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With the implementation of the strictest automobile national six emission standards in history, mainframe factories and dealers are facing pressure. Under the extremely depressed automobile consumption environment, it is undoubtedly even worse for some dealers. After the dealers' associations in Chongqing and Shanghai issued relevant documents calling for the suspension of the sixth or fifth inventory of cars, there were also protests in Henan Province.

According to media reports, the Henan Automobile Industry Chamber of Commerce has formally sent a letter to the Henan Federation of Industry and Commerce and relevant competent authorities, strongly calling on Henan to suspend the implementation of the national six emission standards. It is difficult for car dealers to sell, and the inventory of national five vehicles is large. It is indeed impossible to digest the vehicles of the national five emission standards before July 1, which will cause many car dealers to close down in the second half of the year. The association suggested that the implementation of the sixth National Day be postponed for three months to October.

Henan Province informed on April 26 that the sixth national standard will be formally implemented on July 1, with a transition period of one month. However, the buffer time given to dealers is only more than 2 months, which is relatively hasty in terms of time.

The Henan Automobile Industry Chamber of Commerce said in a letter that the contradiction between mainframe factories and dealers has become increasingly prominent. 80% of car dealers are in the awkward position of barely maintaining and operating in debt, and the business situation is not optimistic. Among them, many national brand models, such as Geely, BYD, Dongfeng Xiaokang and Changan, are most affected by the depressed market, and the inventory of vehicles remains high. The formation of car dealers meet the first sentence to ask, "you are still alive, not down" self-mockery. The overall business situation is not optimistic.

Most automobile industry dealers in Henan Province believe that: at present, the automobile industry is in the off-season of automobile sales, the market competition is intensified, the debt ratio of most automobile dealers remains high, and automobile dealers are facing the policy switch of motor vehicles in the fifth five years of the whole province. even if a substantial reduction in price leads to a loss, it will not help. Automobile manufacturers require dealers not to sell across regions. For vehicles already bought by car dealers, automobile manufacturers are no longer responsible for recalling. So many vehicles in stock need to be registered at home at the end of June. For the vast number of car dealers, it is necessary to use a large amount of cash to buy back the vehicles in stock first and then put on the license plate to sell them as second-hand cars, which is undoubtedly a yoke to overwhelm the majority of car dealers.

Car dealers face sales difficulties in their operation, and the inventory of cars in the five-year Plan is large. It is indeed impossible to digest the vehicles of the five-year emission standard before July 1, which will lead to the closure of many car dealers in the second half of the year.

The letter suggests that in view of the fact that the national six emission standards have been implemented four years ahead of schedule and that enterprises are not fully prepared, there should be a certain transitional period for the licensing of national five vehicles, and it is recommended that the licensing time of national five motor vehicles be postponed to September 30, 2019.

In fact, this is not the only case. In addition to Henan, automobile dealers in Chongqing, Zhejiang, Jiangsu and Shanghai have also issued open letters in response to the issue of "five countries and six countries" recently.

The Chongqing Automobile Business Association believes that the car market is extremely depressed this year, and the pressure of channel inventory before the implementation of the sixth year is already great, coupled with the greater psychological pressure on dealers under lower consumer demand, which increases the inventory adjustment pressure of dealers at present. the occupation of funds has increased significantly, and short-term liabilities and capital costs are forming potential huge risks. The association suggested that there should be a longer listing period for national five, while some dealers suggested postponing the implementation of the sixth national emission standard.

In the "Open letter" of the Shanghai Automobile Dealers Association, the mainframe factories of all brands are required 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. And promised to buy back inventory cars or deploy non-"national 6b" inventory cars for Shanghai dealers.

From this point of view, the sixth year is about to be implemented, and the pressure on dealers is still very arduous. For some dealers, selling cars at a loss is not the biggest problem, the problem is that the five cars can not be digested at all. People familiar with the matter from some manufacturers also admit that even though there has been a strong price reduction, sales have not improved.

The China Automobile Circulation Association recommends that relevant departments and local governments give car dealers a transition period of no less than three months to digest existing "national five" inventory. The national five models that have not been sold after the end of the transition period should be bought back by the main engine factory to reduce the pressure on dealers.

The China Automobile Circulation Association also released a report on the current living conditions of China's automobile dealers, pointing out that China's automobile market experienced negative growth for the first time in 28 years in 2018, with a sharp decline in various revenue indicators and a rapid deterioration in dealer profits. the living condition is very grim. According to the survey, the gross profit of new cars among dealers dropped to 0.4% in 2018 from 5.5% in 2017, and the loss area of dealers increased to 39.3% from 11.4% in 2017. In 2019, except for a few brands, the gross profit of new cars of dealers is generally negative, and the loss area is further increased. Facing unprecedented pressure.

Under the resistance of many car dealers, will the sixth year be postponed for a few months as they wish? With only a month to go before July, dealers are still trying to figure out how to digest all the cars in stock in a short period of time.

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