Selling cars, change their brains

According to statistics from the China Automobile Association, in the first six months of 2013, the sales volume of this market reached 10,782,000 units, which represented a year-on-year increase of 12.3%, which was nearly 5 percentage points higher than the GDP growth rate. Among them, the sales of the passenger car market was 8.6511 million, an increase of 13.81% year-on-year, which was 6.21 percentage points higher than the GDP growth rate. If you read the Chinese economy from the automotive industry, it does not seem to be a problem. Because, in the world's major auto market, there are only two digits of growth in China.

According to the information released by various vehicle manufacturers, the production capacity of Chinese automobiles in 2013 was between 35 million and 38 million; by 2015, this figure would have been between 45 and 48 million; around 2016, China The car's production capacity will exceed 50 million. According to the statistics released by the World Automobile Manufacturers Organization, in 2012, the world's automobile production was 84.1 million. In other words, from a production perspective, China produces more than 60% of the world's cars.

Chinese car charm is nothing more than this.

In the ever-expanding production capacity and repeated planning, the Chinese auto industry will undergo a pattern change. Analysts from the U.S. automotive industry joked that it is best to test the predictive power of forecasters and let them predict the capacity of the Chinese auto market.

Compared with the changes that will be started or already started by the vehicle manufacturers, the distributors at the sales terminal are already at the center of this transformation. The situation of the dealer groups is not consistent with the capacity planning of the Chinese auto market.

A Japanese brand's best dealer in Shanghai lost about RMB 3.3 million in 2012. The direct result of this was that the brand had several stores in the East China area that were forced to change its flag. The dilemma is that the new car sales are in a state of deficit as a whole and after-sales service has a profit, but it shows a clear downward trend. Correspondingly, the operating costs of the store continued to increase. According to the person in charge of the dealer, his agency's brand in 2012 at least 50% of dealers "difficult."

According to Mei Songlin, general manager of JDPower's Asia-Pacific company, from the perspective of profitability, the profit ratio of dealers in the automotive market in 2012 was 40%. In terms of the average condition of a single store, in 2010, the dealer’s after-sales service and accessories profit averaged 2.6 million yuan/year, and in 2012 this figure was 1.5 million yuan/year.

This reality has caused the dealer community to be in a state of instability. Retiring from the network, changing agency brands, selling storefronts, etc. occur in every city from time to time. Recently, some distributors in Shanghai concluded that the brand is not good or bad. The only difference is the size of the loss. Dealers who have worked for a long time as brand agents can have relatively good returns on their holdings; dealers who have entered the industry for a short time face enormous pressure. If the vehicle manufacturer's support policy is not strong, more dealers will be forced to re-choose in the second half of the year.

At the same time, after the vehicle manufacturers change their sales focus to the three-line, four-line or even more subdivided sales ranges due to changes in the market, dealers have great differences in whether they follow up. Under pressure, most dealers will establish sales and maintenance outlets in these places. However, in terms of profitability, the difference is very large, and the experience of independent brand dealers is particularly profound. Since the price of most of its own brand products is low, its profitability is better than none, but its sales volume is not good, making distributors difficult to move forward and backward. Most self-owned brand dealers are under pressure to lift their cars, which again increases their operational pressure.

Among the three state-owned automobile groups, sales executives with independent brands contacted their largest distributor in the Central Plains, hoping that the dealer could increase the number of vehicles in the next few months. The dealer’s reply Yes: "There is not enough money." The responsible person said that the financial company of its group can provide financial support. The dealer's reply is: "No." This scenario is basically an independent brand dealer. The portrayal.

Compared with mature markets such as the United States, Western Europe and Japan, Chinese automobile dealers lack adequate institutional guarantees. This also makes them more like speculation, not investment, when compared with foreign distributors. So, overall, their profitability is just like their business level.

As the consumption area of ​​the Chinese auto market changes, the profit sources of dealers will inevitably bring about changes. It is too early to draw conclusions about what the transfer of such gold rushing locations has brought to Chinese car dealers. However, it can be predicted that in the process of gradual expansion of China's auto consumption market, there will be more and more capital added to the auto sales field, and the annual increase rate of Chinese auto dealers is estimated to be 2,500-3,000.

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