Passenger car sales declined for four consecutive months in the winter dealer how Scissors?

“Golden September and not gold, silver silver ten difficult”, November 8, along with the country’s passenger car sales in October came out, the traditional sales season, “Golden September and Silver October,” finally came to bleak ending.

According to the data released by the Federation show that in October a comprehensive national narrow passenger car market sales of 1.843 million, down 5.7 percentage year on year, growth of 3.5 percentage; narrow national passenger car market, wholesale sales of 1.905 million units, down 5.9 percentage, 0.2 slight increase of the percentage of the ring. Overall, the October passenger car sales and wholesale sales overall growth rate has slowed from the previous month, the Federation of the Secretary-General Choi Dong-tree view, showing the end-consumer auto market in October tepid consumer demand is not Wang’s case.

At the same time, the Automobile Association data also show that as of September, China’s auto production and sales have been 15 consecutive months of decline. It can be seen in the bitter winter, car prices are still living in misery, then it is conceivable that, sandwiched between the market and the prices of car dealers is very difficult.

A few days ago, a “Shanxi Automobile Dealers Chamber of Commerce on behalf of

dealers stuck survival challenges in the province 23 Nissan Distribution message conduct business rights “spread like wildfire, the contradiction between distributors and OEMs are again exposed to public view.

In fact, in the context of the overall auto market downside, dealers protect their rights is common. The reason for the Nissan dealer bundling rights is nothing more than commonplace, manufacturers large task, resulting in a substantial promotional distributors, dealers and the provisions of assignments and other issues.

Some industry analysts believe that car prices will sprint at the end of sales when dealers will also tend to increase the pressure, especially in the auto market downturn this year, car prices will pressure greater than in previous years it also caused dealers were forced to rights.

a senior independent brand car sales staff also told the network, “the end is approaching, there will be more or less OEMs Yaku behavior, which is the default ‘norm’.” He admitted, such as Nissan robust sales of mainstream car prices dealers are miserable, dealers of other brands is tough.

China Automobile Dealers Association data also show that in October the library car dealersEarly warning index was 62.4 save percentage, the chain increased 3.8 percentage points, down 4.5 percentage points year on year, inventory is still early warning indicators located above the warning line.

“October market performance did not meet the expectations of dealers, the pressure is still very large, ‘Golden September and not gold, silver silver ten difficult’.” China Automobile Dealers Association vice Secretary-General Lang Xuehong think, around the end of the quarter and auto dealers and other marketing activities overdraft impulse September the part of the market demand; “October” Golden Week, consumers go out to play, the dealer set-off amount of decline; the northern region into the busy season, rural consumers to shop decline. Therefore, Oct. automobile market pressure, further deterioration of the competitive environment.

in inventory pressures diminished the moment, in order to ensure sales tasks completed, the dealer had to increase promotional efforts, a sale. Network visited the market to buy a car found in the process, after the end of the bargains during the Mid-Autumn Festival and National Day double, near the end of “celebrate double eleven” and other promotional activities began seamless connection.

Lang Xuehong also said that near the end of the year, manufacturers and distributors to complete the annual task will be to increase promotional efforts, before the Spring Festival beginning to show effect from November, December will be more prominent. Visible, dealers dead end rush has begun.

“to sell production quotas” Please untie

“Inventory is the source of all evil”, new car sales gross margin was mercilessly swallowed high inventory, industry ecosystem rapidly deteriorating. The reason seems to march in Shen, president of China Automobile Dealers Association, resulting in the loss of that status quo dealers, insurance reform to the way resulting in high dealer inventories; wholesale and retail price difference serious upside down, the dealer sell a car to a loss, sell more, thanks to the more; too many outlets, too close, causing the same brand shopping.

According to the National Federation of Automobile Dealers Association issued the “auto dealers annual survey of manufacturers satisfaction” shows that in 2018 53.5% of the dealers at a loss, to the first half of 2019, this proportion It reached 71%.

In addition, since 2018, the total number of dealers 4S shop from a peak in 2017 of 14.8 percentage dropped significantly, a large number of 4S shop four-tier cities are experiencing Off shop wave. In the first half of this year, 15,300 “car sales service” companies involved in corporate, shareholder change; more than 500 “car sales service,” the company shut down, log off.

To this end, the National Federation of Automobile Dealers Association issued “proposal caused passenger car manufacturers,” which called car prices “unbundling” dealers, and that “to sell production quotas”, the development of scientific sales goals and business policies; manufacturers time to adjust manufacturers guide price and the wholesale price, so that dealers obtain reasonable flow spreads; not disguise tied dealers, independent dealers inventory supply and demand and the development of procurement target three demands according to market demand.

In Choi Dong-tree view:. “Market conditions bring pressure to bear with dealers and car companies together ‘to market ability’ is the foundation of market forecasting sales, sales are not realized in the past, should car prices better grasp of market trends, dealers should also do a good job ‘flat market turbulence’ role, in order to achieve a dynamic equilibrium. “

As can be seen, the prosperity of the industry environment at low tide, hide in the development process the contradictions will continue to appear, which is destined to the market will become more brutal, while distributors and OEMs game continues.

dealer how to restructure the future?

From 2013 car electricity supplier war, in 2016 the “new retail” concept put forward, to 2019 repairer of the new forces of new retail floor. In recent years, 4S shop stood the “baptism” electricity supplier, O2O, outlets and other sales model. China Automobile Dealers Association released a “Report on China’s auto dealers and the related current living conditions of the proposed” also shows that in the automotive industry as a whole cold environment, dealers are also facing the pressure of structural adjustment brands, as well as cash flow and poor increasing the size of the loss caused by compression, such as transfers or possible collapse.

At the same time, in the nude car heavy losses on the basis of the customer with the decline in purchasing power, the dealer room that can be developed will be insufficient, increase the pressure to survive. Insiders pointed out that the traditional car sales model has been unable to adapt to changes in new technologies and new consumer in terms of cost, efficiency, user experience, change is imminent.

“At present, the role of traditional 4S shop line services and not weakened, while carSales model and then how they change, can not compress the middle part of the dealer. “National Federation of Automobile Dealers Association president Li Jinyong think, although some car companies like Tesla are also considered, as Wei to Direct sales, but under the current mature market model, and financial policies, service and other pressure, a short time is difficult to put aside the dealer form Direct mode.

he admitted that the traditional dealers improve sales efficiency, reduce operating costs, through model innovation so that customers get a better experience in the under the era of change, resist the impact of new retail prescription. “the traditional sales model will not disappear, but dealers in access to the Internet, intelligence, big data environment, seek new profit growth point, by mode and innovative channels for consumers with better service and experience. “

In addition, the State Council Development Research Center of Market Economy Ren Xingzhou, former president also said that the new car in a substantial loss of profits the moment, it will also be expanding or restructuring Forced dealers seek new revenue channels now come look, business transformation and upgrading, the transition from sales to services, used car, car finance and other derivatives business has become the focus of the dealer business transformation.

Overall, at present, China’s auto market to usher in an unprecedented large change, dealers are faced with the transformation and upgrading. It is foreseeable that the future of the industry will be intensified knockout As Shen Jinjun said, “high-growth era of the automobile market is over, the future of the norm is positive growth and negative growth will coexist, distribution We are facing re-shuffle, or the inflection point will need to change their ideas and make their own business through the winter. “

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