AutoBeta(AutoBeta.net)10/05 Report--

In the face of the "winter" of the auto market in 2019, almost all car companies are planning how to spend it. In August, the inventory warning index of automobile dealers was 59.4%, which was lower than that of last month, but still higher than the historical level of the same period. Dealers continued to be pessimistic about the follow-up market. However, Guizhou Tongyuan Automobile recently revealed that the company's sales volume increased by 20% year-on-year.

Zhang Guohua, deputy general manager of Guizhou Tongyuan Automobile Co., Ltd., said that at present, the whole automobile dealer industry is in a very difficult time. According to the summary of company data, the cumulative year-on-year growth of Guizhou Tongyuan automobile sales from January to August this year is more than 20%, which can be said to be relatively advantageous.

Guizhou Tongyuan Group was founded in 1992. It has subsidiaries in Beijing, Shanghai, Guangzhou and Shenzhen. It mainly invests in and operates more than 20 world-famous automobile brands such as Rolls-Royce, Porsche, BMW and Mercedes Benz under 4S stores of high-end, luxury and ultra-luxury brands. It has set up more than 100 brand stores and branches in total. In 2018, the Group's business scale exceeded RMB 23 billion yuan, and it has become the largest automobile dealer group in western China. In 2019, it ranked 16th among the top 100 automobile dealer groups in China.

Zhang Guohua believes that the increase in sales volume of the company is still due to local policy support, which greatly improves the economic and consumption capacity of Guizhou region, thus indirectly improving the market performance of automobile dealers. Second, the company has always focused on its core automotive business and will accelerate high-level brand building in various ways, such as Rolls-Royce and Maserati. Mid-range brands will be slowed down appropriately, or some low-end brand outlets will be given way to high-end brands.

In fact, luxury car dealers, the profit situation in the first half of this year is significantly better than other dealers. Data show that China's luxury car market grew by more than 8% in the first half of the year.

The most typical Meidong automobile, the company operates a total of five brands, three luxury brands BMW, Porsche and Lexus. In the first half of this year, the operating income reached 6.843 billion yuan, with a year-on-year growth of 57.4%. The net profit attributable to shareholders of listed companies was 235 million yuan, with a year-on-year growth of 49.6%, among which the contribution rate of sales revenue of luxury cars increased to 80.0%.

Today, China has become the world's largest automobile consumer market for 10 consecutive years, and it is also the fastest growing luxury car market in the world. With the upgrading of domestic consumption, accelerating the construction of luxury brands may improve the Group's performance more efficiently.

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