On March 1, the China Automobile Dealers Association released the 2023 National Automobile Dealer Survival Survey Report.
According to reports, the survey was launched in January this year, and the survey subjects are mainly authorized dealers of passenger cars. As of the beginning of February, the survey covered nearly 60 dealer groups and many single-store dealers, with a total of 1,437 valid questionnaires.
In 2023, the sales volume of China's auto market will reach a new high, reaching 30 million units, but the increase in market size does not mean an increase in operating profits.
The survey results draw different conclusions from five aspects, and show the survival status of dealers across the country in 2023 in a more comprehensive way.
1. Auto dealers' satisfaction with OEMs will decline in 2023
In 2023, the overall satisfaction score of dealers with OEMs is 717 points, and the overall satisfaction has dropped significantly. It is mainly manifested in the dissatisfaction with the manufacturer's assessment content, chaos, unprofitable new car sales, and insufficient product competitiveness.
In addition, dealers are less satisfied with the tying of unsalable models and market order control by manufacturers, and have higher satisfaction scores for manufacturer personnel and regional staff. Among the four major business segments of auto dealers, the satisfaction of new and used car business is low, and the satisfaction of after-sales service and financial insurance business is high.
Second, only about 273% of dealers achieved their annual sales targets
In 2023, China's automobile production and sales will exceed 30 million, a record high. However, the recovery of domestic auto consumption was less than expected at the beginning of the year. Manufacturers have generally set more aggressive sales targets for the year to make up for the shortfall in sales during the epidemic. However, the recovery of automobile consumption has been slow, and the growth of the automobile market is much lower than the expected recovery period, of which the traditional fuel vehicle market continues to shrink.
According to the survey, only 27 dealers have completed their annual sales targets3%, more than sixty percent of dealers have completed more than 80% of the task indicators. Among them, the target completion of luxury imported brand dealers is relatively good, almost half of the dealers have completed the annual sales target, while the target completion rate of mainstream joint venture brands is low.
III. 376% of dealers are profitable, their survival has improved, and their losses have narrowed
In 2023, manufacturers' sales targets are aggressive, resulting in a serious imbalance between supply and demand. The full implementation of the environmental protection of China VIB has become one of the fuses that triggered the first war, and multiple factors worked together to trigger the first war that lasted throughout the year. Including new energy vehicles, it covers all planned brand models.
In the second half of the year, a number of manufacturers introduced policies to subsidize some of the best discount losses of dealers, and some manufacturers moderately lowered their annual sales targets. After the assessment indicators related to manufacturer rebates have been relaxed and the first subsidies have been relaxed, dealers have made up for some new car losses, and their operating conditions have improved compared with the first half of the year.
According to the survey, the ratio of dealers' losses in 2023 is 435%, the loss side narrowed, and the profit ratio was 376%, an improvement from 2022.
The overall profitability of luxury imported brands is better, about 1 3 dealers lose money, and more than 50% of dealers are profitable. The proportion of profitable dealers of joint venture brands and independent brands was 299% and 320%。
In the profit structure of dealers, the gross profit contribution of new cars was negative, and the gross profit contribution of after-sales financial insurance and derivative business increased.
Fourth, dealers' investment intentions are mainly concentrated in high-end luxury brands and new energy vehicle brands
According to the survey on dealers' intention to invest in brands, dealers' future investment and acquisition of brands are mainly concentrated in some traditional luxury brands, while for independent brands, investment intentions are mainly concentrated in new energy independent brands.
Fifth, the market is expected to be cautiously optimistic in 2024
In 2024, dealers will generally increase the layout of new energy vehicle brands, and most dealers believe that the growth rate of new energy vehicles will slow down and the penetration rate will increase slightly.
For the expectation of the automobile market in the new year, nearly half of the dealers believe that the domestic passenger car market will still maintain a growth momentum, but it will continue to decline, and the operating pressure of dealers is still greater.