AutoBeta(AutoBeta.net)03/12 Report--

As demand in China's new car market continues to decline, manufacturers have to adjust their operation direction and take the initiative to let dealers reduce inventory, but the Chinese car market is still in the doldrums because of the Lunar New year holiday in February. According to the February sales data of the Federation of passengers, the domestic passenger car market sales in February were 1.169 million, down 19.0% from the same period last year, while the month-on-month decline was 45.9%. The cumulative sales volume from January to February was 3.333 million, down 9.8% from the same period last year, with a trend of further expansion.

According to the China Automobile Circulation Association, dealer inventory rose sharply in February, with an inventory coefficient of 2.1, up 29% from a year earlier, and up 50% from a month earlier, above the inventory warning line. Specifically, the inventory coefficient of independent brand is 2.15, that of joint venture brand is 2.23, and that of high-end luxury and imported brands is 1.88.

The specific view of the inventory coefficient: the inventory coefficient is between 0.8 and 1.2, which reflects that the inventory is in a reasonable range; the inventory coefficient is more than 1.5, which reflects that the inventory reaches the alert level; the inventory coefficient is more than 2.5, which reflects that the inventory is too high, and the operating pressure and risk are very high. The higher the inventory, the more natural months it takes to digest new cars.

From a brand point of view, a total of 18 brand dealers have excessive inventory, and there are five independent brands. They are Changan Ford, Jaguar-Land Rover, SAIC Roewe, Buick, Dongfeng Peugeot, Guangzhou Auto Fick, Cadillac, Volvo, BYD, SAIC Volkswagen, Guangzhou Automobile Mitsubishi, Great Wall Motor, Dongfeng Citroen, Chevrolet, Beijing Hyundai, Renault, Chery and Geely.

Among them, Changan Ford inventory level of more than 3 months, Jaguar Land Rover and SAIC Roewe nearly 3 months. In other words, manufacturers do not wholesale models to dealers, dealers can still sell new cars in the store for three months.

According to the analysis of the association, the number of working days decreased in February, and during the Spring Festival holiday, passenger flow decreased significantly, resulting in a decline in sales volume, an increase in the inventory-to-sales ratio of dealers, and an increase in inventory depth. Some brands have a tendency to press the warehouse, resulting in further increased inventory pressure on dealers.

The sales volume of China's automobile market continues to decline, and the decline of some brands is relatively serious, coupled with the high inventory of dealers, which puts great pressure on the continued operation of the brand.

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