Beijing dealers focus on service. 30% of 4S stores closed.

　　Beijing limits new car license plates to 240,000 units to let Beijing automobile market step back four or five years ago. Back then, there were less than 350 4S stores, which is only 60% of current nearly 500 4S stores. It can be calculated, long-term limited sales will close about 150 4S stores. The result of limitation leads to the reduction of 4S stores.

　　Combing the number 240,000 units of limited licenses with the figures of relocation and liquidation of old used cars, the actual sales amount of new automotives in Beijing are basically around 350,000 units, which takes up only around 40% of the figure in 2010. If nearly 500 4S stores slit these 350,000 units, every store sells approximately 700 units, which is assigned to 50 units per month. Some 4S stores, which start early and obtain many customers to repair vehicles, could rely on after-sale service. On the other hand, due to few sales amount, those new 4S stores are lack of sustainable repair clients, which have huge survival problem. Although 4S stores have already difficulties to achieve profitability a few years ago, the sales increase depends on after-sales services. In other words, sales aim not profits, but lays foundation for after-sale service market. The restriction of sold cars is indeed the struggle between life and death for business owners with few service basics.

　　Comparing with the limitation of new automotive market, second-hand car market has confronted survival problems, even larger problems. First of all, used vehicles must go outside Beijing and seek developments in outlands. It leads the problems to lose the pricing right of second-hand cars. Meanwhile, there are many factors in outlands not as loose as in Beijing, like consuming habit, car brands and demands of vehicle models. There are huge difficulties to accept automobile models in outlands, which are well received in Beijing market. Secondly, second-hand auto agencies have problems to collect automotives. Even there are cars to be collected; it must be found an owner first, which was used to transfer the ownership under the dealers first. The dilemma, which is hard not only to sell cars but also to collect autos, will stump second-hand car markets.

　　The reduction under limitation is to reduce the amount of 4S stores, to reduce the number of second-hand automobile brokers. And the most decreased is the number of jobs involving with auto sales and services.

　　(Jianfei/Keke)

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