2013-01-22 06:27:05 - ResearchInChina, the vertical portal for Chinese business intelligence, announces the release of a new report – China Automotive Distribution Industry Research and Forecast Report, 2013 . For more information, please contact us at email@example.com or at 86-10-82600828.
For details of this report please visit researchinchina.com/Htmls/Report/2013/6612.html
In the wake of declined automotive sales, the construction speed of auto dealers’ 4S stores also slowed down somewhat in China in 2012. In 2012, the number of additional 4S stores in China registered 2000-plus, and the total number approximated 20,000. Among the listed dealers, Pangda Automobile Trade boasts the most 4S stores, with the number hitting 771, far higher than that of other peers.
Due to slowdown of new vehicle sales market and the amounting pressure of inventory, the dealers successively rendered price reduction as the main promotion means, which caused the drop in profitability of many dealers in 2012. Meanwhile, the fall of gross margin also indicates that the new
vehicle sales business has been gradually into the era of meager profit.
In contrast to the depressed new vehicle sales market, the automotive after-sale service and used car sales business presented greater development potential.
At present, the after-sale market has become the main profit origin of auto dealers, and its gross margin is much higher than that of new vehicle sales business. For instance, the gross margin of Pangda Automobile Trade’s new vehicle sales business was 7.28% in H1 2012, while that of its after-sale market reached as high as 34.26% in the corresponding period; Yongda Auto’s new vehicle sales business showed a gross margin of 5.24% in H1 2012, while that of its after-sale business was high up to 43.58%.
At present, the revenue from after-sale service of automobile dealers in China only accounts for 10% or so of new vehicle sales, and the gross margin is roughly 80% of that of new vehicle sales, while the above proportions respectively approximate 30% and 320% in the United States. Referring to overseas experience, the after-sale service will become the most important profit source of auto dealers in China in the future.
Used car market
The trading volume of used cars in China amounted to 2.658 million units in 2007, and climbed to 4.817 million units in 2012, with an AAGR of 12.63%. In 2011 and 2012, the growth rates of used car trade volume in China hit 12.41% and 11.24% separately, much higher than that of new vehicle sales market.
At present, many well-known auto dealers have launched the used car business, and in particular, Zhongda Yuantong has traded nearly 30,000 used cars in the first nine months of 2012, including 5,354 self-operated used cars, rising 9.9% year-on-year. Besides, other dealers like Pangda Automobile Trade, Sinomach Automobile, Dah Chong Hong, Zhongda Yuantong, Yongda Auto, Lentuo Group and Yaxia Auto all possess used car business.
In July 2012, the Ministry of Commerce of the People’s Republic of China issued the Criterion for Appraisal and Evaluation of Used Car (Exposure Draft). It is predicted that the Criterion will be officially issued in H1 2013, and the most crucial evaluation of used car market is expected to be regulated, which will positively bolster the disciplined development of used car market.
The report highlights the followings:
Automobile distribution models, development features of various models, etc. in China;
Progression of auto dealers in China, like quantity, profitability and development features, etc.;
Development of various automobile distribution businesses in China, including the distribution modes, characteristics and development prospects of diversified businesses such as new vehicle, used car, vehicle maintenance, automotive financing and insurance;
Operation, profitability, business development, 4S distribution network and expansion, etc. of 12 listed automobile dealers in China.
1. Business Model of Automotive Distribution in China
1.1 Development Course
1.2 Distribution Model
1.2.1 Major Marketing Models
1.2.2 Characteristics of Marketing Model
1.2.3 Distribution Model of Imported Cars
1.2.4 Development Characteristics of Marketing Channel
2. Development of Major Auto Dealers in China
2.2.1 Profit Margin
2.2.2 Profit Structure
2.3 Market Share
2.3.1 Ranking of Auto Dealer
2.3.2 Market Share of Auto Dealer
2.3.3 The Chinese Car Dealer Change in 2012
2.4 Working Capital
2.5 Region Feature of Auto Dealers
3. Current Status and Development Prospect of New Car Sales in China
3.1 Sales Volume and Trend
3.1.1 Total Sales Volume
3.1.2 Passenger Car
3.1.3 Luxurious Passenger Car
3.1.4 Commercial Vehicle
3.2.2 Price of Passenger Car
3.2.3 Price of Commercial Vehicle
3.3 Distribution Model
3.3.1 Distribution Model of Passenger Car
3.3.2 Distribution Model of Commercial Vehicle
3.4 Operation of Auto Dealer
3.4.1 Profit of New Car Sales
3.4.2 Profit Model
3.4.3 Construction Cost
3.5 Development Trend Forecast
4. Current Status and Development Prospect of Used Car Sales in China
4.1.1 Sales Volume
4.1.2 Main Auto Models
4.1.3 Selling Price
4.2 Distribution Model
4.3 Market Prospect Forecast
4.3.1 Forecast of Development Trend
4.3.2 Forecast of Market Size
5. Current Status and Development Prospect of Auto After-Sales Service in China
5.1 Current Development of Auto After-Sales Service
5.1.1 Profit Model
5.1.2 Development Trend
5.2 Auto Repair and Maintenance
5.2.1 Business Model
5.2.2 Competitiveness of Auto Dealers in Auto Repair and Maintenance Business
5.2.3 Market Demand
5.3 Auto Finance
5.4 Auto Insurance
6. Major Auto Dealers in China
6.1 Pangda Automobile Trade Co., Ltd.
6.1.2 Revenue and Gross Margin by Business
6.1.3 Car Distribution Situation
6.1.4 Business Performance Prediction
6.2 Sinomach Automobile Co., Ltd.
6.2.2 Revenue, Total Profit and Gross Margin
6.2.3 Imported Car Business and Business Performance Prediction
6.3 Zhongsheng Group Holdings Limited
6.3.2 Revenue, Gross Margin and Car Sales
6.3.3 Distribution Network
6.4 Dah Chong Hong Holdings Limited
6.4.2 Turnover and Car Sales
6.4.3 Distribution Network
6.5 Zhejiang Material Industrial Zhongda Yuantong Group Co., Ltd.
6.5.2 Revenue and Gross Margin
6.5.3 Car Distribution Business
6.5.4 Distribution Network
6.5.5 Business Performance Prediction
6.6 China ZhengTong Auto Services Holdings Limited
6.6.2 Turnover by Business
6.6.3 Distribution Network
6.7 China Yongda Automobiles Services Holdings Limited
6.7.2 Revenue and Gross Margin
6.7.3 Distribution Network
6.8 Wuxi Commercial Mansion Grand Orient Co., Ltd.
6.8.2 Revenue and Gross Margin
6.8.3 New Dongfang Automobile City
6.9 LENTUO Group
6.9.2 Revenue and Gross Margin
6.9.3 Car Sales and Maintenance Service
6.10 Wuhu Yaxia Automobile Corporation
6.10.2 Revenue and Gross Margin
6.10.3 Distribution Network
6.10.4 Business Performance Prediction
6.11 Fujian Zhangzhou Development Co., Ltd.
6.11.2 Revenue and Gross Margin
6.11.3 Car Distribution Business
6.12 Shenzhen Tellus Holding Co., Ltd.
6.12.2 Revenue and Gross Margin
6.12.3 Car Sales and Maintenance Service