Gasgoo.com (Shanghai August 5) - The average customer expenditure in luxury vehicle dealerships declined to the lowest among past four years, according to the report of J. D. Power, uncovering the difficult situation of dealers in China.
In luxury vehicle market segment in China, the average expenditure of consumers in 4S shops has decreased from 4,288 CNY of last year to 3,480 CNY, while that of the main stream vehicle segment decreased from 1,710 CNY of last year to 1,558 CNY.
The major reason for expenditure decline included that the improved quality of vehicles lowered the frequency of maintenance for customers, stated Jiang Zhongjun, the director of vehicle customer service of J. D. Power. Meanwhile, statistics show that vehicle problems have decreased 38% in the past five years, along with the reliability increased 34%.
Thanks to the development of the car pooling and special lift economy in China recently, the average mileage of respondents of survey of J. D. Power reduced 7% compared that of 2014, a 13% drop compared that of 2010. Thus, the maintain frequency has lowered at an average drop rate of 1.7% year-on-year in the past five years.
In addition, services offered by vehicle dealers are considered unsatisfying with low convenience, relatively high price and long time, which is the major weakness of dealers. Meanwhile, the profits for dealers in after-sales service and the automobile spare parts have decreased. The share of the two business sections in the overall profit of dealers has declined from 62% of 2013 to 52% of 2014.
