Gasgoo.com (Shanghai September 24) - China Grand Auto, a big dealer group in China announces that the enterprise is purchasing Baoxin Auto group, uncovering a new trend of acquisition among Chines auto dealership enterprises.
These two enterprises have managed to reach shared opinion and China Grand Auto has paid a sum of goodwill money of 50 million Hong Kong dollars to Baoxin Auto. Upon closing the acquisition, China Grand Auto will become the “Maximal” in Chinese auto dealers companies, whose annual revenue will exceed 100 billion yuan since in the first half the total revenue of these two reaches 57 billion yuan.
Analysts pointed out that in a weak market environment Market consolidations are emerging since some dealer groups are in a bad operation and profit slump.
China Grand Auto was China's second largest auto dealer group, with 503 business stations including 454 4S stores.
In the first half, sales of the group are 288,600 vehicles; maintenance business reaches 2.73 million vehicle-times and revenue is 43.346 billion yuan.
Baoxin Auto mainly serves as agent of luxury brands such as BMW, Audi, Land Rover, Jaguar and Cadillac. Its distribution and service network locates mainly in economically developed Yangtze River Delta with dense population and huge market potential. Baoxin Auto actually complemented China Grand Auto in business location and vehicle brands tire.
China Grand Auto has succeeded in buying 45 4s stores including the one-time acquisition of 30 ones of automobile dealers group in Jiangxi Province. The enterprise expanded its acquisition in north China, Northwest regional and central China, Sichuan region, purchasing 4 FAW-Audi distributors and 4 FAW-VW distributors, one Shanghai Volkswagen and Skoda distributor, which amounts to 15 4s stores.
