Arduous! Auto dealers make less than 30percent profit

 Arduous! Auto dealers make less than 30percent profit

What needs to be noticed is that after the market development encountered many obstacles, with the governments intensive introduction of a series of policies to promote consumption, manufacturers and dealers jointly fight the epidemic, and dealers have experienced the market change from aggravating winter to weak recovery. From the point of view of single store profit, although automobile manufacturers provide a lot of help policies for dealers to ensure their normal operation, the proportion of loss making dealers is still high. In the first half of the year, the overall sales volume of new cars declined, and the average sales revenue of a single store was only 37.6% of that of the whole year of 2019.

According to the statistics of China Automobile Circulation Association, in the first half of 2020, the total number of passenger car dealers was 29773, which was 0.7% less than that at the end of 2019. 1019 4S stores were withdrawn from the network and 824 new 4S stores were added. The new network mainly comes from traditional new energy and new car manufacturing enterprises, such as Hongqi of its own brand and FAW Volkswagen Jetta. The number of network increases rapidly, and some of the growth comes from the replacement of investors in the original location of 4S stores. In the second quarter of this year, it has entered a relatively concentrated stage of automobile dealer network adjustment, which may continue in the second half of this year.

After experiencing the first negative gross profit rate of new cars in 2019, the average new car revenue of dealers in the first half of this year was 76 million yuan, and the gross profit rate of new cars further decreased to - 3.5%, and the situation of loss as sales further intensified; in 2019, 20.1% of dealers did not have price inversion, while in the first half of 2020, such dealers accounted for only 16.3%.

In terms of dealer satisfaction, the overall satisfaction of dealers in the first half of this year was 76.0 points, 1.1 points lower than that in 2019. In addition to a series of frequently mentioned problems such as inventory, the main reason is that the business policy is not flexible enough and the current situation of dealers is not fully considered.

In terms of brand types, high-end brands have increased, while the satisfaction of joint ventures and independent brands has decreased to varying degrees. Among them, high-end and imported brands scored the highest (84.3 points, up 1.8 points); independent brands scored the lowest (71.2 points), with the largest decline rate of 3.7 points. Lin Shi, an auto finance columnist, told the Securities Daily that this is mainly because some enterprises have a single product line, slow response to market adjustment, and failure to make timely adjustment of marketing strategies for changes in regional markets.

In this regard, Lang Xuehong, Deputy Secretary General of the Circulation Association, said in an interview with the Securities Daily that the automobile industry has entered the stage of great waves and sand scouring, the brand differentiation is becoming increasingly obvious, and some weak brands are facing delisting. Therefore, the dealers attention to the explanation and improvement of the exit mechanism in the brand authorization contract has increased rapidly, due to the comparison of the protection satisfaction of dealers in the current contract Low, so dealer satisfaction has declined. At the same time, the dealers have more feedback on the bundling sales of the manufacturers, which also causes the dealers disgust.

Talking about the full year forecast of 2020, the Circulation Association said that only 29% of the dealers think that the growth can be achieved in the whole year, and 43% of the dealers think that the negative growth of the car market is more than 15%.

Under the current situation, the epidemic prevention and control situation in the second half of the year can not be relaxed, and the economic environment such as export restrictions will not be conducive to the growth of automobile consumption. Lin predicted that the market growth in the second half of the year was weak, and it was not easy for manufacturers to fill in the market. Behind the recovery of the performance of various automobile enterprises, there are tens of thousands of automobile dealers who are shouldering arduous tasks and bear great pressure. In the second half of the year, the sales promotion of dealers will continue to increase, and the business pressure is still not optimistic.

Source: Securities Author: Gong Mengze, editor in charge: Yang Qian_ NF4425