AutoBeta(AutoBeta.net)06/21 Report--

The China Automobile Circulation Association submitted a "report on the current living conditions and related suggestions of Automobile Dealers in China" to the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce and the State Administration of Market Supervision. the report mentioned that except for some brands, the gross profit of the new cars of the dealers in 2019 was basically negative, the loss further increased, and the dealers faced strong market pressure.

Since July 1, nearly 20 provinces and cities have announced that they will implement the national six emission standards ahead of schedule this year, and some provinces have even skipped national six an and directly implemented national six b. This means that many dealers are facing the tremendous pressure of national inventory, which is even worse under the already difficult business situation.

A number of guilds have suggested that they hope to delay the implementation of the sixth national standard or manufacturers to withdraw the national five models that are unable to complete the inventory clearance, but these voices are of no avail.

In fact, there are dealers in Qingguo five inventory all over the country, and dealers have come up with a series of marketing strategies, and some even directly reduce prices by more than 200000. According to the statistical analysis of the China Association of Automobile Manufacturers, in May 2019, automobile production and sales decreased slightly compared with the same period last year, and the decline is still obvious compared with the same period last year. From January to May, automobile production and sales continued to decline compared with the same period last year, and the decline was slightly larger than that from January to April. From January to May, automobile production and sales were 10.237 million and 10.2659 million, down 13.01% and 12.95% from the same period last year.

After entering 2019, the dealer inventory index has exceeded the warning line of 50% and remained high. Many manufacturers press inventory to dealers, making weak dealers miserable, in addition to the huge group, there are Yongda Automobile, Rundong Automobile, Guanghui Baoxin and other dealers also have varying degrees of decline or losses.

Since 2018, the number of conflicts between car dealers and car companies has increased significantly, of which Guanzhi is a typical representative. In June 2019, Guanzhi dealers told reporters that there has been no sales since 2019. Two stores in Beijing and one in Tianjin are currently losing money. This has almost become a true portrayal of more than 100 dealers across the country.

According to the data, Qoros sales reached 63179 in 2018, an increase of 322.35% over the same period last year. The huge increase in sales led many dealers to join in, but Qoros's sales plummeted in 2019, selling only 824 vehicles in the first quarter and 30 in April. In addition, the development of Guanzhi also worries dealers, and the 2018 financial report shows that the loss of Qoros has exceeded 12 billion.

According to the Association of Automobile Manufacturers, 30.4% of the national car dealers were profitable in 2018, 69.6% lost money and even, and the total number of profitable dealers was less than 10000. From January to May 2019, automobile production and sales fell by 13.01% and 12.95% compared with the same period last year.

Therefore, in the special environment of multiple pressures in China, the automobile industry has reshuffled. It is worth noting that the time for the implementation of the sixth National Day is getting closer and closer, and car dealers are stuck in the dilemma of clearing inventory and competing with each other in the same industry, and it is reasonable for car brands to have frequent problems. After a new round of tests, perhaps some enterprises will fall, some brands will fall, and some distributors will fall down, which is the epitome of survival of the fittest.

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