The market is deserted and the horses are sparse. Car dealers also need to comprehensively "fight the epidemic"

A sudden novel coronavirus pneumonia epidemic (hereinafter referred to as the "epidemic") has made it even more difficult for car dealers whose survival is in doubt.

As a bridge between car companies and consumers, car dealers have always been the most important part of the automotive industry and cannot be missed. But judging from the situation in recent years, the crisis of dealers has begun to appear. After entering 2019, the market decline is unstoppable, and most dealers are unable to keep up and are struggling with high inventories and high losses.

According to data released by the China Automobile Dealers Association, in December 2019, the inventory warning index of Chinese automobile dealers was 59%, a month-on-month decrease of 3.5%, and a year-on-year decrease of 7.1%. However, the inventory warning index was at the warning line. above. This is the 24th consecutive month that the index has been above the warning line. At the same time, dealer "big crocodiles" are also struggling to survive. Pangda Group filed for bankruptcy and Guanghui Group was heavily in debt.

"The auto market in 2019 can be summarized into a few keywords: 'downward', 'too difficult' and 'reorganization'. Whether it is from the production side or the circulation side, the automobile industry is undergoing transformation and upgrading. and structural adjustments, etc. For 2019, the entire industry chain is actually facing severe challenges," said Lang Xuehong, deputy secretary-general of the China Automobile Dealers Association.

In this regard, dealers have set their hopes on 2020. Just when they are gearing up to start a big fight, the epidemic that struck at the beginning of the year once again gave dealers a "head-on blow".

01

The store is deserted

“The deserted streets are empty, the dealer’s door is closed, and there is a notice on the door to postpone the opening. From time to time, there are one or two people. Security guards are patrolling nearby." This is the current situation of the BAIC New Energy 4S store in Haidian District, Beijing, and it is also the epitome of most dealers in Haidian District. After all, Haidian is now a "hardest hit area."

The security guard told "Yipin Auto", "We received notice before this year that due to the epidemic, the store's opening was postponed, and the tentative opening date is February 10." At the same time, other He also said: "It was open during the Spring Festival before the outbreak, but not many people came to see the cars. Now after the outbreak, there will be even less people to come to see the cars, so we might as well close the business."

< p>Yipin Auto then contacted the BAIC New Energy Sales Department. “Due to environmental reasons, very few people come to see cars anymore. Our main task now is to protect consumers who have already purchased cars and handle services such as warranty renewal, repair and maintenance. Warranty renewal can now be processed online. The method is, if there are maintenance and other services, you need to make an appointment first, and then wait for the business to be processed first," a salesperson told "Yipin Auto".

It is reported that automobile parks where dealers gather, such as Yashi and Baiwang Green Valley, have all adopted the method of delaying their opening, and the doors are deserted.

There is no shortage of 4S stores opening in Yingmen in Beijing. A certain Changan 4S store in Chaoyang District is one of the few open stores. However, compared with the bustling traffic in front of the door, it is now a bit bleak. . The announcement posted at the door that people must take their temperature, register, and wear a mask before entering also reminds everyone that this is a special period when the epidemic is rampant.

The staff of the above-mentioned 4S store said: "We are basically in trial operation now. There are not many sales staff on duty now, so we adopt a shift system. The current situation is basically all day long No customers came to see the car, and the preferential policies for the year-end have not yet been announced, and there is no way to negotiate prices with customers.”

The salesperson complained: “The year-end is the off-season for car buying, and the sales volume is off-peak. With the arrival of the epidemic, it is expected that the first quarter of this year will be the worst in recent years.”

At the same time, the nearby BMW 4S store is also open, but it only supports ordinary after-sales repairs and maintenance. Waiting for service.

It is worth mentioning that due to the shutdown of the automobile factory, 4S stores currently have all cars in stock. When work resumes, a new batch of cars will arrive at the 4S store. How to deal with this batch of stock cars is also a problem. , by then, the dealer inventory index may rise to a new height.

The outbreak of the epidemic is putting pressure on dealers step by step, which makes dealers who were originally unsatisfied now even worse.

02

Calling for pressure reduction

The arrival of the epidemic has brought great pressure to all walks of life. In 2019, dealers have been overwhelmed. If Dealers may be overwhelmed by the epidemic again. As the most important part of the automobile industry, dealers cannot afford to lose anything. In this regard, the China Automobile Dealers Association calls for reducing pressure on dealers.

The China Automobile Dealers Association stated that in terms of channels, automobile manufacturers should take active and pragmatic measures to reduce the pressure on dealer partners in the "fight against the epidemic" and put the protection of dealers' safety in a more prominent position. location to minimize dealer losses and protect the healthy operation of the channel to the maximum extent.

Relevant people said: "During the epidemic, the assessment and indicator setting of dealers should be revised and exempted, and various operational policy rewards and subsidies for dealers should be improved and implemented. And the form should be actively adjusted "Replacing offline with online can reduce circulation while also saving costs."

The Circulation Association also stated that local governments at all levels should provide support policies to enterprises such as trapped automobile sales and service companies to stabilize their jobs. We will formulate policies for exemption, reduction and postponement of taxes and fees such as social security funds, value-added tax, land tax and administrative fees, and support automobile sales and service companies to do a good job in automobile sales and services during the "war epidemic" period, stabilize the employment force, and ensure social needs.

“Everyone is always looking forward to the possibility of recovery in 2020. I think recovery is a good wish, but we have to practice our internal skills. How to transform the growth mode and improve the economy under this situation? To develop sustainably on the premise of quality development? " Shen Jinjun, president of the China Automobile Dealers Association, also believes that in 2020, dealers should also work hard on their internal skills and start from various aspects of service and management models to resist the cold winter.

“Judging from the current situation, there is a high probability that the auto market will still have negative growth this year. While we are protecting dealers, we must also urge them to do a good job in various indicators, so that we can see the bright future. "Shen Jinjun said.

03

Reducing the burden on car companies

With the outbreak of the epidemic, we have also seen the high sense of responsibility of car companies. Major car companies have money to contribute and are able to contribute. Actively contribute to the country. At the same time, car companies have not forgotten their dealer partners. Dealers have always regarded dealers as their "back gardens." Now that the "back garden" is on fire, car companies have also played the role of fire-fighting heroes.

Volvo took the lead in launching a slogan to reduce pressure on dealers, and used the most pragmatic way to overcome the difficulties with dealers. In response to the short-term economic impact caused by the epidemic, Volvo Cars decided to relax its performance evaluation standards and not set a sales target for February in order to reduce the operating pressure on dealers; at the same time, considering that the income of dealer personnel may be affected by the epidemic, Volvo Cars Automobile directly provides special employment subsidies totaling more than 10 million yuan to dealer staff to reduce financial pressure on dealers.

In addition, Volvo Cars has also comprehensively assisted dealers in many aspects, including stepping up negotiations with banks to reduce the due repayment risk of a small number of dealers; For projects such as stores, the exemption period will be extended based on the agreed opening date; on-site inspection projects such as dealer standard audits will be suspended.

Toyota related people also told "Yipin Auto": "At present, Toyota is actively customizing its strategy to ease the pressure on dealers and overcome the difficulties." At the same time, Dongfeng Fengshen also said: " Dongfeng Fengshen has fully lowered its sales target for February, and has also fully relaxed its business policies in February to reduce the pressure on dealers."

Dongfeng Fengshen aims to relax various assessment requirements and extend subsidies. A series of measures such as the duration, lowering the conditions required for rewards, and increasing the rental support for the second network will provide subsidies and assistance to dealers and front-line sales staff to help dealer partners regain their confidence, stabilize the sales team, return to a good state, and actively carry out sales job. Jaguar Land Rover, Beijing Hyundai, BYD, GAC Trumpchi and other car companies have also spoken out to reduce the burden on dealers.

At the same time, during special periods, dealers' offline sales are blocked, and car companies are also actively opening up online sales channels and adopting cloud car sales methods. Geely, Great Wall, MG and other car companies and dealers have actively opened online smart showrooms to provide consumers with online explanations, online consultation and other services.

Summary: The duck in the spring river is the prophet, and the dealers on the front line are that duck.

Now, the arrival of the epidemic has indeed turned the water cold, but thanks to the call of the China Automobile Dealers Association and the shoulders of car companies, dealers feel warmer. I hope dealers can survive this epidemic and eventually the clouds will clear and the moon will shine.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.