The following is the Investigation on the survival status of national automobile dealers in the first half of 2021 From China Automobile Circulation Association recommended by recordtrend.com. And this article belongs to the classification: Automobile industry.
The operation increased steadily in the first half of the year
Dealers’ confidence in the market in 2021 increased
On July 28, 2021, China Automobile Circulation Association released the survey report on the survival status of national automobile dealers in the first half of 2021.
Since 2021, the overall domestic automobile market has maintained a stable upward trend, and the sales of passenger cars have increased significantly year-on-year, slightly better than the level in the same period in 2019. However, the shortage of chips and the repeated epidemic have brought a lot of uncertainty to the future automobile market trend and dealer profitability.
In order to timely understand the operation of dealers in the first half of 2021, find out the problems and pressures faced by dealers in operation, as well as the challenges and Countermeasures in channel mode reform, new energy vehicle sales and after-sales service, the national survival survey of auto dealers in the first half of 2021 was officially launched in mid June, covering more than 40 dealer groups, 813 dealers, 785 valid questionnaires were collected.
01. In the first half of 2021, the satisfaction of automobile dealers with the main engine plant decreased slightly
According to the survey, the overall satisfaction score of dealers in the first half of 2021 was 78.8, slightly lower than 80.6 in 2020.
In terms of brand types, high-end & imported brands scored the highest, 83.1 points, down 3.4 points; The score of independent brands was 76.8 points, down 2.5 points.
The survey results show that in the first half of the year, dealers’ satisfaction with inventory management increased significantly by 5.3 points. Mainly due to the insufficient supply of chips, manufacturers optimize product production and give priority to the production of best-selling models, which alleviates the inventory pressure of dealers.
02. In the first half of the year, 30% of dealers completed more than half of the annual sales target
The survey shows that in the first half of the year, 33.7% of the dealers completed more than half of the annual sales target. Joint venture brands are affected or most obviously by the shortage of chip supply, and the sales target of their dealers is slightly lower than that of luxury imported brands and independent brands.
The survey found that the dealers’ new car sales price inversion still exists, and the proportion of dealers without price inversion decreased by 4.2 percentage points to 22.3%. The gross profit margin of dealers’ new cars decreased slightly, from 1.3% in 2020 to 1.1%. The gross profit margin of used cars increased by 1.6 percentage points to 6.7%. Driven by the favorable policies of the used car market, the dealer Group actively arranged the used car business and achieved initial results.
03. The loss of dealers decreased slightly in the first half of the year
In terms of profitability, in the first half of the year, the loss of dealers decreased to 30.4%, but the profit did not increase significantly, but decreased by 5.8 percentage points to 33.6%. One is that the supply is insufficient due to the shortage of chips; Second, the stimulus policy after the epidemic, some consumer demand overdrawn in advance, which had a certain impact on the profits of sales and distribution in the second quarter.
The overall profitability of luxury & imported brands is good, with more than 60% of dealers making profits, while the profitable dealers of joint venture brands and independent brands account for about 20%.
In the profit structure of dealers, the proportion of new car sales and after-sales service profits increased significantly in the first half of the year. Effective epidemic prevention and control enabled consumers to return to normal travel status, the after-sales return to the factory began to pick up, and the after-sales output value increased significantly.
In the first half of the year, the proportion of new car and after-sales profits increased significantly, and the proportion of financial and insurance business profits decreased significantly. After the 919 insurance premium reform, the agency sales capacity of dealers decreased, coupled with the tightening of policies of insurance companies, resulting in the decline of the profitability of insurance business. In addition, compared with the general interest free and discount financial support policy during the epidemic, the policies of manufacturers and financial institutions have been recovered this year, and the financial service income of dealers has decreased.
04. Customer acquisition cost has become the main influencing factor faced by dealers
Due to multiple factors such as repeated local epidemics and untimely vehicle supply caused by chip shortage, the operation of dealers has been affected to a certain extent. The survey results show that the high cost of getting customers at this stage is the biggest challenge faced by dealers.
In the survey, dealers reported that although there are more and more channels to obtain potential customer clues with the progress of technology, the actual effect is not satisfactory. The cost of finding potential consumers from a large number of so-called clues and eventually turning them into users continues to increase, while the gross sales profit continues to decline, putting dealers in a dilemma.
With the rapid development of the new energy market, new power brands rise with the trend, and the channel mode and business format have changed. The increase of Direct stores of manufacturers and the competition for talents by new brands have led to the brain drain of traditional authorized dealers.
In the survey, the dealers also mentioned that they hope that the manufacturers can properly adjust their business policies, reduce the proportion of rebates, give more training and guidance to dealers’ employees in skill improvement, and help dealers operate stably. At the same time, through digital marketing and other means, provide effective sales leads for dealers and avoid vicious price competition, especially for many uncertain factors in the automobile market in 2021, so as to help dealers improve their profitability.
05. Dealers’ confidence in the automobile market in 2021 increased
Referring to the future development of the whole automobile industry, dealers’ confidence in the automobile market in 2021 has increased. Nearly 80% of dealers are optimistic about the automobile market in 2021. It is expected that the annual sales volume will achieve positive growth year-on-year.
Referring to the development of authorization, direct marketing and agency models in the next five years, 57% of dealers believe that the three models will coexist. 20% of dealers believe that the direct sales model will become the mainstream and hope to invest in Direct stores. 8% of dealers believe that the agency model will become the mainstream, and 15% of dealers believe that the authorization model will still be the mainstream.
The survey on dealers’ intention to invest in brands shows that luxury & imported brands with intention to invest are concentrated in Lexus, BMW, Mercedes Benz and Audi; Joint venture brands are mainly concentrated in Toyota and Honda, while independent brands tend to Hongqi, Geely and Harvard. For new energy brands, the investment tendency of dealers has increased significantly, especially for independent brand new energy products.
More reading: China Automobile Circulation Association: investigation report on the survival status of national automobile dealers in 2019 China Automobile Circulation Association: the inventory coefficient of automobile dealers in June 2021 was 1.48 China Automobile Circulation Association: the inventory early warning index of automobile dealers in November 2020 was 60.5% China Automobile Circulation Association: the inventory early warning index of Chinese automobile dealers in May 2020 China Automobile Circulation Association Meeting: the inventory early warning index of China’s auto dealers in May 2021 was 52.9%. China Automobile Circulation Association: the inventory early warning index of China’s auto dealers in May 2020. China Automobile Circulation Association: the inventory coefficient of auto dealers in May 2020 was 1.55. China Automobile Circulation Association: the inventory early warning index of China’s auto dealers in October 2020 was 54.1%. China Automobile Circulation Association: October 2019 The inventory coefficient of automobile dealers is 1.39. China Automobile Circulation Association: the inventory coefficient of automobile dealers in March 2020 is 2.68. China Automobile Circulation Association: in March 2020, the sales volume of domestic narrow passenger car market reached 1045000, a year-on-year decrease of 40.4%. China Automobile Circulation Association: in the first quarter of 2020, luxury brands added 57 authorized 4S stores and returned 41 4S stores. China Automobile Circulation Association: April 2020 China imported automobile market monthly report China Automobile Circulation Association: the inventory coefficient of automobile dealers in February 2019 was 2.1. China Automobile Circulation Association: the inventory coefficient of automobile dealers in June 2019 was 1.38
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