Dongfeng Yueda KIA Frequency Super Stock High-line Collective Salary Reduction 10%

As the growth rate of the auto market slowed down, dealers’ operating pressure increased. According to the latest data released by the China Automobile Dealers Association (hereinafter referred to as the “Circulation Association”), the comprehensive inventory coefficient of automobile dealers was 1.75 in June, a year-on-year increase of 13% and a month-on-month increase of 11%. Dealer inventory pressures increased and inventory levels continued to alert. Above the line. Compared with last year and January-June this year, Southern Reporters found that the inventory coefficient of dealers in each month of the first half of the year increased compared with the same period of last year; among them, Dongfeng Yueda Kia was the only one in the first six months and the inventory depth was two months. The above brands.

Consumers hold a wait-and-see mood

According to industry practice, the inventory coefficient is between 0.8-1.2, which reflects the inventory is in a reasonable range; the inventory coefficient is> 1.5, which reflects that the inventory reaches the alert level; the inventory coefficient is> 2.5, which reflects that the inventory is too high and the operating pressure and risk are very large. The stock factor of distributors in the first six months of this year was between 1.5-2.5, and business pressure deserves attention.

In 2017, the stock factor of automobile dealers has been walking at a high level, and the inventory coefficients for January-June are 1.60, 2.25, 1.66, 1.92, 1.58, and 1.75, respectively, all exceeding the warning level.

The data show that in the first half of the year, the production and sales of automobiles were 13.52528 million vehicles and 13.3359 million vehicles, which were 4.64% and 3.81% higher than the same period of last year, and the growth rate was 1.83 percentage points and 4.33 percentage points lower than the same period of last year.

The circulation association analyzed that as the auto market entered the traditional off-season in June, the market demand declined, and some consumers looked forward to the "Automotive Sales Management Measures" implemented from July 1, holding a strong sentiment for holding the currency. In addition, the property market policy also influences consumers' decisions on car purchases. In order to complete the half-year target, some OEMs have increased the amount of tasks that the dealers have brought to the car, which has further increased pressure on the dealers' inventory.

Compared with joint venture brands and imported brands, the operating pressure of independent brands is much greater. Data shows that inventories of self-owned brands reached 2.38 in June, a 25% increase from the previous quarter, far exceeding the joint venture brands and imported brands of 1.37 and 1.56.

Looking at the inventory situation this year, we can see that inventory of self-owned brands from January to June this year has not been optimistic. The highest is February, reaching 2.53, and the lowest is 1.85. In contrast, joint venture brands and imported brands, inventory has appeared a reasonable range, including joint venture brands in May and June for two consecutive months of inventory below 1.5, import brand inventory was in January this year at the lowest value of 1.18.

A related person in charge of a Dongfeng Honda Shenzhen dealer told the reporter that as a Japanese brand, Dongfeng Honda's inventory pressure is relatively small, but despite this, they still feel the pressure, in addition to the best-selling Civic, CR-V, UR-V, XR-V Outside the models, other "unfractured models are under pressure." However, with the arrival of the traditional sales season in the second half of the year, dealers’ operating pressure should be eased.

DYK's Collective Salary Reduction Challenge

It is worth noting that there are 9 brand stocks in depth of more than two months in June, 4 more than in May. Among them, except Chang'an sedan, Dongfeng Yueda Kia, Chery Automobile, Baojun Automobile, Infiniti, Skoda, FAW Car (9.610, -0.02, -0.21%), Jaguar - Land Rover and Great Wall Motor (12.410, -0.73, -5.56%) All are new brands, and Beijing Hyundai, SAIC Volkswagen, and SAIC Roewe all dropped out of the list in May.

Among them, Dongfeng Yueda Kia is the only brand with a stock depth of more than two months in the first six months. The inventory coefficients for January-June are 2.39, 3.92, 3.70, 3.21, 2.93, and 3.08, respectively. In five out of six months, the high-risk line exceeded 2.5 and in four months it exceeded 3. To this end, Dongfeng Yueda Kia reduced the burden on dealers for the actual situation and adjusted sales tasks. DYK Guangzhou Panyu Shengya store manager Huang Yaoxing said that because the store is a new store, the inventory pressure is relatively small, and the recent manufacturer's tasks have also been adjusted according to the actual market conditions, but in the context of internal and external troubles is still not easy.

The South Reporter also learned from the dealer that Su Nanyong, the general manager of Dongfeng Yueda Kia, sent a letter to the dealer to appease him on July 12. It said: “I’ve returned to DYK until the sales return to normal. The wages of the money are neither taken nor taken. "At the same time, all officials above the ministerial level have voluntarily returned 10% of their wages from July and invested in the increase in franchise sales."

Huang Yaoxing said that Su Nanyong’s statement has enhanced the confidence of dealers to a certain extent, “the attitude is more sincere.” He told the Southern Reporter: “The DYK is a tripartite cooperative enterprise after all. Some things are not expected to be accomplished overnight, but for dealers, a general manager who understands the automobile, knows the market, and has leadership skills should be more hopeful and Power leads everyone out of the current situation."

After the refueling on the market, the output value fell sharply hitting dealers

Dongfeng Honda Shenzhen, a relevant person in charge of a dealer said that in fact the pressure on dealers not only from new car sales, but also from the aftermarket, maintenance and repair of the value of the production fell.

The person in charge said that Shenzhen dealers of various brands had gathered privately some time ago, and they all reflected this problem. “The sales of new cars in stores are not profitable. Everyone is not pursuing this piece of profit, but the output value of the car market The decline has a great impact on the shop." He analyzed that the reason why the maintenance and repair output value dropped drastically was due to the fact that the existence of various car-approved APPs divided a part of the market, and on the other hand, due to the increase in the commercial auto insurance rates, the market value of the car owner's insurance policy fell drastically.

It is reported that on June 9 this year, the China Insurance Regulatory Commission issued the "Circular on the adjustment and management of commercial auto insurance rates," and the commercial auto insurance rate reform was further deepened. As of July 18, the new terms and new rates of 25 commercial vehicle insurance companies have been approved by the China Insurance Regulatory Commission. Compared with the auto insurance clauses before “Fixed Fees Reform”, this new clause mainly involves discounted rate discounts. When the owners of unclaimed insurance claims for three consecutive years are renewal, auto insurance discounts have been reduced from the original minimum of 4.335 to 3.3825 percent.

Therefore, "a lot of vehicles have a small bump, the owner will not come to 4S shop maintenance." The above-mentioned person in charge explained. He also revealed that the sales volume of his dealership store this year in after-sale maintenance and repairs has dropped by more than 20% from the previous year.