SMM News: June 11, passenger Federation released the "2019 May National passenger car Market Analysis", the fourth analysis said: "the sixth implementation area please give Guo5 inventory car 3 months buffer period."
According to the article, the interval between the official announcement of the policy by the local government and the formal implementation of the policy has not been reasonably set, and the reasonable interests of dealers have not been effectively protected, resulting in the inventory of some dealers difficult to digest. And said that the establishment of a three-month buffer policy to support dealers is particularly great, especially in the short-term improvement of the quality of dealers, but also coincides with the national policy in the new era to pursue the concept of high-quality development.
The analysis also pointed out that if dealers' existing inventories can be delayed until the end of September, the operating pressure will be greatly reduced, especially if the market price of Guofu models returns to stability in July, and the overall market price will pick up. Coupled with the seasonal climbing of the terminal market brought about by Gold, Nine and Silver Ten, it will also be easier to clean up the five inventory vehicles.
It is understood that not only the Federation, but also automobile industry associations in Henan, Shanghai, Chongqing and other places have called on manufacturers to stop distributing five cars to dealers, delaying the implementation of the six national standards, and so on.
The China Association of Automobile Industries also launched an initiative to implement the Guozhou six emission standards ahead of schedule on June 8, saying that the early implementation of the Guozhou six emission standards has intensified the wait-and-see mood of consumers and may lead to a sharp decline in the automobile market in 2019. Guowu vehicle inventory overstocked and corporate efficiency levels significantly decreased.
Cui Dongshu, secretary-general of the Federation, told the China Business Daily: "We call on some local governments to delay the implementation of the six national standards and let them (dealers) not dump the remaining stocks at too low prices, which will cause a lot of problems."
An urgent countdown
The reporter noted that at present, most automobile manufacturers have begun to reduce production and sales, helping dealers digest the country's five inventory vehicles.
Gao Yan, general manager and party secretary of FAW Jilin, said: "reduce wholesale, reduce inventory, the implementation of the region has been implemented." Geely Automobile North China sales director also said that now fully digest the national five cars, dealers pick up cars much less than the same period last year. FAW-Volkswagen dealer said that although the current inventory pressure is not great, but mainly because the entrance has been reduced, fewer cars.
The analysis also pointed out that in May, narrow passenger car wholesale 1.542 million, down 16.9% from the same period last year, factory inventory decreased by 69000, channel inventory decreased by 84000. Production of narrow passenger cars in May was 1.471 million, down 8.7 per cent from April and 23.2 per cent from May last year.
The Federation believes that the large decline in channel inventory is mainly due to the implementation of the regional emergency policy, manufacturers timely ease the pressure on dealers to purchase goods, to achieve accelerated inventory mobilization of the whole people.
Just yesterday, the China Automobile Circulation Association released the results of the May "Automobile Dealer inventory" survey: the comprehensive inventory coefficient of car dealers in May was 1.65, up 4% from a year earlier, down 18% from the previous month, and the inventory level was above the warning line.
"now manufacturers are reducing production and sales, and dealer inventories are also falling in May, but the inventory depth is still very high, and the time is tight from July 1, so dealers are very difficult, at this time we recommend a three-month delay." Cui Dongshu said.
Protect independent brands
According to the analysis, luxury car retailing rose 9.4% in May from a year earlier, mainstream joint venture brand retailing fell 5.2%, and independent brand retailing fell as much as 26.5%.
The China Automobile Circulation Association reported that in May, the inventory coefficient of joint venture brands was 1.51, down 13% from the previous month, while the inventory coefficient of high-end luxury-import brands was 1.69, down 5% from the previous month. Independent brand inventory fell 29% from a month earlier, but the inventory coefficient is still as high as 1.81.
Among them, the five brands with the highest inventory depth are: GAC Chuanqi, Dongfeng Yueda Kia, Dongfeng Citroen, Chery, Changan passenger cars, independent brands account for three seats.
"there is a decline in sales and an increase in the depth of inventory at the same time for their own brands." Cui Dongshu said.
Geely dealer complained to reporters: "the past two months is really difficult, some dealers have mentioned less cars in the past two months, manufacturers are also helping dealers sell five cars, but now the pressure is still too big, many cars are sold at a loss."
Cui Dongshu believes that now large car enterprises are still better, but some small and medium-sized enterprises are still very difficult, independent brands are extremely difficult, sales decline, inventory can not be sold out.
"this appeal is also to protect their own brands, independent brands are relatively weak risk resistance, the promulgation of the sixth country has a greater impact on them, hoping to protect their own brands from the policy, so that they can survive." Cui Dongshu said.
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