Cars
7.The need and challenge of change.
The challenge for traditional car dealers is not only from market changes, but also from whether their own business models can adapt to the needs of the new era. Although the decline in the inventory coefficient shows that dealers have made some progress in inventory management, the increase in the loss ratio highlights another problem. It has become increasingly difficult for dealers to survive under the pressure of the traditional auto market, and the uncertainty of the new energy market has added another layer of testing to them. At this moment, traditional dealers need to take a hard look at their own positioning and business model, and bravely face the need for change.
8.The dilemma of transformation in the new energy era.
With the rise of new energy vehicles, the transformation dilemma faced by traditional dealers is becoming more and more obvious. The article points out that there are huge differences between fuel vehicles and new energy vehicles in terms of working principles, sales and after-sales service models, which means that traditional dealers must make large-scale adjustments. For example, a large Toyota dealer that has been operating fuel vehicles for a long time needs a lot of time to transform into a new energy vehicle dealer in a short period of time, and it also requires a huge amount of capital investment. This is not an isolated example, and other car brands are facing similar problems. In addition, the significant adjustment of sales channels by automakers has also created more uncertainty for traditional dealers. BYD's Denza, Yangwang, Equation Leopard, as well as new forces such as Tesla, Li and NIO have adopted the direct store model, which is undoubtedly a new impact on traditional dealers. In this case, whether traditional dealers can find a way to adapt in the new energy era has become a huge unknown.
9.Expansion and transformation opportunities in the new energy market.
Despite the difficulties faced by dealers, the article also looks forward positively to the transformation opportunities brought about by the expansion of the new energy market. From January to November this year, the sales of new energy brands such as Aion, Geely, Wuling, Changan, and Li exceeded 300,000 units, providing a positive signal for traditional dealers. The successful sales of these new energy vehicles also means that some dealers have successfully transformed and found ways to adapt to the new market. The article encourages traditional dealers to learn from these successful cases, learn to leverage their strength, and be more proactive in cooperating with new energy vehicle manufacturers.
10.Exploration and possibilities of cooperation models.
In the face of tremendous transformation pressure, traditional dealers need to be proactive in finding cooperation models. The article cites some cases of new energy manufacturers opening up dealer franchise authorization, such as Xpeng Motors and NIO. This cooperation model not only allows new energy manufacturers to rapidly expand their sales networks, but also provides an opportunity for traditional dealers to transform. In particular, Leapmotor's dealer stores account for 86% of the total sales and account for 90% of sales, showing the success of the cooperation model. This also suggests that traditional dealers can achieve a win-win situation through closer cooperation. At the same time, some traditional car brands are also looking for traditional dealers to provide them with new business opportunities after the successful transformation.
11.New growth points and future prospects.
Looking ahead, the article believes that the new energy market will further expand in 2024 and is expected to exceed 10 million units. The increase in sales of new energy vehicles may become the entire responsibility for the overall growth of automobiles. This opportunity provides a new growth point for traditional dealers, but only if they are proactive in looking for transformation opportunities and building closer partnerships with new energy manufacturers. While the challenges in 2024 will be severe, the article highlights that there are opportunities in the crisis, and only traditional dealers who dare to change will be able to find a foothold in the automotive market of the future.
12.Conclusion: Transformation in Challenges.
In summary, we see the retrograde growth of China's auto market in 2023 and the dual challenges that this growth brings to auto dealers. Under the pressure of inventory problems, loss pressure, market reshuffle and other aspects, traditional dealers are facing unprecedented difficulties. But in the midst of the crisis, there is also the possibility of change. Through in-depth analysis of inventory coefficients, transformation dilemmas, and the exploration of cooperation models, it is not difficult to see that traditional dealers are looking for new opportunities in adversity. With the expansion of the new energy market, the possibilities for cooperation are also increasing. 2024 will be a year of more challenges for auto dealers, but it could also be a year of transformation for them. Only by constantly adapting to market changes and actively looking for transformation opportunities can we usher in a new dawn in the future automotive market.