Let the dealer take a breath

Three sets of data, one with a substantial increase, one inventory continued to rise, and a vehicle purchase tax reduction, indicating that the new car is not flowing into the hands of consumers, but hoarding in the hands of major dealers nationwide.

Is the market okay? If, two weeks ago, we saw the data released by the China Automotive Industry Association, there is no doubt that it must be a happy smile. Passenger cars have maintained rapid growth. Production is 7,599,300, an increase of 7.87% year-on-year, and sales of 7,613,500 vehicles have increased. 7.58%. This was in line with the previous forecast of about 20 million vehicles sold this year, with a growth rate of about 8%.

However, it is estimated that everyone can't laugh out of a change of data. According to a sample survey of more than a thousand 4S stores under the Top 100 Dealers Group, the China Automobile Dealers Association’s inventory of domestic car dealerships continued to climb in June. The comprehensive inventory coefficient reached 1.98, and the inventory depth was nearly double, which was far beyond the warning line.

Looking at a set of data, it was announced from the Ministry of Finance that vehicle purchase tax for June was 16.3 billion yuan, a decrease of 100 million yuan compared with the same period last year.

Obviously, three sets of data, one with a substantial increase, one inventory continues to rise, and a vehicle purchase tax reduction, indicating that the new car does not flow to consumers but is hoarded in the hands of major distributors throughout the country.

Perhaps after a few years of rapid growth, it is time for dealers to rest and think about how to develop in the future.

According to the data from the China Automobile Dealers Association, the highest inventory coefficient exceeds six, which means that the current inventory of some brands can already meet its sales this year. According to the speed of this warehouse, how much inventory the dealers have to backlog this year ? Moreover, high inventory not only occurs in the independent brands with poor performance in the market, but has become a common phenomenon in most brands. Even in the luxury car market where the increase has always been fiercer, many dealers are equally overwhelmed. In the second quarter of this year, there was news that some brand dealers did not follow the commercial policy to bring their cars back to the Internet.

The recently released semi-annual sales data of each model also has a strange phenomenon: In April and May, the main force of the Class B vehicle market fell to only 67,000 vehicles, a drop of 30%. On the one hand, the overall market is sluggish because of the different degrees of decline in the same-level models. On the other hand, it is more important, and personally believe that depending on the manufacturer's pressure to maintain certain data, the pressure on the stock to the dealer.

In fact, the market is not good, and the inventory index exceeds the warning, which is commonplace in the auto market. After all, auto companies and distributors have their own demands. In the event of a sluggish market, the first-tier cities in the northern city of Guangshang restricted their licenses. In the first half of this year, most car companies failed to complete the half-year target, and the pressure from car companies increased sharply. The dealers needed to maintain the turnover of funds and survive. Space must be used to revitalize funds and reduce losses. Not long ago, third-party research institutions published a set of data. The results of the "2012 Chinese Automobile Brand Satisfaction Survey on Manufacturer Satisfaction Index" show that nearly 70% of dealers are not satisfied with the operating conditions in 2012, only 17.3%. The dealers surveyed are very satisfied or satisfied with the depot.

Where are the future distributors? In a situation where the market is not good and manufacturers are unable to slow down their shipments, dealers can only strengthen their own conditions and change the extensive business model for many years. Taking the purchase restriction in Guangzhou as an example, after the market capacity has dropped by about 60%, dealers are desperate to code their services in order to survive. Only in this way can they attract customers and change the single path of profit development by new car sales.