CADA to release China Top 100 Auto Dealers

　　Recently, the China Business Herald learned from China Automobile Dealers Association that the association would release the rankings of top 100 Chinese automotive dealers for the year of 2009 based on the statistical data collected and distributed by National Bureau of Statistics.

　　Song Tao, the Director of Membership Department of China Automobile Dealers Association, said that the top ten dealers such as Pangda, Guanghui, Yuantong, Zhongjin Auto Trade had achieved sales more than ten billion yuan. Those auto dealers around top 20 or top 30 were also able to obtain more than five billion yuan.

　　Based on current situation, the grouping trend for Chinese auto dealers is becoming more obvious. Several strong groups have been established.

　　Knowing dealers

　　It s reported that China Automobile Dealers Association is the only domestic institution authorized by National Bureau of Statistics of China to collect and publish data in the field of automotive dealership. For the top 100 rankings, China Automobile Dealers Association has already finished some preliminary work. Based on those efforts, the association organized and implemented the verification work for those key dealers with the reference to international experiences and practices prevailing across the globe. Taking the actual situation of development of Chinese auto dealership, China Automobile Dealers Association will released the rankings based on the dealers' statistical reports for 2009.

　　Song Tao pointed out the association would determine the rankings according to the main business income of automotive dealers and release the result, which is a nonprofit activity and does not charge any fees to those businesses. There is no expert assessment. The activity will fully reflect the current situation in the industry with objective and impartial perspective.

　　It is reported that the rankings of auto dealers are quite rare both at home and abroad. The statistical procedure is very cumbersome. Song Tao said:" First, based on statistical methods, we required the businesses to report the real data. In addition, we can collect data from Trade and Industry Bureau and sometimes from Inland Revenue Department. There have been no such kind of large-scale and systematic rankings ever before. We are the first one to reveal such kind of statistics. "

　　Grouping Trend

　　Grouping Trend has become a long-standing term. We should say that grouping is the future development way for Chinese automotive dealers. Till today the trend has become more obvious and urgent.

　　At present there are more than 30,000 domestic automakers in China and the amount is constantly growing. As China has become world's largest automotive production and sales market, the competition in China's auto market is more intense. As the terminal of auto sales, the pressure for dealers is apparent.

　　After the outbreak in 2009, domestic auto market began to transit to a smooth condition. Some deals even suffered from pressure due to large inventories. Obviously, inventory poses the biggest risk for dealers. Of course, there are many reasons for such kind of situation. First of all, as competition intensifies, manufacturers exert pressure on dealerships by increasing inventories. Moreover, the continuous introduction of new models also accelerated the accumulation of inventories.

　　At this time, the advantage of grouping will become prominent. Grouping can not only reduce business risks, but also becomes a important factor which may influence consumers' choice. For those consumers who want to buy a car, price is as important as after-sales service. For dealers, they may better handle the relationship with manufacturers.

　　The relationship between dealers and manufacturers is very delicate. They depend on each other and also engage in competition in various sectors. According to the current situation, businesses are still holding a dominant position. With the development of grouping trend, the strength of dealers is also increasing and their voice is becoming more and more important.

　　Song Tao said that the upcoming release of top 100 not only attracted attention from many auto manufacturers but also appealed to several banks, investment companies and large fund companies. There is no denying the fact that advantages of groups are very obvious.

　　Long way to go

　　Although the group is a way for China's car dealership business, limited to the national conditions China's auto industry is still relatively young. There are less large car dealership groups like GUANGHUI and these super car dealership groups will also co-exist with small size and strength car dealers for some time.

　　At present, development of China’s car dealership groups is still faced with many problems. For instance, its development model mainly depends on converge of many different brands’ 4S shops and simple sum of a variety of business. Most car dealership groups’ management for subsidiary 4S shops and a variety of operating business stay on financial management and control and personnel management.

　　On sales management and after-sales service, 4S shops of car dealership groups must strictly enforce the service standards and processes. It is difficult for car dealership groups to manage subsidiary 4S shops deeply.

　　Therefore, currently the advantages of car dealership groups more come from growth of financial strength and control of operational risks. That is, they haven’t achieved deeper integration and share of resources, so advantages of car dealership groups can’t fully emerge.

　　Based on the above fact, release of top 100 involves China’s car dealers industry not only illustrates the strength of car dealers, but also helps various sides including manufacturers, banks recognize car dealership groups. As a result, this industry can establish own brand and really make the car dealership groups bigger and stronger, thus promote the healthy development of China’s auto industry.

　　(Translator: Qinghua Hanxin)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100514/n272122660.shtml