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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 the inventory coefficient reaching 2.1, year-on-year.
February inventory of car dealers
Entering 2021, the domestic new car market has achieved continuous year-on-year growth, due to the epidemic in the same period last year, the year-on-year data is of little significance. In February, affected by the late Spring Festival holiday this year, car production and sales almost halved, resulting in a rise in the inventory index of many brands. According to the latest report released by the China Automobile Circulation Association, the inventory of 15 car companies has seriously exceeded the standard.
Affected by the car winter that has been declining for two consecutive years and the traditional Chinese New year holiday, the automobile industry has suffered a big blow at the beginning of this year, so that the early warning index of domestic car dealers has soared again. The China Automobile Circulation Association today released a report on the inventory early warning Index of Automobile Dealers in China. The inventory early warning index of automobile dealers in January 2020 was 62.7%, up 6.3% from the previous month and 6.5% from the same period last year. The inventory early warning index is above the warning line.
Dealer inventory depth level is an important index to measure the current situation of a brand management. A few days ago, the China Automobile Circulation Association released a report on the inventory of automobile dealers in May. The survey results show that the comprehensive inventory coefficient of automobile dealers in May was 1.65, up 4% from the same period last year, and down 18% from the previous month. The inventory level is above the warning line. Compared with the inventory depth and clearance pressure in February, March and April, the current situation of dealers eased somewhat in May, thanks to the fact that May and June are the critical period of switching between the five countries and six countries, and all dealers are speeding up the elimination of inventory cars in the five countries. and more cautious about wholesale car entry. But another problem is that the dealers are big.
China's car market fell again by double digits in April, with passenger car sales falling 16.9 per cent to 1.508 million units from a year earlier, the 11th consecutive month of decline in Chinese car sales, according to data released yesterday. From January to April, domestic passenger car sales totaled 6.595 million, a decline of double digits to 11.9%, a decrease of nearly 900000. The downward trend has not changed or even further expanded the decline, automakers are under pressure, dealers are also under tremendous pressure. The China Automobile Circulation Association released the inventory report of automobile dealers in April. The survey results show that the comprehensive inventory system of automobile dealers in April.
After the worst impact of the epidemic in February, the inventory early warning index of Chinese car dealers reached a new high of 81.2%. Thanks to the effective control of the domestic epidemic in March, the inventory early warning index stabilized.
According to a research report released by the China Automobile Circulation Association (hereinafter referred to as "the Association"), only 573 of the 2895 4S stores in nearly 50 auto dealer groups, including Beijing, Shanghai, Hebei, Jiangsu and Guangdong, returned to work as of February 11, with a resumption rate of 19.8%. The association pointed out that among the reasons for not starting work, 73.3% of the 4S stores were due to strict examination and approval requirements of the local government. Other reasons include that the application for resumption of work has not been approved, the shortage of epidemic prevention materials does not support resumption of work, there are difficulties in the process of returning employees to work, and the volume of business after returning to work does not support operating expenses. In addition, in the already started 4S store, we are also faced with the phase.
As the domestic car market has achieved five consecutive months of month-on-month growth from the collapse in February to recovery, it began to achieve year-on-year growth from April to July this year. However, according to the survey results of "Automobile Dealer inventory" released by the China Automobile Circulation Association in July 2020, the inventory level of automobile dealers still exceeded the standard in July, and the inventory index rose month-on-month for many consecutive months.
In the cold winter of the automobile industry, even if it comes to the traditional period of "Golden Nine Silver Ten" to stimulate consumption, it can not avoid the impact of the persistent downturn in car buying sentiment. The inventory early warning Index of Automobile Dealers in China was 62.4% in October 2019, up 3.8% from September and down 4.5% from the same period last year, according to a report released by the China Automobile Circulation Association on the 31st. The inventory early warning index is still above the warning line. It is worth noting that the 62.4% inventory early warning index is the second highest this year after the 63.6% inventory early warning index in February, reflecting the inventory of car dealers.
A few days ago, FAW Toyota issued a letter to dealers, through a series of substantial downward adjustments to ensure a complete improvement of the inventory pressure and financial pressure of dealer partners, and to ensure that the business posture of dealers partners is healthy and benign. According to the plan, before FAW and Toyota slashed production in October and November,
At the beginning of 2020, a sudden COVID-19 epidemic paralyzed the upstream and downstream of the automobile industry, coupled with the Spring Festival holiday as the traditional off-season of the automobile market, the automobile industry was hit to varying degrees from upstream to downstream. Up to now, a number of car companies, including JAC, Haima, Geely, Tesla, Weilai and Xiaopeng, have announced that they will resume work on February 10, but due to the uncertainty of the epidemic, some car companies have also adjusted their resumption time to February 17, including Dongfeng Honda, FAW Toyota, brilliance BMW and other car companies. Affected by the epidemic, China's auto parts suppliers.
The China Automobile Circulation Association released a report on the inventory early warning Index of Automobile Dealers in November. The inventory early warning index of automobile dealers in November was 62.5%, up 0.1% from the previous month and down 12.6% from the same period last year. The inventory early warning index is above the warning line.
With the intensification of market competition, the current situation of dealers has not changed much, and inventory is still at a high level. According to the latest "Dealer inventory early warning Index Survey" released by the China Automobile Circulation Association, the inventory early warning index of automobile dealers in March was 55.5%, up 3.3% from the previous month and 3.8% lower than last year. Inventory early warning index is above the rise and fall line.
Auto production and sales fell sharply in February compared with the same period last year, according to the latest production and sales figures released by the China Association of Automobile Manufacturers. Automobile production and sales completed 285000 and 310000 respectively, down 79.8 per cent and 79.1 per cent respectively from January to February, down 45.8 per cent and 42 per cent respectively. Specifically, the production and sales of passenger vehicles completed 195000 and 224000 respectively in February, down 82.9% and 81.7% respectively from a year earlier, which is higher than the overall decline in car production and sales. In February, the production and sales of new energy vehicles were 9951 and 129 respectively.
A few days ago, the China Automobile Circulation Association and Jingzhen estimate released a set of data on the domestic automobile industry. In January this year, domestic car sources were affected by both Spring Festival factors and pneumonia epidemic factors, and the number of vehicles dropped sharply, by more than 60%.
After several months of market restraint, the domestic car market finally ushered in a certain sales rebound in April this year, and with the advent of the "May Day" traditional peak season, it once again pushed the car market into a small and the best part. However, dealers' inventory performance was mediocre throughout May due to sales overdrafts in the first half of the month.
As the domestic epidemic is gradually brought under control, China's auto market has finally ushered in slight signs of a "rebound". Today, the China Automobile Circulation Association released a survey report on the inventory of car dealers in April 2020, which showed that the inventory of dealers significantly reduced to 1.76 in April.
Under the influence of COVID-19, many automobile enterprises in China have stopped work and production. In order to resume normal business plans as soon as possible, many automobile enterprises choose to resume work on February 10th as the first day of work. However, a special survey on the return to work of dealers conducted by the China Automobile Circulation Association on member units and related enterprises recently found that the proportion of 4S stores was only less than 30%.
Recently, it has been reported that brilliance BMW has cancelled some customer order production plans due to the epidemic. Due to insufficient supply of new cars, a number of BMW dealers have reduced terminal discounts and implemented new quotations from now on. In response to the news, BMW responded that it cancelled some order production plans from March to April due to the backlog of orders caused by the delay in resuming production. BMW dealers also responded that it is true that the discount will be less later. A few days ago, a dealer document from brilliance BMW showed that due to the impact of the epidemic, the original January and February quota orders at the brilliance BMW Shenyang plant were postponed to March and April production, resulting in the original March and April quota orders can not be on time.
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