Automobile company stops to shout “wolf coming” any more, when purchase restriction policy come out. With fast growth industry background, single city automobile purchase restriction does not attract much attention as before.
As a dealer of Honda in Tianjin, its sales consultant Cong TIAN faces smaller segment and more stiff competition. Purchase restriction is just a start. How to remain its market share under purchase restriction is the question need to think about.
“Facingpurchase restriction, sales strategy adjusts with market change as well. Market share will not reduce.” Cong TIAN told reporter, “solutions always more than problems.”
When time goes to the last half month of 2013, purchase restriction suddenly implemented. Customers, dealers and manufactures have their own calculation. For last two participates, pressure is not end, but just start.
According to statistics, Tianjin automobile ownership is 2.36 million at the end of 2012, which takes 2% of national automobile ownership. It ranks no. 5 among cities around China. After purchase restrictionimplement, it is expected to reduce around 100 thousand automobile sales, which shall influence 0.5-1 percentage of national passenger car sales of 2014.
Facing the figure, as for dealers in Tianjin, it pressure is obvious in 2014. But different brands have mixed feelings.
In fact, according to other cities experience, it is good news for brand such as Honda. “Purchase restriction will not influence too much onto upper middle brands, but will challenge China owned middle low brands.” Dongsheng CHEN, ex-general secretary of China Automobile Dealers Association, now dean of China Automobile Shenghua Research Center told media.
According to China Automobile Dealers Association statistics, since purchase restriction published at the end of 2010, 11 dealers in Beijing shut down in short time. At March 2011, Beijing has 578 automobile 4s shops, 592 at the end of year. Majority of new 14 dealers sell luxury and joint venture brands.
New car sales volume decrease, but some dealers with large automobiles ownership is able to make up profit by after sales service. For senior dealers, customer service and maintain is another profit source. But for new comer, it should be tough. According to Beijing experience, auto dealers will tend to service provider.
Insider points out that take Jetta for an example. Its sales decrease is very obvious among other brands. But for the entire auto industry in Tianjin, the segment sales are stable. “Purchase restriction policy shall influence onto certain brand most.”
