Gasgoo.com (Shanghai January 22) - Chinese automobile dealerships continue to suffer increasing financial pressure. In 2014, 70 percent to 80 percent of automobile dealerships in the country are suffering deficits, a report appearing in the National Business Daily revealed today, citing statistics from the China Auto Dealers Chamber of Commerce.
In early 2015, the CADCC began a nationwide dealership satisfaction survey. The survey covered a series of points, including brands, products, certifications, network construction, government policies, sales management, after sales service, management intervention and investment returns. Satisfaction ratings for investment were the highest among the eight categories, totaling 40 percent.
Among the eight categories, own brand dealerships reported higher satisfaction ratings than their joint venture counterparts. This has a great deal to do with the higher profits among own brand dealerships, despite the fact that own brands’ sales have been falling in recent months. The low costs of running own brands dealerships compared to joint venture ones is also very favorable.
New policies to help relieve automobile dealerships of inventory pressures are expected to be introduced this year. However the policies are not well-received by manufacturers, and as such may not be released as quickly as dealerships would hope.
