Super Luxury Automobile Sales Decline in China, Vulnerable Dealer Forced Out

“Last Jan, July and August sales of exported cars decline the most obviously, and it lasts to the end of this year. Thesituation gets better at Dec this year.” ZHOU Xi, general manager of Jingshunbao BMW 4S shop told reporter, sales of 2013 was 3 thousand, which has increased 20% overmarket performance last year. However, profit has not increasedwith sales growth. Profit of exported car goes downturn is an undeniable truth for many dealers.“Although there is no so called price war among us, we do not win better lift than last year.”An exported car dealer in Asian Sports Village told reporter.

Recent years, with background of vehicle consumer upgrading, exported car increasing and price discount etc., Chinese exported car sales keep increasing. From the statistics of Asia automobiles industry, in the first 11 months of 2013, Beijing exported car trade has increased 16.8% over the performance of last year. New car trade declines 0.8%. In the first 10 months of 2013, national exported car license application has increased 9.6%. Beijing exported car market volume has increased 14.96%.

However, nice figures cannot stop moan mood around dealers. Exported automobile market of Beijing, price goes down, inventory keeps high level still, and some negative news, such as license limitation, price monopoly event, make exported car market development does not smooth enough. Insider forecasts that exported car segment growth already slows down.

“I’m really afraid dealers cut price and initial price war for sales, which has triggered exported car segment chaos already in 2012.”When mentioned about super luxury brand price war, some dealers still feel shivering. In 2012, Benz S class price cut 300 thousand Yuan. Other super luxury brands follow its step. And joint venture and Chinese brands are forced inside and trigger the price war.

Compared with 2012, exported car price does not fluctuation too much in 2013, and price war does not appear. “Price in 2012 is just like roller coaster. It has an obvious fluctuation. Last year automobile industry is stable, price remains reasonable area.”An insider told reporter.

However, exported car price decline tendency remains. “From last June and July, price goes downturn. It does not recover a little bit up to the end of this year.” a manager of Benz 4S shop so expressed. As long as super luxury brand price slipping down, it is hard for it to recover back.