look forward to a new policy to stimulate automobile consumption introduced within the year.

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