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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.
According to the China Automobile Circulation Association, China's car market is on high inventory alert throughout 2018. At its peak, the comprehensive inventory coefficient of dealers reached 1.93, far exceeding the warning line of 1.50. Finally, China's car market declined in 2018. With declining sales and high inventory, the pressure on dealers is increasing. From the end of last year to the beginning of 2019, a number of brand manufacturers took the initiative to adjust the wholesale number and reasonably control the dealer inventory level. finally, the dealer inventory coefficient decreased in January compared with the same period last year and month-on-month. According to the China Automobile Circulation Association released in January 2019 "car dealer inventory" survey results: January cars.
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.
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.
In March, in response to the VAT rate reduction policy, many car companies have implemented price cuts ahead of schedule, and some manufacturers have paid close attention to the hot spots to promote car sales in the countryside, but the overall increase is still not obvious. China's passenger car sales in March were 1.74 million, down 12.1% from a year earlier and the 10th consecutive month of year-on-year decline, according to sales data from the Federation of passengers. The China Automobile Circulation Association released the results of the "Automobile Dealer inventory" survey in March 2019, showing that the comprehensive inventory coefficient of automobile dealers in March was 1.8, up 16% from a year earlier and down 14% from the previous month, with inventory levels above the warning line. Specifically,.
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.
After a bitter battle in the first half of the year, the auto market has entered a stage of rapid growth in the second half of the year. Passenger car sales have risen for three consecutive months compared with the same period last year, and a number of car companies have also ushered in double-digit monthly sales growth. However, at a time when the overall car market continues to rise and dealer inventory levels decline, these brands are under pressure, with one luxury car company on the list and "at the top". According to the latest retail sales statistics of the Federation of passengers, the domestic passenger car market achieved sales of 1.912 million vehicles in September, an increase of 7.4% over the same period last year and 12.2% month-on-month growth. Sales rose for the third month in a row. The rate of decline for the whole year narrowed further, with cumulative sales from January to September.
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.
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.
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.
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 in May.
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 March dealer report released by the China Automobile Circulation Association, the inventory early warning index of automobile dealers in March was 55.3%, down 8.3% from the previous month, and up 3.2% from a year earlier, and the inventory early warning index remained above the warning line. Since 2018, the dealer inventory index has been high and has exceeded the warning line for 15 consecutive months. The China Automobile Circulation Association estimates that overall sales in the domestic car market fell by about 8% in March and by about 6% in the first quarter. From a brand point of view, import and luxury.
Domestic car sales continued to decline, in a depressed environment encountered the switching of national five and six emission standards, resulting in a large number of national five inventory cars of various brand manufacturers. In order to clear the inventory of cars before July, many car companies would rather lose money and find ways to get dealers to sell their cars in stock, thus taking drastic price cuts, and many car companies use the slogan of discount for internal employees to buy cars. Let employees and suppliers help digest inventory. Most car companies sell national five inventory cars at a 6-20% discount, which is the biggest discount in history. Insiders have learned that Changan Ford is also speeding up the elimination of Guo5 inventory cars and issuing domestic purchase concessions to suppliers.
In May, China's auto market finally ushered in double-digit growth, the auto industry and the consumer sector entered a rapid recovery phase, a number of car companies are also looking forward to proportional sales growth, resulting in a continuous decline in dismal performance. However, the inventory level of some brand dealers is still high, manufacturers' wholesale sales are not proportional to terminal sales, and a total of five brands were named in May. According to statistics from the China Automobile Association, in May, China's automobile production and sales completed 2.187 million and 2.194 million respectively, up 4% and 5.9% month-on-month, and 18.2% and 14.5% respectively over the same period last year.
The China Automobile Circulation Association released the "Automobile Dealer inventory early warning Index" in April, which reached 61% in April, up 5.7% from the previous month and 6.47% from a year earlier, and the inventory early warning index is still above the warning line. In the process of intensified market competition, the current situation of car dealers has not changed much, and inventory is still at a high level. Since 2018, the dealer inventory index has exceeded the warning line for 16 consecutive months. The association pointed out that the Spring Festival auto show in some areas in April played a certain role in promoting sales, but market demand and sales still declined due to the general environment. Due to the National VI Emission Standard in July.
In the second half of the year, the automobile market gradually returned to normal, the overall sales increased steadily, and a number of car companies ushered in collective growth. According to the CAC report, retail sales in the passenger car market reached 1.992 million in October, up 8 per cent from a year earlier and achieving a high growth rate of about 8 per cent for four consecutive months. Even with the rapid growth of the car market, some brands are also struggling with high inventory and living a difficult life of terminal sales. In October, a total of three major brand dealers' inventory levels remained high, and the luxury brand has won the first place for three months in a row. China Automobile Circulation Association released the latest October "car dealers Depot."
According to the latest survey report released by the China Automobile Circulation Association, the comprehensive inventory coefficient of car dealers was 1.45 in July 2021, down 24.1% from the same period last year and 2.0% from the previous month, and the inventory coefficient fell below the warning line. The association said that due to the shortage of chips and insufficient car production capacity and other factors, the inventory coefficient has fallen for five consecutive months. In July, extreme weather occurs frequently and epidemic situation is controlled in some areas, the performance of market demand is not satisfactory, and the characteristics of off-season are obvious. In July, a total of three major brand dealers were named for more than 2 months of inventory depth, namely Skoda, Changan Automobile and FAW Red Flag. Skoda.
2019 has passed, and the last month of the year is the opportunity for a "final sprint" for car companies, but the market still seems to have not changed. According to the "inventory early warning Index Survey of China Automobile Dealers in December" released by the China Automobile Circulation Association, the inventory early warning index of automobile dealers in December 2019 was 59%, down 3.5% from the previous month and 7.1% from the same period last year. Inventory early warning index is above the warning line.
The inventory level of car dealers still exceeded the standard in June. On June 30, the latest "Dealer inventory early warning Index Survey" released by the China Automobile Circulation Association reported that the inventory early warning index of automobile dealers in June was 56.8%, up 2.6 percentage points from the previous month and 6.4 percentage points from the same period last year. Inventory early warning index is above the rise and fall line. The association pointed out that June was at the half-yearly task assessment node, and dealers exchanged prices for quantity to boost terminals in order to complete the assessment tasks. oversupply led to fierce price competition, a decline in bicycle profits and even upside-down sales prices, and dealers' income decreased. From the sub-brand type index, in June.
The car market finally warmed up in April! According to the data, China's automobile production and sales completed 2.102 million and 2.07 million respectively in April, up 46.6% and 43.5% respectively from the previous month, and 2.3% and 4.4% respectively over the same period last year. The monthly growth rate was the first increase since the beginning of this year, and sales volume ended 21 consecutive months of decline. However, some brands have to face the difficult days of terminal sales. The latest survey of "Automobile Dealer inventory" released by the China Automobile Circulation Association in April 2020 shows that the comprehensive inventory coefficient of automobile dealers in April was 1.76, down 12.0% from the same period last year and 34% from the previous month.
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