Chinese Dealers not satisfied with suppliers

According to a recent survey conducted by China Auto Dealers Chamber of Commerce (CADCC), auto dealers in China are not very satisfied with their suppliers. Thus CADCC appealed to related institutions for the issue of a new Administration of Branded Automobile Sales Implementing Procedures.

Results of the survey

According to the report of the survey issued on August 21 by CADCC, the figure reflecting auto dealers satisfaction with suppliers was averaged at 48.3, still a lower level.

The report shows that Haval ranked the first with the figure at 73.3, while Chevrolet and Mercedes-Benz took the second and the third. However, French brands Citroen and PEUGEOT were the last two ones. And Audi dropped from the first one to the 21th.

Besides, compared with foreign brands, dealers were more satisfied with domestic brands. Among 14 brands that scored higher than the average figure, five were Chinese brands, and they were Haval, Chery, Roewe, Besturn and Geely.

Dealers’ business status

The average stock volume of the 25 brands picked in the survey was 1.62 times higher than the sales volume. Only Haval had more sales volume. Stock volume of Citroen was 2.74 times higher than its sales volume.

High stock volume may lead to price inversion and downslide of the profits, according to one analyst. Of the 25 brands picked, the models that suffered price inversion accounted for 56% of the models that were on sale. Hereinto, Audi, Benz and Nissan’s models accounted for 80%. Besides, 60% of the dealers could not gain profits in new car sales, and for Audi, Toyota, Hyundai and Citroen, new car sales could only gain 20% of the profits.

Relations that need to be improved

Dealers not only need to adjust themselves to such issues but also improve their relations with suppliers. 73% of the dealers said suppliers did tie-in sales, 77% of the dealers said suppliers forced them to stock up, and 82% of the dealers said they could only purchase accessories from the suppliers. These are the issues that need to be solved.

Besides, CADCC urged related institutions to issue a new version of Administration of Branded Automobile Sales Implementing Procedures.

Early this year, the paper drafted by Department of Commerce was shown to related parties, but due to some disputes, the issue of the paper was postponed.