Dealer Inventory Survey: 58% have increase

　　According to statistical data from China Automotive Technology & Research Center, from January to April, the inventory amount in automotive companies and circulation has increased 999 600 units. Then, some media reports that with the increase of the inventory, a new round of price war between dealers has already started. Also it is reported, nearly half of the dealers in Beijing haven’t completed their sales tasks for the first quarter. Many manufacturers have to face overstock of autos.

　　Vehicle’s price and inventory is the important indicators whether the automobile market booms or not. Will the current phenomenon showed in the auto market be able to prove the overall auto market? Sohu Auto invites thirteen senior executives from twelve nationwide car dealers to comment the present inventory.

　　Viewing from the survey results, the senior executives from seven companies, including Shengze Group, Nanjing Langchi Group, Chongqing Baishida, Henan Weijia Group, Liantong Auto Group, Dongfeng Nissan Sanhe Franchised Store and Zhongqi Furui Auto believe the pressure of inventory or the market has risen, which takes up 58%.

　　But, Shengze Group, Nanjing Langchi Group, Henan Weijia Group and Chongqing Baishida Auto think the inventory is still in the reasonable scale. Only two companies express clearly that they are under huge pressure of vehicle’s stock. One of them estimates not to fulfill the assignment for the first half year.

　　In addition, Sun Pinren, senior vice president of Enjoy Auto Holdings Co. Ltd., has received the market feedback: the orders of many brands have dropped. Zhongqi Furui Auto Sales & Service Co., Ltd.’s general manager Dai Bin points out: The recent customers has decreased.

　　Five companies have made the assumption for the future automobile market, including Guanghui Auto, Nanjing Langchi Group, Jianguo Auto Group, Liantong Auto Group and Dongfeng Nissan Sanhe Franchised Store. All of these five companies believe the automotive market in the future allows of no optimist.

　　The specifics are as follow:

　　Yang Bo, Chief Operating Officer of Guanghui Auto:

　　In May, so far, the overall sales are the return to rationality, but it will face on the coming pressure of sales. The total stock, except for individual brands, has basically not much problems

　　Wu Wenbiao, President of Zhejiang Kangqiao Group:

　　The results for the first quarter and April are very well with an increase comparing with the same period last year.

　　Liu Dongpi, Chief Investment Officer of Shengze Group

　　The sales of high-end and imported vehicles perform still very well in the first quarter. The supply and demand of middle and low-end cars tends to balance. The inventory has increased a little, but is still in the normal level of the industry. Our Shengze focuses on the changes of inventory and sales, and prepare for the dynamic balance.

　　Wang Xueting, Deputy General Manager of Nanjing Langchi Group

　　It is reported that the sales of some auto dealers in Beijing is not optimistic. Viewing from the market in Nanjing, the situation is still well, which stays basicaly the range of expectation early this year. But the market’s pressure has increased since May. Although the sales amount of some brands hasn’t declined, the magnitude of profit-taking set is increasing. It is expected that the pressure for the market in June will be even greater, which is also the test for car dealers. To adjust the stock structure, increase the amount of customers and optimize the marketing method will be the matters for dealers to face up lately.

　　Lin Shaojun, General Manager of Chongqing Baishida Auto Co., Ltd.:

　　This year overall, the inventory is a few increased. On the other hand, the sales are still increasing. The manufacturers of these automotive brands, which are represented by our company, haven’t overstock, but the inventory does have some increase. I still believe the increase of stock is still reasonable and almost controllable. Probably, our stock in April is relatively high, whose amount is almost a little over the amount of one month. This situation is not normal comparing with last year, which was only the amount of half month.

　　Sun Pinren, Senior Vice President of Enjoy Auto Holdings Co., Ltd.:

　　First of all, the sales goals in the first quarter are achieved successfully. Both of the group’s total amount of sales and the average sales amount of single stores have made the record, which the growth rate is slightly higher than the average level of the car market.

　　Secondly, the brands of the series of Volkswagen show continually strong in the market. But from the recent market feedback, the orders of some brands have a decrease.

　　Thirdly, we always pay attention to the management of inventory turnover ratio, which the average monthly turnover ratio remains more than 1.2 (equivalent to the inventory depth of within 0.7). At present, the inventory is equally reasonable. To predict the inventory status in the future, it depends not only the up and down of the macro-economic, but also whether the manufacturers still passionate or cautiously optimistic.

　　Wei Xiaojing, General Manger of Weijia Group:

　　After entering May, the amount of customers to enter the store has significantly reduced, and the sales amount has slightly dropped. Comparing with last year, the inventory has significantly increased, but is still in the normal range of inventory.

　　Yang Zhiguang, Director of Brand Division of Liantong Auto Group:

　　In the first quarter, the amount of our group’s inventory is normal and a bit low. But the inventory in Mai is increasing very obviously. I think June and July will be very difficult.

　　Pan Lei, Manager of Brand Division of Liantong Auto Group:

　　The stores under Liantong Auto Group have basically accomplished the manufacturers’ goals in the first quarter. But the phenomenon of stock stands out. The main manufacturers of Ford, Hyundai and other brands are all proceeding overstock.

　　Yang Ke, Vice Director of Communication Planning Department and Network Manager of Jianguo Auto Group:

　　Chengdu held the public hearing to limit vehicle on 28th April, which urges the clients to purchase automobiles earlier, who have planned to buy a car this year. The sales has exceeded far from the amount in December 2009. The autos, which can be received immediately, rule on April in Chengdu. Therefore, the inventory is less stressful. But the situation in Mai doesn’t look good.

　　Gu Yalei, General Manager of Yazhijie Bole:

　　The assignment for the first quarter has been already achieved. The inventory’s depth is only 0.7. There is no inventory’s pressure that a lot of autos are out of stock.

　　Yin Xiangdong, Deputy General Manger of Beijing Dongfeng Nissan Sanhe franchised Store:

　　The sales goal has been completed as planed in the first quarter, but the retained orders decline severely and the stock’s stress is relatively large. The profit in the first half of the year is not ideal, which is expected to be very difficult to achieve the task.

　　Dai Bin, General Manager of Zhongqi Furui Auto Sales & Service Co. Ltd.:

　　The sales task for the first quarter has been accomplished with a growth rate of 20%. Despite other factors, like booking the autos at the end of last year, the increase is still 10%. The inventory amount has raised 15% comparing with the same period of last year, which has no stock pressure. Recently, the number of customers declines.

　　There is no inventory pressure. Lately, the customers are dropping.

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100519/n272222032.shtml

　　(Jianfei Keke)