AutoBeta(AutoBeta.net)05/23 Report--

The Shanghai Automobile sales Industry Association released an open letter to all brand car suppliers on its official account today. the content of the letter is that Shanghai clearly stipulates that from July 1, 2019, the national air pollutant emission standard for light vehicles registered in Shanghai (including transfer from other provinces and cities) will be implemented, but at present, some suppliers still adopt the preferential form of car rebate. Continue to sell vehicles with national five-year emission standards to dealers in this city.

In view of the above situation, the Open letter requires automobile suppliers of all brands to immediately stop issuing vehicles that do not meet the "National 6b" emission standards to Shanghai dealers, and cancel the relevant business rebate assessment of dealers. Respect dealers in voluntary premise, reasonable adjustment of Shanghai dealers' annual business plan, provide promotion funds Help dealers quickly digest non-"national 6b" inventory vehicles and promise to buy back inventory cars or deploy non-"national sixth b" inventory vehicles for Shanghai dealers.

It is not unsightly that the implementation of the six b standards for going abroad is within reach, while more than 100 car dealers in Shanghai are worried about more than 30,000 cars in stock in the fifth year of the country. In fact, not only Shanghai dealers have encountered the same problem, Jiangsu and Zhejiang dealers have also encountered this problem. The implementation of the sixth national standard, Jiangsu, Zhejiang and other surrounding cities have also been implemented ahead of schedule, resulting in Shanghai dealers national five inventory cars can not be digested through the surrounding cities. In addition, affected by the economic environment, Shanghai auto sales have shown a downward trend since May last year. In 2018, cumulative car sales fell 8.9% year-on-year, and in the first four months of this year, cumulative car sales fell 12% year-on-year. Sales have not rebounded so far, causing about 70 per cent of dealers in Shanghai to lose money.

At present, although Shanghai dealers are trying to sell at a low price at a loss in the market, under the current market environment, it is impossible to sell all the existing "five-year" inventory cars in just over a month. On the other hand, manufacturers are also actively responding to them, giving dealers five-year subsidies, but the market is in the doldrums. Many products are sold at a 40% discount and 30% discount, and the cost of the subsidy is not enough to support the discount at the end of the market. Therefore, dealers will face huge sales pressure and huge financial risks.

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