Dealers complain: Auto stocks have been approaching “warning line”
China Automotive Technology Research Center (hereinafter referred to in the BARI) The latest statistics show that 1 July, total domestic vehicle production and sales were 9,710,300 and 8,241,400, respectively, year on year growth of 39.42% and 28.58%. As of July, the number of car stocks close to 1.5 million.
“Daily Economic News” from the car dealer was informed that, if the dealer stock index (stock number and ratio of sales per month) over 2, will result in dealer cash flow problems. The research data in the vapor, in July vehicle inventory cycle of 55 days from June up to 58 days, that the total vehicle stock coefficient is 1.93, was close to the cash flow “alarm level.”
Data: total inventory coefficient approaching peak
According to data from BARI, in July the national output of 1.238 million vehicles, lower than 4.34%, Central, up 12.88 percent, sales of completed 1,056,200, 6.70% lower chain, up 17.18%, auto stock market soared to 180,000, Inventory growth was slightly higher than average.
Zhao Hang, director of gas research, said in July, the monthly growth in vehicle inventory cycle still continued, from June of 55 days up to 58 days. One passenger car inventory cycle from 57 days up to 60 days, commercial inventory cycle from 49 days up to 50 days.
It is understood that under normal circumstances dealer inventory coefficient generally 1 to 1.3, but the above figures, the July total vehicle inventory coefficient of 1.93, coefficient of passenger cars in the inventory has reached 2, has reached the peak 2.
Sales growth is due to inventory reduction and increased volume of auto companies Yaku. Historical data to reflect the entire car market in June, July and August were at a low level, other car manufacturers had the effect of expansion of production capacity began to emerge, thus leading to the current dealer stocks soaring.
Survey: increasing the pressure on dealer inventory
August 6, Shanghai scorching sun, a city north of own-brand dealership’s sales is not ideal, this reporter saw only two of its showroom sales staff, sales staff told reporters, “Business is pretty short due to the recent, shop customers too much, sales staff are on shift with me. ”
Store marketing to the “Daily Economic News” reporter was told that the dealer storage coefficient has reached 2, mainly due to declining sales and purchase increasing numbers.
Reporter from Beijing Hyundai, Dongfeng Honda, Dongfeng Yueda Kia, FAW Mazda, Changan Mazda and Volvo brand dealer that, due to poor car market as a whole, dealer inventories have increased to varying degrees.
Shanghai, a general manager of Dongfeng Honda dealership told reporters, Dongfeng Honda to go with the trend in the overall market on it, dealer inventories have increased somewhat, but the CR-V and Civic have been better for the market sales, inventory at a relatively reasonable level.
Head of a Volvo dealership also said that Volvo’s stock coefficient has reached about 1.7, with only one around, the second half of macroeconomic development is difficult to judge, so growth in the second half of the car market is difficult to predict.
A reporter from Beijing Changan Mazda dealers understand that entered in July, the store sales decreased, inventory pressures increase. The dealer said that the shop is actively planning a variety of promotions to attract customers, but dealers generally nowadays environment in price promotions, customer response to the activities not so positive.
Mazda dealers in Beijing, another there, the store director of sales and manufacturers strive to avoid the communication and whether cash flow problems, only said, “Now the pressure is indeed a bit difficult to sustain the stock.”
Future inventory pressure for the development of automotive trends, Zhao Hang, said the inventory cycle will continue the growth momentum, all manufacturers should start adjusting capacity to adapt to the market.
Self: dealers how to “blood”
Car dealer inventory increases lead to increased take up of funds, while sales fell to dealer capital return is slowed down, so auto dealers also will finance tight.
From car dealers and auto manufacturers to see between the method of payment, very few dealers will use its own funds for one-time payment, and then extracted from the car manufacturers are cars. Most dealers mostly in the form of bank notes payable to the bank or financial institution to pay a certain percentage of funds, banks or financial institutions would pay the full amount to the manufacturer, until now car dealers to sell to achieve extraction of the recovered funds, further bank or financial institution to pay the balance.
Dealer who asked not to be named the “Daily Economic News” reporter analyzing Road, if the manufacturers mentioned in 100 to 400 thousand yuan average price of the car, the total funding requirements for the 40 million yuan, dealers generally to the agreement 20% of bank funds to pay certain fees and then pay back to bank the remaining 32 million yuan, if the pay is usually within two months free of interest,
“But also the equivalent of interest charges, and general fees in three thousandths or so, credit the amount also depends on the strength and background dealers, distributors poor strength smaller line of credit.” The dealer who added.
The source also said, “If a dealer a few months before the weaker sales are 100, which dropped to 60 months of sales, inventory increases, the occupation of the capital will surge and capital return will go wrong, will appear due to inability to repay bank accounts of the situation, leading distributors of funds strand breaks. ”
Dealers facing tight cash flow of about three kinds of solution paths, one markdowns, sell more cars to speed up recovery of its investment, and second, in consultation with the banks to enhance credit limits, three additional cash by other means.
According to the “Daily Economic News” to report, now more than before the two paths dealers to ensure smooth functioning of capital flows. Beijing Hyundai dealer told a reporter, “Now inventory coefficient close to 2, capital flow under pressure, Beijing Hyundai to the dealer’s profit is 7, we give it away almost all of the other, we and the Beijing Modern Financial consultations to enhance the line of credit, the original is 20 million yuan, now raised to 27 million yuan was. ”
Auto dealers, said a Shanghai, Shanghai Automotive Dealers major financial companies with the docking SAIC, SAIC financial companies have also been raised on the Shanghai Auto’s dealer financial support, to ensure a smooth flow of operation of the cash dealer.
Differences: expanding network of dealers not sure manufacturers
In the case of the cash-strapped dealers, the “Daily Economic News” reporter visited the market, found that major car manufacturers have continued to expand the dealer network, dealers said the market outlook Quedui confused.
Yang Jiang Road in Shanghai’s see, where large-scale changes in more than two years ago, two years ago, only a few here that serves automobile dealers, Volvo gathered here today, the import community, southeast of cars, BYD, Dongfeng Yueda Kia, JAC, MG, BMW, Ford dealer, and many other brands.
Among them, Volvo, Import Volkswagen, Southeast cars, BYD dealers are open for six months or a new store opening soon, next to a forthcoming completion of the FAW-Volkswagen 4S shop.
Shanghai Tong Fu Xiang Li Jianzhong, general manager of auto sales on the “Daily Economic News” the reporter said to Volvo, for example, Jiang Tong Fu Xiang Yang Road store is the Volvo 100 stores in China, but also Volvo China’s flagship store, in the past two years, Volvo added four in Shanghai, 4S shop.
Li Jianzhong, said automobile market influenced by the macro, the second half of the automotive market uncertainty, however, still in the initial state of the Volvo brand, small holdings, in October after the end of last year might be restored to the state.
Zheng Min, general manager at Hai Weishi Huakai sales also told reporters, “The automotive market has overdraft signs in the second half the situation more complicated, the automotive market will depend on the country how to develop the automotive industry’s driving force
Leave a Reply