AutoBeta(AutoBeta.net)05/30 Report--

China's automobile consumer market is in the doldrums, new car sales continue to decline, and dealers are "miserable." for this reason, the China Automobile Circulation Association began to investigate the living conditions and business environment of car dealers in early April. The report was officially released a few days ago and sent to the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce, the Regulatory Administration and other departments to provide a reference for the government to introduce policies and promote implementation. The report shows that 40% of China's car dealers are operating at a loss.

The report on the current living condition of China's Automobile Dealers issued by the China Automobile Circulation Association points out that China's automobile market has 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.

Survey data also showed that the average inventory coefficient for the 12-month period in 2018 was 1.73, above the early warning line of 1.5; dealer inventory reached 2.0 in April this year. At present, the inventory of cars in the industry is as high as more than 3 million vehicles, which is equivalent to two months of sales, and the amount of capital occupied by inventory in circulation is as high as 500 billion yuan. The gross margin of new car sales has been mercilessly swallowed up by high inventory, the industry ecology has deteriorated rapidly, and high inventory has become the source of all evil.

For this reason, the China Automobile Circulation Association puts forward three major suggestions: urge production enterprises to reduce inventory and do a good job in supply-side structural adjustment; build a price adjustment system determined by the relationship between market supply and demand; rational distribution of sales channel outlets, establish a scientific channel network planning, construction and exit mechanism.

Detailed survey report:

In addition, many dealers reported that there was great pressure on the inventory of cars in Digestive State 5, and jointly with the local automobile industry chambers of commerce have suggested that the implementation time of State 6 should be postponed. The China Automobile Circulation Association suggested that local governments should give car dealers a transition period of no less than three months to digest existing "national five" inventory.

A new policy to stimulate car consumption is expected to be introduced this year. In April this year, the National Development and Reform Commission issued a draft opinion on the implementation plan to promote automobile consumption and promote the development of circular economy. The National Development and Reform Commission hopes to boost automobile consumption through the new policy and save the sluggish automobile market environment. Specific measures include increasing the license plate target of the city, abolishing the restrictions on the purchase of new energy vehicles, and so on.

The sixth era is getting closer and closer, and the voice of car dealers is getting louder and louder. During the transition period of policy switching, the automobile industry will remain in the doldrums.

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