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More than 80 brand stores have been shut down! A large dealer group was exposed to bankruptcy.

2024-06-19 Update From: AutoBeta NAV: AutoBeta > News >


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According to several domestic media reports, Guangdong Yongao Investment Group Co., Ltd. is on the verge of bankruptcy, and more than 80 of its 4S stores have been seized, including Mengjie, Ean, Lutes and Lecker 4S stores. All the display cars were pulled away by the bank overnight.

All of a sudden, many car owners who had already paid were so miserable that they were unable to license their cars without a certificate, and the shops that had paid the deposit were seized and unable to pick up the car. It has been revealed that there are 28 unpaid cars in the Yongao Group's stores, and 35 users are waiting to license the vehicles after the purchase tax.

In addition to the car owners, 4S store employees are also victims. Many employees of Yongao Group have been in arrears of wages for many months and have applied for labor arbitration. It is understood that in fact, as early as 2023, many 4S stores under Guangdong Yongao were exposed to the problem of wage arrears and reported the problem to the relevant departments. Unfortunately, Guangdong Yongao is still unable to survive the winter of 2024!

According to the data, Yongao Group was founded in 1997. at present, the agents include Beijing Hyundai, Yueda Kia, Dongfeng Honda, Dongfeng Peugeot, Dongfeng Citroen, General Chevrolet, Changan Ford, Shanghai Volkswagen, FAW-Volkswagen, Mercedes-Benz, Volvo, Skoda, SAIC Roewe, Lecker, Lutes, Dongfeng Commercial vehicles and other well-known automobile brands at home and abroad. In Guangzhou, Shenzhen, Dongguan, Zhongshan, Zhuhai, Huizhou, Maoming, Zhaoqing, Yangjiang, Zhanjiang and other places with more than 80 stores. At present, Yongao Group and relevant government departments have not yet responded to the matter.

In 2023, car sales in China totaled 30.094 million, an increase of 12% over the same period last year. This is the first time in the history of China's automobile production and sales that it has broken through the 30 million mark, and it has also made China's total automobile production and sales rank first in the world for 15 years in a row. It should be noted that the fact that China has been able to break through the 30 million mark and achieve a year-on-year surge is mainly due to the recovery of the automobile industry brought about by the explosion of new energy vehicles, and the corresponding traditional automobile industry has encountered serious competitive pressure. the ongoing price war has made car dealers miserable. When car prices fall, the wait-and-see mood in the market will increase, resulting in a decrease in the number of car buyers, this kind of consumer psychology is incisively and vividly shown, and this change in consumer behavior undoubtedly brings a huge blow to car dealers.

The external environment of the automobile market is numerous and complicated, the recovery of automobile consumer demand is slow, the terminal transaction price continues to decline, the result of price exchange is that the increment does not increase profit, the increment is only the year-on-year growth of new energy vehicles, and the sales of traditional fuel vehicles continue to decline, which leads to the further aggravation of the operating pressure of car dealers.

According to the survey report on the living conditions of national automobile dealers released by the China Automobile Circulation Association in the first half of 2023, only 1/4 of the dealers achieved their half-year sales targets in the first half of the year. Large-scale and substantial new car price cuts led to the expansion of dealers' losses. Less than 40% of the dealers made a profit, while the proportion of loss-making dealers reached 50.3%. The overall dealer loss is at a high level in recent years.

Even Meidong, which mainly sells luxury cars, is no exception. According to the first half of the year, the revenue of Meidong Automobile was 14.089 billion yuan, up 11.3% from the same period last year; the profit attributable to shareholders was 38.991 million yuan, down 88.64% from the same period last year. The price war for new cars was the reason for the decline in the company's profits.

Although it will take a long time for new energy vehicles to replace fuel vehicles, and the head brand transformation in the traditional fuel vehicle era will not soon lose its sales position in China, new energy vehicles as an important direction of China's automobile development and transformation, there have been more and more second-and third-line joint venture brands reselling new energy vehicle brands, with the continuous expansion of the new energy vehicle market and the continuous upgrading of consumer demand. More and more traditional dealers begin to pay attention to the Internet game. the rise of this model has brought great changes to the traditional car dealers, and the distribution market environment is getting worse and worse. in the changes in the market, there are more and more requirements for dealers to transform and upgrade and adapt to the new sales model and service model.

Generally speaking, electric cars are the direction of automobile development in the future, and they will not change the lives of front-line traditional dealers in the short term, but what is certain is that the best days for dealers are over, and the days to come will become more and more difficult.

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