Passenger car market “sorrow and happiness” May sales and inventory increase

Yesterday, the National Passenger Vehicles Association held a monthly market meeting. According to the agency's secretary general, Rao Da, briefing the reporter, the automobile market recovery trend in May was obvious: the wholesale and terminal sales of various models of the broad passenger car market were both positive and increased year-on-year, stimulating the entire automobile market in May sales and 1- The cumulative sales in May showed a small positive growth year-on-year.

According to reports, in May this year, the total sales volume of domestic passenger cars was 1,176,328 units, which was a 2.2% increase from the previous period, and the year-on-year increase was 16.6%. From January to May this year, China's cumulative sales of 5,858,907 vehicles, an increase of 4.4%.

However, it is not optimistic that Rao Da said that because the market growth rate is lower than the manufacturer's expectations, the dealer's inventory will further increase. The passenger car market is facing a situation in which the joint venture market has grown significantly and the domestic-funded enterprise market has shrunk.

High inventory has become the sword of Damocles suspended in the automotive industry in China. According to a person familiar with the Wilson Consulting Group, the pressure on the nation’s stockpiles continued to increase, and the inventories reached a depth of 1.4, which was the highest in nearly a year. With the arrival of the traditional off-season, the depth of inventory is expected to increase further.

“Taking the Guangzhou market as an example, the overall inventory pressure has increased, and the stock depth in May has increased to 2.1, exceeding the warning line of 1.2 by nearly one time. The inventory pressures of A0, A, and B-class vehicles are relatively high, so dealers are increasing. Strengthen price promotions." The source said.

Su Hui, president of the China Automobile Dealers Association’s tangible automobile market branch, is also concerned about the development of the auto market this year. He has just visited the auto market in several major cities in China. He said that although the situation in the Beijing market in May was not bad, the situation in other cities was not satisfactory.

Su Hui believes that the reason for the rebound in car sales in May was mainly caused by price cuts. “All models are selling at reduced prices, and the rate of price reductions is increasing.” In addition, he pointed out that it is worth noting that, despite the steady increase in sales in Beijing, the economic efficiency of dealers is getting worse. At present, just entering June, the two conditions have not improved.

"In the face of serious overstocking, tight funding, and a general decline in economic efficiency, the days of auto dealers will become more and more difficult. If such conditions cannot be effectively mitigated in the coming period, especially in the third quarter, dealers will shuffle. Inevitably." Su Hui thinks.

"Increase in inventory and dealers' difficult living conditions are caused by the over-optimism of China's auto manufacturers." Su Hui said that in previous years, manufacturers had overestimated car sales estimates and expanded outlets in various cities. The fierce competition that has taken shape has begun to develop into disorderly competition, and this has created a difficult situation for both current and old dealers.

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