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Car dealers were overwhelmed by the sixth National School and it was difficult to sustain, and 11 dealers described their current situation.

2024-11-01 Update From: AutoBeta autobeta NAV: AutoBeta > Industry Report >

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From the postponement of implementation at the beginning of the year to July 1 this year, many parts of the country are about to usher in the era of national six emission standards. However, China's auto market has fallen into a period of low sales, with sales falling for 11 consecutive months, coupled with the pressure of the countdown to the sixth year. Mainframe factories and dealers also face the test of survival.

Recently, Chongqing Automobile Business Association released an investigation report on the implementation of the sixth national emission standard in our city, which not only describes in detail the development situation of the domestic automobile market and the inventory pressure faced by dealers, but also collects the implementation difficulties and suggestions of some dealers in Chongqing.

To some extent, the report reflects the difficult problems faced by automobile dealers across the country and deserves the understanding and attention of all people in the automobile industry.

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The important information in the interception report shows that car sales are weak and market competition intensifies. At this time, the impact of switching country 6 on new car sales intensifies. Consumers wait and see the switching policy of national six models, and they hold money even more for purchase. The mainframe factory speeds up the launch of national six emission models to meet the market, while dealers face arduous pressure to eliminate the inventory of national five models.

The car market is extremely depressed this year, and the pressure of channel inventory before the implementation of the sixth year is already great, coupled with the greater psychological pressure on dealers under lower consumer demand, which makes the inventory adjustment pressure of dealers increase and the occupation of funds increase obviously. Short-term liabilities and capital costs are forming potential huge risks. The association suggested that there should be a longer listing period for national five, while some dealers suggested delaying the implementation of the sixth national emission standard.

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Some dealers said that whether they are manufacturers or dealers, there are still a large number of national five inventory cars for sale, which leads to a double decline in passenger flow under the market downturn, and the inventory depth of dealers' national five models is very high under the pressure of manufacturers. If the sixth year is implemented in July, it will bring serious losses to dealers, and even directly lead to the disappearance of some dealers.

From the reflection of the dealers, it is common that the inventory of national five models is serious, the operating pressure is increased, and it is even difficult to sustain. The implementation of national six will inevitably lead to a backlog of national five models that can only be sold by sharp price cuts, and serious price reversals will cause dealers to fall into a substantial reduction in profits or losses.

The following is the full text of the research report, and the survival situation described by the dealer is worth reading carefully:

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