AutoBeta(AutoBeta.net)06/03 Report--

Under the pressure of switching between the five countries and six countries, the inventory level of dealers has finally dropped to the lowest level this year. The China Automobile Circulation Association released the latest "Automobile Dealer inventory early warning Index". In May, the auto dealer inventory index was 54.0%, down 7.0% from the previous month and up 0.3% from the same period last year. Although inventory levels have exceeded the 50% warning line for 17 consecutive months, auto dealers reduced inventory significantly in May, the lowest inventory index so far this year.

The sixth national emission standard is scheduled for July, with less than a month left, car dealers are trying to get rid of the five-year inventory of cars. The association pointed out that due to the impact of the economic environment, the car market continued to be in the doldrums in May, and due to the early implementation of the national six emission standards in some areas on July 1, dealers stepped up efforts to clear the depots of national five vehicles. During the switching period between National 5 and 6, consumers hold money and wait-and-see atmosphere is strong; the market demand is dismal, the pressure of clearing inventory of No. 5 models is great, the market price is chaotic, and the profit situation of dealers is further deteriorated.

The association's survey report shows that in 2019, except for a few brands, the new car gross profit of dealers is generally negative, the loss area is further increased, facing unprecedented pressure.

The wholesale number of manufacturers has dropped by 30%, and dealers have concentrated on clearing the warehouse! According to data from the Federation of passengers, the wholesale number of passenger car manufacturers fell 32% from May to 24 compared with the same period last year, and the production and sales before the implementation of the sixth year of State were on the low side. It is also pointed out that due to the clear message of the implementation of the sixth national standard, dealers in May are relatively cautious in purchasing goods, and the recent wholesale performance is not strong.

With the decline in the wholesale number of manufacturers and the reduction of prices by dealers, the inventory level has also been alleviated. But the fact that we have to face is that the car market is still extremely depressed, and the survival situation of dealers has not changed much.

April-May is the loudest time for car dealers to respond, and many dealers report that it is difficult to digest the cars in stock within the specified time, and then jointly with the local automobile industry associations have suggested postponing the implementation time of the sixth national day.

The Chongqing Automobile Business Association has suggested that there should be a longer licensing period for national five, and locals have suggested postponing the implementation of the sixth national emission standard.

The Henan Automobile Industry Chamber of Commerce strongly called for the suspension of the implementation of the sixth year of State. Due to the sales difficulties of car dealers and the large inventory of national five vehicles, 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.

In the "open letter" issued by the Shanghai Automobile Dealers Industry Association, all brand mainframe factories are required to immediately stop issuing vehicles that do not meet the "national 6b" emission standards to Shanghai dealers, cancel the relevant business rebate assessment of dealers, and promise to buy back inventory cars or deploy non-"national 6b" inventory cars for Shanghai dealers.

In the face of the complaints from the unsalable dealers of the five cars and the feedback from the dealers' associations in many places, the Ministry of Ecology and Environment finally made a formal response. In response to the China Automobile Circulation Association a few days ago, the Department of Atmospheric Environment of the Ministry of Ecology and Environment said that it adheres to the principle of zoning and step by step, does not expand the areas where the "sixth National" standard is implemented ahead of time, and resolutely stops supplying national five products in the areas where the "sixth National" standard is implemented ahead of schedule. "National five" cars can still be sold normally in other areas.

At the same time, the Ministry of Ecology and Environment stressed that the use of state five vehicles will not be affected, the new cars will be switched and updated from the source, and the normal use of country five products will not be affected after the implementation of the new standards, as long as vehicles that meet the emission inspection standards for in-use vehicles can drive normally.

Manufacturers and dealers have suffered from the most stringent emission standards in history, while another problem is that the car market is still in an extremely depressed environment. At present, Guangdong Province has issued relevant policies to promote automobile consumption, and Guangzhou and Shenzhen have followed suit. A total of 180000 license plate targets have been added in the two cities this year and next, further relaxing the purchase restrictions. Today, relevant departments in Shanghai also responded that the policy to promote automobile consumption is still in the research stage.

The standards are changing faster and faster, and maybe some brands and dealers will be eliminated. The automobile market is still not optimistic in the second half of the year, and there is an urgent need to introduce rescue policies.

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