· Who moved the cheese of the car dealership?

The good days of car dealers’ daily advances have already come to an end, and the question of “survival or destruction” has come.

The newly disclosed third-quarter financial report of listed auto dealers shows that some large auto dealer groups have fallen into losses. In the past, the "one brother" huge group, this year's net profit fell nearly 70%, and took the initiative to lose weight. The industry stars such as Shenhua Holdings and Yaxia Automobile have suffered losses.

Some senior dealers even shouted: "For some brand car dealers in 2014, living is the biggest challenge!"

Luo Lei, deputy secretary-general of the China Automobile Dealers Association, told the Nanfang Daily reporter that according to a recent survey by the association, the profitability of the entire auto dealer industry this year is still declining compared to last year.

So, who moved the cheese of the car dealership?

Factors such as the slowdown in market growth and fierce competition have caused the “money scene” of auto dealers to be unknown. At the same time, under the influence of market pressure, e-commerce revolution, and policy thrust, the automobile circulation industry is also accelerating integration and transformation.

Living is the biggest challenge?

Car dealers face survival challenges. This is evident from the latest disclosures in the financial data of listed companies in car dealerships.

The huge group of one of the top three domestic auto dealer group companies maintained a growth rate of 3 percentage points in the first three quarters of this year to more than 46 billion yuan, but only achieved a net profit of more than 90 million yuan, down nearly 70% year-on-year. In the first half of the year, the net profit fell more than 80%. For this reason, the outlets have been revoked, and the slimming has reduced losses.

Some large dealer groups have fallen into losses. In the first three quarters of the old listed company Shenhua Holdings, the turnover fell by about 26%, only more than 4 billion yuan, the loss reached about 160 million yuan, and the revenue decreased by 194% year-on-year. This was mainly due to the decline in sales of self-owned brand cars. In the third quarter of this year, the loss of more than 15 million yuan, the revenue fell by 257%, resulting in only a net profit of more than 5.8 million yuan in the first three quarters, down nearly 90%. Yaxia Motor expects to have a loss of 20 million to 40 million yuan in 2014.

Overall, most listed auto dealers are still gaining profit, they are the best in the industry. For example, the big-name imported car dealer SINOMACH achieved net profit of more than 600 million yuan in the first three quarters of this year, an increase of about 13% year-on-year. Great Eastern's net profit in the first three quarters increased by 8 percentage points to 140 million yuan. In the Hong Kong-listed Zhengtong Auto and Zhongsheng Group, net profit in the first half of the year increased by 7.3 percentage points to nearly 500 million yuan, and increased by 18.6 percentage points to 580 million yuan.

The domestic car dealer group "one brother" Guanghui Automobile has already shelved the H-share IPO plan and became another signal that the car dealer "Qian Jing" is unknown. It is understood that Guanghui previously planned to raise 800 million US dollars by landing H-share IPO, but after testing the market reaction in Hong Kong, the market sentiment was considered cold. If the original fundraising amount is maintained, the possibility of a successful listing is low.

Luo Lei, deputy secretary-general of China Automobile Dealers Association, told the Nanfang Daily reporter that according to a recent survey by the association, the profitability of the entire auto dealer industry this year has declined slightly compared to last year. The survey will be announced in the near future.

From the micro level of the industry, more brand dealers have the coldness of “one leaf knows autumn”. A senior car dealer introduced that the profit of mainstream luxury car brand dealers is declining, but it has not lost money. Second- and third-line luxury brands, Japanese brands, most independent brands and other dealers have relatively serious profit pressure, and some brands distribute. The business has already suffered huge losses of over 10 million. “For some brand car dealers in 2014: Living is the biggest challenge!”

Is it a law to sell cars at a loss?

The good days are over. This should be a consensus in the automotive circulation industry.

Luo Lei told the Nanfang Daily reporter that the root cause of the decline in the profitability of auto dealers this year is the expected increase in the market for the OEM. Last year, the auto market resumed growth, but the expectations of the OEMs were not high, and low inventory gave dealers profit margins. However, this year, the main engine factory has greatly increased its expectations, and the actual market demand has slowed down. The high inventory has brought huge financial pressure to the dealers. In addition, the financial support has been reduced, greatly increasing the financing costs of dealers.

Luo Lei believes that from the perspective of the overall industry trend, with the increase in car ownership, the sales growth rate has slowed down, and the number of dealers has increased. The competition in car sales has been unprecedentedly fierce. In 2010, there were only 16,000 domestic auto dealers, and now it has increased to about 24,000. “Industry competition is intensifying, prices are falling, and sales profits are falling.”

One phenomenon that has received much attention is the widespread existence of “losing a car”. Car dealers introduced that in the past, they were profitable middle and high-class cars. Now the prices have fallen below 150,000 yuan, so that they are basically sold at a loss. Some small cars are also zero-margin. Most independent brand dealers have huge financial pressures and have high operational risks. Another phenomenon is that in the past, the ever-increasing price increase for car sales has become less and less.

According to data disclosed by the China Automobile Dealers Association, among the top 100 dealers in 2013, new car sales accounted for 86.7% of the total, accounting for an absolute advantage in operating income; while after-sales service profit accounted for 50%, greater than the new car sales profit. This also shows that the loss of the car does exist.

In the semi-annual report, the huge group disclosed that the gross profit margin of automobile sales in the first half of this year was 4.93 percentage points, which was 2.3 percentage points lower than the same period of the previous year. In contrast, although the gross profit margin of after-sales service has dropped by 2.68 percentage points, it is still as high as 33 percentage points. In order to reduce losses and reduce losses, the company has revoked 103 operating outlets in the first half of the year, which is equivalent to reducing the number of outlets by about 8%. This kind of dealer's initiative to withdraw the network is contrary to the expansion of the host factory. The market is also rumored that the huge will sell its five Aston Martin dealerships.

The high-end car dealers who have always been regarded as local tyrants are not very good at actual days. An imported car dealer in Guangzhou spit on the Nanfang Daily reporter: At present, the rebate of luxury car dealers is 8 percentage points, and it is subject to sales, consumer satisfaction, marketing and other evaluation indicators. The operation of luxury cars has the problem of high operating costs, and the sales scale is not large, which makes it difficult for some dealers to make profits even if the outside world seems to be expensive. "You don't invest in building flagship stores, people will not let you sell them."

Cui Dongshu, secretary-general of the Association, told the Nanfang Daily reporter that although dealers may not have to sell cars at a loss, the gross profit of bicycles generally declines during fierce competition, and the rapid increase in labor and store rents will reduce profits. The sales of after-sales maintenance of brand dealers are relatively stable, but now they are gradually being impacted by socialized chain stores. In addition, the loss of business such as insurance is also reducing the profit of dealers.

How to keep up with the pace of the times?

"The current automobile circulation industry is undergoing major changes." Luo Lei pointed out that car dealers must shift from a sales-led model to a service-oriented model in a timely manner, focusing on the potential of the post-service market. “A dealer who does not manage well is not keeping pace with the times.”

From the perspective of overall industry trends, auto dealers will have an integrated process of weakening and staying strong. According to the “2013 Top 100 Distributor Groups” announced by the China Automobile Dealers Association, the industry concentration of the top 100 auto dealers has further increased. In 2013, the number of brand dealers in the top 100 enterprises was 4,954, a year-on-year increase of 13.8%. In the same period, the number of brand dealers nationwide was 22,518, down 6.5% year-on-year; the sales volume of new cars was 5.14 million, an increase of 17.1%, while the new national car in the same period The sales volume was 21.98 million units, a year-on-year increase of 13.8%. The number of brand dealers and new car sales of the top 100 enterprises are higher than the overall level, and they are further expanded. At the same time, the operating brand structure is more balanced and reasonable.

He Liming, president of China Automobile Dealers Association, believes that there are still heavy sales, light services, re-car sales, light used car replacement, enterprise expansion, and only the superposition of simple brand stores, only to be bigger and neglect to do. Strong, extensive management, and weak core competitiveness require innovation and transformation. At present, auto dealers should shift their focus to perfect after-sales service and improve service quality, strengthen the integration of industrial chain, and promote the further transformation of dealers from sellers to service providers.

It is difficult to know. In the face of market competition pressure, SINOMACH's response plan is to strengthen resource coordination among 4S stores in the region or brand, and improve the efficiency of single stores; establish the third level of “headquarters finance – brand finance director-4S store financial manager” Financial risk management and control mode, strengthen inventory management; at the same time improve the automobile chain market chain layout, including the socialization reform trend of official vehicles, and expand the official car rental market. The huge group has established the goal of “becoming China's largest new energy vehicle distribution service provider” and has laid out new opportunities in the automotive industry.

In the most mature South China auto market, the transformation of Guangwu Auto Trade has also attracted industry attention. In recent years, Guangwu Auto Trade has actively expanded to the pan-regional market with the model of “Automotive City”, focusing on the development of high-end brands in medium and long-term business choices. At the same time, Guangwu Auto Trade proposed a new idea of ​​“automobile life starts from Guangwu Auto Trade”, and hopes to get through the whole industry chain from driving school to new car sales, auto repair, used car circulation and auto-derived services.

Steady management is always the bottom line of the company. “Guangwu Auto Trade must maintain profitability in the fierce auto market.” Wei Guozhi, general manager of Guangwu Auto Trade, believes that large auto dealer groups must achieve simultaneous improvement in scale, efficiency and quality in the face of complex market environment, and achieve continuous profitability.

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