Dealer transformation needs to be extended to third and fourth-tier cities

Faced with the overall weakness of the auto market, the Beijing Yaohao policy, which has been implemented for two years, will continue.

Since January 2011, Beijing has held 23 public shakes and allocated 441,195 individual passenger cars. In 2011, the net increase in motor vehicles was 173,000 vehicles, a decrease of 617,000 vehicles from 2010, a decrease of 78.1% year-on-year. With the increase in the number of applications for license plates, the proportion of successful bids for Beijing Shakers has once again set a new low, which has dropped from 1:59 in November to 1:67 this month. Among them, the number of applications for individual car shakes reached 1.26 million. Despite the “hard to find,” and according to the Yaohao policy, the number of passenger cars issued by Beijing each year is only 240,000. However, according to the latest data from the China Automobile Dealers Association, the number of new car sales in Beijing this year is expected to reach 600,000, which is more than 50 last year. %, far more than expected at the beginning of the year.

Replacement has become a new engine that is not so cold in the Beijing auto market. The data shows that at present, sales of new cars generated by the replacement of used cars in Beijing have already accounted for 60% of the total sales, and last year this figure was only about 15%. At the 7th China Auto 2nd and 3rd Level Market Forum held recently, Luo Lei, Deputy Secretary General of the China Automobile Dealers Association stated that dealers in big cities like Beijing and Guangzhou must be transformed and upgraded to US dealers in the face of changes in the auto market. As an example of profit composition, sales of new vehicles accounted for only 54%, and used cars accounted for 32.4%. From the perspective of China’s top 100 rankings, China’s distributors’ new car sales accounted for 88% of total revenue. In an absolute position, the dealers in these big cities have great potential for replacement of used cars. In addition, the transformation of distributors must also realize the extension of channels, that is, to cooperate with auto manufacturers and extend its channels to third-tier cities and rural areas.

Indeed, with the “restricted purchases and limited lines” of first-tier cities, the growth rate of the Class I auto market has gradually slowed down, and the secondary and tertiary markets have become the main market for the Chinese auto industry. Xu Changming, director of the Resource Development Department of the State Information Center, also stated that the current focus of market growth will accelerate the transfer to the midwest and third-tier markets. At the same time, it is not just a simple sinking of sales outlets. More importantly, it is also aimed at providing comprehensive marketing services to consumers in the third and fourth-tier markets. That is, the next step in the network sinking will be the sinking of services. It has become an important issue for the marketing of three or four levels of automobiles.